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The Mandatory Provident Fund Schemes Authority (MPFA) today (8 February) announced that in 2017, the Mandatory Provident Fund (MPF) System recorded a net return of 22.3% after deducting fees and charges, the highest annualized return since 2010.

Total assets of the System grew $197.2 billion last year, the largest yearly growth in dollar terms.

The total asset value increased by 22 times, from $36 billion on 31 December 2001 (a year after inception) to $843.5 billion on 31 December 2017 (17 years after inception). Of the $843.5 billion, about one-third, or $267.4 billion, was investment return net of fees and charges. The annualized rate of return from December 2000 to December 2017 was 4.8%, higher than the inflation rate of 1.8% in the same period.

MPFA Chairman Dr David Wong said, "The MPF has added value to scheme members' contributions since its inception. With the continuous growth of MPF assets, the System plays an increasingly important role as a key pillar of Hong Kong's retirement savings system. It has made a significant contribution to scheme members' retirement protection."

"Scheme members should be reminded that the MPF is a long-term investment for retirement, spanning 30 to 40 years. They may consider investing according to the Default Investment Strategy. Launched last year, it is a strategy for long-term retirement investment, balancing long-term investment risks and returns," Dr Wong added.

Dr Wong said, "Different MPF funds have different rates of return and risk levels. A member's return hinges on his investment decisions. Members' collective investment choices in turn affect the overall performance of the System. Equities account for 69% of MPF assets, and owing to the upturn in global stock markets, the MPF System had a strong performance in 2017."

He said scheme members should not focus just on the returns. They should also consider the risk levels of funds and their personal needs. The stock markets go up and down. Scheme members should not try to time the market. Scheme members should regularly review their MPF investment and take into account their investment objectives and risk tolerance level when considering whether to adjust their investment portfolio.

For details of the investment performance of the MPF System in 2017, please refer to the report Investment Performance of the MPF System in 2017 on the MPFA website.

The MPFA also launched a Fund Performance Platform today to further enhance the  transparency of MPF funds. This one-stop platform provides information about the funds' annualized returns, cumulative returns, fees and risk levels. It helps scheme members review funds from different perspectives to see whether the selected funds suit their retirement needs.

Employers and scheme members can also make use of this platform to compare the performance of different schemes.

Dr Wong said the MPFA would continue to raise the transparency of MPF schemes and funds. But he stressed that scheme members should take an active approach to managing their MPF accounts and regularly review their MPF investment.


Mandatory Provident Fund Schemes Authority Chairman Dr David Wong (middle), Chief Corporate Affairs Officer and Executive Director Cheng Yan-chee (left) and Chief Operating Officer and Executive Director Alice Law (right) highlighted the investment performance of the Mandatory Provident Fund System in 2017 and introduced the newly launched Fund Performance Platform at a press conference today.

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8 February 2018