uantitative easing policies in the US induced hot-money flow in Asia, making inflation a growing concern. The Investment Committee of HA Provident Fund Scheme (HAPFS) discussed the issue in September 2010. An investment consultant was hired to review its strategic asset allocations.
After the review, trustees decided to increase allocation to Hong Kong equities from 20% to 25% within the equity weighting of each member choice fund, with effective from 31 March 2011. In the long run, HAPFS aims to consider the feasibility of investing in global real estate investment trust and commodities to enhance its inflation-hedging capability and diversify risk of the portfolio.
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