FTSE Group (“FTSE”), the global index provider, will implement changes to the FTSE MPF Index Series on 2 July 2008 including daily capping of stocks and the addition of two new indices, the FTSE MPF Emerging Markets Index and the FTSE MPF Asia-Pacific ex Jp incl HSBC, which will mean that the series now includes fifteen indices in total. These enhancements are as the result of a market consultation with Hong Kong Investment Fund Association (“HKIFA”) members at the end of 2007 and therefore represents the needs of the Hong Kong investment community.
FTSE conducts a market consultation of Mandatory Provident Fund (“MPF”) Scheme asset managers every three years, collecting market consensus on the changes needed to keep the FTSE MPF Index Series relevant and representative. Changes are designed to meet regulatory requirements or enhancements to the index methodology. For example, the daily capping of 10% to be introduced ensures compliance by fund managers to regulatory requirements where any stock must have a weighting of no more than 10%.
Mr Paul Hoff, Managing Director of FTSE Asia Pacific, said, “The FTSE MPF Index Series continues to evolve in line with the requirements requested by Hong Kong fund managers. FTSE will continue to work with the HKIFA and Watson Wyatt in providing relevant and accurate benchmarks for the MPF Scheme.“
FTSE has calculated the FTSE MPF Hong Kong Index Series since 2001, when it was selected by Watson Wyatt and the Hong Kong Investment Funds Association (HKIFA) to create a range of country and regional benchmarks hedged into Hong Kong Dollars for the local investment community. More information on the series is available at www.ftse.com/mpf . A full list of indices in the enhanced series can be found in Appendix 1.