Articles: Mandatory Provident Fund
MPF Part 3: The Bloated Regulator
The MPF's regulator, the MPFA, was
grossly overcapitalised at inception and has been waiving the annual registration
fee it should be charging to trustees, thereby subsidising the
industry at almost HK$200m per year. This fee should be collected to cover
its costs, and the MPFA should return $5,000m of surplus capital to the
Government. (11-Feb-07)
MPF Part 2: Stop the Increase
We call on the Government to stop the proposed increase in MPF
contributions, which we estimate will cost HK$4.24bn per year. We renew
our call to abolish the MPF and return economic freedom to the people. As more
capital gets trapped in MPF funds, demands to withdraw it for urgent needs will
become more frequent. And is Donald Tsang planning a Mandatory Medical Savings
scheme? (11-Feb-07)
MPF Part 1: What it Costs You
In Part 1 of our new MPF series, we look at the frightening first disclosures of
expense ratios for MPF funds, and how this will crush the performance of the
money trapped in the MPF schemes relative to the markets they invest in.
(11-Feb-07)
Scrap the MPF
We find that a typical Mandatory Provident Fund is running an expense ratio of
about 2.0% per year, or about 15 times that of an exchange-traded index fund.
Over 40 years, as much as 55% of today's capital and returns will be eaten up by
MPF expenses. And all this for a compulsory savings scheme which is fatally
flawed by the lump-sum payout. We call on the Government to return personal
savings to the free market. (23-Jun-05)
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