How Did Sun Life Rebut “High Fees, Low Returns”?

What did Luk Kwai-sim say in 2011?

Sun Life’s pensions SVP Luk Kwai-sim told a 2011 interview the “high fees, low returns” verdict was a misunderstanding — MPFA data showed ten-year annualised returns of 5.5% after fees to end-2010, beating 0.7% inflation and 4.9% deposit rates; equity funds’ ten-year cumulative return of 75.4% more than doubled the Hang Seng’s 32.65% gain. The decade held two bull markets (2005, 2009) and two bear markets (2003, 2008); critics blamed MPF in crashes but ignored its outperformance in rebounds.

Why the bad impression?

Some critics were near retirement, where timing dominates; bigger still was near-oligopoly — HSBC/Hang Seng ~32%, Manulife ~17%, AIA/JPMorgan ~10% — with nearly 60% of employees on their books, so any leader’s stumble became everyone’s impression.

Will semi-portability cut fees?

She said it would raise costs instead: without e-signatures, admin stayed complex, leaving little room for big cuts even amid fiercer competition. For real savings now, compare at MPF fund comparison.