MPFA actively encourages the use of ETFs in MPF

The Mandatory Provident Fund Schemes Authority (MPFA) has published a statement in which it informs of a recent speech held by Mr. Eric Cheng, Director of Policy at the Mandatory Provident Fund Schemes Authority (MPFA) as part of an event initiated by the Hong Kong Exchanges and Clearing Limited (HKEX) on „The Future of ETFs in MPF’s Portfolios“. In this speech, Mr. Cheng emphasized the MPFA’s commitment to reducing MPF fund fees for scheme members by promoting the use of Exchange Traded Funds (ETFs). ETFs typically offer lower costs compared to actively managed funds, which aligns with the goal of reducing fees for members. The MPFA has taken various measures to facilitate the broader adoption of ETFs within the MPF industry. These measures include approving index-tracking collective investment schemes for investment by MPF funds and refining the criteria for constituent fund approval to encourage the use of index tracking investment options like ETFs.
Moreover, Mr. Cheng urged MPF trustees and investment managers to get in touch with ETF providers to design ETF products that could enhance retirement solutions catering to the needs of scheme members. This collaboration could lead to the development of more tailored and effective retirement solutions within the MPF framework.