Towers Watson: Do you think MPF members have started to pay more attention to their MPF investment?

五月 4, 2011
Joe Chan

Generally, individuals have not been caring about the MPF. Based on our survey, many don’t even know what funds their MPF are investing in. Let’s hear what the market players’ suggest:-


Desmond Ng, Chief Operating Officer, Asia ex Japan, “We believe members’ investment knowledge and understanding of the MPF platform is more advanced today compared to 10 years ago when the MPF scheme first started. Needs of members have also evolved over time, from product preferences to MPF account management flexibility. Thus, Invesco has been revamping our communication materials every few years to ensure they are relevant, in particular the references on preserved accounts and postretirement investment management, as these topics become relevant to an increasing number of members.”


KP Luk, Head of Institutional Business, “Our observations are for those who have participated in the MPF system for a while and have accumulated a fair amount of benefits, they may be paying more attention. But for those with a relatively shorter term of time in contributing and those who are newly enrolled to the system, they still show much less care.


Employee Choice will be a milestone for MPF in Hong Kong. As a responsible service provider, it is extremely important for us to continue to work with employers, regulators and trustees to further strengthen the investor education for members so that they are equipped to make informed investment decisions.”


Stanley Yip, CEO, “MPF members have become more aware of their retirement needs after the launch of the MPF. In the past decade, MPFA and MPF trustees have launched different programs and events through channels such as radio talk shows, TV programmes, exhibitions and seminars to educate the public on the MPF system, the regulations and market outlook and the importance of retirement planning. MPF members are gaining a much better understanding on retirement and wealth management.”


Elvin Yu, Head of Business, Hong Kong and China, “Yes, there is no doubt that MPF members are paying more attention to their MPF investments. Besides, with the introduction of the ECA in the near future, ultimately individuals will need to take more responsibility for their retirement savings and for planning their investments to meet these requirements.”


Kelvin Lee, Head of Institutional Business, “Yes, members today are becoming more and more aware of the need for planning ahead; and more attention has been paid to MPF investments. More members have been doing regular reviews on their fund choices or investment portfolios. However, we think that most of the members still tend to focus too much on short–term fund performance.”


Bonnie Tse, Senior Vice President and Managing Director, “Yes, our recent study of existing member behavior in June 2010 showed that more members are concerned about their MPF investments, although they may invest either too conservatively or too aggressively. From our analysis we noticed that fund switching was particularly active during significant events, which reflected that members were concerned and actively managed their MPF investment. The same study also showed that over 20% of members aged ≤ 25 are considered Ultra- Conservative. 10.4% and 8.0% of members aged 51-55 and 56-59 respectively still pursued an Aggressive approach.”


Alan Tsang, CEO, “成員對強積金有一般認知,例如供款多少、何時可取回權益等,但亦要加深認識如何選擇適合自己的基金,及甚至將來實施強積金自由行時如何選擇適合自己的強積金計劃。”


Benjamin Li, Chief of Pension and Broker Channel Certainly, there has been more discussion on the MPF system, fund choices and fund performance among the industry in these couple of years. At AXA, we observe more account consolidation / transfer and fund switching cases, which showed that the members are more aware of the need of MPF account management.”


Patrick Li, Chief Executive, “Yes, as we would expect given the increased size of contributions over the years. MPF members now pay more attention to the investment education materials provided by MPF service providers, the MPFA, and the media.”

China Life

Thomas Tam, General Manager, “Most MPF members don’t know their MPF account much.

Lots of people perceive MPF as “the part of the salary that is deducted by the employers”, they don’t have a thorough understanding of the terms of the funds, restrictions and returns on investment. This is attributable to the monotonous contribution means and low involvement level by the employees. And, as the benefits are paid out at age 65, people are not concerned about such a long-term investment.”


Wilsome Chow, CEO, “As reflected by the frequency of fund switching and fund balance checking, we do see that MPF members have started to pay

more attention to their MPF investments. This is understandable as each individual member’s asset size grows bigger over the years. That starts to arouse the interest of the public regarding their growing assets with the MPF providers.”


This article is not intended to provide investment advice. Action should not be taken on the basis of any opinion, view or statement contained in this article without seeking specific advice. Towers Watson neither endorse nor are responsible for the accuracy or reliability of any opinion, view or statement made in this article, and under no circumstances will Towers Watson be liable for any loss or damage caused by any reliance thereof.