22nd November 2023
Hidden point of differentiation set to benefit the wider MPF system
Key points are as follows:
- Leading MPF commentator believes BCT Financial Limited’s (“BCTF”) sponsorship takeover of Invesco’s Strategic MPF Scheme (the “Scheme”) is in the Scheme’s members’ best interest and reinforces BCT’s Hong Kong pension fund leadership.
- MPF Ratings believes the acquisition raises MPF’s competitive stakes. BCT not only becomes a top 5 market share MPF sponsor but amongst the top 5 BCT is the only exclusive pension focused sponsor.
- Based on MPF Ratings’ end of October 2023 data, the combined assets of BCT and Invesco would total $77.647bn (7.3%) ranking it 5th between AIA and BOCI-Prudential in 4th and 6th place respectively (See table 1).
- BCT’s singular pension services focus allows BCT to develop and promote products, services and partnerships that are in the best of interest of members.
- MPF Ratings has previously independently assessed BCT as a Gold Rated MPF scheme sponsor for 6 consecutive years. Gold Rated schemes are assessed to deliver exceptional aggregate value across key assessment criteria.
Following official regulatory confirmation, MPF Ratings, Hong Kong’s independent provider of MPF pension research, views and education today shared its opinion of BCT Financial Limited’s (“BCTF”) scheme sponsorship acquisition of Invesco’s Strategic MPF Scheme (the “Scheme”), a change which sees 16 MPF scheme sponsors remain but one which the influential MPF research group described as having potential to ‘move the dial’ as the industry moves closer to adopting the much publicised not for profit eMPF centralized administration platform.
In offering up his company’s views, MPF Ratings’ Chairman Francis Chung (叢川普) pointed out that, “BCT’s sponsorship acquisition of Invesco’s Strategic MPF Scheme is a transaction which ‘moves the dial’, propelling a mid-tier sponsor exclusively focused on pension services into a top 5 MPF market share tussle with sponsors whose MPF activities supplement other commercial interests. BCT’s exclusive pension focus is a clear and positive differentiator.”
When asked why he thought the sponsorship acquisition ‘moves the dial’ Mr Chung observed, “Top 5 gives you influence while BCT’s singular pension focus allows it to develop and promote products, services and partnerships in the best interest of members without fear or failure,” and it’s this focus on members’ best interest which Mr Chung believes will not only benefit existing members of the Scheme but also the wider MPF system.
“Whether it’s assisting a locally based employee benefit group to establish a global leading pension platform or ensuring financial education messages are effectively heard, BCT’s history of innovation will not only benefit the newly acquired Invesco scheme’s members but also MPF broader membership base because while these may have been done with little fanfare in the past, as a top 5 MPF sponsor, other sponsors will take note. The acquisition has just raised MPF’s competitive stakes.”
Table 1: MPF Scheme Sponsor Market Share as at 31st October 2023
Source: MPF Ratings
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