AXA MPF: Did Its Guaranteed Fund Beat the Hang Seng Index Over 1 and 5 Years?

This article is a rewrite of a report from November 2012.

In November 2012’s “semi-portability” era, AXA reminded members to think thrice before switching trustees — never decide rashly for a promotion alone. It also disclosed that its guaranteed fund’s annualised 1-year and 5-year returns were 4.01% and 4% respectively, both beating the Hang Seng Index over the same periods — outperforming the market under the “guaranteed” name.

What should you watch with MPF guaranteed funds?

Switching can void the guarantee. If accrued benefits currently sit in a guaranteed fund, transferring may breach guarantee terms and forfeit the guaranteed return. MPF is a decades-long investment — check the guarantee terms before moving; don’t switch for switching’s sake.

When picking a trustee, what matters besides short-term numbers?

Medium-to-long-term returns and overall strength. AXA advised then: don’t overweight short-term fund performance; reference medium-to-long-term returns. And don’t fixate on management fees alone — compare trustees’ overall strength: are services fit for purpose, finances solid, products and service quality improving, staffing adequate.

How many steps does the transfer process have?

Three. One, submit the transfer form: download from the MPFA website, complete it, hand it to the new trustee; if you hold no account in the new scheme, contact the new trustee to open one first. Two, old and new trustees arrange the fund dealing: after verification, the old trustee sells funds for cash, transfers to the new trustee, who buys funds — six to eight weeks. Three, check the confirmation documents: the old trustee’s “transfer settlement statement” and the new trustee’s “transfer confirmation” — verify amounts and account details.

Do strategies differ by age?

Yes. Young employees without family burdens can choose more aggressive mixes within balanced risk; middle-aged members with families gradually trim high-risk funds; those nearing retirement go defensive to lock in years of accumulated benefits. Review the mix yearly after switching — never “short-trade”.