HSBC to Launch New “Choice” MPF Plan in Q1, Nine Funds From 0.79% Fee

In December 2010 HSBC announced a brand-new MPF master trust — the “HSBC MPF Choice Plan” — launching in the first quarter of 2011, offering nine constituent funds with fund management fees of 0.79% to 0.99% a year, plus a guaranteed fund.

What’s on offer?

Nine funds plus a guaranteed fund, and an auto-de-risking “Choice” default. The plan comprises nine constituent funds at varying risk-return levels alongside a guaranteed fund. A “Choice” default investment arrangement automatically shifts accrued benefits from growth-oriented to lower-risk investments in the five years before a member turns 65.

How much does it cost?

Management fees run 0.79% to 0.99% a year depending on the fund. The guaranteed fund promises members at least the guaranteed amount on reaching 65, death or total incapacity (insurance levy extra). Compare MPF plans’ fees and returns at MPF fund comparison.

Who runs it?

HSBC acts as both trustee and investment manager. The trustee is HSBC Life Trustee (Hong Kong) Limited under HSBC Insurance (Asia), with HSBC Global Asset Management (Hong Kong) Limited as investment manager.