MPF Outruns Inflation in H1 2026 — Asian & Japanese Equity Funds Lead the Pack

HONG KONG — Mandatory Provident Fund (MPF) performance data for the first half of 2026 is in, with all major fund categories delivering returns that comfortably outpaced inflation over the same period. According to figures from the Mandatory Provident Fund Schemes Authority (MPFA), equity funds posted a 4.8% annualized return in H1, while mixed-asset funds returned 3.9%. The Default Investment Strategy (DIS) Core Accumulation Fund — widely known as the “lazy fund” — led with a 6.4% annualized return, providing meaningful growth to members’ retirement savings.

Asian & Japanese Equity Funds Lead

The standout performers in the first half were Asian equity and Japanese equity funds, delivering 7.2% and 8.1% returns respectively — well ahead of global equity averages. Analysts attributed Japanese equities’ strength to corporate governance reforms and a weaker yen boosting exports, while Asian markets were lifted by supportive mainland China policies and a tech sector recovery. Both segments merit continued attention in the second half.

DIS Lazy Fund: A Steady Performer

The DIS Core Accumulation Fund’s 6.4% annualized return in H1 makes a compelling case for hands-off members. DIS automatically rebalances equity and bond allocations based on member age, making it ideal for those unwilling to actively manage their MPF. The MPFA notes that historical data shows DIS accounts held for 20 years or longer have almost never posted a negative annual return.

H2 Strategy Recommendations

Facing uncertainty over global interest rate direction and ongoing geopolitical tensions, experts recommend the following strategies for the second half: younger members should maintain higher equity allocations to capture long-term returns; members approaching retirement should gradually shift toward the more conservative Age 65+ Fund to lock in gains; and all members should consider consolidating old MPF accounts to avoid fragmented returns being eroded by fees.

Source: MPFA, MPF.hk Fund Data