Hong Kong Pension Fund: Average net return on Mandatory Provident Fund this year is 16%, which will lead to a reduction in MPF fees.

On December 15th, the MPF Authority in Hong Kong announced that the average net return of the Trillions of MPF this year was 16%. Over the 25 years since the establishment of the Trillions of MPF, net returns were recorded in 17 years with an annualized net return rate of 4%. This year, the average net returns of stock funds, mixed asset funds, and bond funds were 25%, 16.3%, and 5.6% respectively. Chairman of the MPF Authority in Hong Kong, Mr. Liu Mai Jiaxuan, pointed out at the press conference that MPF fees would be further reduced in the 2026/27 financial year, with administrative fees expected to be reduced to below 30 basis points. He expressed confidence that within 5 years of operation, fees could be reduced to 20 to 25 basis points, depending on the operational situation of the platform. Mr. Liu further stated that currently, there are 11 trustees who have joined the MPF platform, with HSBC being the remaining trustee who will also join the platform by the end of the month. The MPF platform has already processed over 3 million administrative instructions. Mr. Liu continued to explain that since the implementation of the Trillions of MPF system in December 2000, the annualized average net return of the Trillions of MPF over the past 25 years has been 4%, significantly outperforming the inflation rate of 1.8% during the same period. This reflects that the Trillions of MPF is an effective system to safeguard the retirement life of "working class" individuals.