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About half of Hong Kong’s MPF schemes assets has been invested in balanced funds, according to statistical data released by the Mandatory Provident Fund Schemes Authority (MPFA).

The statistical report contains data on the relevant population size of the MPF System, enrolment, MPF Schemes as well as MPF-exempted ORSO Schemes. The report, to be updated quarterly, has been posted on the MPFA website at https://www.mpfa.org.hk/en. A simple text version is also available to allow the visually impaired easy access to MPF-related information.

As at 28 February 2001, the Aggregate Net Asset Values of all schemes amounted to $11.6 billion, inclusive of assets that have been transferred from ORSO schemes to MPF schemes.

Amongst this $11.6 billion, 46 per cent has been invested in balanced funds, 21 per cent in guaranteed funds, 15 per cent in equity funds, 15 per cent in capital preservation funds, two per cent in money market funds and one per cent in bond funds.

An MPFA spokesman said, “Many scheme members have chosen balanced funds as the investment vehicle for their retirement plans. This is similar to the choice of many local investors of unit trusts and mutual funds. We take it as a sign that most members realize that MPF is a long-term retirement plan.”

He added that balanced funds, which invest in both equity and bonds, were designed for employees and self-employed persons who want relatively high return without having to shoulder great risks.

“Local MPF investors as a whole tend to be a bit more conservative, broadly similar to their overseas counterparts in the initial years. With the accumulation of knowledge and experience, we may see a change in the investment pattern,” he remarked.          

In the coming year, investment education will be a major thrust of the MPFA’s publicity and public education effort. In collaboration with the Securities and Futures Commission, the Hong Kong Investment Funds Association, professional organisations and district bodies, the MPFA seeks to enhance the public’s knowledge in unit trusts/mutual funds and MPF investments.

Statistics showed that the compliance rates of employers, employees and self-employed persons grew steadily over the past few months. At the time of MPF implementation last December, the compliance rate for employers was 63 per cent, employees 75 per cent and self-employed persons 82 per cent. The compliance rates reached 80 per cent, 90 per cent and 90 per cent respectively in February 2001.

Together with those who have joined other retirement schemes, 82 per cent of Hong Kong’s working population is now covered by retirement benefits.

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12 April 2001