MPFA Blog – Good stories about MPF Good stories about Hong Kong

As MPFA celebrates 23 years of operations in HK, its Chairman – Mrs Ayesha Macpherson Lau – looks back on the evolution of the system. She defines MPF system as one „designed as an employment-based, defined contribution system, which is financially sustainable and does not impose a burden on public finance“. Currently, 41 jurisdictions worldwide share a similar system policy. MPFA has also been engaged in global organisations, such as OECD or IOPS meetings.
The most outstanding product is the DIS, launched in April 2017, aimed for persons who have little to no resources to learn about investing, or to manage their investments. This product’s main characteristics include „fee cap, globally diversified investment and automatic de-risking“. In addition, the newly launched eMPF platform is expected to create interest worldwide as one of the first private pension systems to accommodate a centralised pension scheme administration platform.
As of September 2023, DIS statistics are as follows:
– makes up over 30% of the total MPF accounts (3.05 million)
– HKD 94.7 billion of MPF assets were invested in DIS
– the Core Accumulation Fund’s (77% of total DIS) average net return was 11.1%
– Age 65 Plus Fund’s (23% of total DIS) net return was 2.4%.
MPFA’s work is recognised around the world and it will continue its global engagement within private pensions topics.
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A full story is available on the blog, although only in Cantonese.