CPFIS funds deliver 1.9% average returns in 2nd quarter

Funds under the Central Provident Fund Investment Scheme (CPFIS) delivered 1.9 per cent on average in the second quarter ended June 30.

Average returns from unit trusts rose 1.86 per cent, while returns on investment-linked insurance products (ILPs) gained 1.92 per cent, according to fund research firm Lipper yesterday.

Among CPFIS funds, mixed asset funds performed the best, with average returns of 2.04 per cent, followed by equity funds, which rose 1.94 per cent. Bonds climbed 1.61 per cent and money market funds rose 0.34 per cent.

During the same period, the MSCI All-Country Asia ex Japan Index, a widely cited measure of Asian equities, fell 0.67 per cent.

Meanwhile, the MSCI World TR USD, representing global equities, rallied 4.08 per cent, and the FTSE World Government Bond Index rose 3.45 per cent.

Lipper's Asia-Pacific research head Xav Feng said: "The encouraging performance of the CPFIS continued in (the second quarter), echoing that most of global equity markets kept rallying."

For the one-year period ended June this year, the overall performance of CPFIS-included funds posted an average positive return of 2.21 per cent. Unit trusts rose 1.81 per cent on the year, and ILPs were up 2.46 per cent.

Lipper was appointed by the Investment Management Association of Singapore and the Life Insurance Association of Singapore to monitor the performance of all unit trusts and ILPs under the CPFIS.

A version of this article appeared in the print edition of The Straits Times on August 29, 2019, with the headline 'CPFIS funds deliver 1.9% average returns in 2nd quarter'. Print Edition | Subscribe