Hong Kong Monetary Authority: Mandatory Provident Fund assets have increased to HKD 1.5 trillion, with a net investment return rate of approximately 15% this year.

The chairman of the Hong Kong Monetary Authority, Laura Mok, stated in a blog post that December 1 marks the 25th anniversary of the implementation of the Trillions of MPF system. The total assets of Trillions of MPF have increased to 1.5 trillion Hong Kong dollars, with a net investment return rate of approximately 15% since the beginning of 2025. Since the implementation of Trillions of MPF until the end of October this year, all types of funds have recorded positive returns, with equity funds and mixed asset funds, which account for 80% of the total assets of Trillions of MPF, averaging cumulative net returns of 2.4 times and 2 times respectively, or annualized net returns of 5% and 4.5%, outperforming the 1.8% annualized inflation rate. In addition to mandatory contributions, an increasing number of employees and employers are also making voluntary contributions. In the first three quarters of this year, 25% of the total contributions to Trillions of MPF were voluntary, almost double the proportion compared to the same period ten years ago. Since the introduction of Default Investment Strategy (DIS) in 2017, the core accumulation funds under DIS have recorded an average annualized net return of 6.9%, outperforming the 1.8% annualized inflation rate. With the integration of the Trillions of MPF plan into the "MPF Platform," the fee cap for DIS has been further reduced, effectively increasing the net investment return. The "MPF Platform," which began operation in June last year, is the most significant reform since the implementation of Trillions of MPF. With more Trillions of MPF plans joining the platform, the cost reduction effect is becoming increasingly significant. After joining the platform, administrative fees cannot exceed the current 0.37% fee level of the "MPF Platform," benefiting over 10 million plan member accounts, accounting for over 90% of all plan member accounts. Laura Mok expressed confidence that administrative fees will continue to decrease in the future, benefiting all plan members.