SINGAPORE: Investors who used their CPF savings to buy approved unit trusts and investment-linked insurance products may lose money this year, as the overall performance of funds under the CPF Investment Scheme (CPFIS) slipped lower in the second quarter.
The decline was attributed to the pullback in global stock markets.
Koo Chung Chang, a representative from Life Assurance Association of Singapore (LIAS), said, "CPFIS-included funds registered a negative growth in Q2 2012, giving back some of the gains made in Q1 and investors are likely to continue experiencing market volatility in the near term."
Funds under the Central Provident Fund Investment Scheme (CPFIS) were down 4.06 per cent in the three months ended June 30, as investors dumped stocks for safer assets like bonds.
Fund research firm Lipper said this market volatility is likely to continue into the coming quarters.
Xav Feng, head of Research, Asia Pacific, Lipper, said: "All the investors are on watch mode, because they would like to see how it goes for the European debt crisis, and also there's a big election this November for the US presidency.
"Another question is whether the Federal Open Market Committee in the US will unveil QE3 in September. I think these issues will disturb the markets in future, at least for the next quarter."
About 60 per cent of the 306 CPFIS-approved funds are investment-linked insurance products.
The rest are unit trusts.....
The decline was attributed to the pullback in global stock markets.
Koo Chung Chang, a representative from Life Assurance Association of Singapore (LIAS), said, "CPFIS-included funds registered a negative growth in Q2 2012, giving back some of the gains made in Q1 and investors are likely to continue experiencing market volatility in the near term."
Funds under the Central Provident Fund Investment Scheme (CPFIS) were down 4.06 per cent in the three months ended June 30, as investors dumped stocks for safer assets like bonds.
Fund research firm Lipper said this market volatility is likely to continue into the coming quarters.
Xav Feng, head of Research, Asia Pacific, Lipper, said: "All the investors are on watch mode, because they would like to see how it goes for the European debt crisis, and also there's a big election this November for the US presidency.
"Another question is whether the Federal Open Market Committee in the US will unveil QE3 in September. I think these issues will disturb the markets in future, at least for the next quarter."
About 60 per cent of the 306 CPFIS-approved funds are investment-linked insurance products.
The rest are unit trusts.....
