Information Centre

MPF is an important component of basic retirement protection for employees, and it is understandable to be concerned about MPF investment performance. However, with the sea of MPF information out there, scheme members must carefully distinguish and understand the various types of data and information related to their investments. 

Taking the overall MPF investment return as an example. This is an average figure that reflects the collective investment decisions made by over four million scheme members. However, this average figure is a generalized statistical value, which may have no direct correlation with the investment returns of individual scheme members. As each scheme member has different investment goals and MPF portfolios, leading to a wide range of potential returns. Focusing only on the “overall average figure” can make it challenging for scheme members to make a comprehensive plan for their investment portfolios.  

You may ask: “Which data or information is truly useful for managing my MPF?” The answer is to refer the most personalized and relevant information available. In short, MPF information can be categorized into three layers, forming an “information pyramid”.  

At the bottom layer of the information pyramid is the abovementioned “overall MPF investment return” and the average returns of different fund types. This generalized information has little relevance to the performance of an individual investment portfolio.

The second layer of information comprises details on funds, including their respective performance, which can be found in the Fund Fact Sheets and information provided by individual MPF schemes and funds, and on the MPFA’s MPF Fund Platform. This layer of information can help scheme members better understand the investment objectives, risk levels, fund expense ratios, and historical performance of individual funds. These are very useful references for helping scheme members select funds and build up a personalized investment portfolio. 

Sitting at the top of the “information pyramid” is the most direct and valuable reference for scheme members when reviewing their MPF portfolios – personalized data, such as information listed in the Annual Benefit Statement (ABS). It records the latest status of an individual scheme member’s investment portfolio and provides a summary of the contributions and investments over the previous year, including inflows and outflows to and from the account, the account balance and investment return. It is like a unique "annual health check-up report" for the MPF investment for each scheme member. 

It is essential to remember that the MPF is a long-term investment spanning over 40 years, and no one can predict future market trends. Scheme members should focus on long-term performance and diversify their investments to mitigate investment risks associated with market volatility.