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...
