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- MPFA blog - Three steps to enhance transparency of MPF information
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MPFA blog - Three steps to enhance transparency of MPF information
In his latest blog post published today (6 September), MPFA Chairman Dr David Wong said that some people were worried about their MPF investment because of the impact of the Covid-19 pandemic on the financial markets. He pointed out that although the total assets of the MPF System decreased to $868 billion in March 2020, it rebounded and exceeded $1 trillion in July, reflecting the resilience and stability of the MPF System. He reminded scheme members that the MPF was a long-term investment so they should not be overly concerned about short-term volatility.
According to the MPFA’s statistics, as at the end of December 2019, the number of MPF accounts with more than $1 million went up to 62,900, nearly a 40% yearly increase. Dr Wong encouraged scheme members to manage their MPF accounts properly because it would provide savings for basic retirement protection after years of accumulation in the MPF System. To help MPF members manage their accounts, the MPFA adopted a three-step approach, launching various tools to enhance the transparency of fund information and provide scheme members with the required information to make informed choices to better manage their MPF.
Dr Wong said that the MPFA had taken the first step by launching the one-stop MPF Fund Platform last April. The platform enables scheme members to compare the fees and performance of MPF funds by disclosing the main components of the fund management fees. Since the launch of the platform, it has helped drive market competition and fee reductions, as more than 40 funds have lowered their fees. Ten funds have reduced the investment management fee by 20 basis points.
The second step is to improve the way trustees show MPF account information. They are required to use a standard format to show the information instead of using complicated numbers and words. The third step is to enhance scheme members’ understanding of MPF products so that they can assess investment risk more easily. The risk class function indicates the risk level of the fund, which allows scheme members to select the funds that meet their personal needs.
For the full version of the article, please visit the MPFA blog. The blog is in Chinese only.
－Ends－
6 September 2020
According to the MPFA’s statistics, as at the end of December 2019, the number of MPF accounts with more than $1 million went up to 62,900, nearly a 40% yearly increase. Dr Wong encouraged scheme members to manage their MPF accounts properly because it would provide savings for basic retirement protection after years of accumulation in the MPF System. To help MPF members manage their accounts, the MPFA adopted a three-step approach, launching various tools to enhance the transparency of fund information and provide scheme members with the required information to make informed choices to better manage their MPF.
Dr Wong said that the MPFA had taken the first step by launching the one-stop MPF Fund Platform last April. The platform enables scheme members to compare the fees and performance of MPF funds by disclosing the main components of the fund management fees. Since the launch of the platform, it has helped drive market competition and fee reductions, as more than 40 funds have lowered their fees. Ten funds have reduced the investment management fee by 20 basis points.
The second step is to improve the way trustees show MPF account information. They are required to use a standard format to show the information instead of using complicated numbers and words. The third step is to enhance scheme members’ understanding of MPF products so that they can assess investment risk more easily. The risk class function indicates the risk level of the fund, which allows scheme members to select the funds that meet their personal needs.
For the full version of the article, please visit the MPFA blog. The blog is in Chinese only.
－Ends－
6 September 2020
