CPFIS funds continue uptrend, rising 5.17% in Q1: Lipper

The investment funds approved by Central Provident Fund (CPF) have continued their positive performance of the last three years, with funds under the CPF Investment Scheme (CPFIS) posting an average rise of 5.17 per cent in the first quarter of 2015.
The investment funds approved by Central Provident Fund (CPF) have continued their positive performance of the last three years, with funds under the CPF Investment Scheme (CPFIS) posting an average rise of 5.17 per cent in the first quarter of 2015. -- ST PHOTO: TIFFANY GOH

SINGAPORE - The investment funds approved by Central Provident Fund (CPF) have continued their positive performance of the last three years, with funds under the CPF Investment Scheme (CPFIS) posting an average rise of 5.17 per cent in the first quarter of 2015.

Data from Lipper, released on Wednesday, showed that CPFIS-included unit trusts gained 5.64 per cent while investment-linked insurance products under CPFIS rose by 4.87 per cent in the three-month period ending March 2015.

Equity, mixed asset and bond funds continued to perform, with equities generating the highest returns of 6.51 per cent, followed by 4.08 per cent and 1.40 per cent respectively, Lipper said.

The overall performance of the funds showed a positive return of 12.66 per cent for the 12-month period - nearly half the growth on average of 28.68 per cent recorded in the last three years.

During the same 12-month period, however, the key benchmark equity index MSCI World TR USD and MSCI AC Asia ex-Japan index soared 16.28 per cent and 21.10 per cent respectively, said Lipper, a Thomson Reuters media firm that tracks the peformance of CPFIS funds.

Said Mr Xav Feng, Head of Asia Pacific Research for Lipper: "The US economy growth was slower than expected in the first quarter. The US Fed is likely to delay its decision to increase the interest rate. On the contrary, with the European Central Bank's quantitative easing and interest rate cuts by several central banks, hot money is driven into global equity markets. However, investors need to pay close attention to the ongoing issues in the eurozone such as the Greek debt crisis."