China-focused insurance-linked funds in Singapore surge over 24%

Indian equity ILPs recorded the weakest performance.

CPF Investment Scheme (CPFIS)-included unit trusts and investment-linked insurance products (ILP) posted solid gains in the third quarter of 2025, supported by strong equity markets and improving investor sentiment, according to Morningstar.

The average return across all CPFIS-included funds was 7.88% for the three months ended 30 September 2025. 

One-year returns reached 11.78%, whilst cumulative returns over three years stood at 37.03%, equivalent to an annualised return of 10.74%.

Unit trusts outperformed other CPFIS categories during the quarter, delivering an average return of 8.80%. 

Over one year, unit trusts gained 12.41%, and over three years they returned 40.43%, or 11.58% on an annualised basis.

Investment-linked insurance products also recorded positive results. 

ILPs returned an average of 7.18% in the third quarter, 11.31% over one year and 34.79% cumulatively over three years translating to an annualised return of 10.19%.

Equity funds led performance across CPFIS-included products. Equity funds returned 9.99% in the quarter and 14.33% over one year, with cumulative three-year gains of 45.59%. 

Allocation funds followed with a quarterly return of 6.24%, whilst fixed-income funds gained 1.85%. Money market funds continued to lag, posting a quarterly return of 0.42%.

Within unit trusts, China-focused and sector-specific funds were among the strongest performers in the quarter. 

For ILPs, China equity and Greater China equity categories led gains in the third quarter, with returns of 24.14% and 22.13% respectively. 

Indian equity ILPs recorded the weakest performance, falling 6.39% over the same period.

Morningstar reported that global equity markets delivered mixed but generally positive results during the quarter. 

As at the end of the third quarter, the total number of CPFIS-included funds rose to 237, up from 233 in the previous quarter. This included 102 unit trusts and 135 investment-linked insurance products.

The report was prepared by Morningstar Singapore for the Investment Management Association of Singapore and the Life Insurance Association of Singapore, covering fund performance for the period ended 30 September 2025.