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Scratching for MPF cents

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  1. #1

    Join Date
    Feb 2012
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    411

    Scratching for MPF cents

    I have all my MPF money in HSBC's HSI tracker, and the FER is 0.79%. I have all my TVC money with BEA and their HSI tracker's FER is 0.72%.

    I just discovered you can switch pretty much all your MPF money except your current employer's contributions to a personal MPF account once a year. You can read more about that at https://minisite.mpfa.org.hk/eca/en/tool/

    The question is would you open a new personal MPF account and transfer in the amounts you can to save 0.07%? Let's say you can transfer 200,000HKD.

    It's scratching for cents, but I wouldn't mind taking whatever amount I can from HSBC, but I'm not sure it's worth it. Plus as a U.S. citizen it's another account I will put on my FinCEN Form 114.


  2. #2

    Join Date
    Feb 2012
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    Too late to edit the title. But thanks


  3. #3

    Join Date
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    Have fewer lattes and craft beers and put the money to work where it makes you more.

  4. #4

    Join Date
    Feb 2012
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    411
    Quote Originally Posted by shri:
    Have fewer lattes and craft beers and put the money to work where it makes you more.
    I mainly just drink tap water. I don't like any kind of coffee, and I rarely drink alcohol. I'll sometimes (less than once a week) have a vegetable honey drink if it's included in a cheap set.

    I think I'm fairly out of low hanging fruit, so I'm looking up the tree.
    Last edited by LoganH; 16-07-2020 at 09:05 PM.

  5. #5

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  6. #6

    Join Date
    Jun 2011
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    1,693

    So I have the choice to move my mpf now, since I changed employer. Which provider has the lowest prices equity index funds?


  7. #7

    Join Date
    Jun 2011
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    1,693
    Quote Originally Posted by RobRoy:
    So I have the choice to move my mpf now, since I changed employer. Which provider has the lowest prices equity index funds?
    I will answer myself, from this page one can compare:

    https://mfp.mpfa.org.hk/eng/mpp_list.jsp


    My Choice Hong Kong Tracking Fund 0.71% fee
    BEA Hong Kong Tracker Fund 0.71-0.73% fee depending on scheme
    HSBC Hang Seng Index Tracking Fund 0.79%

    If you instead want US market
    HSBC Value Choice 0.79% as stated by HSBC, not mpfa calculated
    AIA American Fund 0.97%
    BOC-Prudential North America Index Tracking Fund 1.04%

    I prefer the global fund:
    HSBC Global Equity Fund 0.79%* As stated by HSBC, actual FER as calculated by mpfa might be a bit higher.
    BEA Global Equity Fund 0.96%
    Last edited by RobRoy; 16-07-2020 at 11:27 PM.
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  8. #8

    Join Date
    Jun 2011
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    Overall HSBC seems to have the best variety of equity funds at 0.79% fee.

    Kowloon72 likes this.

  9. #9

    Join Date
    Feb 2012
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    411

    @RobRoy thanks for the stats.

    In addition to my question, I simply also wanted to draw people's attention to the annual personal MPF contributions switching option even if you don't change your employer, which I linked to above.

    If you change your employer, it might be simplest to move all of your MPF funds to whatever scheme your new employer uses, but if you don't have issues managing two MPF accounts, then you can shop around for the lowest fee MPF fund that matches what you want to invest in.

    However, I think of MPF a bit like a tax and HSBC directly and/or indirectly is the main tax collector/beneficiary. If you hate HSBC then you can use a different scheme provider for at least all your personal contributions and you should avoid a HSI tracker fund because HSBC is a major part of the HSI, so essentially you're paying overpriced fees to buy their stock that you don't really want, but you want the lowest cost investment within their limited choices. That was some good lobbying on their part that continues to pay them overly generous dividends.

    shri likes this.

  10. #10

    Join Date
    Jul 2018
    Posts
    32

    I was curious if you opened your personal MPF up with HSBC if it would count towards your relationship balance and it seems like it does.

    "As an HSBC MPF personal account holder, your MPF account balance also counts towards your total relationship balance."

    https://www.hsbc.com.hk/mpf/products...consolidation/