MPF chief eases concerns over stock market swings

The public need not be too worried about how mandatory provident fund schemes are performing amid stock-market fluctuations in response to the ongoing Middle East conflict. That's according to Mandatory Provident Fund Schemes Authority managing director Cheng Yan-chee. Cheng told an RTHK radio programme on Saturday that MPF account holders should adopt investment portfolios based on their age. "The MPF is a long-term retirement savings plan ... There will certainly be fluctuations in the short term," he said. "But there is no need to be overly worried because the savings can only be withdrawn tens of years later in order to protect one's retirement. So we usually tell members that they do not have to be too worried about short-term fluctuations." Younger members, for instance, can be more aggressive in choosing their investment plans, Cheng said. He also stressed that members should be diversified in their investment portfolios to ensure stable returns. Cheng also said average administration fees for MPF accounts were expected to drop to 0.29 percent in the next financial year, thanks to the launch of eMPF – a centralised platform that allows people to check and manage their accounts. The fees, he pointed out, had been twice as high before the launch of the eMPF platform. The authority has estimated it will take a decade for administration fees to drop to 0.2 percent to 0.25 percent, but Cheng believes the target can be reached in just five years as more people opt for the digital channel and total assets increase. Edited by Thomas McAlinden