AIA open to MPF “semi-portability”, may consider investing in government bonds

As the MPF fee war continues, AIA has unveiled a customer value proposition and cut management fees on three existing funds — a strategic move ahead of MPF “semi-portability.”

What’s AIA’s stance on “semi-portability”?

AIA (Trustee) CEO Bonnie Tse said the firm is optimistic and open-minded about MPF “semi-portability” launching in the second half of next year; the company is in close contact with the MPFA and fully prepared for the rollout. She believes peers will reference AIA’s approach but declined to predict whether they would follow the price cuts.

Do new and existing clients benefit equally?

Yes. Tse said unified pricing means both new and existing AIA clients benefit. Uniform fees sidestep disputes over differential treatment amid the price war.

Will AIA launch renminbi products or buy government bonds?

Tse said renminbi products depend on foreign-exchange controls and other coordination; AIA’s MPF portfolios will reserve 10% flexible investment room, and fund managers may consider government bonds if returns warrant. Workers can compare MPF fund fees and learn about “semi-portability” via MPF educational resources.