Singapore’s Central Provident Fund Investment Scheme (CPFIS) funds posted an average return of 4.88% in the first quarter as global stocks gained on the back of a technology rally fuelled by artificial intelligence, according to data compiled by Morningstar.
Equity funds in the scheme were the top performers with an average return of 6.40%, money market funds edged up 0.42%, and bond funds were in the red with a return of minus 0.42% Morningstar says in a report on June 3.
It noted that anticipation of multiple US rate cuts this year as well as a boom in AI technologies buoyed tech stocks and growth stocks more broadly.
Japan and Taiwan-focused funds were top-performing equity categories based on Morningstar’s classification, thanks to their exposure to AI.
The report pointed out that the tech-heavy Nikkei 225 Index has high exposure to AI, which helped it to ride the technology wave and gained 20.63%. Similarly, Taiwan’s stock market also benefitted from growth prospects in the AI supply chain.
Morningstar was appointed by the Investment Management Association of Singapore and the Life Insurance Association of Singapore to monitor performance of all unit trusts and investment-linked insurance products included in the CPFIS.
