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- MPFA actively encourages the use of ETFs in MPF (21 November 2023)
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MPFA actively encourages the use of ETFs in MPF (21 November 2023)
MPFA Executive Director (Policy) Mr Eric Cheng on 21 Nov attended the HKEX ETF Insights: The Future of ETFs in MPF’s Portfolios event organized by the Hong Kong Exchanges and Clearing Limited (HKEX) as keynote speaker, sharing the use of ETFs in view of the latest development of the MPF market.
Mr Cheng said that the MPFA has all along been committed to driving continual reduction of MPF fund fees for the benefit of scheme members through various means, including promoting the use of Exchange Traded Funds (ETFs) which are generally lower cost options as compared to actively managed funds. Over the years, the MPFA has been facilitating the wider use of ETFs by the MPF industry through measures such as approving index-tracking collective investment schemes for investment by MPF funds and refining the constituent fund approval criteria which require consideration to be given to using index tracking investment options such as ETFs.
He added that the MPFA encouraged ETF providers to discuss with MPF trustees and investment managers on the design of ETF products which could facilitate the development of retirement solutions that better serve scheme members’ needs.