MPF diversifies investment range with ETFs
26 February 2013
News, Asia, Hong Kong
By ETFI Asia
State Street Global Advisors (SSgA), the asset management business of State Street Corporation has announced that the SPDR Gold Shares, which is backed 100% by physical gold, has been approved as a ‘permissible MPF investment’ for HKMPF constituent Funds by the Mandatory Provident Fund Schemes Authority (MPFA) of Hong Kong, allowing scheme providers to invest up to 10% of each constituent fund in SPDR Gold Shares.
SPDR Gold Shares was launched in November 2004 by World Gold Trust Services and State Street to satisfy the growing need among investors for an exchange traded fund backed by physical gold. Recognising that gold is a long-term investment which may stabilise wealth by diversifying the risk of the portfolio, investors in SPDR Gold Shares have made it one of the fastest growing ETFs globally. Listed on five exchanges, assets under management (AUM) in the trust totalled more than US$72 billion, making it the second largest ETF in the world, as of December 31, 2012.
Frank Henze, managing director and head of SPDR ETFs, Asia Pacific at State Street Global Advisors, said: “Since its launch, SPDR Gold Shares has made gold relevant and accessible to a broad range of investors who regard it as a cost-effective, transparent and liquid way to include gold in their portfolios. We are very excited that MPF providers and their investors can now easily gain access to this unique asset class through SPDR Gold Shares.”
Mr. Henze added, “Strategic asset allocation plays an important role in managing risk and providing stable portfolio performance. Portfolios that contain even a small allocation to gold have the potential to better cope with varying market scenarios and SPDR Gold Shares, the largest and most liquid gold ETF in the world, is the investment vehicle of choice to add gold to a well-diversified portfolio.”
Jason Toussaint, chief executive officer, World Gold Trust Services, LLC, said: “Investors around the world view gold as a unique asset class that may stabilize wealth and reduce risk by diversifying their portfolios. Gold may offer considerable benefits to investors looking to hedge against inflation, currency volatility and unanticipated but potentially damaging tail-risk events. These are particularly important considerations for employees and employers planning for long-term objectives and protecting assets such as for retirement.”
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