BCT’s Lau Ka-shi: Know More About Semi-Portability — Don’t Switch for Switching’s Sake

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

In November 2012’s Employee Choice Arrangement era, BCT Group managing director Lau Ka-shi wrote to remind members: semi-portability brings greater autonomy and more choice — but don’t follow the herd or switch for switching’s sake. Seize the moment to review your accounts and think carefully about whether to move — that’s the smart play.

How do you choose a suitable MPF scheme?

Check diversification, service and fees — all three are essential. Is the scheme diversified, do fund types span asset classes, is risk coverage complete — life stages differ, and so do investment needs and risk tolerance; platforms with more fund categories allow more flexible allocation. On service, online platforms or mobile apps make account management easier.

What are the tricks to comparing fund performance and fees?

Compare within category and look long term; on fees look beyond the management fee to the fund expense ratio. Returns matter, but past performance doesn’t predict the future; compare funds across schemes within the same type, and check whether medium-to-long-term returns are stable. On fees, beyond the management fee, watch the fund expense ratio — the MPFA’s fee comparison platform carries each fund’s total expense level.

What should you do with preserved accounts?

Consolidate under semi-portability — two birds, one stone. Every job change spawns a preserved account (renamed personal accounts from November 2012); MPFA June 2012 data showed about 4 million preserved accounts territory-wide, 1.6 per employee on average. Consolidating helps you review and manage MPF; members can check their preserved-account count with the MPFA using personal details — tidy up before planning retirement.