Semi-Portability Week One: Switchers Are Mostly Personal Accounts, Not Contribution Accounts

This article is a rewrite of a report from November 2012.

In the first week of November 2012’s “semi-portability”, transfer data revealed a pattern: movers were mostly personal accounts (formerly preserved accounts); actively contributing accounts largely sat tight. BOC-Prudential logged about 280 inbound transfers in three days (versus ~100 before) — more than double; but 150 outbound too — money in, money out, limited net inflow.

Why are MPF personal accounts the main force behind switching?

Because consolidating accounts kills two birds with one stone. BOC-Prudential Trustee CEO Chan Yu-cheong said about 30% of new personal accounts came from former HSBC and Hang Seng clients (88 cases); the personal-account surge likely reflected members seizing the moment to consolidate — old accounts left behind at job changes, tidied up in one go under “semi-portability”.

Where did the leavers go?

Sun Life and Manulife. Chan revealed departing cases mostly jumped to Sun Life and Manulife — the two insurers pressing hardest around “semi-portability”, combining fund performance with perks.

Why aren’t active contribution accounts moving?

Bigger balances prefer to wait. Analysis in the report: active accounts with larger contributions generally held still, watching what the market would offer before deciding. Transfers carry a six-to-eight-week vacuum period, and bigger accounts feel “sell low, buy high” more keenly; meanwhile Sun Life said transfer enquiries had surged over 1.5 times — many asking, few moving: week one’s portrait.