MPF fund fees comparison, 2011: Convoy said competition was the cure

The day after the 2011 Policy Address, the chairman of Convoy Financial Services delivered his verdict: no surprises, no long-term planning — exactly as expected. With the economy volatile and inflation running high, he said, Hong Kong people had better rely on themselves, manage their money well, and not count on government welfare.

What did Convoy propose on MPF fees in 2011?

MPF fees are what trustees charge for running MPF schemes. In 2011, the chairman of Convoy Financial Services urged the government to speed up MPF semi-portability and fix its supporting measures, letting employees pick schemes that suited their needs; he argued that wider employee choice would sharpen market competition and bring down MPF management and administration fees.

Why did Convoy preach self-reliance in 2011?

The “do-it-yourself MPF” was the chairman’s 2011 call for self-reliance: with the economy volatile, inflation high and no long-term planning in the Policy Address, Hong Kong people should not count on MPF alone but build a separate, suitable investment or savings plan on top of it, topping up what the mandatory system could not provide for retirement.

Why handle early withdrawal with care?

Convoy’s MPF business director welcomed the address’s MPF-enhancement measures and agreed that wider employee choice would help cut fees — but cautioned that the detailed rules for early withdrawal must be drawn up carefully, lest they defeat the scheme’s founding purpose: retirement protection, not an early cash-out tool.

To compare schemes’ funds and fees, try the MPF fund finder.