MPF Firms Shun Fee Cuts, Bet on More Choice to Keep Clients — HSBC Launches 4 New Funds

With semi-portability set to let workers switch trustees yearly, how will MPF providers keep clients? Not with fee cuts — with more choice. HSBC Insurance Hong Kong launched four new MPF funds charging 1.25%–1.95% in management fees.

What’s HSBC’s play?

More choice, no price war. HSBC Insurance Hong Kong MD Jason Sadler said the new preserved-fund categories carry 25–45 basis-point discounts; the new funds pave the way for member choice, building individual-member capability — the firm plans no fee price war, just more options.

What’s happening with industry fees?

Manulife said last month it would cut some MPF fees to as low as 1.25% from November. A HKU survey found 24% of respondents didn’t know how many funds their provider offered and 19% didn’t know how many they held — HSBC says it will offer holistic portfolio reviews and is upgrading its systems for the individual-member era.

Compare providers’ fund choices and charges at MPF fund comparison.