Hong Kong MPFA: Hong Kong Mandatory Provident Fund assets have increased to HK$1.5 trillion. The net investment return rate for this year is approximately 15%.

The Chairman of the Hong Kong MPFA, Ms. Liu Ma Jiaxuan, stated in her blog that the MPF system with Trillions of dollars officially commenced on December 1, 2000. Over the past 25 years, thanks to the joint efforts of employers and employees, the total assets of the Trillions of MPF in Hong Kong have increased to HK$1.5 trillion, with a net investment return rate of about 15% since the beginning of 2025. Before the introduction of the Trillions of MPF, only about one-third of the working population in Hong Kong had retirement protection. With the implementation of the Trillions of MPF system, the retirement coverage of the working population in Hong Kong now stands close to 100%. Since the implementation of the Trillions of MPF until the end of October of this year, various types of funds have recorded positive returns on an annualized basis, with equity funds and mixed asset funds, which account for eighty percent of the total assets of the Trillions of MPF, respectively achieving an average accumulated net return of 240% and 200%, or an annualized net return of 5% and 4.5%, outperforming the 1.8% annualized inflation rate during the same period. In addition to mandatory contributions, more and more children of working parents and employers are making voluntary contributions. In the first three quarters of this year, 25% of the total contributions of the Trillions of MPF were voluntary, nearly doubling the proportion from the same period ten years ago, highlighting the growing trust that more people have in the ability of the Trillions of MPF to increase their retirement savings. The Default Investment Strategy (DIS) introduced in 2017 is designed to be robust, based on the principle of diversified investment and with a fee cap, making it cost-effective and helping to increase retirement savings. Since its introduction, the core cumulative funds under DIS have achieved an average annualized net return of 6.9%, outperforming the 1.8% annualized inflation rate during the same period, which is encouraging. With the Trillions of MPF plan joining the "FundEasy" platform, the fee cap of DIS has been further reduced, indirectly increasing the net investment return. The introduction of the "FundEasy" platform in operation since June last year is the most significant reform in the implementation of the Trillions of MPF. It streamlines, automates, and digitizes the administrative work of the Trillions of MPF, making it more convenient for working children to manage their MPF and achieve cross-plan operations in one place. According to the research of the Organization for Economic Cooperation and Development, "FundEasy" is the only private pension electronic platform that provides comprehensive services, covering account management and transactions, making it "world-class" in terms of functionality. Over the past year, with more Trillions of MPF plans joining FundEasy, the cost reduction effect has become increasingly significant. After a plan joins the platform, the administrative fees cannot be higher than the current 0.37% fee level of FundEasy, benefiting over ten million plan members' accounts, accounting for over ninety percent of all plan members' accounts. FundEasy not only directly reduces the administrative fees of the Trillions of MPF but also serves as a catalyst for market competition. With more people using the electronic means of FundEasy to manage the Trillions of MPF, Ms. Liu Ma Jiaxuan is confident that administrative fees can be further reduced in the future, benefiting all plan members. Furthermore, with the abolition of the MPF hedging arrangement taking effect on May 1st this year, the retirement savings of working children in Hong Kong are expected to grow. Looking ahead, the Hong Kong MPFA will continue to implement various measures, including the introduction of "Total Freedom in Trillions of MPF," promoting voluntary contributions, raising the minimum and maximum contribution income levels of Trillions of MPF, and optimizing DIS.