AIA may add more MPF products as client numbers keep rising despite volatile markets

AIA’s MPF business in Hong Kong now offers 25 MPF products, and the company does not rule out adding more to give clients greater choice, an AIA pensions executive said. The firm plans to strengthen agents’ product knowledge and service, raise their productivity, and deepen cooperation with distribution channels such as banks.

How many MPF products does AIA offer?

AIA’s MPF offering in Hong Kong currently spans 25 MPF products. The company says it may add further products so clients have more to choose from, while lifting overall service quality through better-trained agents and closer partnerships with bank channels.

Business holds up in volatile markets

With markets swinging through 2011, the executive expected full-year returns to stay choppy and hard to predict. Since the US credit-rating downgrade and the European debt crisis, she said, few clients had switched their investment mix — a sign most members were staying the course.

Business was nevertheless brisk this year: contributions from existing clients rose, several new employer schemes were won, and new client numbers climbed against the market trend.

Index portfolio debuts; no price cuts on active products

On the product front, AIA launched an index portfolio on 23 September as its 25th fund. Because the index offering carries lower fees, the company has no plans to cut prices on actively managed products for now — answering fee concerns with a low-cost indexed option rather than across-the-board fee cuts.

To compare fund choices and fees across providers, see MPF fund search.