AIA MPF: new and existing client numbers both rise, 25 products on shelf, fees cut to attract members

In September 2011, AIA (1299) senior vice-president for pension management and trust Tse Pui-lan said AIA MPF business was growing on both fronts: contributions from existing clients were rising, and the company had also won new employee policy plans. After launching four new retirement funds the previous week, its MPF product line-up had grown to 25, with more likely to follow.

Should you invest in stages when markets are volatile?

Staged investing means putting money into the market in batches to average down the purchase cost. Tse advises MPF members to consider investing in stages to lower costs amid market volatility; while markets are weak at present, she has not yet seen clients switching their MPF portfolios as a result.

New and old clients both on the rise

Tse said new and existing client numbers were both trending up this year, with contributions from existing clients increasing; the company had also secured new employee policy plans. With the four new retirement funds launched the previous week, the company now offers 25 MPF products in total and may add more.

Stronger ties with agents and banks

The company plans to deepen agents’ understanding of MPF. Besides existing partnerships with Citibank, CITIC Bank (998) and China Construction Bank (939), it will keep expanding bank distribution tie-ups to widen its sales network.

Fee cuts to widen low-cost choice

The earlier fee reduction was made in response to client demand, to offer more low-fee MPF options. Management believes that as the Employee Choice Arrangement — the “semi-portable” MPF — approaches, competition will push fees down further.

To compare fees and returns across AIA’s MPF funds, see MPF fund search.