How long does it take to switch MPF funds?

This article is a rewrite of a report from January 2012.

The post-Lunar New Year job-hopping season sends many employees back to their MPF portfolios — adjusting allocations or moving accrued benefits into preserved accounts. In 2012, a fund switch typically took two to three working days; some trustees had already cut it to a single day.

How fast can an MPF fund switch be completed?

An MPF fund switch — selling one fund and buying another — took two to three working days in 2012, though some trustees could complete it the same day. Provided the paperwork is correct and the instruction beats the trustee’s cut-off time, an online instruction could be executed within the same working day, reducing exposure to sudden market swings. Mailed instructions, an AXA sales director noted at the time, would always be slower.

What is ‘forward pricing’?

‘Forward pricing’ is how MPF funds are priced: the buy and redemption price is only set after each trading day’s close, once the net asset value is calculated. Prices are generally published one to two business days later — so members typically learn the actual units switched on about the third day, with account balances updating later still.

Why does moving to a preserved account take longer?

Consolidating several accounts into one preserved (personal) account involves two trustees’ administration, so it takes longer than switching within a single scheme:

1. The new trustee receives the Scheme Member’s Request for Fund Transfer Form and verifies the scheme name, number and signature
2. Any discrepancy means contacting the member in writing or by phone for confirmation
3. Once verified, the form goes to the original trustee for checking
4. The original trustee confirms contributions are received, redeems the fund units and transfers the accrued benefits
5. The new trustee allocates the benefits to the member’s chosen portfolio

To check whether your trustee offers same-day switching, call its hotline or visit a customer centre. More on account transfers: MPF education resources.