Hong Kong Mandatory Provident Fund Schemes Authority: This year's average net return of 16% on MPF will drive a reduction in MPF Easy fees
On December 15, the Hong Kong Mandatory Provident Fund (MPF) Authority announced that the average net return of the MPF this year is 16%. The MPF has been established for 25 years, during which it recorded net returns for 17 years, with an annualized net return rate of 4%. This year, the average net returns for equity funds, mixed asset funds, and bond funds are 25%, 16.3%, and 5.6%, respectively. The Chairman of the MPF Authority, Liu Mai Jiaxuan, pointed out at the press conference that the fees for the MPF Easy platform will be further reduced in the 2026/27 fiscal year, believing that administrative fees will drop to below 30 basis points, and he is confident that they can be reduced to 20 to 25 basis points within five years of operation, depending on the platform's operational situation in the long term. Liu Mai Jiaxuan stated that currently, 11 trustees have joined the MPF Easy platform, with the remaining trustee being HSBC, which will also join the platform by the end of the month. The MPF Easy platform has processed over 3 million administrative instructions. Liu Mai Jiaxuan further indicated that since the implementation of the MPF system in December 2000, the annualized average net return of the MPF over the past 25 years has been 4%, significantly outperforming the annualized inflation rate of 1.8% during the same period, reflecting that the MPF is one of the effective systems to safeguard the retirement life of "working individuals."
