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Deduction of fees

Fees and expenses are generally deducted in one of two ways:

  • Fund Level Deduction involves deducting from the fund’s assets; or
  • Member Level Deduction involves deducting from the members’ accounts by way of unit deduction.

In the case of Fund Level Deduction, which is currently used by most MPF funds, the major component of a fund’s fees is administrative expenses, such as investment management fees, trustee fees, scheme administration fees and custodian fees. The amount of administrative expenses levied is usually accrued on a daily basis and calculated based on the net asset value of the fund as a whole.

Last Revision Date: 19/10/2012