How Did HSBC Slash MPF Fees in 2011?

How big was HSBC’s 2011 fee cut?

In February 2011, HSBC cut management fees on three funds from 1.25%–1.5% to 0.79%–0.99% from 1 March — up to 40% off, for new and existing members alike. The Hang Seng Index fund fell most, from 1.5% to 0.9%; the affected funds covered 40% of HSBC’s MPF assets, over HK$115 billion.

Did rivals follow?

BOC-Prudential had already cut 12 funds to 0.7%–0.99%; AXA’s new rates averaged 46% lower at 0.99% for most funds, though only for new joiners.

How to pick a scheme in the price war?

Compare the latest trustee fees at MPF fund comparison before employee choice arrives.