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What are the criteria for inclusion of Gold Exchange Traded Funds (ETFs) under the CPF Investment Scheme (CPFIS)?

In considering the inclusion of Gold Exchange Traded Funds (ETFs) under the CPF Investment Scheme (CPFIS), the Board uses the following criteria:

  1. The gold ETF is backed by physical gold that meets the London Good Delivery Rules issued by London Bullion Market Association (or other equivalent globally accepted standards); 
  2. The gold ETF is offered by a Singapore-incorporated company (for locally constituted gold ETF authorized by MAS) or through a local representative (for foreign gold ETF recognized by MAS); 
  3. The gold ETF is listed on the SGX; and 
  4. The company allows Agent Banks to appoint all CPF unitholders of the gold ETF as proxies to attend and vote at meetings. 

The criteria for a local representative to offer foreign Gold ETF are:

 

  1. Must be a company incorporated in Singapore;
  2. Must provide CPF Board a copy of the representative agreement evidencing the appointment of the representative by the foreign gold ETF issuer or marketing agent;
  3. Provide evidence of indemnity mechanism (such as back-to-back agreement) put in place between the representative and the foreign issuer/marketing agent, allowing the representative to have recourse to the foreign issuer/marketing agent if the latter does not discharge its duties, obligations and responsibilities with due care and in good faith;
  4. Have good regulatory compliance record in Singapore; and 
  5. Have sound financial position.

List of Gold ETFs included under the CPFIS:

 

1.  SPDR Gold Shares (under SGX trading name "GLD US$" and "GLD SG$")