MPF: Hong Kong retirement fund delivers 2.47% gain in first quarter with super rallies in US, Japan equity markets
- Funds focused on Japanese and US equities performed best among all 379 funds in the retirement scheme, at 12.30 and 9.82 per cent, respectively
- Hong Kong and China stock funds were laggards, as state-driven intervention helped end losing streak
The 379 investment funds under the scheme earned a combined HK$28.5 billion (US$3.6 billion) of income in the January-to-March period, according to data compiled by MPF Ratings, an independent research firm. That is equivalent to HK$6,000 for each of its members.
The MPF generated an average return of 2.47 per cent, compared with 4.1 per cent in the same quarter last year. It scored 3.5 per cent in 2023, halting two years of pandemic-driven losses.
The annualised net return of the MPF since its inception in December 2000 is 2.6 per cent, according to the provisional data that regulator Mandatory Provident Fund Schemes Authority (MPFA) released on Monday. This beats the 1.9 per cent inflation rate during the same period.
“MPF is a long-term investment spanning over 40 years,” said MPFA managing director Cheng Yan-chee. “Scheme members should not adopt a short-term investment approach in managing MPF and try to time the market.”
