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ORSO News

Establishment of the new investment choice and changes in frequency of portfolio rebalancing and redirection of future contributions (23 November 2020)

Establishment of the new investment choice


With effect from 23 November 2020, the Hang Seng Index Tracker Fund (‘New Fund’) will be available as a new investment choice under Wayfoong Multi-funding System (‘WMFS’) (applies to Hong Kong dollar schemes only). The addition of the New Fund under WMFS will provide an alternative fund choice to members / employers.


Portfolio rebalancing and Redirection of future contributions


To provide members / employers a greater flexibility when allocating their investments under the WMFS, with effect from 1 December 2020, WMFS will be enhanced to allow instructions for portfolio rebalancing of existing balances and redirection of future contributions to be done weekly on the relevant valuation day (which will be 7th, 14th, 21st, 28th of each month or, where it is not a business day, the next available business day), except the Capital Guaranteed Fund, 4% Guaranteed Fund, 5% Guaranteed Fund and Central Provident Fund.  For further information of the changes described above, please refer to the updated ‘Principal Brochure’ (together with its supplement), and the 'Change of Investment Instruction by Member' (INCI06) form or ‘Change of Investment Instruction by Employer’ (INCI51) form.  You should only use the new form from the 23 November 2020 onwards.


The ‘Principal Brochure’ (together with its supplement) of WMFS has been issued to reflect the changes described above and the consequential changes. You may refer to the Notice dated 30 October 2020 and the updated ‘Principal Brochure’ for further details of the changes.

Update on ORSO Money Market Funds (21 August 2020)

The outbreak of Covid-19 pandemic has a significant impact on the global economy.  While the US Federal Reserve’s actions to keep interest rates near zero in June, Hong Kong dollar (HKD) money market rates have also been impacted by a number of factors affecting liquidity.

Overall, liquidity yields may remain low compared to last year given the economic impact of the Covid-19 pandemic and easing policies by global central banks.

The ORSO Money Market Funds generally aim to provide liquidity together with a rate of return higher than the bank savings rate. However, we would like to remind investors that investment in money market funds is different from depositing funds in a savings account at a bank or deposit taking company. These funds are not capital protected, and there is no guarantee that a stable net asset value will be maintained. Investors may not get back the amount originally invested.

Update on the ORSO Amendment Bill for ORSO registered and exempted schemes (3 July 2020)

The ORSO Amendment Bill was passed by the Legislative Council on 17 June 2020, and became effective on 26 June 2020. The main objective of the ORSO Amendment Bill is to set up a registration framework for the Occupational Retirement Schemes (“ORSO Schemes”) to ensure they are properly regulated.

The new ORSO Amendment Bill will require employers to submit an annual written statement (for ORSO registered and exempted schemes), an annual return (for ORSO exempted schemes only) as well as notification of reportable events (for ORSO registered schemes only) to the Mandatory Provident Fund Schemes Authority (‘MPFA’). For more information on the new requirements, please visit the MPFA website > ORSO > Circulars > Occupational Retirement Schemes (Amendment) Bill 2019.

The MPFA had also invited employers to attend their upcoming Town Hall sessions (28th, 29th, 30th of July 2020) to facilitate employers to gain a better understanding of the new requirements under the new regulatory requirement. By 6th July 2020, employers will need to register and complete the ‘Reply Slip’ contained in the abovementioned Circular.  We strongly encourage employers to register and attend the upcoming Town hall sessions.

Important notes

  • The information contained in this website is for reference only and will be updated from time to time without notice. The provisions of the Occupational Retirement Schemes Ordinance, other applicable legislation/regulations and guidelines or announcements published by the Mandatory Provident Fund Schemes Authority and/or Securities and Futures Commission shall prevail for any information on ORSO system. If you are in doubt about the meaning or the effect of the contents of this website, you should seek independent professional advice.
  • Investment involves risks. Past performance is not indicative of future performance. The value of financial instruments, in particular stocks and shares, and any income from such financial instruments, may go down as well as up. For further details including the product features and risks involved, please refer to the relevant brochure.