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HK MPF system charges premiums for cheap index fundsScrap the MPF

Bloomberg, 27-Jun-2019

Webb-site estimates that about one third of all the returns generated by MPF assets so far has vanished in fees to the managers. MPF means Mandatory Payment of Fees - you cannot choose to manage your own account. Even with managed funds, an ETF like TraHK charges only about 10% of what the MPF index funds charge. The system remains an invasion of the free market and should be scrapped. We first wrote about the underperformance of the MPF HSI funds against the index back in 2005 in our article "Scrap the MPF".

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