Vanguard Investments Hong Kong has agreed to transfer the investment management of its Mandatory Provident Fund (MPF) default investment strategy (DIS) platform to Amundi Hong Kong, subject to regulatory approvals.
The two sub-funds in the Vanguard Funds Series platform, the Vanguard Moderate Growth Fund and Vanguard Income Fund, have US$2.79 billion in combined assets as of March 31 2021. The sub-funds serve the MPF DIS market and are available through schemes offered by AIA Company (Trustee) and Manulife Provident Funds Trust Company. Cititrust will continue to remain as the trustee of the sub-funds upon Amundi assuming the new investment manager role.
On August 26 2020, Vanguard announced it planned an orderly exit from the MPF DIS market as part of its exit from the Hong Kong institutional funds market.
“We are grateful for our clients’ loyalty over the years and pleased that we are able to affect a seamless transition of investment management responsibilities to the team at Amundi,” says Vanguard Asia head Scott Conking. “We believe that the DIS initiative by the Mandatory Provident Fund Schemes Authority remains an important initiative to help retirement savers reach their goals.”