MPFA publishes Annual Report 2022-23

The Mandatory Provident Fund Schemes Authority (MPFA) has issued a press release announcing the publication of its annual report for 2022-23. Therein, the Authority outlines its regulatory efforts, supervisory focus, and enforcement actions during the past year. The report also presents statistical data on diverse issues, such as the number of licenses held by Mandatory Provident Fund Scheme (MPF) trustees and intermediaries at financial year end 2022-2023, the number of conduct breaches by relevant parties, or the total assets under management by MPF schemes. A special section is devoted to Corporate Social Responsibility which outlines the efforts of the MPFA towards sustainability in the areas of fund management and fund distribution. Finally, the report describes in detail the MPFA’s progress as regards the migration towards the eMPF Platform.
#### Some of the key data presented in the annual report are (as quoted):
– As at the end of March 2023, total MPF assets amounted to $1.11 trillion, $851 billion (77%) of which was net contributions, while $258 billion was net investment returns.
– As at the end of March 2023, 2.9 million MPF accounts (26.8% of the total 10.9 million MPF accounts) had invested according to the default investment strategy (DIS) or in the constituent funds of the DIS, with total assets of $89.44 billion (8.1% of the total net asset value of the MPF System).
– As at the end of March 2023, there were 68 000 tax-deductible voluntary contribution (TVC) accounts with a total contribution amount of $8.59 billion.
– The MPFA inspected 929 employment establishments, issued 346 700 payment notices in respect of MPF default contributions, and successfully recovered a total of $145 million in default contributions for 96 600 employees.
– As at 31 March 2023, the average fund expense ratio (FER) was 1.33%, a reduction of 37% from 2.1% in 2007, when the FER was first introduced.
– As at the end of March 2023, the MPFA and its wholly-owned subsidiary eMPF Platform Company Limited had a total of 567 employees, and a turnover rate of 18.4%.