Convoy MPF Index
How it Works?
The composition of the index and the standard for constituent fund selection
- The index must cover at least 80% of the total assets under management of the MPF market
- Convoy MPF Index – is composed of at least 100 of varies funds
The Weighting of the Constituent Fund
- Based on the data as of March 2012, the weighting will be adjusted semi-annually
- The data of Convoy MPF index before March 2012 is a result of beck testing
- How to calculate:
The Methodology of Weighting and Adjustment of Constituent Fund
According to the Employee Choice Arrangement, employees will be allowed to transfer their employee's portion of mandatory contributions and investment returns in their contribution account to an MPF trustee and scheme of their own choice once a year, as the MPF Service Providers publish the MPF's asset size at different point of time (monthly, quarterly and yearly based).
The information may be published with a long delay, therefore, adjust the weighting of constituent fund semi-annually may reduce the measurement uncertainties and it may also reflect the changes in the portfolio of the investors effectively.
The content of this article is for reference only, and does not constitute any form of advice or contract offer. Any decision should not be made based on this article. Investment involves risk. Past performance of Funds is not indicative of its future performance. Convoy Asset Management Limited (“Convoy”) has undertaken reasonable endeavors to prepare The Convoy MPF Index but Convoy does not state and guarantee the accuracy, completeness and correctness of the content.