Hong Kong’s Mandatory Provident Fund (MPF) saw its assets increase 125% to HK$1.34 trillion (US$171.8 billion) over the last ten years, and drew a record HK$23.9 billion of contributions from members in the first quarter of 2025, including HK$6.5 billion that were made voluntarily.
The MPF’s asset growth in the ten years to March 2025 was driven by its equity and bond funds, the Mandatory Provident Fund Schemes Authority (MPFA), supervisor of the MPF industry, says in a quarterly report published on June 2.
The equity fund accounts for 45% of assets and delivered an average annualised return of 4.5% since the MPF was launched 25 years ago, while the bond fund, which represents 33% of assets, returned 4%.
The returns beat Hong Kong’s average annual inflation rate of 1.8% over the same period.
Around HK$138 billion, or more than 10% of MPF assets, were allocated to the default investment strategy (DIS) which was introduced in 2017.
Contributions of MPF members who don’t provide investment instructions are automatically channelled into two constituent funds of the DIS.
Launched in 2000, the MPF is Hong Kong’s public retirement savings scheme, with around 4.7 million members.
