Ratings Methodology


Ratings Structure

MPF Ratings’ (MPFR) methodology is designed to reflect each scheme’s “Value for Money”. The best “Value for Money” schemes receive MPFR’s GOLD rating. Schemes offering good or fair value receive SILVER and BRONZE ratings respectively.

MPFR believes better value for money schemes generally offer better MPF member experiences. Good investment outcomes together with strong governance, a diversity of fund choices, efficient administration, and superior financial education and use of technology should enable members to maximise their retirement savings within and outside the MPF system.

Notably, lower rated schemes may not necessarily reflect a scheme’s individual suitability. Rather, the rating indicates same or similar scheme features may be better developed in other schemes, or the scheme may be missing features available in other schemes, but not necessarily features required by the employer or member selecting an MPF scheme.

In order to maintain integrity within the rating process, MPF Ratings attempts to rate within a distribution range. While a degree of discretion may be exercised, and owing to the competitive nature of MPF delivering better benefits to MPF members, it's MPFR’s expectation that approximately half to 2/3rds of MPF schemes should demonstrate either best or good value to its members.

Ratings Logos

  • MPFR-Logo-2021-EN

  • MPFR-Award MPF Ratings Gold-EN

    Gold

    An MPF scheme delivering exceptional aggregate value across key assessment criteria

  • MPFR-Award MPF Ratings Silver-EN

    Silver

    An MPF scheme delivering good aggregate value across the key assessment criteria

  • MPFR-Award MPF Ratings Bronze-EN

    Bronze

    An MPF scheme delivering fair aggregate value across key assessment criteria

Assessment Criteria

MPF Ratings’ ratings methodology seeks to comprehensively cover an MPF scheme’s offering. The data assessed covers information both in the public domain as well as aspects which are sourced directly from schemes. Our ratings system covers three main assessment components; Investment Choices and Performance, Fees and Charges, and an assessment of overall services within the schemes. These are reviewed both quantitatively and qualitatively and are individually weighted. Each rated scheme is provided with a Request for Information documents from MPF Ratings to maintain our data. Where a scheme does not respond, or the data provided cannot be substantiated, then the responses will (where appropriate) be assumed to be at the lower half of our universe. Details of the assessment modules and their weightings are as follows:

Quantitative assessment

Investment Choices and Performance (1 year, 3 years and 5 years) – including, but not limited to, whole of scheme asset weighted absolute and risk adjusted performance and available fund choices.
Fees & Charges (5 years) – including, but not limited to, asset weighted stated management fees, fund expenses charged and earnings relative to fees charged to members.

65
Qualitative assessment

(Full year) – including, but not limited to, governance, administration efficiency, member and employer servicing, product design and education quality.

35
Total Assessment
100

Assessment periods are calendar years. Further information on MPFR’s rating methodology can be obtained by contacting us.

MPF Ratings Limited
The assessment we make of schemes and their subsequent rating is of a general nature only and is prepared without taking into account any reader’s objectives, financial situation or needs. The information is not guaranteed to be accurate or complete. Because of this you should, before acting on the information, consider its appropriateness to your own financial objectives, situation and needs and you may wish to obtain personal financial advice on the matter from a financial adviser. Before you make a decision regarding any product discussed in this report you should obtain and consider a copy of the relevant MPF Scheme Brochure from the product issuer.

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