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MPFA Chairman Mrs Ayesha Macpherson Lau today (30 January) published a blog post, which indicated that as at the end of December 2021, total MPF assets recorded year-on-year growth of 4%, amounting to $1.18 trillion. Total MPF assets have grown 232% over the past 10 years, reflecting the continuous and steady development of the MPF System.  According to an estimate as at the end of 2021, the average MPF assets held by each MPF scheme member amounted to $258,000, an increase of 164%, from $97,000 10 years ago.

The MPF System recorded a negative return of 0.3% in 2021, due to investment market volatility. Mrs Lau pointed out that, the annualized net rate of return since the inception of the MPF System in 2000 was 4.3%, which is higher than the annualized inflation rate of 1.8% over the same period, reflecting that the MPF System has stood the test of time in the long run. Having gone through several economic cycles over the past 21 years, the MPF System recorded positive returns in 14 years, and usually rebounded after the years with negative returns. Therefore, scheme members need not be too much concerned about short term volatility in the financial markets and must not try to time the market. 

Mrs Lau added that in general, there has been a higher proportion of MPF investment in equities, accounting for 66% of total MPF net assets. Hence, volatility in the equity market last year had an impact on returns of MPF funds. Although equity funds, bond funds and guaranteed funds on the whole registered weaker performance last year, all MPF fund types recorded a positive annualized return over the past three years, the past five years as well as since the inception of the MPF System.

Referring to the focus of the work of the MPFA this year, Mrs Lau highlighted that the eMPF Platform project will continue to be the most important priority. The project contractor is currently developing the Platform at full steam. The MPFA has seized this opportunity to introduce the user interface design and related functions of the Platform to future Platform users and gather their opinions to help the contractor optimize the design. The consultation, which commenced in December 2021, is expected to last till mid-2022 and would engage almost 100 groups and organizations.

Mrs Lau added that the MPFA will continue to discharge its supervision and enforcement functions, and keep communicating with stakeholders through various promotional and educational activities. Also, in view of market developments and the needs of MPF scheme members, the MPFA will continue to study measures to enrich MPF investment choices.  The MPFA will also review the minimum and maximum relevant income levels for mandatory contributions according to statutory requirements and gather opinions from stakeholder groups in this connection. Taking into account relevant factors, the MPFA will submit the review results to the Government.

For the full version of the article, please visit the MPFA blog. The blog is in Chinese only.

MPFA Chairman Mrs Ayesha Macpherson Lau hosted a media briefing a few days ago to recount the MPF investment performance in 2021, and to introduce the development progress of the eMPF Platform and the MPFA’s other work foci in 2022.

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30 January 2022