Gain Miles: semi-portability may confuse — scheme switches take 8–10 weeks

MPF semi-portability could start as early as next year, and anticipation is high. Consultant Gain Miles says about 60% of MPF assets — roughly HK$200 billion at current values — will become transferable; but gaps between expectation and reality, if poorly managed, could seed future misunderstanding.

Can employees choose wisely?

Picking from 38 schemes and nearly 400 funds is no small task. Facing competing sales pitches, employees need enough analytical ability and resources to find suitable choices among 38 schemes and nearly 400 funds. The firm believes fees will adjust with supply and demand and cuts are achievable — but it reserves judgment on whether more employee choice alone delivers semi-portability’s main goal of greater member control; that needs multi-party cooperation and balance.

How long does switching take?

Eight to ten weeks — Hongkongers may balk. Managing director Gloria Siu says a scheme switch is expected to take 8–10 weeks, which may puzzle locals used to same-day trading. Whether the public’s decade-built confidence in the MPF holds, she says, depends on careful groundwork by all parties and investor education. Employees will then decide on fees, fund returns, marketing and personal relationships, extending industry competition into the retail market.

Do your homework before semi-portability — compare scheme fees and returns at MPF fund comparison.