MPF fund switches can be priced same-day — six trustees offer it

Competition among MPF trustees is fierce, and most now offer same-day dealing: with complete documentation, switching funds within the same MPF scheme during the day executes at that day’s fund price, reducing exposure to overnight market moves.

Which trustees offer same-day pricing?

HSBC, AIA, AXA, Invesco, Principal and BOCOM Trustee currently offer same-day fund pricing. AXA’s retirement and intermediary sales head Lee Ping-hay said that for funds priced daily, both legs — redeeming units and reinvesting the proceeds in another constituent fund — complete within one day at that day’s prices, with no extra handling fee.

What should members watch for in same-day dealing?

Fund prices are generally published two business days later, so the actual number of units switched is only known on day three. Trustees bear the timing-gap market risk — clients trade at the day’s valuation without bearing risk, while trustees face a price-lag gap, though the impact is minimal.

How long do other trustees take?

Some trustees such as Sun Life Financial and ING cannot offer same-day dealing; from instruction to completion typically takes 2 to 3 business days. That can mean missing opportunities when markets reverse, and daily cut-off times apply — Sun Life requires paper switching instructions by 4:30pm. Before switching, compare MPF funds across schemes and read up on switching arrangements via MPF educational resources.