Does size really matter?

18 January 2023

Latest annual rating of MPF schemes yields surprising results

Key points are as follows:

  • MPF Ratings’ announces its 11th annual Gold, Silver and Bronze MPF scheme ratings (See Table 1)
  • 2nd worst MPF performance year throws up significant surprises
  • MPFA’s “Initiative to Enhance Transparency of Governance Reporting of MPF Schemes” highlights the importance of independent “value-for-money” MPF scheme ratings
  • 2023 ratings suggest size matters during uncertain times as MPF recorded an estimated annual loss of -15.66% in 2022
  • MPF market size and average member account balance for 4.57m members was $1.051tr and $229,800 respectively (as at 31st December 2022), down -11.06% and -10.81% over the year 
  • Ratings are a prelude to the 2nd of March announcement of MPF’s “People’s Choice”, “Employers’ Choice” and the“2023 MPF Scheme of the Year”

MPF Ratings, Hong Kong’s leading provider of independent MPF research, views and opinions, latest annual MPF scheme ratings shows a widening quality gap between large and small MPF schemes.

MPF Ratings’ Chairman, Francis Chung (叢川普), said the 2023 MPF scheme ratings were undertaken against a backdrop of enhanced scrutiny aligned with the MPFA’s “Initiative to Enhance Transparency of Governance Reporting of MPF Schemes”, which now requires MPF schemes to report and publish their governance, sustainable investment and overall value to members – reinforcing the importance of independent “value-for-money” focused MPF scheme ratings.


Why big schemes were the biggest winners in this year’s ratings?

“In past years there was little relationship between market share and ratings, but 2022 was an uncertain year that saw a ‘flight to size’. It appears members equate size with security and bigger schemes took advantage of this by investing in initiatives to improve their overall value-for-money to members.”

Why MPF Ratings’ Gold, Silver and Bronze rating of MPF schemes is so significance and unique

“MPF Ratings’ rates MPF schemes Gold, Silver and Bronze. Not only are these ratings independent, but they are also publicly available, offering MPF’s 4.57m members an independent assessment of schemes they are members of.

MPF Ratings’ view on MPFA’s “Initiative to Enhance Transparency of Governance Reporting”

“It’s best practice, demonstrating accountability and industry leadership while delivering transparency and accountability to the benefit of MPF’s 4.57m members.”

For a full list of MPF Ratings’ Gold, Silver and Bronze rated MPF schemes please click below:

Table 1: MPF Ratings’ MPF scheme ratings by market share as at 31 Dec 2022

Source: MPF Ratings

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