CPFIS funds delivered 5.1% return on average in Q1

Unit trusts increased 5.2 per cent while investment-linked insurance products (ILPs) rose 5.04 per cent.
Unit trusts increased 5.2 per cent while investment-linked insurance products (ILPs) rose 5.04 per cent. PHOTO: ST FILE

SINGAPORE - Funds included under the Central Provident Fund Investment Scheme (CPFIS) posted an average return of 5.1 per cent in the three months to March 31.

Unit trusts increased 5.2 per cent while investment-linked insurance products (ILPs) rose 5.04 per cent, according to fund research firm Thomson Reuters Lipper on Wednesday (May 31).

For all CPFIS-included funds, equities posted positive returns of 6.44 per cent, mixed-asset 4.1 per cent, bonds 1.27 per cent and money market funds 0.19 per cent. During the same period, MSCI AC Asia ex-Japan index rallied 9.68 per cent while Citigroup WGBI TR fell 1.78 per cent.

For the one year since March 2016, the overall performance of CPFIS-included funds posted a positive return of 14.17 per cent on average.

CPFIS-included unit trusts rallied 15.8 per cent on the year and CPFIS-included ILPs soared 13.16 per cent.

For the one-year period, equities (18.55 per cent) outperformed bonds (1.16 per cent), mixed-asset (10.66 per cent) and money market funds (0.64 per cent) on average. Meanwhile, MSCI AC Asia ex Japan Index soared 22.25 per cent, whereas Citigroup WGBI TR fell 0.03 per cent.

Mr Xav Feng, head of Asia Pacific research, Thomson Reuters Lipper, noted that CPFIS funds delivered strong returns in the first quarter of this year.

"On a macro-level, reflation is a key global trend and growth expectations are gradually on the rise, while geopolitical tensions continue to impact financial markets. With the US becoming more of a driver of policy uncertainty than a stabiliser, China and emerging markets are gaining significant traction."

Looking ahead, investors are advised to sift through copious amounts of data and news to identify solid investment opportunities and to maintain a diversified portfolio, Mr Feng advised.