|MPFA to seek public views over core fund
The Mandatory Provident Fund Schemes Authority has launched a consultation on the introduction of a core fund to keep fees lower. The consultation will last three months until September 30.
According to the recommendation, the core fund should be good value, in particular, the fees for the core fund should be 0.75 percent of assets per annum or under, and in the medium
term, the fund expense ratio for the core fund should be kept
at or under 1 percent. The use of passive investment strategies will help make low cost and low fee outcomes more achievable.
All MPF scheme members are free to choose the core fund, if
they consider that the investment strategy and the low fees of
the core fund suit their personal needs, the consultation paper said.
The MPFA seeks to launch the fund in 2016.