CPF funds allowed offshore access

SingaporeƆs move to protect retail investors also benefits the mutual fund industry.

Singapore's Central Provident Fund has decided to allow members to invest CPF money in foreign currency-denominated mutual funds. The move will reduce costs for consumers and provide a modest fillip to fund management companies already operating a retail business in the Lion City.

Until now, CPF monies from CPF ordinary accounts and CPF special accounts have been allowed to invest only in Singapore dollar-denominated investment instruments. That meant global fund managers wishing to sell a foreign-listed unit trust locally had to do so through a feeder fund structure, which adds costs that are passed on to the customer.

Last year the cash market for unit trusts was allowed to invest in offshore funds directly. But...

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