SINGAPORE - Investors who parked their money in funds under the Central Provident Fund Investment Scheme (CPFIS) could heave a small sigh of relief after a few quarters of negative performance.

Research firm Lipper, which monitors all CPFIS funds, said that for the three months ended Jun 30, the overall performance of CPFIS-included funds rose 0.68 per cent on average.

Mr Xav Feng, head of Asia Pacific research at Thomson Reuters Lipper, said: "CPFIS funds experienced stronger growth in the second quarter of 2016. On a macro-level, global markets have gradually rebounded following United Kingdom's referendum decision to leave the European Union, but an environment of uncertainty continues to prevail."

Unit trusts in the scheme increased 0.34 per cent while investment-linked insurance products (ILPs) rose 0.89 per cent. For all CPFIS-included funds, equities and bonds posted positive returns of 0.45 per cent and 1.39 per cent, while mixed-asset and money market funds grew 0.95 per cent and 0.18 per cent.

The performance is broadly consistent with trends in the global market during the same period. The MSCI AC Asia ex-Japan index rose 0.46 per cent, while the Citigroup World Government Bond Index (WGBI) grew 3.36 per cent.

However, investors who held these funds for the 12 months till June this year, experienced lacklustre results. Lipper indicated that during this period, the overall performance of CPFIS-included funds fell 5.94 per cent on average. CPFIS-included unit trusts slid 7.17 per cent on the year and CPFIS-included ILPs fell 5.21 per cent on average.