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MPF - Manulife presentation

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  1. #1

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    MPF - Manulife presentation

    Just had a presentation by our MPF provider (Manulife).

    I think most of you already know the MPF is a bit of a joke, but would like to share some information they provided (and appreciate some of you may already know this and is a bit obvious):

    - They fully acknowledge their fees are high and ere not ashamed to hide this fact. When asked why they can charge 0.90% management fees for their tracker fund (which all it does is buy 2800HK) they admitted they happily take the 0.80% profit.

    - They reckon that their fees are reasonable in the market (notwithstanding what they said above).

    - They reckon that you should regularly chop and change investments depending on market sentiment should invest in what is performing well at the time

    - Their DIS (which I invest in) is managed by Vanguard. It has the lowest fees of any of their funds at 0.75%. The DIS, up until the age of 50 is a standard 60/40 equity bond split and Vanguard invests it in its Vanguard ETFs.

    jrkob and z754103 like this.

  2. #2

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    I would rather work with someone who is honest upfront about what they are doing and not shy about how much profit they're taking in, better than someone who will sugarcoat the issue and try to spin it into something positive.

    Full disclosure : Manulife manages my MPF as well.


  3. #3

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    I was with Manulife but when I started my new job I switched to Fidelity.


  4. #4

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    Recommendation to review your MPF account once ever half year or better still quarterly. For example some Hong Kong stock funds were up over 45%last year. Where this year so far is less than 5%. If the trade war carries on, could see negative gains.

    Every MPF providers will charge you, the difference is not huge, obviously if you pay more, you would expect better performance and better service.
    I.e. Manulife have over 4000 agents have MPF license, where as some other like HSBC have around 200 staffs could advise you.


  5. #5

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    Manulife have over 4000 agents have MPF license, where as some other like HSBC have around 200 staffs could advise you.
    BS .... they have 4000 agents who will sell you stuff... not advise you.

    The less said about MPF the better.... its a fucking con on the population of HK, designed to benefit these companies who can hire 4000 sales people, pay them salaries and commissions AND make a profit.
    Mrs. Jones, pin, Rob2020 and 4 others like this.

  6. #6

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    Quote Originally Posted by shri:
    BS .... they have 4000 agents who will sell you stuff... not advise you.

    The less said about MPF the better.... its a fucking con on the population of HK, designed to benefit these companies who can hire 4000 sales people, pay them salaries and commissions AND make a profit.
    Not to mention the absolute disgrace that allows companies to vest their so called "compulsory" allocations as well as the offsetting.
    kittykaitak and drumbrake like this.

  7. #7

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    Quote Originally Posted by pin:
    Not to mention the absolute disgrace that allows companies to vest their so called "compulsory" allocations as well as the offsetting.
    I agreed with you.

    The law is in a placed, so the only thing to do is to make it beneficial to yourself.

  8. #8

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    I think MPF is better than nothing and it is very useful for people like me. I have contributed the minimum amount for the last 8 years and it accumulated into a very solid amount of savings (tax free).


  9. #9

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    It is bizarre that even if you paid tax at 15% on that full amount of contribution (so only contributed $30,600 p.a. rather than $36,000) you'd almost be better off and still have access to your money. The 1% fees charged by the MPF managers really hurt your compounding. You will barely earn more money on your investment even though you contribute significantly more money. That is assuming they perform as well as the index!

    eg

    $30600 for 25 years at 7% growth yields $2,070,899.99

    $36,000 for 25 years at 6% growth (7% minus the 1% fee) yields $2,093,629.78

    If you have longer, it will actually begin to under perform the taxed cash investment


    Play around on here to see:
    Compound Interest Calculator.

    Last edited by kittykaitak; 10-04-2018 at 09:21 AM. Reason: clarity
    pin and shri like this.

  10. #10

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    Manulife is planning to slash the management fees on its Mandatory Provident Fund (MPF) investment funds starting August 1, it said on Friday, by enough to save pension holders HK$110 million (US$14 million) in the next year.
    Manulife MPF fee cuts to save its pension scheme members US$14m in next year | South China Morning Post

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