Information Centre

The MPFA recently announced the investment performance of the MPF System in 2020. As at end December 2020, the total MPF assets amounted to around $1.14 trillion, of which $410 billion (36%) was investment returns net of fees and charges. In 2020 alone, the MPF System registered a return of 11.7%, which also represents a double digit investment return for two years in a row. The annualized return was 4.8% since the inception of the MPF System in 2000, which was 0.7 percentage point higher than in 2019, outperforming the inflation rate of 1.8% over the same period. 

In 2020, all six MPF fund types – equity funds, mixed asset funds, bond funds, guaranteed funds, MPF conservative funds and money market funds – posted positive returns. Equity funds and mixed asset funds outperformed other fund types, registering returns of 15.1% and 13.2% respectively. The returns of bond funds recorded a year-on-year increase of 3.5 percentage points to 7.7%, making it the fund type with the largest increase in investment returns last year.

Regarding the Default Investment Strategy (DIS), which features automatic de-risking, a globally diversified investment strategy and a fee cap, its Core Accumulation Fund and the Age 65 Plus Fund yielded an overall return of 12.3% and 8.8% respectively last year.

With the challenge of the COVID 19 pandemic, economic recovery around the world remains uncertain and therefore market volatility is inevitable. As MPF is a long-term investment spanning 30 to 40 years, scheme members should allocate their investment portfolio according to their risk tolerance level and stage of life, and should not try to time the market.