Changes in CPF Investment Scheme

[Kennedy_85]

Hi all bros/sis, really need some help here.. Im with the Schroders Asian Premium Bond Fund for nearly a year now. Recently Schroders sent me a letter regarding the above mentioned. It also stated tat the fund will not be able to accept CPF monies with effect from 1st April.
The thing is I dun really noe wat it means.. Does it mean there will be no more dividends tat could be reinvested into the fund?
Sorry for the long questions.. and Thanks for ur help..
CHEERS!!! :yawn:

[wrxs204]

Starting 1st April, the first $20k in your CPF Ordinary & Special account cannot be used for investment anymore.

[Jeremy1]

This fund can use CPF to invest before that but due to below reason :

As at 31 December 2007, the Fund’s expense ratio is above the median expense ratio in its risk class. As such, the Fund will cease to accept CPF monies with effect from 1 April 2008 until the expense ratio is within the median expense ratio as communicated by the CPF Board. From 1 April 2008, you will not be able to top-up your investments in the Fund. The last trade date for new CPF investments into the Fund is 25 March 2008.

No CPF money can be used on this fund. You can used cash if you want to.

Money in the fund will still be managed in accordance with the CPF Investment Guidelines.

Regards

[chaos4ever]

Full Letter

With effect from 1st April 2008, all CPFIS registered funds which do not meet the revised Total Expense Ratios requirements will not be able to accept fresh CPF monies.



The requirement for the median expense ratios are:

1.95% for Higher Risk (Equity funds);

1.75% for Medium to High Risk (Balanced funds);

1.15% for Low to Medium Risk (Fixed Income funds); and

0.65% for Low Risk (Money Market Funds).



Schroders will be sending out a communication letter with FAQ to CPF unitholders of the affected funds. Funds include:

1) Schroder Global Enterprise Fund (EGM on 9 April to propose termination)

2) Schroder Global Smaller Companies Fund

3) Schroder European Equity Alpha Fund

4) Schroder Emerging Markets Fund

5) Schroder Emerging Europe Fund

6) Schroder Asian Premium Bond Fund

7) Schroder Asian Equity Yield Fund

8) Schorder Japanese Equity Alpha Fund

9) Schroder Greater China Fund

This letter will inform them that they are entitled to a free switch into any of our other qualifying funds. Alternatively, they can choose to stay invested in the fund which they are currently in. This incentive is only applicable for 3 months after 1st April 2008, which means that the free switch is up till 30 June 2008.

In addition, CPF Board will be enforcing the no top-up and no new subscriptions rule for the affected CPFIS registered funds strictly on 1 April 2008. As the average time needed to clear a CPF trade is about 5 days, they have requested for us to put a cut-off for the last CPF trades into the affected funds by the business close of 25 March 2008. CPF Board has made it very clear that no CPF monies should be transacted in these affected funds from 1 April 2008 onwards.


Essentially, these funds no longer qualify to be put under the CPF approved list. So must switch out your CPF dollars.

[KhunNimzo]

hi,
just want to clarifty..
if i have 50k in OA.the 1st 20k lock in..then i left 30k..
the 30k out of 35% can invest only?

[Kennedy_85]

Thanks for clarifying.. But lets say I still stay on with the fund.. I wont get any more dividends reinvested?
CHEERS!!!

[Jeremy1]

hi,
just want to clarifty..
if i have 50k in OA.the 1st 20k lock in..then i left 30k..
the 30k out of 35% can invest only?

I thought that only apply to the fund itself & nothing to do with the money in your cpf.

U still can used 30K to invest but only on selected unit trust......

[Alpha_Hippo]

hi,
just want to clarifty..
if i have 50k in OA.the 1st 20k lock in..then i left 30k..
the 30k out of 35% can invest only?

U can invest all in UT, ILP etc

for stock and gold, there is a % like u stated

If u have no plan to buy house using your OA, better invest it all.

[Jeremy1]

U can invest all in UT, ILP etc

for stock and gold, there is a % like u stated

If u have no plan to buy house using your OA, better invest it all.

What do u think about SA ?

[wrxs204]

What do u think about SA ?

Most people feel that investing SA is not worth it as growth is slow.

From my point of view, SA is even better as the advantage that you have is time, which can range anytime from 20-30 years. Given that the interest payable could be less than 4% with the implementation of the new rule, it is advisable to invest it.

Just my 1 cent worth.:)

[o0KelviN0o]

Thanks for clarifying.. But lets say I still stay on with the fund.. I wont get any more dividends reinvested?
CHEERS!!!

your dividends will be reinvested, which means your units will increase right? this has nothing to do with CPFB

[o0KelviN0o]

What do u think about SA ?

for SA monies, your objective is to leave it invested until you hit 62... I believe you have more than 20 years before you reach 62... I can safely tell you that your returns will be more than 5% as long as you pick the right fund :)

20 years is a long time for you to ride out the ups & downs of the economy...

[evets]

i think the age is going to be extended to 65 ...and many changes over the years...not sure if we live to see the monies....sigh

[KhunNimzo]

U can invest all in UT, ILP etc

for stock and gold, there is a % like u stated

If u have no plan to buy house using your OA, better invest it all.
hmmm..maybe i read wrong somewhere..nvm,i just open my cpf investment acc fews day ago together with dbs vickers..
after 1st april,will check how much i can invest in cpf website..
btw,if i own lets say abc shares bought with cash..then i bought again with
cpf money,then when i want to sell,how they know which one i sell?cash one or cpf shares one ?
tia

[Jeremy1]

for SA monies, your objective is to leave it invested until you hit 62... I believe you have more than 20 years before you reach 62... I can safely tell you that your returns will be more than 5% as long as you pick the right fund :)

20 years is a long time for you to ride out the ups & downs of the economy...

Quite tough to choose as fund that can invest using SA is quite limited. I think I will leave the 20K in SA & invest the rest. Not much time left aslo. :yawn:

[Jeremy1]

hmmm..maybe i read wrong somewhere..nvm,i just open my cpf investment acc fews day ago together with dbs vickers..
after 1st april,will check how much i can invest in cpf website..
btw,if i own lets say abc shares bought with cash..then i bought again with
cpf money,then when i want to sell,how they know which one i sell?cash one or cpf shares one ?
tia

U need to tell your broker to sell CPF or Cash one.

If you are using online to trade, there is a tick need to check to denote that you are selling cash / cpf stock or vice versa.

[Jeremy1]

i think the age is going to be extended to 65 ...and many changes over the years...not sure if we live to see the monies....sigh

Basically, the money in the cpf most probably will be left for your next generation. Forget about taking out unless you have a lot of $$$ in CPF.

Minimum sum by the time you reached 65 should be >$100K ( I believed ) & the rule keep on changing....

[Alpha_Hippo]

What do u think about SA ?

invest them but they have limited UT to buy which i think are goot.

Can try Lion Capital Singapore Balanced for Singapore Play

Or First state bridge, PRU asian balanced fund, AIGIF Acorns of Asia for Asia Ex-Japan

Or DWS Premier Select TST, Growth Path 2040 for Global plays.

Think monday is your last day.

Wish to state I am vested in First State Bridge.

[Jeremy1]

invest them but they have limited UT to buy which i think are goot.

Can try Lion Capital Singapore Balanced for Singapore Play

Or First state bridge, PRU asian balanced fund, AIGIF Acorns of Asia for Asia Ex-Japan

Or DWS Premier Select TST, Growth Path 2040 for Global plays.

Think monday is your last day.

Wish to state I am vested in First State Bridge.

Thanks, But the price on the above fund are quite high as what I feel.
If I am to buy on Monday, is it too late taken into consideration the time to get
the fund ?

[Alpha_Hippo]

Thanks, But the price on the above fund are quite high as what I feel.
If I am to buy on Monday, is it too late taken into consideration the time to get
the fund ?

hmm, maybe the prices are too high but they are prices after a correction.

Monday before cut off time. Depend on the Company u are buying from.

Best first thing in the morning.

[boluilang]

CPF Investment Scheme

To lower cost and improve quality of the funds included under CPFIS, the following changes will take place:
#
From 1 May 2009, CPF members must first set aside $30,000 in their Special Account (SA) before they can invest their SA monies under CPFIS.
#
From 1 January 2011, all funds in the CPFIS must meet all admission criteria applicable since 1 February 2006.


1 Year Increase 10K... LOL, lock all your CPF money inside.

Temasek needs more $$$

[zhiz22]

CPF Investment Scheme

To lower cost and improve quality of the funds included under CPFIS, the following changes will take place:
#
From 1 May 2009, CPF members must first set aside $30,000 in their Special Account (SA) before they can invest their SA monies under CPFIS.
#
From 1 January 2011, all funds in the CPFIS must meet all admission criteria applicable since 1 February 2006.


1 Year Increase 10K... LOL, lock all your CPF money inside.

Temasek needs more $$$

Wow, I guess no one can invest anymore CPF now at the rate it goes. Wehn accumulate enough, time to buy HDB already.

[KhunNimzo]

if my odinarry hav eniugh to invest,while special not enough min sum..still can invedt from odinary?

[boluilang]

if my odinarry hav eniugh to invest,while special not enough min sum..still can invedt from odinary?

cannot! special must have 30k. who knows they may increase this again next year.

[icyspawn]

cannot! special must have 30k. who knows they may increase this again next year.

Think you have to re-read your own post again.


From 1 May 2009, CPF members must first set aside $30,000 in their Special Account (SA) before they can invest their SA monies under CPFIS.

This only applies to SA monies, OA monies not affected. You can start investing OA monies once >$20k

[KhunNimzo]

ok thx......

[boluilang]

hmm... is it?

If so, better use up the OA fast, cos before long, OA is gg to increase to 30 also.

NEVER TRUST GAHMENT

[jack2008]

I retired from NTUC Income on 28 February 2007, after completing 30 years as the chief executive. I write this blog to educate the public about insurance, finance and current affairs in Singapore. I invite you to visit my website, www.tankinlian.com. Due to my limited time, I am not able to attend to individual request for advice.
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[bbmars1128]

Ya.. me.. eying where to invest before time frame is up.... already doone so for SA, now waiting to use OA to invest... but market.. scary... keep chionging all the way... up and down, up and down... .etc.... blur or be DARING?