FTSE MPF Index Series
In 2001 FTSE launched the Mandatory Provident Fund (MPF) benchmarks, a tailored solution to meet the complex needs of the Hong Kong investment community. The FTSE All-World Index Series was selected by Watson Wyatt and the Hong Kong Investment Funds Association (HKIFA) as the base universe for a range of country and regional equity indices currency hedged back into Hong Kong dollars as custom benchmarks for the Hong Kong investment community.
The FTSE MPF Index Series is put through a market consultation every three years. The aim of the consultations is to ensure the indices provide the most precise benchmarks for the market by accurately reflecting regulatory requirements, permitted investment markets and asset classes as well as accounting for investment restrictions set out by the MPF Scheme.
The first consultation was conducted in 2004 in association with Hong Kong Investment Fund Association (HKIFA), Watson Wyatt and FTSE Group to review the Hong Kong Mandatory Provident Fund (MPF) benchmarks for Equity and Lifestyle funds. The product enhancements were implemented on the 1st January 2005 and included the addition of H shares into the FTSE MPF Hong Kong Index, capping of constituents at 10% to meet the requirements of the SFC Code on Unit Trusts and Mutual Funds and the addition of several new indices. Please refer to the 2005 FTSE MPF Product Enhancements document to the right.
2007 marked the second review of the FTSE MPF Index Series. Again, the consultation was conducted in collaboration with HKIFA and Watson Wyatt and changes were implemented on 2 July 2008. The Hong Kong investment community elected to include the new FTSE MPF Emerging Markets Index and FTSE MPF Asia Pacific ex Japan inc HSBC Index. Daily capping of 10% has also been applied to ensure complete compliance with the SFC Code. Please refer to the 2008 FTSE MPF Product Enhancements document for more information.