CPFIS funds, under the Central Provident Fund Investment Scheme, recorded a 6.17% gain over the past year, according to the latest report by FundSingapore and Morningstar. However, the first quarter of 2025 saw a slight decline of 0.18% in these funds, reflecting mixed performance across asset classes.
The report highlights that whilst equities fell by 0.62% in Q1 2025, fixed income funds showed improvement with a 1.18% increase. Money market and allocation funds remained stable, delivering returns of 0.68% and 0.13% respectively. Over the past year, equities saw a significant drop in returns from 14.19% to 7%, whilst allocation funds halved to 5.80%. Despite these fluctuations, money market funds maintained stability with a 3.28% return, and fixed income improved to 3.49%.
Senior Analyst Arvind Subramanian noted, “Despite lower interest rates, it’s notable that investors favoured money market funds in the first quarter of 2025—likely seeking shelter from the uncertain threat of potential trade tariffs at the time.”
In terms of fund flows, the first quarter of 2025 saw net inflows of $2.2b, a 27.8% increase from the previous quarter. Money market funds led with net inflows of $917.58m, followed by allocation funds with $2.2b. Equity strategies attracted $397.11m, whilst fixed income funds saw a decrease in net inflows to $168.87m from the previous quarter’s $758.83m.
The findings underscore the dynamic nature of investment strategies amidst global economic uncertainties, with potential shifts in investor focus as market conditions evolve.
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