CPFIS-included funds post average positive returns of 10.22% in 4Q20: Refinitiv Lipper

Central Provident Fund Investment Scheme (CPFIS)-included funds grew on average 10.22% for 4Q2020 ended December 2020, according to findings reported by Refinitiv Lipper. 

The funds comprise CPFIS-included unit trusts and CPFIS-included investment-linked insurance products (ILPs), which gave average positive returns of 11.06% and 9.68% respectively.

During that same period, equity funds posted average positive returns of 13.60% while money market funds posted average positive returns of 0.06%. Key benchmarks MSCI World TR USD and MSCI AC Asia ex-Japan Index rallied 10.44% and 14.89% respectively, while FTSE WGBI Index fell 0.5%.

For the one-year period, CPFIS-included funds grew 11.40% on average, with CPFIS-included unit trusts and ILPs giving returns of 11.11% and 11.58% respectively.

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SEE: CPF Investment Scheme funds post average negative returns of 12.96% in 1Q20: Refinitiv Lipper

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During that same period, equity funds posted a positive return of 13.47% on average, outperforming bonds, mixed-assets, and money market funds which posted average positive returns of 6.31%, 10.12% and 0.69% respectively. Key benchmarks MSCI World TR USD, MSCI AC Asia ex-Japan Index and FTSE WGBI rallied 14.50%, 23.22% and 8.22% respectively.

For the three-year period, CPFIS-included funds grew 18.42% on average, with CPFIS-included unit trusts and ILPs giving average returns of 18.31% and 18.48% respectively.

During that same period, bonds, mixed-asset and money market funds posted average positive returns of 12.82%, 16.94% and 3.33% respectively. Key benchmarks MSCI World TR USD, MSCI AC Asia ex-Japan Index and FTSE WGBI rallied 35.79%, 26.18% and 14.34% respectively.

Xav Feng, head of Asia Pacific research, Lipper at Refinitiv, says that Singapore’s economy is on the path to recovery.

“Singapore’s economy is on a path to recovery with GDP shrinking less than anticipated in 2020 after marking its worst ever recession last year due to the Covid-19 pandemic. Global equities have had a steady start to 2021 despite the on-going impact of pandemic and with global vaccination programmes gaining increased momentum there is hope for further recovery,” he says.