Wing Sze Yeung, vice president, institutional and pension business at J.P. Morgan Asset Management, said she expects there may be a trend for the MPF providers to adjust their management fees when the member choice scheme officially launches in 2011.
However, she said it is unlikely that J.P. Morgan Asset Management will cut the price of its investment management fee for MPF providers, saying it would be focusing on maintaining the service and quality of its funds. Wing Sze Yeung said it was likely J.P. Morgan Asset Management would offer one or more new MPF investment funds, but claimed the products would be conservative in style, ruling out target-date-fund and index-tracked funds.
The company formed an alliance with AIA in 1999 to provide MPF funds, and currently has three MPF schemes on the shelf: the AIA-JF Comprehensive Retirement Benefit MPF Scheme, the AIA-JF Mandatory Provident Fund Scheme, and the AIA-JF Premium MPF Scheme.
Alongside J.P. Morgan Asset Management, Yeung said that there were another three fund houses which are also involved managing those funds – Amundi, RCM and PineBridge Investments. She said the latest amount of asset under management (AUM) for those funds was $3bn and J.P. Morgan Asset Management accounted for around one-third.
She admitted J.P. Morgan Asset Management was approaching some other MPF providers in the market and hoped to co-operate with them as regards the preparations for the member choice scheme.
In July, BOCI-Prudential Trustee launched a new MPF scheme with the lowest fees in the market at 0.7% to 0.99%.