Mandatory Provident Fund can purchase actively managed ETFs

The Mandatory Provident Fund (MPF) Authority has updated the investment guidelines for stocks and other securities in the MPF, incorporating the entire asset class of actively managed ETFs into the categories permitted for MPF fund investments without prior application to the authorities. However, the proportion must not exceed 10% of the fund's net asset value, and the actively managed ETFs must be recognized by the Securities and Futures Commission and listed on the Hong Kong Stock Exchange (00388.HK).

The authorities stated that this move aims to continuously introduce more flexibility for MPF investments while balancing returns and risks, facilitating MPF funds to invest in a more diversified range of asset classes, providing plan members with more opportunities to diversify risks, and enhancing the return potential of their MPF investments, thereby better safeguarding and increasing their retirement savings