Will MPF Fees Ever Come Down?

Why did a 2011 consultancy predict a 10% fee cut?

In January 2011, Gain Miles managing director Yvonne Siu predicted MPF fees could fall by more than 10% as scheme assets kept growing. A decade after launch, MPF’s cumulative return stood at 34%, with equity funds the best performers over 10 years and in 2010, and money market funds the worst. She argued scale would eventually squeeze fees down.

How can members cut their own MPF fees?

Compare fund expense ratios before choosing — low-fee index funds compound into big savings. The MPFA’s fee comparison platform is the neutral place to start.

What was the 2011 market outlook behind the story?

Gain Miles analyst Paul Tsang said Asia-Pacific remained the flow destination while Europe and Japan looked bleak; aggressive investors could favour the US, Hong Kong equities merited only cautious optimism given volatility. RCM added that emerging markets and global equities still had legs in 2011.