Hong Kong MPFA urges pension funds to cut fees

The Mandatory Provident Fund Schemes Authority (MPFA) in Hong Kong has urged trustees to consider lowering fees across their pension fund schemes. In its annual report, the MPFA emphasised the need for trustees to submit a five-year plan for fee reduction, with some already implementing cost cuts for specific funds. The initiative is part of efforts to enhance the long-term benefits for scheme members by reducing the impact of management fees on net investment returns. Additionally, the MPFA’s newly operational digital platform, eMPF, which launched in June, is anticipated to cut administrative costs by HKD40bn over the next decade. This digital transformation, expected to be complete by the end of 2025, covers 11 million accounts and more than HKD1tr in assets.