News
Revised Mandatory Provident Fund Guidelines
18 May 2020The Mandatory Provident Fund Schemes Authority (the Authority) has recently approved the following two sets of revised MPF Guidelines:
1. Guidelines on Equities and Other Securities (Guidelines III.2); and
2. Guidelines on Default Investment Strategy (Guidelines III.14).
Guidelines III.2 have been amended to give effect to certain changes to the existing investment restrictions on listed real estate investment trusts (REITs) as follows:
(i) REITs authorized by the Securities and Futures Commission and listed on the Stock Exchange of Hong Kong (HREITs) and REITs listed on the approved stock exchanges in Australia, the UK and the USA
The investment restriction that the total amount of funds invested in any HREIT or REIT listed on the approved stock exchanges of Australia, the UK and the USA and other kinds of securities approved by the Authority cannot exceed 10% of the net asset value of an MPF fund is changed. After the change, the amount invested in any one of these REITs shall be subject to a separate and individual limit of 10% of the net asset value of an MPF fund.
(ii) REITs listed on the approved stock exchanges in Canada, France, Japan, Singapore and the Netherlands
Permissibility for MPF investment purpose is extended to REITs listed on the approved stock exchanges in Canada, France, Japan, Singapore and the Netherlands. That is, the total amount invested in these REITs and other kinds of securities approved by the Authority cannot exceed 10% of the net asset value of an MPF fund.
Moreover, we have made textual edits to Guidelines III.2 and consequential amendments to Guidelines III.14 for housekeeping purpose.
Copies of the revised MPF Guidelines can be downloaded from the Authority’s website at www.mpfa.org.hk.