Why Was China Life Overseas Planning an MPF Fee Cut of Over 10%?

Why Did China Life Overseas Plan to Cut MPF Fees?

After AXA bowed to market pressure with a fee cut, China Life Overseas was set to lower its MPF fees for the first time in the first half of next year, by more than 10%. A spokesman said it had applied to launch new funds and to cut fees on existing products such as mixed-asset and equity funds.

Would the Price War Trigger Trustee Consolidation?

The industry expected an elimination race that would accelerate consolidation among the 19 trustees. With “semi-portability” delayed (employees were not expected to choose their own trustee until the year after next), China Life Overseas was also reconsidering a planned $10 million business expansion.

How Should Members Compare Fees?

Beyond the management fee, the fund expense ratio better reflects the true cost — compare both. Compare MPF funds on fees and returns to pick a competitive scheme in the price war.