AIA MPF value promise: low-fee funds join the MPF fund fees comparison

(Editor’s note: the original was an English press release from September 2011; the Chinese version above is a restyle, and this English text is a new translation of it.) On 14 September 2011, AIA announced a customer value promise for its MPF business — adding a series of low-fee constituent funds and cutting fees on selected existing funds, with effect from 23 September 2011.

What is AIA MPF’s customer value promise?

AIA MPF’s customer value promise is a service commitment built on three pillars — value, choice and simplicity: competitive fees, a broad fund line-up and hassle-free services to help customers realise their retirement dreams; the new funds and fee cuts took effect on 23 September 2011.

Value: fees down to 0.99%

Bonnie Tse, chief executive of American International Assurance Company (Trustee) Limited, said the new funds benefit new and existing members alike; the Manager’s Choice Fund, World Equity Fund and Global Bond Fund carry the market’s lowest fund expense ratios in the mixed-assets, equity and bond categories — three categories making up nearly 80% of the aggregate net asset value of the market’s approved constituent funds.

Choice: 25 constituent funds, multi-manager strategy

With the four additions, AIA’s MPF platform holds 25 constituent funds. Its long-standing multi-manager approach lets customers diversify across investment managers with different styles and switch investment choices within as little as one day, without changing schemes. A fund selection matrix helps customers match choices to their investment approach and risk appetite.

Simplicity: auto-rebalancing and e-platforms

LifeEasy, a personalised automatic asset-rebalancing service launched in 2008 — long before target-date funds became popular — plus an e-platform and a soon-to-launch smartphone app, let customers manage their MPF at their fingertips.