Hong Kong Pension Fund MPF Total Assets Grew to $156 Billion, Annualised Return of 5.1%
10th September 2021 | Hong Kong
Hong Kong retirement fund MPF (Mandatory Provident Fund) total assets had grew to $156.9 billion (HKD 1.22 trillion) at the end of June 2021, representing a year-on-year increase of 26%. The Hong Kong Mandatory Provident Fund (MPF) annualised net return is 5.1% p.a. since the inception of the MPF System in 2000, outperforming the inflation rate of 1.8%. The total MPF assets have also increased 101% over the last 5 years. The MPF System was set up to help Hong Kong’s workforce save up for their retirement. Except for exempt persons, employees and self-employed persons aged 18 to 64 are required to join an MPF scheme, contributing 5% each from employee’s income and employer subject income tier (Min. HKD 7100 and Max HKD 30,000). View: Hong Kong MPF June 2021 Report
” Hong Kong Pension Fund MPF Total Assets Grew to $156 Billion, Annualised Return of 5.1% “
Hong Kong MPF June 2021 Report
Key findings in the June 2021 issue of the Hong Kong MPF Statistical Digest Quarterly Report:
As at the end of June 2021, total MPF assets amounted to HKD 1.22 trillion, representing a year-on-year increase of 26%. Over HKD 460 billion of the total MPF assets was investment returns, net of fees and charges. Total MPF assets have increased 101% over the past five years. The annualized net return was 5.1% since the inception of the MPF System in 2000, outperforming the inflation rate of 1.8% over the same period. All MPF fund types posted positive annualized net returns.
In the second quarter of 2021, a total of HKD 3,789 million in voluntary contributions (VCs) was received, which was the highest level of VCs received on a quarterly basis. Compared with the second quarter of 2016, the quarterly amount of VCs received increased by HKD 1,421 million (or 60%) in the past five years. In terms of the share of total MPF contributions received in a quarter, VCs rose from 13.5% to 18.7% during this period, indicating an increasing recognition among employers and scheme members in making VCs on top of mandatory contributions to enhance the retirement protection of scheme members.
As at the end of June 2021, about 2.49 million MPF accounts had invested all or part of their assets according to the default investment strategy (DIS) or in the two constituent funds under the DIS, accounting for 24% of a total number of 10.35 million MPF accounts at the time. The total assets invested in the DIS amounted to about $77.8 billion, accounting for 6% of total MPF assets. Over the past year, the Core Accumulation Fund and the Age 65 Plus Fund, the two constituent funds under the DIS, registered net investment returns of 21.7% and 5.8% respectively.
In the second quarter of 2021, the total number of withdrawal claims for MPF on various grounds (including retirement and early retirement) was 60,200, a decrease of 10% compared to 66,600 in the first quarter of 2021. The number of claims for MPF on the grounds of permanent departure (PD) from Hong Kong in the second quarter of 2021 rose 4% to 8,000, compared to 7,700 in the previous quarter.
View: Hong Kong MPF June 2021 Report
Hong Kong:
- Hong Kong Exchange Explores New Biotech Initiatives, 2nd Largest Biotech Fundraising Hub with 73 IPOs Raising $29.2 Billion
- Hong Kong SFC Suspends Former Emperor Securities Licensed Representative for 2 Years for Misconduct
- Hong Kong SFC Warns Public On Unauthorised Collective Investment Schemes, Publishes Alert List
- Hong Kong SFC and Police Searched Listed Company Office & Residences for $57.9 Million Corporate Fraud, Arrests 2 for Money-Laundering
- Hong Kong Exchange Launches MSCI China A 50 Connect Index, Gives Investors Additional Tool to Manage Portfolio Risks
- Hong Kong SFC to Require Fund Managers to Include Climate into Investment & Risk Management Process, Starts from August 2022
- Hong Kong SFC 2021 Q2 Report: Actions on Market Misconduct, $640,000 Fines, 47527 Licensees, ESG Guidelines for Asset Managers
- Hong Kong SFC & ICAC Arrests Former Senior Executive of Listed Company for Suspicious Loan Activities
- Hong Kong & Singapore Increases 2021 GDP Forecast to 6.5% and 7%, Total AUM at $7.97 Trillion
- Hong Kong SFC to Require Investor Identification for Securities Trading in 2022, Reporting of OTC Transactions in 2023
- Hong Kong SFC Fines UBS $1.49 Million for Failure to Disclose Conflict of Interests, Risks and to Qualify Clients
- Hong Kong SFC 2020 Report: Asset and Wealth Management in Hong Kong
- Family Office Association Hong Kong Membership AUM Reaches $50 Billion, Appoints New Board Advisors and Sub-Committees
- Hong Kong SFC and Corruption Agency ICAC Crackdown on Stock Manipulation, Arrest Listco & Search IPO Underwriter
- Hong Kong Launches Family Office Hub, Promote Hong Kong to Family Offices Worldwide
- Hong Kong Exchange Setup China Advisory Group, Ex-Goldman Sachs China Chairman, Hillhouse Group, PAG Group
- Hong Kong Exchange Shortens IPO Process, Settlement Cycle from 5 Days to 2 Days
- Hong Kong Exchange New CEO Nicolas Aguzin Starts 3-Year Term
- Hong Kong Exchange Appoints JP Morgan International Private Bank CEO Nicolas Aguzin as New CEO
- Hong Kong Exchange to Launch New Hang Seng TECH Index Futures & Options
- Hong Kong SFC and Stock Exchange to Tackle IPO Misconduct, Inflated IPO Prices to Meet Listing Requirements
- Hong Kong Private Equity Funds to Have 0% Tax for Carried Interest
- 150 Stocks Suspended Trading on Hong Kong Stock Exchange for Missing Filing Deadline
- Hong Kong SFC: Police Arrested 12 People Suspected of Ramp & Dump Manipulation Schemes
- Hong Kong SFC Issues Restriction Notices to 13 Brokers for 54 Accounts Related to Social Media Scam
- Hong Kong & Singapore Regulators Warn Investors of Increased Trading Risks Triggered by Social Media & Online Forums
- Hong Kong SFC Warns of Investment Scams on Social Media Platforms
- Singapore Exchange Issues Alert on Stocks Trading Scam in Chat Groups
More:
- 2020 Top 10 Stock Exchange in the World
- 150 Stocks Suspended Trading on Hong Kong Stock Exchange for Missing Filing Deadline
- New York Stock Exchange Remains Market Leader for IPO in 2020, Raising $81.8 Billion
- Shanghai Stock Exchange is Now the World’s 3rd Largest Stock Exchange
- Tokyo Stock Exchange Halted Trading on 1st Oct Due to Technical Glitch, Resume on 2nd Oct
- Baidu IPO on Hong Kong Exchange, Price Remains Unchanged on Day 1
Sign Up / Register
Caproasia Users
- Manage $20 million to $3 billion of assets
- Invest $3 million to $300 million
- Advise institutions, billionaires, UHNWs & HNWs
Caproasia Platforms | 11,000 Investors & Advisors
- Caproasia.com
- Caproasia Access
- Caproasia Events
- The Financial Centre | Find Services
- Membership
- Family Office Circle
- Professional Investor Circle
- Investor Relations Network
Monthly Roundtable & Networking
Family Office Programs
The 2024 Investment Day
- March 2024 - Hong Kong
- March 2024 - Singapore
- July 2024 - Hong Kong
- July 2024 - Singapore
- Sept 2024 - Hong Kong
- Sept 2024 - Singapore
- Oct 2024 - Hong Kong
- Nov 2024 - Singapore
- Visit: The Investment Day | Register: Click here
Caproasia Summits
- The Institutional Investor Summit
- The Investment / Alternatives Summit
- The Private Wealth Summit
- The Family Office Summit
- The CEO & Entrepreneur Summit
- The Capital Markets Summit
- The ESG / Sustainable Investment Summit
