What Was New at Principal Hong Kong’s MPF Business?

What did Principal plan in 2011?

In June 2011, Principal Hong Kong said it would likely add fixed-income MPF products and planned to cut management fees 10–20% that year depending on market conditions. Asia president Rex Auyeung targeted 20% annual growth for the firm’s Asian businesses over five to ten years, expanding vertically — not horizontally — across nine Asian markets, focusing on China, India, Indonesia, Malaysia and Thailand.

What was the market-share target?

Auyeung aimed to lift MPF market share from 4.5% to 5% and rank among Hong Kong’s top five MPF providers, considering acquisitions or partnerships while simplifying fee structures to cut operating costs. Members comparing provider fees should visit MPF fund comparison.

How big was the parent?

US parent Principal Financial Group had US$327.4 billion in AUM at end-March 2011, about US$20 billion from Asia; Asian AUM had grown 20% a year for several years, a pace expected to continue.