HSBC to launch new MPF scheme with fees as low as 1%

Market sources say HSBC, the MPF market leader, is set to fire the next shot in the fee war to mark the MPF’s tenth anniversary — announcing tomorrow a new MPF scheme charging less than its three existing schemes, with management fees rumoured as low as around 1%, rivalling Bank of China-Prudential’s street-low 0.99%.

What does HSBC charge now?

Between 1.21% and 1.88%. HSBC’s three operating MPF schemes currently charge 1.21%–1.88%; a new scheme at around 1% would be a significant cut.

Why cut now?

Tenth anniversary plus looming semi-portability means a land grab. With the MPF turning ten and semi-portability approaching, the market leader cutting first is set to trigger a fresh round of fee competition — good news for workers.

To compare scheme fees across providers, visit MPF fund comparison.