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Mandatory Provident Fund Schemes Authority (MPFA) Chairman Dr David Wong published his latest blog post on the MPFA website today (3 March). He said the Mandatory Provident Fund (MPF) System recorded a 5% growth in January, with total assets resuming to the level of $850 billion, of which $227 billion was net investment returns.

Dr Wong noted that scheme members may adopt different approaches to MPF investment when the market fluctuates, but he reminded them not to try to predict market trends. Instead, he suggested members plan for retirement according to their own investment objectives and risk tolerance level. Members can also opt for the Default Investment Strategy (DIS). As at 31 December 2018, about 1.8 million MPF accounts (approximately 18% of the total) were invested in the DIS or DIS funds, with the total assets amounting to $30.8 billion (accounting for nearly 4% of the total assets of the MPF).

He said when members manage their investment portfolio, they should first learn about the features of the different fund types. He said he understood that some members would prefer to switch to lower-risk funds, such as Conservative Funds and Guaranteed Funds, in times of market volatility, but some of them might not be familiar with these two types of funds. He thus elaborated on their features.

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

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3 March 2019