AIA brings retirement offerings with great value, choice and simplicity to members

AIA Pension and Trustee Co. Ltd (AIA) has been fulfilling the diverse needs of mandatory provident fund (mpf) members for more than a decade.

AIA Pension and Trustee Co. Ltd. (AIA) has been fulfilling the diverse needs of Mandatory ProvidentFund (MPF) members for more than a decade.

Over the years AIA’s service offering as well as its product quality and value have evolved tremendously. Customers who have selected AIA as their retirement partner will now benefit from its customer value proposition, the pledge and commitment to provide retirement offerings with Value, Choice and Simplicity.

Explaining the core component of “Value,” Ms Bonnie Tse, senior vice president and managing director of AIA Pension and Trustee Co. Ltd., said what AIA promises is value-for-money retirement offerings along with efforts to achieve respectable investment performance. “We endeavour to ensure that every cent of our customers works toward their prosperous retirement future.

To demonstrate our commitment to provide offerings with great value, AIA has introduced a series of low-fee constituent funds, including the Asian Bond Fund, American Fund, Eurasia Fund and Hong Kong and China Fund, with management fees of up to 0.99 percent per annum to its existing MPF schemes.

In addition, the management fees of Global Bond Fund, MPF Conservative Fund, and World Fund under the existing MPF schemes have also been reduced to 0.99 percent per annum.

The Asian Bond Fund invests in fixed income instruments of government, corporations and supranational organizations, issued in international capital markets. The American Fund invests in index-tracking funds of the equity markets of North America and South America. The Eurasia Fund invests in European, Australasian,Far Eastern equity markets index-tracking funds, while the Hong Kong and China Fund invests in index-tracking funds that track Hong Kong equity market indices that measure the performance of Hong Kong listed companies including mainland China companies listed in Hong Kong, or H-shares.

One key advantage of these new low-fee constituent funds that have been added to existingMPF schemes is that both new and existing members can invest in them. Besides, the Fund Expense Ratio of Manager’s Choice Fund, World Fund and Global Bond Fund in the categories of mixed assets fund, equity fund and bond fund respectively are the lowest in the market.

These three fund categories comprise almost 77 percent of the aggregate net asset value of the approved constituent funds of MPF schemes in the market. Such distinctions reflect AIA’s commitment to offering value-for- oney MPF services.

“Choice” is the second core component of AIA’s value proposition to its customers, which could be seen in the company’s continuing endeavors to pursue multi-manager strategies and enrich investment choices. “We believe a real choice of funds is founded on freedom – the freedom to choose and to switch. Over the years, we have been pursuing multi-manager strategies and striving hard to select first-class investment managers from around the globe. This open framework enables our customers to diversify their investments among constituent funds managed by different investment managers with varying styles, and to switch their investment choices within as little as one day, without having to switch schemes.”

The choice has expanded for MPF customers, now that AIA has added four new low-fee constituent funds, broadening its MPF platform to 25 constituent funds designed to suit a diverse range of needs, whether customers prefer the ‘do-it-for-me’ or ‘do-it-myself’ approach to investing their money.

“Recentl, AIA also developed a simple yet useful fund selection matrix to help our customers make the investment choices that might suit their individual investment approach and risk appetites.” Ms Tse said.

“Simplicity,” the third component of the AIA customer value proposition, promises hassle-free and convenient services to customers, enabling them to manage their retirement funds and grow their retirement nest egg with ease. Ms Tse explains: “Over the years, we have offered hasslefree investment reallocation service, various convenient account management platforms and other thoughtful services to our customers. Our LifeEasy service, a personalized automatic asset rebalancing service, was launched in 2008 – long before target date funds gained popularity. Our e-platform plus the recently launched smart-phone app will also allow our customers to manage their MPF investments at their fingertips.”

Ms Tse describes the AIA customer value proposition as a promise to customers. “It represents who we are, what we strive for and what our customers can expect from our retirement products and services. It forms the centre of our business strategy and we strongly believe it will set us apart from other retirement service providers and lead us to greater heights in the future.”
- Kapila Bandara

FAST FACTS
• AIA Pension and Trustee Co. Ltd. is a member of AIA Group Limited. 

• AIA Group Limitedand its subsidiaries comprise the largest independent publicly listed pan-Asian life insurance group in the world. 

• AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock code 1299. 

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Tags: AIA Pension and Trustee Co. Ltd, Bonnie Tse, Hong Kong Business High-Flyers awardees