Manulife Plans Seven New Target-Date MPF Funds by Year-End

(Editor’s note: this report was originally in English and is rewritten in Chinese per this site’s practice.)

Manulife (International) plans to add seven new target-date funds to its MPF platform by the end of 2010 or early 2011, and is also considering China-related and sector funds such as infrastructure — laying groundwork for the eventual Employee Choice Arrangement. Even with member choice deferred, Manulife is not scaling back its fund-expansion plans.

Why expand the fund range if member choice is delayed?

Because choice will come eventually, and early preparation pays off. Michael Huddart, Executive Vice President and CEO Hong Kong at Manulife (International), called the deferral “very disappointing”, but said the company would still widen its MPF fund range in preparation for the eventual launch of member choice.

When will member choice actually launch?

Only after intermediary-regulation legislation is done — no firm date yet. Darren McShane, Executive Director (Regulation and Policy) at the MPFA, told the Hong Kong Investment Funds Association’s annual conference that the deferral was driven by the desire to reinforce MPF intermediary regulation through legislation; the government plans a public consultation in late 2010 or early 2011 before tabling the bill.

What are target-date funds?

Target-date funds automatically shift from aggressive to conservative as you near retirement — the classic “set and forget” approach. Compare MPF funds’ fees and returns at MPF fund comparison.