Hong Kong people are managing their MPF accounts more actively during COVID-19 pandemic

• Prudential and BOCI-Prudential celebrate 20th anniversary of strategic partnership

• Prudential launches new user-friendly MPF tracking features including fund balance and contribution history retrieval in Pulse by Prudential mobile app

(4 February 2021 – Hong Kong) Prudential Hong Kong Limited (“Prudential”) today celebrated the 20th anniversary of its partnership with BOCI-Prudential Asset Management Limited and BOCI-Prudential Trustee Limited (collectively “BOCI-Prudential”).

At the celebration event, Prudential shared the findings of its latest Mandatory Provident Fund (“MPF”) customer survey, offering insights into the awareness and behaviour of MPF account holders amid the COVID-19 pandemic, and introduced new features of its Pulse by Prudential mobile app (“Pulse”) aimed at addressing present-day customer needs. A total of 570 local customers of Prudential were interviewed via an online questionnaire in November 2020.

More frequent MPF account balance enquiries

A significant 85% of survey respondents indicated they are clear about their investment portfolios and the total accrued benefits of all their MPF accounts, which could be attributed to checking their MPF account balances more regularly of late. Specifically, around half (48%) checked their MPF account balances four times or more over the past year, while almost one-fifth (19%) even checked their MPF account balances more than 10 times over the same period.

Interestingly, the key drivers behind more frequent MPF account enquiries were the improved convenience of checking MPF accounts via digital means (54%), followed by the desire to keep track of account balances and fund performance (49%). Only 34% of respondents checked their accounts more often due to market volatility.

In fact, despite market uncertainties resulting from COVID-19 and the higher frequency of account enquiries, 72% of respondents did not express worries about their MPF investment returns. This was reflected in their actions, with almost two thirds (63%) not switching funds in 2020.

All of the above suggest that Hong Kong people have become more proactive in understanding and managing their MPF accounts, and are taking a mid- to long-term investment approach to MPF, with 64% seeing MPF as an integral part of their overall investment portfolio. This would explain why short-term market fluctuations or adverse events such as COVID-19 seem to have little impact on their investment decisions.

Young professionals look for simpler and faster ways to manage their MPF accounts

Meanwhile, the survey also reveals that younger generations are just as engaged in actively managing their MPF accounts. For instance, the majority (76%) of post-80s have fully or partially consolidated their MPF accounts, which illustrates a high level of involvement. The factors that have kept the remaining 24% from doing so include the inconvenience of sorting out the necessary information (50%), insufficient time (67%), and a lack of ideas on which trustee to choose (67%).

The survey also emphasises the ongoing shift from paper documentation towards digital communications. An easier-to-access digital platform (59%), regular MPF account updates via SMS and email (42%), and push notification alerts about fund prices and performance (37%), were all major drivers behind the more proactive management of MPF accounts.

Another important observation is the common lack of knowledge about funds and how to switch between them (45%). While most respondents (71%) do their own research, over half (57%) still rely on information from insurance agents to help them in their decision-making process. 

Addressing the needs of tech-savvy customers

To provide a more streamlined approach to MPF management and address the needs of an increasingly tech-savvy population as revealed by the survey, Prudential is launching a simple one-click entry point to the BOCI-Prudential MPF via its Pulse app, which will allow users to readily manage their funds , enabling them to check their fund balance and unit prices as well as tracking their transaction and contribution history.

“This anniversary is an important milestone for us. Over the past two decades, Prudential and BOCI-Prudential has built something far beyond the sum of three partners.  We are committed to building on this history and increasing these efforts,” said Derek Yung, Chief Executive Officer of Prudential Hong Kong. “As the market continues to evolve with wealth management services becoming more accessible to everyone, we will continue to leverage technology and the strengths of our financial consultant network to transform customer experience. We look forward to developing more innovative solutions to meet the evolving customer needs.”

"We have a close collaboration with Prudential over the past two decades. Prudential is one of the most important partners in our MPF business.  There is no doubt that our cooperation is bound for an even better future with Hong Kong people together amidst the severe and adverse atmosphere.” said Dick Lee, the Chief Executive Officer of BOCI-Prudential Asset Management Limited, “We are exploring retirement solution and A-share MPF products, seeking for a greater variety of investment choice for our scheme members, which might also promote risk diversification. We possess solid experience in both active and passive A-share products investment, and might help our scheme members capture the investment opportunities in different regions, seeking to achieve better potential long-term return.” Dick added.

“Proudly serving almost 800,000 MPF members for 20 years, this seamless collaboration has fostered strong bonds among three of us - it is our heritage working as partners to grow with our scheme members and to prosper together over the decades,” said Andrew Law, Chief Executive Officer of BOCI-Prudential Trustee Limited. “We strive to deliver holistic value-for-money products and services to our customers through digital transformation and streamlined retirement services augmented by technological innovation.”

To encourage the more proactive management of their MPF accounts, from today until April 2021, Prudential will be giving away $50 e-vouchers to users who have successfully registered* for the MPF tracking feature on Pulse.

For more information about accessing the MPF management platform via Prudential’s Pulse app, please visit https://pruhk.co/mpf-e

*Terms and conditions apply

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About Prudential Hong Kong Limited

Prudential has been serving the people of Hong Kong since 1964. Through Prudential Hong Kong Limited and Prudential General Insurance Hong Kong Limited, we provide a range of financial planning services and products including individual life insurance, investment-linked insurance, retirement solutions, health and medical protection, general insurance and employee benefits.

Prudential plc is an Asia-led portfolio of businesses focused on structural growth markets. The business helps people get the most out of life through life and health insurance, and retirement and asset management solutions. Prudential plc has 20 million customers and is listed on stock exchanges in London, Hong Kong, Singapore and New York.

Prudential plc is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America or with the Prudential Assurance Company, a subsidiary of M&G plc, a company incorporated in the United Kingdom.

Please visit our corporate website for more information.

About Pulse by Prudential

Pulse by Prudential is an all-in-one digital health app and the first-of-its-kind in the region to offer holistic health management to consumers. Using AI-powered self-help tools and real-time information, the app serves as a 24/7 health and wellness partner to users, helping them prevent, postpone, and protect against the onset of diseases. Pulse is part of Prudential’s region-wide strategy to provide affordable and accessible healthcare to everyone across Asia by leveraging digital technologies and best-in-class partnerships.

Following the regional launch of Pulse in Malaysia in August 2019, Pulse is now available in a total of 11 markets and includes a growing suite of value-add services, such as a symptom checker and health assessment, personal wellness services, and video consultations with certified doctors and specialists.

Since its launch, Pulse has been downloaded for more than 18 million times (as at February 2021) in Asia to date. Pulse is currently available on the Apple/Google Play stores in Cambodia, Hong Kong, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Taiwan, Thailand and Vietnam.

For more information, and to download Pulse, log onto the Pulse page.

About BOCI-Prudential

BOCI-Prudential Asset Management Limited and BOCI-Prudential Trustee Limited are the two joint ventures established by the subsidiaries of Bank of China Limited (formerly known as Bank of China) and Prudential plc in 1999.

BOCI-Prudential Asset Management Limited is an asset management company founded in Hong Kong, offering a broad spectrum of investment products ranging from MPF, retirement schemes, retail unit trusts, to exchange traded funds, apart from the tailor-made investment strategies for individual and institutional clients. Please visit www.boci-pru.com.hk for more information. The website has not been reviewed by the SFC.

BOCI-Prudential Trustee Limited primarily offers trust and administration services for MPF and retirement schemes, and is actively developing trustee and custodian services of unit trust funds. Please visit www.bocpt.com for more information.

This press release is issued by Prudential Hong Kong Limited and has not been reviewed by the Securities and Futures Commission.