Scheme Ratings Methodology
Ratings Structure
MPF Ratings (MPFR) pioneered the assessment of the overall “value for money” of MPF schemes. The best “value for money” schemes receive MPFR’s GOLD rating. Schemes offering good or fair “value for money” receive SILVER and BRONZE ratings, respectively.
MPFR believes that better value-for-money schemes generally offer a better holistic MPF experience. A combination of good investment outcomes, strong governance, diverse fund choices, superior member and employer service levels, and a commitment to social and environmental responsibility should allow members to maximize their MPF retirement savings.
Notably, lower-rated schemes do not necessarily reflect a scheme’s unsuitability. Rather, the rating indicates that the same or similar features may be better developed in other schemes, or the scheme may be missing features available in others. However, these features may not be required by the employer or member selecting an MPF scheme.
It is important to note that MPFR assesses MPF schemes' “value for money” on a relative basis, and a degree of discretion may be exercised to reflect the ever-changing and competitive nature of the MPF system. However, one can expect that approximately two-thirds of MPF schemes should demonstrate either the 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
MPFR’s methodology aims to comprehensively evaluate an MPF scheme’s offering. Assessments are based on both publicly available information and data sourced directly from schemes. Our "Value for Money" relative assessment considers the components outlined in the MPFA’s “Initiative to Enhance Transparency of Governance Reporting of MPF Schemes.” This framework focuses on Good Governance, Sustainable Investing principles, and practical considerations such as performance relative to fees, fund choices, and overall services provided to members and employers.
All schemes are issued a Request for Information document. If a scheme does not respond or if the provided data cannot be substantiated, the responses will (where appropriate) be assumed to fall in the lower half of our universe. Details of the assessment modules and their respective weightings are as follows:
Quantitative assessmentFund Choices and Performance – Includes 1, 3, 5, and 10-year absolute and risk-adjusted performance, as well as available fund choices. |
50 |
Qualitative assessmentBusiness Strength, Member and Employer Experiences, Member Education, Governance, and Sustainable Investing Principles – Covers the overall service quality and alignment with sustainable investing and governance standards (full year). |
50 |
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.
