$100bn earnings beat propels MPF to best annual result since 2020

6th January 2025

Hong Kong and China equities ends 3-year losing streak

MPF Ratings’ December MPF Performance Survey has now been uploaded.

Key points are as follows:

December monthly loss of -0.81% (based on MPF Ratings’ MPFR All Fund Performance Index) is a small blip in a solid performance year for the MPF system. (See Table 1)
According to MPF Ratings, the MPF system recorded an 8.82% 2024 annual return, its best calendar year performance since 2020. (Also see Table 1)
In absolute dollar terms, the system has delivered annual earnings of $102.4bn (or $21,500 per MPF’s 4.75m members).
After factoring in contributions, MPF Ratings expects MPF’s total asset size to be $1.29tr, the 4th highest level since MPF’s launch, and equivalent to $271,500 per MPF’s 4.75m members.
Investment highlights for 2024 include Hong Kong and China equities ending its 3-year losing streak and US equities recording its 2nd consecutive annual gain exceeding 20%.

Francis Chung (叢川普), Chairman of MPF Ratings Ltd, Hong Kong’s independent provider of MPF research, views and education today noted that it’s no coincidence that the MPF system produced its best annual result since 2020 as Hong Kong and China equities ended its 3-year losing streak. According to Mr Chung, the MPF system recorded a 2024 investment return of 8.82% to add an extra $102.4bn (an average of $21,500 per MPF’s 4.75m members) to MPF member accounts. After factoring contributions, MPF Ratings expects MPF’s total asset size to be $1.29tr, MPF’s 4th highest level, and equivalent to $271,500 per MPF’s 4.75m members.

Quotes:

$102.4bn in earnings delivered to MPF members as the system records best result since 2020

“MPF’s average account balance for its 4.75m members grew $31,600 to approximately $271,500 on the back of an annual investment gain of $102.4bn. Following its best result since 2020, the MPF system is now $1.29tr in size.”

The importance of Hong Kong and China equities

“With over 17% market share, Hong Kong and China equities is MPF’s largest and most important asset class. When the local equity markets do well MPF also does well.”

2025 eyes turn to Trump’s inauguration

“While local equities is MPF’s most important asset class, immediate focus now turns to President-Elect, Donald Trump’s inauguration. 2025 threatens to be about protectionism and deregulation and while this rhetoric has proved popular for US equities, a US bias in MPF portfolios could come with consequences. Diversification minimizes uncertainty and the MPFA’s mandated DIS funds continue to be MPF Ratings’ preferred investment option for MPF’s 4.75m members.”

Table 1: MPF Ratings’ MPFR Index returns by asset class (as at 31st December 2024)