HSBC is expanding its ten-fund SuperTrust Plus scheme with the launch of four new MPF funds as member choice is introduced in Hong Kong, allowing MPF members to choose a service provider for employees' mandatory contributions.
The new funds, which include a Chinese equity fund as well as diversified portfolios, are aligned with MPF members' potential investment preferences based on a recent survey commissioned by HSBC. In the survey, a third (34 percent) of the respondents said they were looking to invest in market-specific equity funds while a quarter of respondents were considering to invest in region-specific equity funds, guaranteed or global equity funds, in the next six months.
Seventy-one percent of respondents also said that Greater China offered good growth potential for their MPF savings in the next six months.
Jason Sadler, Managing Director of HSBC Insurance Hong Kong, said, "Our move to add new MPF funds is part of our ongoing efforts to pave the way for member choice, ahead of the industry, by enhancing our capabilities as the market shifts its focus to individual members. As the leading MPF service provider in Hong Kong, we continue to expand the range of investment choices for our MPF members as well as ensure that these address current customer needs and preferences."
The survey was conducted by the University of Hong Kong’s Public Opinion Programme across 1,007 MPF members who were asked about their investment behaviour and preferences relating to their MPF savings.
The survey revealed that the majority of respondents have medium (37 percent) to high (35 percent) levels of risk appetite when it comes to investing their MPF savings. It also showed that while MPF providers offer an average of 8.5 funds, MPF members invest only in an average of 2.5 funds.
Mr Sadler added, "HSBC offers MPF members with a full yet compact range of investment options rather than an unlimited assortment which may tend to confuse
and prove unmanageable for many MPF members. In fact, our survey shows that members tend to keep investing simple – with only around two to three funds in their portfolio. With 14 funds in our SuperTrust Plus scheme covering the full risk-return spectrum, we are confident that MPF members will be able to select suitable investments that match their individual risk appetite and growth targets."
The survey also points out several gaps in the understanding and management of MPF savings among members. A quarter (24 percent) of the respondents have no idea as to how many funds are available to them from their current MPF service provider and a fifth (19 percent) do not know how many funds they are currently investing in. Around 23 percent have all their MPF savings concentrated in only one fund.
Alex Chu, Director and Head of Employee Benefits Business, HSBC Insurance, said, "With the advent of member choice, there is a need for MPF members to have greater control and accountability over their MPF savings. The first and perhaps most important step to successfully managing one's MPF savings is to choose an MPF service provider that can be your trusted and long-term partner. The MPF market will be increasingly competitive as customers seek providers with a strong brand, financial stability and the capabilities to provide a high level of service, multiple channels and competitive fund choices."
HSBC is best-positioned to support member choice as MPF members enjoy access to the Bank’s extensive branch and channel network, professional advice for holistic financial planning, competitive fees and a comprehensive range of investment funds.
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