Funds invested in products under the Central Provident Fund Investment Scheme (CPFIS) mainly enjoyed a positive fourth quarter last year.

The overall performance of CPFIS-included funds increased 3.61 per cent in the three months to Dec 31 over the preceding quarter, said Thomson Reuters Lipper, which complied the data.

Unit trusts increased 3.94 per cent while investment-linked insurance products (ILPs) rose 3.42 per cent. For all CPFIS-included funds, equities rose 4.68 per cent and mixed-asset ones added 3 per cent, bonds advanced 0.29 per cent, while money market funds grew 0.17 per cent.

During the same period, benchmark indices MSCI AC Asia ex-Japan rallied 6.56 per cent while Citigroup WGBI TR fell 0.56 per cent.

The overall performance of CPFIS-included funds rose 15.82 per cent on average last year compared with 2016.

CPFIS-included unit trusts rallied 16.54 per cent while ILPs climbed 15.4 per cent.

On average, equities (up 20.17 per cent) outperformed bonds (up 3.11 per cent), mixed-asset (up 12.96 per cent) and money market funds (up 0.66 per cent).

The MSCI AC Asia ex Japan Index, by contrast, added 31.43 per cent and Citigroup WGBI TR fell 0.57 per cent over last year .

Mr Xav Feng, head of Asia-Pacific research at Thomson Reuters Lipper, said yesterday: "CPFIS funds experienced steady performance in the fourth quarter of 2017.

"Though the global economy is expected to remain strong this year, financial markets have recently turned more volatile and the concern of inflation risk is spreading. Investors are advised to be aware of potential volatility risk."