Investment Choice

In 2010, GPF provides four investment choices for its members, namely the low-risk money market plan, the core plan, the fixed income and the higher equity plan. The choices consist of three main asset classes: equity, fixed income, and property. The higher equity plan invests around 35% in equities, compared with 20% for the core plan (or the default plan). Members who choose the mixed-equity program will be able to gain higher returns, but have to accept higher risk. The fixed-income plan will invest in short-term and long-term fixed income securities, with no holdings in equity or property assets. The investment objective is to generate returns exceeding bank deposits rate. In 2013, GPF introduced Life Path Investment Plan as another MIC. This latest MIC undertakes higher risk for higher return while members are young and gradually reduces risk for capital preservation while member approach retirement. Life Path Investment Plan is by far the most popular MIC chosen by members.