MPFA Aims To Cut Administrative Fees By 55pc

The chairwoman of the Mandatory Provident Fund Schemes Authority (MPFA), Ayesha Macpherson Lau, said on Sunday that her team is working to reduce administrative fees for MPF schemes by 55 percent.

Writing on her blog, Lau said the authority is making every effort to streamline administrative procedures with the help of an electronic platform.

She said fee reduction has always been one of their priorities, noting that the MPF's Fund Expense Ratio – which shows the level of MPF fees - has seen a 35 percent decrease since 2007.

However, Lau advised the public not to only look at fees when selecting MPF schemes, adding they should also consider whether an individual fund is worth their money.

She pointed out that if the fund achieves better results through more active management, it may be more cost effective even if the fees are higher.

The MPFA chair said she also asked MPF trustees to compile an annual governance report, which will be published in the second quarter of next year.