Fidelity cuts all MPF fees 7.6%–20.6%: conservative funds lead, market share No. 7

Fidelity International cut fees across its entire Hong Kong MPF range in November 2011, by 7.6%–20.6%. 陸劍平, Fidelity’s Hong Kong head of institutional business, said the cut was not about poaching clients — years of asset accumulation had simply cheapened administration. Whether fees fall again depends on how the business develops and how members respond.

Which Fidelity MPF funds got the biggest cut?

The 20.6% cut applied to products holding about 9% of MPF assets — mainly conservative funds, which involve no complex equity or bond investment and consume fewer company resources. Other products, needing fund managers and analysts, got smaller cuts. The firm had also cut fees back in 2007.

Market share 4.5%: will the cut move the needle?

陸劍平 was candid: the cut would do little for market share — Fidelity held 4.5% of Hong Kong MPF assets, ranking seventh. On post-ECA switching, he cited surveys showing nearly 30% of members intended to move MPF investments, but said the reality would only be known after implementation.

The flight to conservative funds: don’t churn, he urges

In the classic retail pattern, a falling stock market sends 30%–40% of investors into conservative funds. 陸劍平 urged members not to switch rashly but to invest for the long term to ride out short-term volatility — the same logic as reviewing long-run allocation rather than fleeing when markets fall.

What members can do

Fidelity cutting across the board while insisting it is “not about poaching” shows fee cuts had become an industry cycle rather than a one-off promotion. For members, the question was never who cut by how much, but where your own fund’s expense ratio sits within its category. The MPF education hub shows how to compare fees.