American International Assurance Company (Trustee) (AIA) is to introduce four low-fee MPFs and cut the prices for its three existing funds, effective 23 September 2011.
What do the new funds offer?
The four new MPFs — Asian Bond Fund, American Fund, Eurasia Fund, and Hong Kong and China Fund — will carry management fees of up to 0.99% per annum. The launches take the firm’s total MPF count to 25; the new fixed-income fund will be managed by J.P. Morgan Asset Management.
How deep are the cuts on existing funds?
Management fees for the Global Bond Fund, MPF Conservative Fund and World Equity Fund drop from 1.75% to 0.99% per year. CEO Bonnie Tse said the cuts respond to market demand for low-fee products.
What should workers watch when choosing funds?
Lower fees are welcome, but investment objectives, risk levels and performance fit with personal needs matter too. Cheapest isn’t automatically best — compare MPF fund fees and performance and build a well-rounded evaluation approach via MPF education.
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