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The Mandatory Provident Fund Schemes Authority (MPFA) today (29 April) launched a one-stop MPF Fund Platform (Platform) to further enhance the transparency of the MPF funds. The Platform allows scheme members to obtain more information on the management fees of MPF funds whilst further promoting market competition.

The Platform, which amalgamates the existing Fund Performance Platform, Fee Comparative Platform, Low Fee Fund List and DIS (Default Investment Strategy) Fund List, provides a one-stop solution for MPF scheme members to examine information about different MPF funds and compare their management fees and investment performance, etc. The Platform reveals in detail each of the components under the management fees of MPF funds, namely the administration fee / trustee fee / custodian fee, the sponsor fee, and the investment management fee, so as to provide scheme members with more relevant information.

An MPFA spokesperson said, “The MPF System is a privately managed system. With the exception of the fees of DIS funds and MPF Conservative Funds, the management fees of MPF funds are determined by the private market. This notwithstanding throughout the years, the MPFA has been enhancing the transparency of MPF funds with the different initiatives in a progressive manner.  Measures taken include the disclosure of Fund Expense Ratio figures since 2007 and the subsequent launch of various tools such as the Fee Comparative Platform, Low Fee Fund List and Fund Performance Platform. Furthermore, the MPFA has requested trustees to disclose the breakdown of the management fee of MPF funds in a standardized format in the offering documents with an aim to enhance consumers’ rights and encourage market competition. The relevant information will provide useful reference for trustees, service providers and scheme members.”

With enhanced transparency of MPF funds, the Platform will help promote competition among industry players. As to the scheme members, they are able to make an informed choice in selecting high value-for-money funds that meet their personal needs. Market forces will further drive down the fees of MPF funds.

Following the launch of the Platform, the MPFA will also approach trustees to identify the reasons for the different levels of management fees of their MPF funds and, if necessary, require them to review the management fees of individual funds with a high fee level. At the same time, the MPFA will also proactively introduce the Platform to stakeholders and promote the Platform through public education seminars.

On another note, the MPFA has revamped its MPF investment education platform recently, and started to provide financial planning tips to address the needs of scheme members of different age groups. This helps scheme members understand their personal situation, and motivates them to manage their MPF proactively to realize their desired retirement life.

The spokesperson encouraged scheme members to make good use of the various online tools provided by the MPFA to review their investment portfolio regularly and to formulate an appropriate investment strategy according to their stage of life, investment goals and risk tolerance level.

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29 April 2019