Fund Switching Strategy

Each year, we send Annual Benefit Statement to our MPF, ORSO, and Macau Pension members. It is also the perfect opportunity to reassess your personal needs and retirement goals taking into account of your preference for risk and life stage, as well as the performance of your investment portfolio. You can then switch your MPF, ORSO, and Macau Pension funds via the following methods. Check it now.

Various options in fund switching

You can choose from the following 3 major fund switching methods:
 
  • Fund-to-Fund Switching – This involves withdrawing all or part of the money in one particular fund, and investing it to another fund available in your plan.
  • Portfolio Rebalancing – All funds in your current investment portfolio will be redeemed and reallocated according to your new investment mix. For example, the money redeemed from funds A and B, will be reallocated to funds C and D.
  • Changing future investment allocations – This means changing the investment mix of future contributions only, leaving existing investments mix unchanged.

Fund switching: the right steps at the right time

To optimize returns when switching funds, you should take note of the following:
 
  • Keep an eye on market conditions when redeeming funds – If you plan to redeem your funds, be aware of market risks. If you redeem an underperforming fund, it may lead to losses. 
  • Allocate your future contributions to avoid volatility – To avoid market volatility, you should allocate your new contributions to other instruments. If the equity market is underperforming for example, you can change your investment mix for future contributions and invest in bond funds instead.
  • Pay attention to the terms and conditions of funds – There may be a limit on how many times you can switch funds, and additional charges may be involved. The ‘guarantee' on specific funds may also be conditional; for example, you may lose the guarantee if you redeem your funds during the minimum investment period.
AIA provides pension schemes that cover a diverse range of funds, including lifestyle funds, bond funds, equity funds, and guaranteed funds. Members can easily switch funds via platforms such as My AIA and the Interactive Voice Response ("IVR") System, or use our automatic asset rebalancing service to change their investment portfolio.