[Breaking News] MPF exceeds $1 trillion in size for the first time ever

12 August 2020

DIS Funds attract 1/3rd of latest MPF flows

MPF Ratings Ltd, an independent provider of MPF industry research, today announced MPF assets had surpassed $1 trillion for the first time ever.

According to MPF Ratings’ latest monthly industry share of MPF assets and fund flow data, MPF assets are now total $1.008 trillion, or an average account balance per MPF member of HK$231,000.

The MPF industry has reached the $1 trillion dollar milestone five months shy of its 20th anniversary, and according to Francis Chung (叢川普), MPF Ratings’ Chairman, after extremely volatile swings in previous months, the July fund flow data also showed more sensible fund allocations with DIS Funds attracting about HK$1.4bn (See Table 1) in net inflows.

“HK$1 trillion is a significant milestone.  Less than 20 years ago employers made their first MPF contributions on behalf of relevant Hong Kong workers.  Today, account balances are sizeable enough that members must take their MPF money seriously.  After a year of volatile markets and an uncertain economic landscape to see strong inflows into the long term focused, well diversified and low cost Default Investment Strategy (DIS) Fund options is, in our view, as significant as passing the $1 trillion in size. It reflects good decision making.”

When asked what he thought was most significant about breaking the $1 trillion milestone, Mr Chung offered the following, “The MPF industry is often criticized, and while sometimes it may be valid, often it is unfair. Whether one is a supporter or critic, today’s landmark is worth celebrating. Congratulations to the MPF industry and may the growth continue because as the MPF industry grows so too does the wealth of MPF members.”

Table 1: Industry Share of MPF Assets as of 31st July 2020 and MPF Fund Flows for July 2020 (by Fund Types)

Source: MPF Ratings

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