How Should Members Gear Up for the MPF ECA?

What did fund houses advise before the Employee Choice Arrangement?

In May 2011, Towers Watson polled fund houses which urged members to assess investment needs and risk tolerance before the ECA arrived — not just chase short-term returns or fees. RCM’s Elvin Yu warned intermediaries would approach workers directly, raising conflict-of-interest risks and making investor education vital. Schroders’ Kelvin Lee said to weigh qualitative factors like service and credibility too.

What did Fidelity and Principal add?

Fidelity’s KP Luk recommended investor-education programmes covering providers, fund choices and track records, plus professional advice when needed. Principal’s CEO Stanley Yip stressed MPF is a long-term investment, not a short-term performance contest.

What homework precedes switching trustees?

Compare fund expense ratios and performance, understand the new scheme’s fund menu and service, then decide by personal risk appetite — never follow the herd.