On November 1, 2012, the long-awaited implementation of the Employee Choice Arrangement (ECA) marked a new chapter in the development of Hong Kong’s Mandatory Provident Fund (MPF) scheme.
Before the enactment of the ECA, employers alone made the decision on which MPF scheme to join, despite the fact that employees also make mandatory contributions. Under the new arrangement, at least once a year, employees can now opt to transfer the self-paid portion of their mandatory contributions to an MPF scheme of their choice.
This newly gained autonomy has intensified the already keen competition in the MPF market in Hong Kong. Not only did Swiss Life Network Partner Sun Life’s MPF market share rise last year, it has also experienced a substantial increase in applications to transfer employees’ MPF assets to its scheme.
Sun Life’s MPF scheme delivers comprehensive value
Sun Life provides value to its customers through offering a fully comprehensive MPF scheme. Using a duty segregation model, Sun Life selects the best expertise in the key MPF functions, including investment management, and fund and scheme administration. The model is clearly working: the Sun Life MPF has won several awards for its service and performance.
To ensure sustainable and outstanding fund performance, Sun Life is continuously adding to its fund platform. For example, to cater to increasing consumer appetite for RMB investment vehicles, Sun Life was the first in the market to include a fund with RMB investment exposure in its MPF scheme last June.
At Sun Life, offering value to customers goes beyond providing outperforming returns. As a strong believer in investor education, Sun Life tries to help existing and potential customers make informed investment decisions. Its efforts to increase financial literacy include investment talks and seminars to members, as well as an innovative proprietary information website MyMPFChoice.com, which shows the performance of all the MPF funds on the market.
Image above: MyMPFChoice.com provides simulations of the accrued benefits that can be accumulated based on a mathematical model using hypothetical data
To showcase this user-friendly online platform and increase public understanding of the MPF and ECA, Sun Life ran a series of outreach activities last year that included road shows in MTR stations and shopping malls, as well as a mobile showroom offering MPF information and tips on managing MPF investments for the general public.