COVID vaccines set to give MPF members their best monthly return in 9 years

24 November 2020

MPF’s 4.46m members can expect average earnings of $14,500 in November

  • Average monthly MPF fund return expected to be 6.03% in November, the best 1 month return since November 2011
  • Approximately $14,500 expected to be added to MPF’s 4.46m member accounts in November and MPF account balances are forecasted to be at $245,000. An all time record.
  • MPF system is expected to generate $65bn in earnings in November, the best 1 month’s earnings since January 2019 
  • The forecasted $65bn earnings increase is estimated to lift MPF to a record $1.09tr on MPF’s 20th anniversary

MPF Ratings Ltd, an independent Mandatory Provident Fund (MPF) research specialist, today announced that it expects MPF’s 4.46m members to receive average earnings of $14,500 in November as the US election result and positive COVID vaccine news boosts Hong Kong’s MPF system by $65bn to bring the system’s total size to an all time record $1.09tr on its 20th anniversary.  MPF Ratings has also forecasted that the MPF industry will generate an average monthly fund return of approximately 6.03% (see Table 1) in November, the best 1 month return since November 2011.

Table 1: Forecasted November and Year-to-Date Average Investment Returns By MPF Asset Class

Source: MPF Ratings

According to MPF Ratings, once contributions are taken into account, average member account balances will also reach a record, exceeding $245,000, which according to MPF Ratings’ Chairman Francis Chung (叢川普), is not only a record but also a major springboard for meeting Hong Kong’s future retirement needs. “An MPF savings pool of $1.09tr, equivalent to an average member account balance of $245,000, goes a long way to improving the lives of Hong Kong’s ageing population,” stated Mr Chung before adding, “After such an extraordinary year it is also very pleasing to see MPF members will receive a forecasted $14,500 of extra earnings to coincide with the MPF system reaching its highest level ever and on the eve of its 20th anniversary.  That’s a pretty good anniversary present for both MPF members and for the MPF industry in general.”

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