What actions do I (as a CPFIS investor) need to take due to reduction in Total Expense Ratio caps?
You do not have to take any action unless the fund(s) you have invested in cannot comply with the reduced Total Expense Ratio (TER) caps. In which case, the relevant parties (i.e. Fund Management Companies/insurers/investment administrators) will notify you by letters. As existing funds which are unable to comply with the new TER caps from 2016 will be downgraded to List B and will not be allowed to take in new CPF monies from then, you will be given the following options by the relevant parties:
- Free switches to other funds included under CPF Investment Scheme within a specified period from the date of the letter (around one month),
- Redeem the units,
- Continue to remain invested in these funds (if you choose this option, no further action is required from you).
Note: Cash investors would not be affected.
For info - List of funds will be updated when necessary.
List A and B unit trusts (PDF, 0.2MB)
List A and B Investment Link Products (ILPs) Sub-funds (PDF, 0.1MB)
