The USD771bn Federal Retirement Thrift Investment Board, which manages the main US federal government pension, said it will exclude Hong Kong from its USD68bn international fund (I Fund). The Board said it has selected the MSCI All Country World ex-USA ex-China ex Hong Kong Investable Market Index next year as the benchmark for the I Fund. The fund was previously benchmarked against the MSCI Europe, Australasia and Far East Index. The Board will work with its fund managers to implement the transition from the current index to the new index in 2024. Investment restrictions on sensitive Chinese industries, delisting of Chinese companies from US exchanges, and sanctions on Russian securities have led to transaction costs and swings in returns, it added.
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