HSBC Cut MPF Management Fees — How Many Benefited?

What did HSBC cut in 2011?

In February 2011, HSBC announced that from 1 March, designated constituent funds across its “Select,” “Smart Choice” and “Easy Choice” plans would see management fees fall from 1.25%–1.5% to 0.79%–0.99% — up to 40% off — benefiting an estimated 800,000 members. Hong Kong’s biggest MPF provider led, and the market followed.

What does the cut mean for members?

Dropping from 1.5% to 0.99% saves 0.51 percentage points a year; on balances in the hundreds of thousands compounding over decades, that’s tens of thousands saved. Compare who’s cheapest and which funds perform at MPF fund comparison.

Why cut now?

With “semi-portability” imminent, employees would soon choose their own plans — trustees cut early to retain them. For members, it’s a good moment to review and compare plans.