2018 Mercer MPF Satisfaction Index Remains Steady Despite Market Volatility

Mercer released the latest findings of the Mercer Mandatory Provident Fund Satisfaction Index (Mercer MPFSI). The monthly index recorded a score of 50.8 in December 2018, slightly down from 50.9 in November 2018. Although the Hang Seng Index (HSI) has fallen 11% since January 2018, the Mercer MPFSI has remained constant throughout the year.

“Despite the high fluctuation in the Hang Seng Index, the Mercer MPFSI has remained relatively steady for two main reasons. Firstly, some respondents view their MPF holdings as a long-term investment, therefore, short-term market volatility doesn’t affect their confidence in the type of investment. On the other hand, other respondents lack sufficient knowledge and awareness with regard to their MPF holdings. As such, their satisfaction levels are not affected by market volatility,” said Mr. Billy Wong, Health & MPF Leader, Mercer Hong Kong.

MPF enquiries have led to higher satisfaction levels

Interestingly, members who have enquired about their MPF accounts at least once in the last 12 months feel more satisfied. In December 2018, the satisfaction level of people who made MPF enquiries was 54.5, more than 15 points higher compared to people who did not make enquiries (38.9). Moreover, more than one-fifth of respondents (23.3%) stated that they had not sought any advice with regard to their MPF.

“Enquiry frequency and the understanding of investment type have been important factors contributing to member satisfaction levels, as recorded by the Mercer MPFSI. We are surprised to see that more than 23% of respondents haven’t sought advice via online or personal channels, or by contacting MPF agencies. With the Mandatory Provident Fund Schemes Authority (MPFA) having conducted years of promotion, it’s still essential to have revolutionary changes to encourage members’ awareness,” said Mr Wong.

MPF digital review platform is a foreseeable trend

According to a survey conducted by the MPFA, about 80% of members are reviewing their fund portfolio through trustees’ electronic platforms. With technology advancements, the MPFA is planning to launch MPF digital review platform by 2022.

“In the coming years, the digitalization of MPF management will become a major trend in simplifying and standardizing the process, thereby encouraging both employers and employees to continuously review their MPF management and accounts in a user-friendly way,” added Mr Wong.

He concluded by saying, “The beginning of a new year, such as now, is an ideal time for members to actively review their investment portfolios and better utilize the digital tools on hand to strive for greater returns in the future.”
 

About Mercer
Mercer delivers advice and technology-driven solutions that help organizations meet the health, wealth and career needs of a changing workforce. Mercer’s more than 23,000 employees are based in 44 countries and the firm operates in over 130 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), the leading global professional services firm in the areas of risk, strategy and people. With nearly 65,000 colleagues and annual revenue over $14 billion, Marsh & McLennan helps clients navigate an increasingly dynamic and complex environment. Marsh & McLennan Companies is also the parent company of Marsh,which advises individual and commercial clients of all sizes on insurance broking and innovative risk management solutions;Guy Carpenter, which develops advanced risk, reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities; and Oliver Wyman, which serves as a critical strategic, economic and brand advisor to private sector and governmental clients. For more information, visit www.mercer.com. Follow Mercer on Twitter @Mercer.