About 36% of 313 Mandatory Provident Funds reduced their management fees from July last year to June, benefiting at least 26% of account holders, according to a study from Hong Kong’s Consumer Council.
The council today said the total asset values of the 113 MPF funds with their management fees lowered were $93 billion, equivalent to 36% of all MPF fund assets.
Of the funds seeing fee reductions, 63% were in the conservative investment option, the capital preservation funds.
In terms of the percentage share of funds that cut fees, the fee reduction was considerably less in other fund types – bond funds (52%), mixed asset funds (33%), guaranteed funds (32%), and equity funds (27%).
Some funds with high management fees have remained unchanged without any downward adjustment and a more narrow fee range was found in three fund types, namely capital preservation funds, global bond funds, and balanced funds under the mixed asset fund type.
There were no changes in the management fee spreads of guaranteed funds and Hong Kong equity funds during the period under study.