MPF Turns Ten: $345.7 Billion in Assets, 5.1% Annualised Return

Marking MPF’s tenth anniversary, Financial Services chief K.C. Chan wrote in his blog that ten-year MPF fund performance — a net-of-fees annualised return of 5.1% — has beaten inflation, with total net assets reaching $345.7 billion as of end-September.

How does the ten-year report card look?

Assets from zero to $345.7 billion; voluntary contributions up to 15.4%. Chan noted MPF is one of Hong Kong’s three retirement-protection pillars, alongside social security and personal savings. Voluntary contributions rose from 9.2% at launch to 15.4% today — evidence people take retirement saving ever more seriously.

Has MPF beaten inflation?

A 5.1% annualised return — yes, ahead of inflation. Despite the financial-crisis plunge, the ten-year net-of-fees annualised return of 5.1% outpaced inflation, proving long-term investing preserves and grows value. Workers shouldn’t lose faith over short-term swings.

What’s the next reform?

Employee choice, fee disclosure, default enforcement. Chan said the government will keep improving the system — implementing the Employee Choice Arrangement, boosting fee transparency, and cracking down on employer defaults. MPF’s next decade aims for lower fees, more choice and stronger protection.

To compare charges and returns across MPF funds, visit MPF fund comparison.