Each MPF scheme member gained about HK$3,930 in August, with Japan equity funds performing the best in the period, according to pension fund consulting firm MPF Ratings.
Total assets of the Mandatory Provident Fund System have been estimated to hit a new high for the fourth consecutive month – nearly HK$1.47 trillion – as of the end of August, with the average account balance of each scheme member reaching about HK$306,749.
MPF returns for the first 20 days of August are also expected to jump to 11.56 percent, which would mark the best performance for the first eight months of the year since 2017.
Overall MPF rose by 1.3 percent during the 20-day period, while projected investment income is expected to reach about HK$18.8 billion, which would bring total year-to-date investment income to HK$151 billion.
Shares in Hong Kong and mainland China have led the gains to date, with a growth of 25.94 percent, while Japan equity funds rose 5.23 percent for the first 20 days this month.
Regarding the reported performance, the Mandatory Provident Fund Schemes Authority responded that no one can predict future market trends, and scheme members should view MPF from a long-term investment perspective.
As MPF account balances hit a new high, MPF providers are expected to launch new investment funds to boost competitiveness, said Francis Chung, chairman of MPF Ratings.
Chung said index-tracking collective investment schemes – known for their low cost, high liquidity, and diversification – are set to be key in the development of these new offerings.
HELEN ZHONG
