Scheme Ratings Methodology
Ratings Structure
MPF Ratings’ (MPFR) methodology underpins MPF Trustee Governance Reporting obligations and reflects 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 holistic MPF experiences. Good investment outcomes, strong governance, diverse fund choices, superior use of technology, communication quality and a commitment to social and environmental responsibility should enable members to maximize their MPF system based retirement savings.
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. These features however may not be required by the employer or member selecting an MPF scheme.
MPFR assesses MPF schemes on a relative basis and within a distribution range. While a degree of discretion may be exercised, and owing to the competitive nature of the MPF system, it's MPFR’s expectation that approximately 2/3rds of MPF schemes should demonstrate either best or good value for money.
Ratings Logos
Gold Rated Scheme
An MPF scheme delivering exceptional aggregate value across key assessment criteria
Silver Rated Scheme
An MPF scheme delivering good aggregate value across the key assessment criteria
Bronze Rated Scheme
An MPF scheme delivering fair aggregate value across key assessment criteria
5 Year Consecutive Gold
An MPF Scheme rated Gold for 5 consecutive years
10 Year Consecutive Gold
An MPF Scheme rated Gold for 10 consecutive years
Assessment Criteria
MPF Ratings’ ratings methodology seeks to comprehensively cover an MPF scheme’s offering. The assessment covers publicly available information and information sourced directly from schemes. Our “Value for Money” based assessment covers three primary components; Fund Choices and Performance, Fees and Charges, and an assessment of overall services within the schemes inclusive of Sustainable investing initiatives and strategies. All schemes are provided with an MPF Ratings’ Request for Information document. Where a scheme does not respond, or the data provided cannot be substantiated, 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 assessmentFund Choices and Performance – including, but not limited to, 1, 3, 5 and 10-year absolute and risk adjusted performance, and available fund choices. |
60 |
Qualitative assessment(Full year) – including, but not limited to, business strength, technology use, member and employer experiences, communication and education, governance, and sustainable investing initiatives and strategies. |
40 |
Total Assessment |
100 |
Assessment periods are calendar years. Weightings are subject to discretion. Further information on MPFR’s rating methodology and Governance Reports 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 and Fund Fact Sheet from the product issuer.
