Convoy urges more emerging-market MPF fund choices, Asia first

Convoy CEO Fong Suet-sum says that although the government has delayed the MPF Employee Choice Arrangement, the company has been tracking developments and expanding through training and hiring. About 80% of its 1,200 frontline consultants hold MPF licences, with a target of 100% this year.

What funds are proposed?

Convoy MPF business development director Chung Kin-keung suggests MPF members currently have too few fund combinations, and urges adding emerging-market funds — especially Asian exposure — plus target-date funds and self-adjusting bond funds recently launched in the US and Europe. Broader MPF fund types would give members more diversification choices.

How big is the “semi-portability” business?

The company calls “semi-portability” — employees moving preserved accounts to another MPF provider after leaving a job — a high-potential business, growing about 50% from 2009 to 2010. Even with formal portability delayed, market demand is already visible.

To compare existing MPF fund types and performance, visit MPF fund comparison.