Wednesday, March 5th, 2008
P* EMERGING MARKETS FUND - CESSATION OF INCLUSION UNDER THE CPF INVESTMENT SCHEME
The P* Emerging Markets Fund was launched in May 2005 and is managed by P* and sub-managed by Templeton Asset Management Ltd (“Templeton”).
As at 31 Dec 2007, the Fund size is S$308.1m. … performance since inception is 22.7% pa on a bid-to-bid basis as at 31 Dec 2007.
New Guidelines on Investment linked Funds Using CPF Monies CPF Board has announced that from 1 January 2008, expense ratios for CPF approved funds must not exceed the expense ratio criterion as tabled below. The stipulated expense ratio for this fund is 1.95%.
Expense Ratios Criterion By Risk Categories / Risk Categories Expense Ratios Criterion (%) [Rounded off to the nearest 0.05]
Higher risk / 1.95
Medium to High Risk / 1.75
Low to Medium Risk / 1.15
Lower Risk / 0.65
Source: CPF website
IMPORTANT:
Please note that the potential de-listing of the fund is not due to any change to the Fund or performance. In fact since January 2008, we have reduced the continuing investment charge from 2.1% to 1.6%. The potential de-listing of the Fund is due to the technical way in which CPF is
calculating the expense ratio for existing funds. Thus there will be NO impact at all to existing customers who are already invested into the Fund regardless of source of monies.
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Fucking CB. They’re doing EVERYTHING in their power to take back or stop the outflow of money from the CPF coffers. This is the PRECISE reason why people SHOULD be taking them out. Remember when they announced that inflation was about 7% at the end of last year or early this year? Well after the budget came out and CPF announced that the interest rates would remain at 2.5% and 4% for the ordinary and special accounts, THEY re-adjusted and announced that inflation was in fact 6.5%. Good news right? Think about it. If inflation was 7% it would mean that the disgusting rates that CPF gives would NOT even beat inflation or stay current. So re-adjust it and voila! all of a sudden our measly interest rates are on par with inflation. Make the people happy by massaging the numbers! Bastards. 2.5+4% equals to what? 6.5% lah. Fuckers.
First they say CPF rates will be pegged to bond rates, but then in GOOD times interest rates are GOOD and Bond rates drop, and vice versa. That’s the way it works.
Then they say you MUST have 20K in each account before you can invest the access
Then they come up with CPF LIFE, for fuck’s sake. They could at least be more imaginative with the name.
grr…
