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CPFIS funds deliver 0.62% returns in Q2

CPF members who invested in funds that are part of the Central Provident Fund Investment Scheme (CPFIS) reaped average returns of 0.62 per cent in the second quarter this year.

Unit trusts delivered a return of 0.64 per cent on average while investment-linked insurance products (ILPs) averaged a 0.60 per cent return, according to fund research firm Thomson Reuters Lipper on Thursday.

Among CPFIS funds, equity funds averaged a return of 0.88 per cent. Mixed asset funds rose 0.52 per cent and money market funds inched up 0.23 per cent. Bond funds gave a negative 0.41 per cent return.

During the same period, the MSCI All Country Asia ex-Japan index, a widely cited measure of Asian equities, fell 1.54 per cent. The FTSE World Government Bond Index rose 0.49 per cent.

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For the one year period ended June 30, the overall performance of CPFIS funds posted a positive return of 5.29 per cent on average. Unit trusts rose 5.86 per cent on the year and ILPs rose 4.96 per cent.

During the same period, the benchmark MSCI All Country Asia ex-Japan Index posted a gain of 9.13 per cent while the FTSE World Government Bond Index rose 0.91 per cent. Equity funds rose 7.19 per cent on average, outperforming bonds which fell 0.62 per cent. Mixed-asset funds climbed 3.94 per cent and money market funds edged 0.76 per cent higher.

Xav Feng, head of Asia Pacific research at Thomson Reuters Lipper, said: “Overall, CPFIS funds demonstrated good resilience during the second quarter of 2018. However, with the trade war between the US and China showing no signs of ceasing, trade tensions pose a great risk to global economic growth. Investors should continue to monitor for further developments and potential volatility risk.”