The Mandatory Provident Fund Schemes Authority is studying options to implement full MPF benefit portability, Secretary for Financial Services & the Treasury Prof KC Chan says. It aims to submit a proposal to the Government by the end of 2015.
In a written reply to a lawmakers’ question today, Prof Chan said the MPF schemes had about $517.4 billion in total assets under management at the end of February.
The authority has urged MPF trustees to make different types of low-fee funds available in each scheme for members to choose from, he said.
“As at the end of March 2014, the number of low-fee funds available in the market was 155, accounting for about one third of all MPF funds.”
The authority has also included a "Low Fee Fund List", a "Fee Comparative Platform" and a "Trustee Service Comparative Platform" on its website to help scheme members select funds and increase market force, he said.
Prof Chan said 171 funds’ management fees have been reduced from the launch of the Employee Choice Arrangement in November 2012 up to January, with the largest reduction being 118 basis points, or 1.18%.
“The fund expense ratio also fell from 1.74% at the preceding month of the launch of the Employee Choice Arrangement to 1.69% in March 2014.”
