HSBC will introduce a 40 per cent cut in management fees for three funds under its existing MPF schemes starting from March this year.
The three constituent funds include SimpleChoice, SuperTrust, and SuperTrust Plus. The new management fees for MPF Conservative Fund, Global Bond Fund and Hang Seng Index Tracking Fund under the above schemes will be lowered from 1.25-1.5 per cent to 0.79-0.99 per cent.
A new MPF scheme to be launched by HSBC in the first quarter, ValueChoice, will also come with lower management fees ranging from 0.79 per cent to 0.99 per cent.
The move follows a recent regional survey by HSBC Insurance Hong Kong indicating that a growing number of people in Asia would actively manage their own MPF schemes. A new law allowing employees to choose their own MPF providers is expected to be passed by year's end.
Sally Wong, chief executive of the Hong Kong Investment Funds Association, expected more MPF providers to lower management fees in anticipation of the new legislation.
'As it becomes possible to choose your own MPF trustee, the sense of ownership should become greater and employees will be more active in making decisions,' Wong said. 'Management fees are one of the aspects MPF providers have to review in order to stay competitive. Of course, more important aspects are fund performance, and the range and quality of services.'
