HSBC, Hang Seng Join Fee War With 20-40% Cuts

What does the biggest player’s fee cut mean for you?

HSBC and Hang Seng, managing 2 million MPF accounts, will cut annual management fees by 20-40% on 40% of their HK$115 billion MPF assets (3 funds), benefiting hundreds of thousands of workers — existing clients included. BOC-Prudential says perks for large accounts are coming by March; a fee war is brewing.

Should you switch right away?

Cuts are welcome, but compare post-cut fees, not just the discount. Compare funds’ expense ratios before and after — and against peers — to tell real bargains from marketing.