More than a million members of the Mandatory Provident Fund scheme may benefit as the market leaders among the fund providers cut their management fees, the Hong Kong Economic Journal reported Friday.
The Hongkong and Shanghai Banking Corp., the Asia flagship of HSBC Holdings Plc (00005.HK), and its subsidiary Hang Seng Bank Ltd. (00011.HK) are reducing the fees for their 22 MPF funds under four different schemes.
The new fees range from 0.79 to 1.7 percent, representing a decrease of between 2.86 percent and 36.8 percent.
Gloria Siu, chief executive of MPF consultancy Gain Miles Group, said the price cut would put pressure on other providers to follow suit.
HSBC and Hang Seng have been the largest MPF providers, with a combined 30.2 percent share in September, data from Gadbury Group, a retirement fund consultancy, showed.
The second-largest player, Manulife (International) Ltd., is launching a bonus program offering a maximum HK$35,000 bonus to new and existing clients who get relatives to park their MPF accounts with the firm.
Other MPF providers, including BOCI-Prudential Trustee Ltd., Principal Insurance Co. (Hong Kong) Ltd. and AIA Group Ltd. (01299.HK), said they are constantly reviewing their service charges.
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