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Source:
www.cpf.gov.sg |
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CPF Board Tightens CPF Investment
Scheme (CPFIS) Admission Criteria for Funds1 |
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From 1 February 2006, new funds will have to
meet more stringent admission criteria to be included into the CPFIS.
Existing funds will not be affected. |
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1. |
A higher evaluation
benchmark |
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To be admitted into
CPFIS, new funds must meet the revised benchmark set at the top 25
percentile of funds in their global peer group2 , higher than the
existing benchmark of top 50 percentile. |
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The evaluation
benchmark is based on a number of factors such as the capability
of the fund managers, the investment philosophy of the fund, its
key decision makers, the appropriateness and quality of its
research and analysis and its portfolio construction and
implementation. |
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2. |
An expense ratio
that is lower than the median of existing CPFIS funds in its risk
category. |
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High cost of
investment severely erodes returns. Hence, to lower the cost of
investment, the admission criterion will be set at the median of
the expense ratios. The median expense ratios will be reviewed
annually. See Annex A for the median expense ratios of existing
CPFIS funds as at end 2004. |
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Click
here for the Frequently Asked Questions. |
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New Funds into the CPFIS should preferably
have a track record of good performance for at least 3 years. |
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The Board will also step up its education
efforts and provide more information on the performance and cost of
funds (like expense ratios, front-end loads etc) within the CPFIS. |
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CPF members must understand and ultimately bear
the risks of their investment choices. These new measures are aimed at
improving the quality of funds in CPFIS and to help members make better
informed investment decisions. |
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PUBLIC ENQUIRIES |
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For more details, please log on to
www.cpf.gov.sg or call the CPF
Call Centre at 1800 - 227 1188. |
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More..... (Annex) |
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Source:
www.cpf.gov.sg News Release 29 Dec
2005 |
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FrontPage Edition: Thu 29 Dec 2005
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