MPF future looks passive as HK opts for 'default' fund
The fund industry's arguments over active management have been dismissed by the Hong Kong government and the pension authority, paving the way for the introduction of a low-cost and largely passive default fund.
Plans for a new low-cost, largely passive default fund for retirement scheme members in Hong Kong took a step closer yesterday, with the government coming out firmly in favour of the idea.
Fund groups’ complaints that a restrictive new regime would stifle innovation were largely dismissed with the government’s firm recommendation of a ‘core’ passive product for the majority of MPF members.
With legislation on its way this year, the new system is expected to come into effect in 2…
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