Using the MPFA Platform: MPF Comparison Beyond Fees

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

With semi-portability imminent, the MPFA expected 10% of workers to switch first. Picking a new trustee means comparing more than returns and fees — fund choice matters too. The MPFA’s new trustee service comparison platform was the most efficient way. (The original report was published incomplete; this covers the surviving content.)

Which plan offers the most funds?

Manulife Global Select and Standard Chartered Comprehensive, 26 each. By category: most equity funds — AIA’s “AIA MPF — Prime” (11); most balanced funds — Standard Chartered Comprehensive (15); most bond funds — Manulife Global Select and SCB Comprehensive (3 each); more than one guarantee fund — Manulife Global Select, Principal 800 series and China Life’s master trust.

Why does fund choice matter?

More choice means fewer switches. A Fidelity survey found members valued most: fund variety, convenient account platforms, fund-selection advice, and regular performance updates. Enough in-plan choice lets you reallocate without changing trustees — each switch costs a six-to-eight-week investment gap.

Is more always better?

Fit beats quantity. AXA’s Lee Ping-hei said fund count needn’t be huge; what matters is fit. Low risk tolerance? Pick plans with more — or better — bond funds. Limited investment knowledge? Consider target-date fund plans.

What is the lesson from 2012?

2012’s comparison platform was workers’ first systematic comparison beyond price. Beyond fees and returns, even fund counts could be laid side by side. Commonplace today, pioneering then — choosing a trustee was never about cheapest, but about fit.