Hong Kong’s Mandatory Provident Fund’s (MPF) equity fund posted a return of 19.3% in the 12 months to June, as local and Mainland stocks rallied on the back of Beijing’s economic stimulus.
Meanwhile, the MPF’s mixed asset fund posted a return of 12.5%. The MPF’s bond fund posted a return of 6.5%, while its guaranteed fund recorded a return of 4.2%.
The equity and mixed asset funds together account for close to 80% of the MPF’s assets, which stood at HK$1.4 trillion (US$157.3 billion) as of end-June.
The Mandatory Provident Fund Schemes Authority, the MPF industry’s supervisor, announced the figures in a statement on July 4, reminding members that the retirement fund is designed for the long term.
“The MPF is a long-term investment, spanning over 40 years. Scheme members should make sound investment plans based on their life stage, financial situation and risk-tolerance level.”
The MPFA also advised members who don’t have the time or investment knowledge to consider using the MPF’s default investment strategy. Contributions from members who don’t provide investment instructions are automatically channelled into the strategy’s two constituent funds.
The fee for the two funds, currently capped at 0.95%, will drop to 0.85% by the end of the year when the MPF’s digital platform becomes fully operational.
