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CPFIS-included funds up 6.22% on average in Q3 2016

Thursday, November 24, 2016 - 10:23

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The overall performance of unit trusts and investment-linked insurance products (ILPs) included under the Central Provident Fund Investment Scheme (CPFIS) had risen in the third quarter.

THE overall performance of unit trusts and investment-linked insurance products (ILPs) included under the Central Provident Fund Investment Scheme (CPFIS) had risen in the third quarter.

Thomson Reuters Lipper said on Thursday that for the three months as at end-September, CPFIS-included funds rose 6.22 per cent on average. CPFIS-included unit trusts went up 6.96 per cent and CPFIS-included ILPs rose 5.75 per cent.

For all CPFIS-included funds, equities and bonds posted positive returns of 8.01 per cent and 1.24 per cent respectively, while mixed-asset and money market funds grew 4.76 per cent and 0.16 per cent respectively.

In Q3, MSCI AC Asia excluding Japan (ex-Japan) index soared 11.69 per cent, while Citigroup WGBI (World Government Bond Index) rallied 1.60 per cent.

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For the one year since September 2015, the overall performance of CPFIS-included funds rose 6.70 per cent on average.

CPFIS-included unit trusts rallied 6.83 per cent on the year and CPFIS-included ILPs soared 6.62 per cent.

During the same period, Citigroup WGBI TR rose 5.20 per cent, while benchmark MSCI AC Asia ex-Japan Index soared 12.37 per cent.

For the one-year period, on average, equities (+7.22 per cent) outperformed bond offerings (+5.59 per cent), mixed-asset (+6.54 per cent) and money market funds (+0.73 per cent).

Over a longer term from September 2013 to September 2016, CPFIS-included funds reported a strong growth of 14.52 per cent on average, lifted by a gain of 15.62 per cent from CPFIS-included unit trusts and 13.95 per cent from CPFIS-included ILPs.

During this period, MSCI AC Asia ex-Japan Index soared 21.39 per cent and Citigroup WGBI TR rose 14.57 per cent. Equities were the lead gainer with growth of 15.7 per cent, while money market portfolio posted 1.33 per cent on average.

Xav Feng, head of Asia Pacific research at Thomson Reuters Lipper, said: "Global equity markets have rebounded after the United States presidential elections. Yet, the market remains anxious about a potential interest rate hike by the US Federal Reserve as the new President-elect develops plans for increasing infrastructure spending to spur economic growth."

He said speculation surrounds US and Asia relations in the light of Donald Trump's "America First" policy, which needs more time for evaluation.

The globalisation of the Chinese yuan remains a key theme in the foreign-exchange market, he noted, adding that investors are advised to keep a vigilant watch on potential risks and stay abreast of economic and geopolitical developments globally.

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