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The Management Board of the Mandatory Provident Fund Schemes Authority (MPFA) was today (Thursday, 9 October 2003) updated on the progress and developments of the Authority's initiative to improve the disclosure of fees, charges and performance of MPF Funds (the Disclosure Project).

The proposed improvements are part of the MPFA's efforts to make it easier for scheme members to understand information on fees, charges and performance of MPF funds, enabling them to make better MPF investment decisions.

A spokesperson for the MPFA pointed out that the Disclosure Project is a proactive initiative taken by the MPFA to help MPF scheme members to better understand information on fees and charges and performance of MPF Funds.

The industry is supportive of the MPFA’s initiative, and is working together with the Authority to develop detailed proposals.

"The MPFA is working with the service providers to simplify and standardise the presentation of fees, charges and performance of MPF funds.  This will in turn help scheme members better understand and choose MPF products.

"With 19 trustees, 48 schemes, more than 500 funds, we will first focus on improving the consistency of the way that fees and charges and performance information are calculated and presented."

It is expected that the detailed proposals will be developed by the end of this year, and the new measures will be implemented starting from 2004.

To help scheme members to make the best use of the information provided, educational materials and programmes will be developed to promote understanding of MPF investment among MPF scheme members and the wider community, the spokesperson added.

End/Thursday, 9 October 2003