Low-fee pension funds account for 9pc of Hong Kong employees, says MPF authority
Nine per cent of Hong Kong pension fund accounts, or 834,000 accounts, have switched to the newly launched low-fee default funds since April, the Mandatory Provident Fund Schemes Authority (MPFA) said on Wednesday.
The Default Investment Strategy (DIS) reform, introduced on April 1, requires all 15 pension fund providers in the city to set up default funds for employees who do not make specific investment requests, capping management and other fees at 0.95 per cent, lower than the average of 1.56 per cent charged by MPF fund managers. The default funds now have HK$15.4 billion (US$1.9 billion) worth of assets.
Full Content: South China Morning Post