Singapore's S$453 billion ($339.3 billion) Central Provident Fund hired Morningstar to advise the CPF board on which money managers and investment strategies to include in the CPF Investment Scheme offered to CPF's 4 million members, a CPF spokeswoman confirmed Tuesday.
Effective March 7, Morningstar will evaluate product providers and investment products for admission or continued inclusion in the CPFIS platform, the firm said in a separate announcement.
Morningstar will replace Mercer. A Mercer spokeswoman declined comment.
The CPF board will make final decisions on which investment products to offer participants who opt to shift some of their savings into strategies of their choosing.
The investment scheme "provides members with the option to invest their CPF savings in various instruments such as insurance products, unit trusts, exchange-traded funds, fixed deposits, bonds, shares, property funds and gold," according to the Morningstar news release.
The period of Morningstar's investment consulting contract with CPF is five years, with an option of an extension of up to two years, according to the Morningstar news release.
As of Sept. 30, CPF participants held investments in CPF Investment Scheme offerings of just under S$23 billion.