50 New MSCI Hong Kong MPF Indices Now Available
New Indices Provide Broader and More Diverse Market Coverage
HONG KONG -- September 30, 2013
MSCI Inc. (NYSE: MSCI), a leading provider of investment decision support
tools worldwide, has announced the launch of the MSCI Hong Kong Mandatory
Provident Fund (MPF) Indices, which reflect the current investment
restrictions imposed on MPF funds by the Hong Kong Mandatory Provident Fund
Schemes Authority (MPFA)^1, including the minimum 30% Hong Kong Dollar (HKD)
“Since their inception in 2000, the Hong Kong MPF schemes have grown in size
and complexity, so it is not surprising that many participating firms are keen
to see more innovation in the provision of relevant MPF indices,” said
Theodore Niggli, Managing Director and Head of the MSCI Index Business in Asia
Pacific. “In addition to providing an extensive family of MPF indices, we are
also introducing a novel index construction methodology that eliminates the
need for expensive foreign exchange hedging to comply with the 30% minimum HKD
exposure. We believe that the MSCI Hong Kong MPF Indices will be adopted not
only for benchmarking purposes, but will also help in the creation of lower
cost fund structures.”
There are 50 MSCI Hong Kong MPF Indices in total, providing greater global and
regional index coverage than currently available in the market today,
including MPF indices for the MSCI ACWI, MSCI World and MSCI Emerging Markets
Indices. For investors and managers looking to extend their investment
universe, the MSCI MPF Domestic Investable Market Indices, covering Hong Kong,
China and ACWI, include large, mid and small caps.
Three types of indices are available: the MSCI MPF Domestic Indices, the MSCI
MPF Hedged Indices and the MSCI MPF Unhedged Indices – each differs in terms
of how the MPFA currency exposure requirement is addressed. For example the
MSCI MPF Domestic Indices apply a 30% floor with a buffer to the weight of the
HKD denominated component, eliminating the need for currency hedging and
therefore potentially reducing costs.
The MSCI Hong Kong MPF Indices may be licensed for use as benchmarks or as the
basis for financial products such as exchange traded funds and structured
^1 The MSCI Hong Kong MPF Indices are independently created and maintained by
MSCI without input from or involvement or endorsement by the Hong Kong
Mandatory Provident Fund Schemes Authority.
MSCI Inc. is a leading provider of investment decision support tools to
investors globally, including asset managers, banks, hedge funds and pension
funds. MSCI products and services include indices, portfolio risk and
performance analytics, and governance tools.
The company’s flagship product offerings are: the MSCI indices with
approximately USD 7.5 trillion estimated to be benchmarked to them on a
worldwide basis^1; Barra multi-asset class factor models, portfolio risk and
performance analytics; RiskMetrics multi-asset class market and credit risk
analytics; IPD real estate information, indices and analytics; MSCI ESG
(environmental, social and governance) Research screening, analysis and
ratings; ISS corporate governance research, data and outsourced proxy voting
and reporting services; and FEA valuation models and risk management software
for the energy and commodities markets. MSCI is headquartered in New York,
with research and commercial offices around the world.
^1As of March 31, 2013, as reported on July 31, 2013 by eVestment, Lipper and
For further information on MSCI, please visit our web site at www.msci.cn
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Kristin Meza, MSCI, New York
Jo Morgan, MSCI, London
Sally Todd | Christian Pickel, MHP Communications, London
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