Bank of East Asia (Trustees) (BEA Trustees) has announced over 30% of fee reductions for its three MPF funds starting from 1 June 2011, eyeing to grab businesses once the Employee Choice Arrangement (ECA) comes into force.
The wholly-owned subsidiary of the Bank of East Asia (BEA) said the management fees for two MPF Conservative Funds under the BEA (MPF) Master Trust Scheme and BEA (MPF) Industry Scheme will be reduced from 1.20% to 0.79% per annum (p.a.), while the management fee for the BEA (MPF) Global Bond Fund under BEA (MPF) Master Trust Scheme will be reduced from 1.45% to 0.99% p.a.
Patrick C.M. Li, BEA Trustees’ Director & Chief Executive says, “We are confident that this reduction in management fees will be warmly welcomed by our existing MPF members, and further enhance our competitiveness in the marketplace.”
The firm added the management fee reduction will be up to 34% for the MPF Conservative Funds and 32% for the Global Bond Fund.
There are over 480,000 members under the firm’s two MPF schemes with total assets under management exceeding HK$13bn as at 31 March 2011.