Hong Kong's MPF beats inflation in 15-year review

Hong Kong's Mandatory Provident Fund (MPF) has achieved an annualized investment return of 3.1 percent in the 15 years since its launch, beating the average annual 1.8 percent inflation rate over the same period, according to the Mandatory Provident Fund Schemes Authority (MPFA).

Launched on Dec 1, 2000, the MPF had accumulated total assets of nearly HK$590 billion ($76.1 billion) as of Nov 30 last year. The sum included HK$475 billion in contributions and HK$114 billion in investment returns net of fees and charges. The average amount of MPF assets per scheme member was HK$143,000.

Within the six main fund type categories, equity funds yielded the highest annualized return of 4.1 percent compared with the 0.6 percent annualized return yielded by money market funds during the same 15-year period.

"The MPF return is driven by the collective investment choices of all members and reflects the results of their investments across many different asset classes and regions," MPFA chairman David Wong Yau-kar said at a press conference detailing the MPF's performance.

As at Nov 30, there were nearly 2.8 million MPF members, involving 8 million contribution accounts and personal accounts. There were 15 MPF trustees and 38 MPF schemes, involving 459 MPF investment funds, according to the MPFA.