MPF’s 10-year annualised return hits 5.4%; average account at HK$150,000; voluntary contributions at record

The MPFA’s first-quarter MPF fund performance report card brings good news: the 10-year annualised average return has bounced to 5.4%, and the average account holds HK$150,529 — nearly matching the budget’s HK$6,000 “lucky money”.

Which fund types won?

Equity funds: 5.7% annualised over 10 years. As of end-March, total MPF net assets stood at HK$378.28 billion; across 2.513 million members, the average account tops HK$150,000, up 3.88% from year-end. Over the past year, mixed-asset and equity funds gained 9.7% and 12.7%, beating 4.4% inflation; over 10 years, equity funds lead at 5.7% annualised, followed by mixed-asset (balanced) funds at 4.9%. Defensive products lagged inflation — money-market funds posted negative 0.5% over both one and three years, the big losers.

What’s new in voluntary contributions?

HK$1.449 billion last quarter — a record. Voluntary contributions hit HK$1.449 billion, with special voluntary contributions (for those without preserved accounts) at HK$235 million — a sign of growing retirement awareness. Looking ahead, experts advise diversification: US equities look tired after last year’s surge, while debt-crisis-hit European markets such as the UK and Germany are showing decent performance.

To compare 10-year fund returns, visit MPF fund comparison.