Getting the most out of your MPF? New platform allows easy ranking of fund returns and fees
- The ‘MPF Fund Platform’ tracks performance and fees for all 429 funds
The Mandatory Provident Funds Schemes Authority has introduced a platform to help local savers easily assess how their retirements savings plans are performing relative to other funds on offer.
“By launching the new platform, employees can easily check if their MPF investment funds are charging fees which represent value for money. If not, they should switch to other funds to add pressure on their providers to cut fees and enhance performance,” said Cheng Yan-chee, chief corporate affairs officer and executive director of MPFA.
The bottom 10 performers, including Japan equity fund and some bond funds, suffered an annual loss of between 0.21 per cent to 2.02 per cent since launch through March 31. Fees for these funds ranged between 1.26 per cent to 2.02 per cent.
The MPF funds on average charged an annual fee of 1.52 per cent.
In contrast, the top 10 performing funds were all equity focused and have produced annual returns over 10 per cent since their launch until March 31. Annual fees for these funds ranged from 0.84 per cent to 1.77 per cent.
“The MPFA will also check if the providers in the following months have charged a reasonable fee and may urge them to make improvements,” he said.