Communicating Peace of Mind



Ka Shi Lau
Managing Director & CEO
BCT Group

Implemented less than a year ago, the Default Investment Strategy (DIS) marks an important milestone in the MPF industry. As the bellwether in this new frontier, BCT Group took away the MPF Capability Award in Best Managed DIS, among other awards. When asked about the secret to the win, Ms. Ka Shi Lau, Managing Director & CEO, said unique positioning and excellence in communication are the keys to success. More details follow.

BENCHMARK (BM): Congratulations! In what ways are your DIS funds special? And how do you choose a fund manager to partner with?
Ka Shi Lau (KSL): BCT is highly honored to receive the awards from BENCHMARK. BCT Group’s uniqueness lies in its positioning in the market – independent of investment managers. This positioning grants us the freedom to appoint different external investment managers with a global presence and investment expertise. The same applies to the DIS.
Fund management is an integral part of our DIS solution. That’s why we exercise stringent due diligence in our manager search in developing our DIS funds. We do so to ensure the soundness and quality of the underlying products we select for the Core cumulation Fund and the Age 65 Plus Fund. To address risk considerations, we adopt a prudent risk management process to evaluate risks and measure the suitability of investment managers on an ongoing basis.
BM: How do you ensure that the managers can keep up their performance?
KSL: As a gatekeeper of members’ retirement money, we ensure that clients’ interests always come first. We have in place in our workflows an internal check and control framework that includes regular due diligence, supervision, and risk control on fund governance and performance. In addition, we have a watch list system to monitor the monthly performance of laggard funds so that we can take further action based on the progress of improvement made by the relevant managers.
Optimizing our products and fund manager selection is a continuous process. We understand that it may be difficult for an investment manager to excel in all areas of investments, such as asset class, geographical region, and sector. Therefore, one of our key initiatives in 2018 is the enhancement of the fund platform for our BCT (MPF) Pro Choice, which will expand the multi-manager approach BCT has adopted since MPF’s inception and further harness the strengths of different investment managers. Under the new structure, the performance of the underlying funds can be better monitored and investment managers can be replaced more efficiently when required. This will ultimately help to diversify risks, lower volatility of the funds, and enhance investment returns.
BM: Your transition into DIS was smooth. Can you tell us what kind of preparation work you’ve done to facilitate the launch?
KSL: Being well prepared with targeted communication. The smooth transition into DIS was enabled by our well-thought out ember communication strategy and the joint effort by BCT’s colleagues. Our preparation work started far before the launch and included conducting a thorough checking procedure to identify the members affected by the DIS and ensure that important information was communicated to the targeted group. In addition, in-depth training was conducted to equip frontline colleagues with sufficient knowledge to handle DIS inquiries.
Our award-winning call center was well prepared to cope with the drastic increase in DIS inquiries, while hundreds of briefing sessions were arranged for employers and members to understand the change. Our communication plan was designed to address the needs of various stakeholders. For example, DIS materials were prepared specifically for employers, scheme members, intermediaries, and the public to raise their awareness of DIS.
BM: With DIS as the key milestone in the MPF system, what do you see as the next major change, both in the industry and in BCT?
KSL: We anticipate ongoing efforts by the authorities and industry peers to spearhead the MPF reform. Digitalization is another emerging trend in the MPF arena. The regulator MPFA is currently mapping out the design and functionalities of the “eMPF” platform, aiming to improve the accuracy, reliability, and efficiency of the system in the long run.
Innovation is the key. As mentioned earlier, BCT will soon be enhancing our fund platform for our master trust scheme, but our innovation extends beyond the product level. In 2018, we will further strengthen customer connectivity and experience by innovating in different aspects of our business – bolstering our digital capacities, driving e-communications, streamlining administrative processes, and continue to educate people about the importance of retirement planning. BM


未雨綢繆 溝通雙贏




事實上,優化產品和挑選基金經理是一個持續過程。我們明白基金經理或許難以在所有資產類別、地理區域和行業等投資領域均取得佳績,因此,BCT在2018 年的重要策略之一就是提升BCT積金之選的基金平台,擴大BCT自MPF成立以來採用的多元經理策略的運用,並進一步發揮不同基金經理的優勢。在新的架構下,更有效地監控基金表現,並在有需要時替換投資經理。我深信這最終將有助於替計劃成員分散風險、降低基金的波動性並提高投資回報。
於千禧世代,創新是關鍵。如我之前提及,BCT很快便會加強我們集成信託計劃的基金平台,而我們的創新不止於產品層面。展望2018 年,我們將在不同業務範疇進行創新改革,進一連繫客戶,提升客戶體驗,包括加強電子化、推動電子通信、簡化行政流程等,並繼續推動投資者教育,教育市民退休計劃的重要性。 BM