BestServe launches free MPF comparison platform ahead of ECA

BestServe Financial, the independent pension administrator under Sun Life Financial, launched MyMPFChoice.com in November 2011 — a free online platform for comparing MPF fund performance, timed for the potentially large retail market the Employee Choice Arrangement (ECA) would unlock in 2012.

How does the MPF comparison platform work?

MyMPFChoice.com, fed with Lipper data on global mutual funds, lets the public compare any MPF fund against peers in the same category over any period, and project returns on cumulative contributions. Users can also complete the “Scheme Member’s Request for Fund Transfer Form” online and take a risk-profiling assessment to gauge their risk appetite and investment preferences.

Why launch now: performance will drive choice

Belinda Luk, BestServe’s senior vice-president, argued fund performance would be critical once employees could choose their own MPF provider under the ECA. “MPF fund performance should be a key factor in selecting an MPF provider, but until now there hasn’t been a simple way for the general public to acquire the necessary information and compare performance across all MPF funds,” she said. “Hence, we have introduced this pioneering, user-friendly tool that enables people to easily and quickly compare funds which in return, may help those making informed decisions.”

Intermediaries race to own the information layer

With the ECA set to let employees move accrued benefits between providers, intermediaries were competing to improve information accessibility and expand market share. A free, independent comparison tool was both a public service and a customer-acquisition play: whoever helps members choose first wins the relationship.

What members can do

Comparison is only useful if you know what to compare. Start with funds in the same category — equity against equity, conservative against conservative — over identical periods, then look at fees alongside returns: a top-quartile fund with top-quartile fees may leave you worse off than a cheaper runner-up. The MPF education hub explains how to read fund performance data.