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- Low Fee Fund List enhanced to provide more information
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Low Fee Fund List enhanced to provide more information
An enhanced version of the Low Fee Fund1 List was uploaded to the Mandatory Provident Fund Schemes Authority (MPFA) website today (20 February). Starting from this issue, the List provides more fund information, listing side by side the funds’ current management fees, Fund Expense Ratios (FER)2, and five- and 10-year annualized rates of return to make it easier for scheme members to make informed investment decisions by reviewing and comparing the various sets of data.
On the current issue are 152 low fee funds of different types, accounting for more than 30% of all MPF funds, with 107 of them investing in equities and/or bonds.
By default, the List shows the funds in the order of their current management fees, with the lowest at the top. Scheme members can use a newly-added interactive function to display the funds in ascending or descending order of their current management fees, FER or rate of return, or in alphabetical order by the name of the trustee or scheme. The function also permits them to view only low fee funds of a particular fund type or scheme, or those provided by a particular trustee.
The List will be updated once a month. Members of the public can go to the “Useful Tools” section on the website’s homepage to read or print the List.
MPFA Head (Trustees Supervision) Joseph Lee said, “Scheme members can easily find the ‘bargains’ on the List and the low fee funds offered by the MPF scheme they have enrolled in.”
Mr Lee said, “The MPFA will continue to look for ways to enhance fund transparency and help scheme members obtain fund information, such as fee data, conveniently.”
The MPFA reminds scheme members that when choosing MPF schemes and funds, in order to make informed investment decisions, they should not only look at fund fees, but also consider the products and services offered by the trustees, as well as their personal factors.
In addition, the past performance of funds cannot indicate their future performance, so scheme members should not make investment decisions based solely on historical fund returns. The MPF is a long-term investment and scheme members should not be overly concerned about short-term market fluctuations.
- Ends -
20 February 2014
On the current issue are 152 low fee funds of different types, accounting for more than 30% of all MPF funds, with 107 of them investing in equities and/or bonds.
By default, the List shows the funds in the order of their current management fees, with the lowest at the top. Scheme members can use a newly-added interactive function to display the funds in ascending or descending order of their current management fees, FER or rate of return, or in alphabetical order by the name of the trustee or scheme. The function also permits them to view only low fee funds of a particular fund type or scheme, or those provided by a particular trustee.
The List will be updated once a month. Members of the public can go to the “Useful Tools” section on the website’s homepage to read or print the List.
MPFA Head (Trustees Supervision) Joseph Lee said, “Scheme members can easily find the ‘bargains’ on the List and the low fee funds offered by the MPF scheme they have enrolled in.”
Mr Lee said, “The MPFA will continue to look for ways to enhance fund transparency and help scheme members obtain fund information, such as fee data, conveniently.”
The MPFA reminds scheme members that when choosing MPF schemes and funds, in order to make informed investment decisions, they should not only look at fund fees, but also consider the products and services offered by the trustees, as well as their personal factors.
In addition, the past performance of funds cannot indicate their future performance, so scheme members should not make investment decisions based solely on historical fund returns. The MPF is a long-term investment and scheme members should not be overly concerned about short-term market fluctuations.
- Ends -
20 February 2014
1 Funds with a Fund Expense Ratio (FER) ≦1.3% or current management fees ≦1%.
2 The FER is a ratio that measures the total expenses of an MPF fund as a percentage of the fund’s asset value. It is a historical, lagging figure, reflecting the data of the previous financial year but not necessarily the latest fee level.
