How much?
Principal is cutting three conservative funds’ management fees from 1.25%-1.5% to a flat 1%. CEO Yeh Chi-leung says conservative funds are simpler to run, hence the lower cost.
What’s next?
A new Hang Seng Index fund launches Thursday, mainly investing in the Tracker Fund — simple and cheap; two bond funds are under study. Whether the Employee Choice relaunch triggers another price war is anyone’s guess. Compare conservative fund fees on MPF fund comparison.
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