The Mandatory Provident Fund Schemes Authority (MPFA) of Hong Kong announced that the total assets of the Mandatory Provident Fund (MPF) have increased to HK$1.5 trillion, with a net investment return of approximately 15% year-to-date in 2025.
Since the implementation of the MPF system 25 years ago, all fund categories have recorded positive annualized returns as of the end of October this year. Equity funds and mixed-asset funds, which account for 80% of total MPF assets, delivered cumulative net returns of 2.4 times and 2 times, respectively, or annualized net returns of 5% and 4.5%, outperforming the 1.8% annualized inflation rate over the same period.
In addition to mandatory contributions, voluntary contributions from both employees and employers have been rising. In the first three quarters of this year, voluntary contributions made up 25% of total MPF contributions, nearly doubling the proportion from a decade ago.
The Default Investment Strategy (DIS), introduced in 2017, has achieved an average annualized net return of 6.9% for its Core Accumulation Fund, surpassing the 1.8% annualized inflation rate. The performance has been encouraging. With MPF schemes joining the eMPF Platform, the fee cap for DIS has been further reduced, effectively boosting net investment returns.
Launched in June last year, the eMPF Platform represents the most significant reform since the inception of the MPF system. As more schemes join the platform, fee reductions have become increasingly evident. Once an MPF scheme is onboarded, administrative fees cannot exceed the current eMPF charge level of 37 basis points (0.37%). This fee reduction benefits over 10 million member accounts, accounting for more than 90% of total MPF accounts.
MPFA Chairman Lau Mak Ka-sheung expressed confidence that administrative fees will continue to decrease in the future, benefiting all scheme members.
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