MPF Ratings’ annual ratings once again raise the spotlight on Hong Kong MPF schemes’ transparency

14 January 2014   Category: News, Asia, Hong Kong   By Asia Asset Management

Leading provider of pension research views and opinions, MPF Ratings Ltd, today (January 14) announced its eagerly anticipated annual ratings of MPF Schemes. The independent rating uniquely considers the overall quality of MPF schemes awarding Gold, Silver and Bronze ratings to reflect a scheme’s overall value for money to members.

MPF Ratings CEO Francis Chung said today’s announcement of the 2014 ratings should be seen as a win for those who champion for ongoing improvements in governance, transparency and general service standards.

“With a clear focus on “Value for Money”, we remain committed to bringing transparency and scrutiny to the Hong Kong retirement market. Our objective is to provide publically independent views and opinions, to enable scheme members to continue to make better-informed decisions. Schemes that received MPF Ratings’ Gold and Silver ratings can be justifiably proud of their assessment”.

While announcing its ratings, Mr. Chung also took the opportunity to highlight noticeable improvements in the competitive landscape as a consequence of greater scrutiny. “The introduction of Employee Choice Arrangements (ECA) in November 2012 was a watershed moment for the ongoing competitiveness of the MPF industry; however, too often the spotlight is on low fees rather than improving services and relative value for money. Initiatives that enhance a member’s MPF experience, such as effective use of technology, higher internal service thresholds and higher quality education are rarely mentioned in the media but are reflected in our 2014 assessment. Notably, these initiatives are not the exclusive domain of Gold and Silver rated schemes – it appears the overall quality bar is gradually being lifted by the industry.”

Mr. Chung also took the opportunity to thank all industry stakeholders who engaged with MPF Ratings throughout the ratings process including scheme providers, trustees and administrators, and various industry bodies. “Engagement levels throughout the process continued to be high, reinforcing the ongoing willingness of MPF schemes to be scrutinised. By allowing us to verify the quality of services provided, the industry has demonstrated a level of transparency which should continue to speak positively to the market place. It is our hope that, regardless of a scheme’s rating, schemes continue to strive to improve their offering; the ultimate beneficiary is after all the people of Hong Kong.”

Scheme Ratings

Gold Rating: Gold rated schemes offer the best value. These schemes are generally well balanced across all key assessment criteria.

  • AIA Prime Value Choice
  • Allianz Global Investors MPF Plan
  • BCT (MPF) Pro Choice
  • Fidelity Retirement Master Trust
  • Invesco Strategic MPF Scheme
  • My Choice Mandatory Provident Fund Scheme (BOC-Prudential)
  • Principal MPF Scheme Series 600
  • Principal MPF Scheme Series 800
  • Sun Life Rainbow MPF Scheme

Silver Rating: Silver rated schemes offer good value for money MPF schemes. These schemes generally perform above average to strong in nearly all assessment areas.

  • BCOM Joyful Retirement MPF Scheme
  • BCT (MPF) Industry Choice
  • BOC-Prudential Easy-Choice Mandatory Provident Fund Scheme
  • BEA (MPF) Industry Scheme
  • BEA (MPF) Master Trust Scheme
  • Hang Seng Mandatory Provident Fund – SuperTrust
  • Hang Seng Mandatory Provident Fund – SuperTrust Plus
  • HSBC Mandatory Provident Fund – SuperTrust
  • HSBC Mandatory Provident Fund - SuperTrust Plus
  • Principal MPF Scheme Series 500
  • Schroder MPF Master Trust

Bronze Rating: Bronze rated schemes generally display average features and/or performance across a number of our ratings criteria.

  • AIA MPF - Basic Value Choice
  • AIA MPF - Simple Value Choice
  • AMTD MPF Scheme
  • AXA MPF - Simple Plan
  • AXA MPF - Smart Plan
  • BEA (MPF) Value Scheme
  • China Life MPF Master Trust Scheme
  • FWD MPF Master Trust Basic Scheme
  • FWD MPF Master Trust Comprehensive scheme
  • Hang Seng Mandatory Provident Fund – ValueChoice
  • HSBC Mandatory Provident Fund – ValueChoice
  • Manulife Global Select (MPF) Scheme
  • Manu-Lifestyle (MPF) Scheme
  • Mass Mandatory Provident Fund Scheme
  • Standard Chartered MPF Plan – Advanced
  • Standard Chartered MPF Plan – Basic

About the ratings

MPF Ratings’ rating methodology has been designed to reflect each scheme’s value for money. In understanding the “Value for Money” proposition, MPF Ratings believes that assessing the qualities of schemes is not simply about performance and fees; rather it is about being well balanced across a number of assessment criteria; of which performance and fees are a component. Schemes that demonstrate the best value for money offer the greatest potential for members to maximise their retirement savings in a well-serviced, secure framework that also offers suitable services and tools to both employers and employees.

MPF Ratings Limited is the Hong Kong-based sister company of Australia’s first and most respected retirement savings research company, SuperRatings Pty Ltd. MPF Ratings exists to give investors, the MPF industry, journalists and commentators a deep understanding of how the industry is travelling and why individual schemes perform the way they do.