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The MPFA today (28 February) released the December 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 December 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 December 2022 issue of the Statistical Digest quarterly report are as follows:

• As at the end of December 2022, total MPF assets amounted to over $1,050 billion. About $220 billion of the total MPF assets was investment returns, net of fees and charges. Total MPF assets have increased by 139% over the past 10 years.  
• Total MPF contributions amounted to $83.99 billion in 2022, of which $64.65 billion (77%) was mandatory contributions and $19.34 billion (23%) was voluntary contributions. Over the past 10 years, the amount of mandatory contributions and voluntary contributions grew by 68% and 112% respectively.
•  As at the end of December 2022, about 2.87 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 10.84 million MPF accounts at the time. The total assets invested amounted to about $82.4 billion, accounting for around 8% of total MPF assets.
• In the fourth quarter of 2022, the total number of claims for MPF on various grounds (such as retirement) was about 53 000, a decrease of 8% from the previous quarter. The number of claims for MPF on the grounds of permanent departure (PD) from Hong Kong in the fourth quarter of 2022 was 7 000, representing a quarter-on-quarter decrease of 19% and a year-on-year decrease of 20%. 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, “In January 2023, MPF recorded a positive return of 6.1%, and the total amount of MPF assets increased further to over $1,120 billion.  As at end January 2023, the annualized net rate of return was 2.9% since the inception of the MPF System in 2000.  MPF is a long-term investment for retirement protection, 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. Scheme members should consider reducing 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).”

The spokesperson suggested that 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. Since its introduction in April 2017, the DIS has continued to gain popularity. One out of every four MPF accounts is investing in DIS or its underlying funds.

Moreover, the spokesperson encouraged scheme members who wish to enjoy tax deductions for salaries tax or personal assessment in the assessment year of 2022/23 to act promptly and make MPF tax-deductible voluntary contributions before the end of March 2023.

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28 February 2023