Info Center

The MPFA today (15 December) released the September 2022 issue of the Mandatory Provident Fund Schemes Statistical Digest (Statistical Digest), a quarterly report which covers key statistical data of the MPF System up to the end of September 2022, including scheme member enrolment, number of accounts, total MPF assets and investment performance.

The Statistical Digest quarterly report aims to enhance the information transparency of the MPF by showing the general situation and progress of the MPF System in different areas.

The key findings in the September 2022 issue of the Statistical Digest quarterly report are as follows:

• As at the end of September 2022, total MPF assets amounted to over $960 billion. Over $140 billion of the total MPF assets was investment returns, net of fees and charges. Total MPF assets have increased by 134% over the past 10 years. The annualized net rate of return was 1.7% since the inception of the MPF System in 2000.
• In the third quarter of 2022, total MPF contributions amounted to $20.93 billion, of which $16.36 billion (78%) was mandatory contributions and $4.57 billion (22%) was voluntary contributions.
• As at the end of September 2022, about 2.80 million MPF accounts had invested all or part of their assets according to the default investment strategy (DIS) or in the two constituent funds under the DIS, accounting for around 26% of the total number of 10.78 million MPF accounts at the time. The total assets invested amounted to about $76.8 billion, accounting for 8% of total MPF assets.
• In the third quarter of 2022, the total number of claims for MPF on various grounds (such as retirement) was 57,900, an increase of 10% from the previous quarter. The number of claims for MPF on the grounds of permanent departure (PD) from Hong Kong in the third quarter of 2022 was 8,600, same as the previous quarter and 8% lower than that in the same quarter of 2021 (9,300 claims). Since a scheme member may have more than one account under the MPF System and would make individual claims with the relevant trustees to withdraw his/her MPF from these accounts, the number of claimants involved would be less than the number of claims. In addition, PD claimants may not be emigrants as such claimants also include those returning to their places of origin (e.g. non-local employees who have completed their employment in Hong Kong) or moving to reside in the Mainland.

An MPFA spokesperson said, “Although the total MPF assets dropped in the third quarter of 2022, with improving performance of investment markets, the total MPF assets rebounded to $1,040 billion as at end November 2022. From end September to end November 2022, the MPF System recorded an investment return of 7.0%. As at end November 2022, the annualized net rate of return was 2.3% since the inception of the MPF System.”

The spokesperson added, “MPF is a long-term retirement investment, which spans across the entire working life of scheme members. During the period, the investment performance of MPF funds will inevitably be subject to economic cycles and market fluctuations. MPF contributions are made into MPF funds for investment at regular intervals, and this disciplined investment approach could take advantage of dollar cost averaging. Scheme members do not need to predict the best timing to enter the market, nor do they need to try to time the market. Long-term investment will help average out the costs of fund units, thus mitigating the impact of short-term market volatility on investment.”

Moreover, the spokesperson suggested scheme members reduce investment risk by means of a diversified portfolio. Under the MPF System, MPF funds investing in different regions and asset classes are available to scheme members for constructing a diversified investment portfolio to reduce investment risk. Scheme members should also regularly review their MPF investment to ensure that their investment portfolios (i.e. fund choices) align with their personal circumstances (e.g. life stages, risk tolerance level). Scheme members with insufficient investment knowledge or time to manage their MPF may consider the DIS (commonly called “funds for lazy people”), which has a fee cap, adopts a diversified investment approach and automatically adjusts the investment portfolio to reduce investment risk according to one’s age. As at the end of September 2022, the average annualized investment return of the Core Accumulation Funds under the DIS was 3.2% since its introduction in April 2017, higher than the annualized inflation rate during the same period.

－Ends－                                                            

15 December 2022