How low must MPF fees go? Fund managers slammed as “no different from Lehman”

The MPFA is pressing trustees to cut fees again — without saying how low is low enough — drawing industry ire, with one provider even threatening to “exit the market” if fees go too low. To workers watching this tug-of-war, it’s laughable.

Why the fury?

Fund managers “no different from Lehman”. Two years ago Lehman collapsed on credit default swaps — repackaging borrowed money as guarantees, marked up from Bank A to Bank B, until nobody would buy and it all blew up, wiping out investors. A money game no different from a pyramid scheme: the “products” created no value and improved no lives. One commentator argues MPF fund managers are cut from the same cloth — caring only about their own pockets, not workers’ returns — and with the government asleep at the wheel, they opened their mouths wide.

Where’s the way out?

Portability is the only hope. Now the government is tightening oversight, hoping MPF portability (自由行) and competition will force the industry to clean up its act. The day workers can vote with their feet is the day the real fee war begins.

For a full MPF fund fees comparison, visit MPF fund comparison.