MPF May Return Hits 2.90% as Average Account Balance Surpasses HK$350K Milestone

HONG KONG — According to the latest MPF market analysis report released by GUM, MPF advisory firm, MPF recorded a 2.90% investment return in May, bringing 2026 year-to-date returns to 7.22% — the best YTD performance since 2017.

Average Account Balance Breaches HK$350,000 for First Time

GUM’s report indicates that after factoring in contributions, average MPF account balances have breached the HK$350,000 mark for the first time, marking a significant milestone for MPF members’ retirement savings. Total MPF market assets rose 3.2% to HK$1.69 trillion.

By market share, Manulife leads at 27.9%, followed by HSBC (17.9%) and Sun Life (11.0%) in second and third place respectively.

HK$4.33 Billion Net Inflows Into Equity Funds

MPF fund switching activity rebounded significantly in May, with an estimated HK$4.33 billion net transfer into equity funds, a near 12-month high. The flows were primarily directed into US equity funds and Asian equity funds.

Kenyon Wan, Director of Strategy and Investment Analysis at GUM, commented: “MPF fund switching activity rebounded significantly in May, with an estimated HK$4.33 billion net transfer into equity funds, setting a near 12-month high, primarily into US and Asian equity funds. Under the AI wave, these two types of equity funds are expected to remain the focus of MPF members.”

Asian Funds Benefit from AI Infrastructure Demand

Wan specifically noted: “This year, Asian equity funds have surged significantly, benefiting from AI infrastructure demand. As of May 31, 2026, the top-performing Asian equity fund gained 73.9%, while the single-market Korea fund recorded 116.8% growth.”

He cautioned that although single-country funds offer higher return potential, members should note that the risk level is higher than regional funds due to the lack of geographic and industry diversification.

MPFA Reviews Contribution Income Levels

In a recent LegCo session, Secretary for Labour and Welfare Chris Sun stated that the MPFA is conducting a review of the minimum and maximum relevant income levels for MPF contributions. When preparing the report and recommendations, the MPFA will consider relevant employment income data as required by law, along with other factors such as social and economic conditions and the impact on employees and self-employed persons including financial burden.

The government will conduct a comprehensive and detailed review upon receiving the MPFA’s report. Additionally, the government has no plans to expand the scope of the Protection of Wages on Insolvency Fund to cover employers’ MPF contributions.

Source: GUM Ratings, Labour and Welfare Bureau, MPF Ratings