CPF Board - CPFIS Fund Management

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Asset Enhancement

CPF INVESTMENT SCHEME (CPFIS) -

Admission Criteria, Guidelines and Application forms For Fund Management and Insurance Companies included under CPFIS

ADMISSION CRITERIA
	Criteria For Fund Management Companies (FMCs) To Be Included Under CPFIS

	Criteria For Insurers To Be Included Under CPFIS

	Criteria For Representatives Of Recognised Funds Seeking Inclusion Into CPFIS

	Evaluation Criteria for Prospective Fund Management Companies (FMCs) for Inclusion under the CPFIS

CPFIS INFORMATION BOOKLET
	CPF Investment Scheme (CPFIS) Information Booklet For Fund Management And Insurance Companies (0.20MB)

AUDITOR'S REPORTS FORMATS For FMCs:
	Annual External Auditor's Report On Fund (Refer To Auditor's Report For Fund) (0.09MB)

	Annual External Auditor's Report On Operations Relating To Unit Holdings And Fund Management Accounts Of CPF Members (Refer To Auditor's Report For FMC) (0.07MB)

For Insurers:
	Annual External Auditor's Report On ILP Sub-Fund (Refer To Auditor's Report on the ILP Sub-Fund) (0.08MB)

	Annual External Auditor's Report On Operations Relating To Insurance Policies Of CPF Members (Refer To Auditor's Report For Insurer) (0.003MB)

GUIDELINES
	CPF Investment Guidelines (CPFIG)

	Reply to Feedback on revised CPFIG (which is effective from 15 September 2003)

	Guidelines for Investment in Commodity Murabaha

	Disclosure Requirements For FMCs/ Insurers

	Frequently Asked Questions on Total Expense Ratio (TER)

	Application And Admission Criteria For Funds Managed By FMCs/ Insurers

	Process For Inclusion Of Funds Under CPFIS

	Application Fees For Inclusion Of Fund Management Companies (FMCs)/Insurers And Their Products Under CPFIS

FORMS
	Application By FMC/ Insurer For Inclusion Under CPFIS – Form CPFIS/FMC/1 (0.02MB)

	Qualifications And Experience Of At Least 3 Qualifying Fund Managers (Including Chief Investment Officer) - Form CPFIS/FMC/2 (0.02MB)

	Returns To Confirm Continuing Compliance With Admission Criteria By FMCs – Form CPFIS/FMC/3 (0.01MB)

	Application for Inclusion of Authorised Fund Under CPFIS - Form CPFIS/AF (0.06MB)

	Application for Inclusion of Recognised Fund Under CPFIS - Form CPFIS/RF (0.06MB)

	Application for Inclusion of Investment-Linked Insurance Products (ILPs) under CPFIS - Form CPFIS/ILP1 (0.03MB)

	Application for Inclusion of Non-linked Insurance Products under CPFIS (Endowment or Annuity) - Form CPFIS/IP1 (0.04MB)

For enquiries, please call Investment Scheme Branch, CPF Board at 62293373 or
e-mail: Investment@cpf.gov.sg

CRITERIA FOR FUND MANAGEMENT COMPANIES (FMCs) TO BE INCLUDED UNDER CPFIS			Amended 1st April 2005

A1.	In considering the admission of FMCs under CPFIS, the Board takes into consideration the following factors:

	a)	whether the FMC holds a capital markets services (CMS) license for Fund Management under the Securities and Futures Act , Cap 289 (or its equivalent under the Securities Industry Act, Act 15 of 1986) or is exempted from licensing under section 99(1)(a) to (c) of the Act. For the foreign FMC of a recognised fund, whether the foreign FMC holds the equivalent license in the jurisdiction of its principal place of business.

	b)	whether the FMC has a minimum one-year track record as a CMS licence holder under the Securities Futures Act, Cap 289 (or its equivalent under the Securities Industry Act, Act 15 of 1986) in the fund management industry in Singapore while the group as a whole has a minimum of three years track record in fund management. For the foreign FMC of a recognised fund, whether it has a minimum of three years track record in fund management.

	c)	whether the FMC and its related group of companies manages at least S$500 million worth of funds in Singapore. For the FMC that intends to offer funds that would be sub-managed by another FMC, or offer funds that feed into CIS constituted outside Singapore, or offer recognized funds constituted outside Singapore directly; whether the FMC and its related group of companies manages at least S$1 billion of discretionary funds globally.

	d)	whether the FMC has a minimum of three fund managers, one of whom must have at least five years of fund management experience. The definition of “fund manager” shall include portfolio managers, research analysts and traders.

	e)	whether the FMC and its related group of companies have a sound financial position.

	f)	whether the FMC and its related companies have a good regulatory compliance record in Singapore or in the jurisdiction of its place of business.

	g)	whether the FMC is a member or associate member of the Investment Management Association of Singapore (IMAS) and subject to the Code of Ethics of IMAS. For recognized funds, the local representative of a foreign FMC should be a member of IMAS. Note: The above listed are the basic criteria for FMCs to be included under CPFIS. The Board, in consultation with MAS, may consider the FMC for admission, on case-by-case basis, if the FMC does not meet a specific criterion but has other strengths.

A2.	The FMC that passes the qualifying criteria stated in paragraph A1 would be able to manage Collective Investment Schemes (CIS) and ILP sub-funds, as well as offer fund management account services under CPFIS.

A3.	For FMCs domiciled outside Singapore, the Singapore-registered Representative or Agent of the FMC has to ensure timely submission of reports on compliance with the CPFIS Terms and Conditions for Fund Management Companies (CPFIS T&C), including the CPF Investment Guidelines (CPFIG), for the FMC's funds that are included under CPFIS.

Update Document Reference: IVDWM/Admission Criteria/ FMC Admission Criteria – revised Mar 2005

CRITERIA FOR INSURERS TO BE INCLUDED UNDER CPFIS				Amended 1st April 2005

B1.	In considering the admission of insurers under CPFIS, the Board takes into consideration the following factors:

	a)	whether the insurer is registered under the Insurance Act to carry on life insurance business.

	b)	whether the insurer has a minimum one-year track record as a registered insurer in Singapore.

	c)	whether the insurer employs a minimum of three fund management staff, one of whom must have at least five years of fund management experience. The other two may only have two years of fund management experience if he or she:

		i)	is a fully qualified Chartered Financial Analyst (CFA), or
		ii)	is an Associate of the Society of Actuaries, or
		iii)	holds a Certificate in Finance and Investments from the Institute of Actuaries, or
		iv)	holds an equivalent qualification from any of the professional actuarial bodies recognised in Singapore.

		The definition of “fund management staff” shall include portfolio managers, research analysts and traders.

	d)	whether the insurer and its related group of companies have a sound financial position.

	e)	whether the insurer and its related group of companies have a good regulatory compliance record in Singapore and in other countries where they operate. Note: The above listed are the basic criteria for Insurers to be included under CPFIS. The Board, in consultation with MAS, may consider an applicant for admission, on case by case basis, if the applicant does not meet a specific criterion but has other strengths.

B2.	The insurer that passes the qualifying criteria stated in paragraph B1 will be allowed to offer new ILPs and manage ILP sub-funds. The insurer that is included under CPFIS but does not pass the quality screening test to manage ILP sub-funds themselves will still be allowed to market new ILPs provided they employ FMCs allowed under the CPFIS to manage the ILP sub-funds. If the insurer that does not pass the quality screening test to manage funds themselves wishes to employ an FMC that is not already included under the CPFIS, the insurer will need to apply to the CPF Board on a case by case basis. The insurer that does not pass the quality screening test to manage ILP sub-funds themselves will not be allowed to make any investment decisions, including asset allocation decisions for the sub-funds.

CRITERIA FOR REPRESENTATIVES OF RECOGNISED FUNDS SEEKING INCLUSION INTO CPFIS			Effective 1st April 2005

C1.	For a foreign fund recognised by MAS (hereafter known as "Recognised Funds"¹) seeking inclusion into CPFIS, the Representative of the Recognised Funds shall:

	a)	Be a corporation² ;

	b)	Carry out or procure the carrying out of activities to ensure that the manager of the foreign fund complies with the CPF Investment Guidelines (“CPFIG”) and reporting requirements. This includes submitting quarterly compliance reports to CPF Board on the extent of compliance of the manager of the foreign fund with CPFIG, monitoring and reporting the occurrence and rectification of breaches of the CPFIG and any other reporting requirements as and when imposed by CPF Board;

	c)	Provide CPF Board with a copy of the representative agreement evidencing the appointment of the representative by the foreign fund or its manager;

	d)	Provide evidence of indemnity mechanism (such as back-to-back agreement) put in place between the Representative and the foreign FMC, allowing the Representative to have recourse to the foreign FMC if the latter does not discharge its duties, obligations and responsibilities with due care and in good faith;

	e)	Have good regulatory compliance record in Singapore;

	f)	Have sound financial position; and

	g)	Be a member of Investment Management Association of Singapore (IMAS).

¹	Recognised Funds refer to foreign funds recognised by MAS under S287(1) of the Securities and Industry Act (Cap 289).

²	For individual applicant seeking inclusion as a Representative of Recognised Funds, the CPF Board would consider the application on a case by case basis.

Update Document Reference: IVDWM/Admission Criteria/CPFIS Rep of RF Admission Criteria—Mar 2005

DISCLOSURE REQUIREMENTS FOR FMCS/ INSURERS

1.	Disclosure Requirements For Prospectus For Offer In Singapore			Amended 1 Sept 2002

1.1	Prospectus disclosure should include the following:-

	a)	a list of countries that the fund intends to invest in (unless the fund's focus is on global market). FMCs may provide in the prospectus allowing them to invest up to 5% of the deposited property of the fund in markets not stated in the prospectus;

	b)	a list of categories of assets that the fund intends to invest in (such as equities, cash, bonds etc.);

	c)	the fund manager's self-imposed investment limits or operating ranges (by market, asset class, issuer etc.);

	d)	the benchmark which the fund's performance should be measured against (e.g. Morgan Stanley Capital International World Index, Salomon Brothers World Government Bond Index etc.);

	e)	the fund manager's intention to invest in derivatives and/or engage in securities lending; and

	f)	procedures to resolve conflicts of interests.

2.	Disclosure Requirements to CPF members

2.1	For Collective Investment Schemes (eg. Unit Trusts /Exchange Traded Funds):

	FMCs should make disclosure to CPF members according to the guidelines for Semi-Annual Reports in the Code on Collective Investment Schemes issued by the Monetary Authority of Singapore.			Amended Sept 2002.

2.2	For Investment-linked Insurance Product (ILP) Sub-Funds Insurers should make disclosure to CPF members according to the applicable guidelines in the Insurance Act, Insurance Regulations and MAS Notices.

2.3	For Fund Management Accounts (FMAs) FMCs should follow industry practice and provide CPF members with the same disclosures and statements as they do for their cash investors of FMAs.

3.	Disclosure Requirements to CPF Board

3.1	The Board may request FMCs' latest disclosure reports on a case-by-case basis, from time to time. FMCs are to send the disclosure reports to the Board within one week of the request.

4.	Disclosure Requirements for Performance and Risk Monitoring of Collective Investment Schemes (CIS), (excluding Exchange Traded Funds) and Investment-linked Insurance Products' (ILP) sub-funds (collectively known as "Funds")			Added to take effect from 2^nd quarter 2002

4.1	Background

4.1.1	In November 2001, the Board announced that CPFIS performance and risk monitoring guidelines would be set in consultation with Investment Management Association Singapore (IMAS), Life Insurance Association (LIA) and Securities Investors' Association Singapore (SIAS) [the "interested parties"] on performance information that should be made available to members by reputable and independent Funds Tracking Companies (FTCs). This would replace the formal monitoring done by the Board's Investment Consultant.

4.1.2	This consultative approach aims to:

	a.	give interested parties the opportunity to improve the way performance monitoring of funds under CPFIS has been carried out as well as to make the system more transparent;

	b.	bridge the gaps, if any, between what the industry (through IMAS and LIA) perceive as adequate performance information being made available versus what investors (through SIAS) believe is necessary for sound investment decision making;

	c.	enable industry and investors' representatives to strike a balance on the type of performance information to be analyzed and tracked by the independent FTC(s) versus the cost for the provision of the information; and,

	d.	give industry and investors the opportunity to select the independent FTC (selected FTC) which is to analyze and report the performance and risk monitoring information for all funds under CPFIS using a common methodology.

4.1.3	In connection with this, the Funds Performance Tracking Committee (FPTC), chaired by and comprising representatives of IMAS, LIA and SIAS was formed. The respective associations have full discretion to nominate or change their representatives to the FPTC. The composition of the FPTC is available here.

4.1.4	Besides selecting the independent FTC, and confirming the performance and risk monitoring information that is to be tracked and reported by the selected FTC, the FPTC has an ongoing role to ensure that information continues to be monitored for relevance. The FPTC may in consultation with the Board also make improvements or changes to the performance monitoring system when necessary, as well as help raise awareness on using performance information for investment decision-making.

4.1.5	Details on the FTC selected by the FPTC are available here.			Added on 2 May 2002

4.1.6	Taking into account the recommendations of the FPTC, the Board has drawn up the following guidelines and standards for compliance by FMCs and Insurers to ensure members would continue to be provided with performance and risk monitoring information useful for investment decision-making purposes.

4.2	Responsibilities of Fund Managers and Insurers

4.2.1	Fund Managers and Insurers are required to provide the selected FTC with the analytical data necessary to enable proper disclosure of the performance of the funds they manage.

4.2.2	Fund Managers and Insurers have to ensure that members have at least one source from which they could access the Fund Managers'/Insurers' funds' performance and risk monitoring information, computed on the same basis as with all the other funds included under CPFIS.

4.2.3	Fund Managers and Insurers have to make available at least the basic analytical data as set out under Section 4.3, to at least one FTC, (the selected FTC) in a timely manner, in order for the FTC to provide members with regular and timely performance and risk information.

4.3	Basic Analytical Data To Be Provided By FMCs and Insurers

4.3.1	FMCs and Insurers have to provide the following analytical data in a timely manner to the selected FTC so that the performance and risk monitoring report is made available to members at least once every quarter:

	a.	Total asset size of fund as at the end of the relevant reporting period;
	b.	Net-Asset-Value (NAV) per unit in Singapore dollars for each month of the relevant reporting period;
	c.	Benchmark Returns in Singapore dollars for each month of the relevant reporting period (FTC to independently verify the benchmark returns);
	d.	Information on unit split or dividend during the reporting period (for adjustment to the NAV to derive returns); and,
	e.	Half yearly expense ratios (to be computed according to IMAS guidelines) on an annualized basis for the past year.

4.3.2	FMCs/Insurers have to provide the following information, at least every half-yearly, to the Board's Investment Consultant*, for review of the appropriateness of the CPFIS risk classification of the funds:

	a.	A detailed asset allocation breakdown (where applicable) by stocks, bonds and cash; and,
	b.	Description of changes in investment mandates or key personnel during the reporting period.
		*	The Board's Investment Consultant is Morningstar Research Private Limited.

4.4	Performance and Risk Monitoring Report by the Selected FTC

4.4.1	The selected FTC would be expected to provide the performance and risk monitoring service for 3 years before the next review. However, IMAS, LIA or SIAS representatives in consultation with the Board may initiate an earlier review should there be a need for it.

4.4.2	The selected FTC is expected to analyze and report at least the following basic information, at least once, every quarter, in a timely manner:

	a.	3-year Returns (Absolute & Relative to Benchmark);
	b.	3-year Risk Adjusted Ratio;
	c.	3-year Information Ratio;
	d.	1-year Returns (Absolute & Relative to Benchmark);
	e.	Quarterly Returns (Absolute & Relative to Benchmark);
	f.	Expense Ratio
	g.	Size of Funds
	h.	CPFIS Risk Classification (as provided by the Board's Investment Consultant);
	i.	Rating for the fund

4.4.3	The selected FTC is expected to take the necessary steps to work with Fund Managers and Insurers to ensure the timeliness and accuracy of the information published in the reports.

4.4.4	The selected FTC may use any generally accepted computation basis or methodology that it sees fit to analyze and produce an objective report, including ratings for the funds, as long as the computation basis and methodology used is disclosed.

4.4.5	The selected FTC is expected to communicate the results to members regularly through the mass media eg. newspapers, web-site, etc. and to provide details of the information to the FPTC or Board on request, from time to time. The selected FTC is to revert to the FPTC or Board within one week of any such requests.

Document Update Reference: INV/7 May 2008 CPFIS_FundsDisclosure/CY
Previous Version:	INV/Official Documents/ Disclosure (2 May 2002) /OHB
	ISB/1 September 2002/ CPFIS_FundsDisclosure/ML

Last Updated on: Tuesday, December 09, 2008 at 5:31 PM