Last year, Hong Kong’s Mandatory Provident Fund (MPF) garnered an average return of approximately 16.73%. However, the management fees have consistently drawn scrutiny. Recently, BCT unveiled a market-first investment management fee rebate scheme linked to fund manager performance, applicable to selected MPF plans under the BCT umbrella.
During a specified investment period, if the relevant fund fails to achieve the target return, the fund manager will provide a rebate of their management fees to bridge the gap, thereby bringing returns closer to the target. Naturally, there is a cap on the rebate. Since fund managers only charge a capped management fee, the rebates will not exceed this fee.
For details on eligibility criteria, calculation formulas, and operational specifics—such as when investors must start holding the relevant funds and the specific mechanics related to the rebate and fund units—please refer to the promotional materials and relevant terms and conditions.
The market has long criticized the inequity of fund managers charging fees regardless of performance. BCT acknowledges that some members are concerned about the situation where managers still collect fees irrespective of fund performance. Adhering to a member-centric philosophy, BCT actively seeks solutions and aims to provide innovative options that align members’ interests closely with fund performance through this performance-linked arrangement.
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