25th August 2025
Attention now turns to new funds as system continues to break all-time records
Key points are as follows:
- MPF is expected to add another month of gains. A 1.30% estimated gain puts MPF on track for a year-to-date gain of approximately 11.56% (as measured by MPF Ratings’ MPFR All Fund Performance Index), MPF’s best 8 months return since 2017. (See table 1)
- In absolute dollar terms, August could see investment gains of approximately $18.8bn (or $3,930 per MPF’s 4.79m members), which if achieved would take 2025 total investment gains to $151bn.
- MPF’s strong annual result is being led by Hong Kong and China equities which is up approximately 25.94%, while August’s positive result is being driven by Japanese equities which is up approximately 5.23% for the month. (Also see table 1)
- Total MPF assets inclusive of contributions are expected to end August at a 4th consecutive monthly total record high of approximately $1.471tr (up $21.82bn from July) and equivalent to an average MPF account balance of $306,749 per MPF’s 4.79m members (up approximately $4,552 from July and $37,417 since the beginning of 2025).
- Ongoing strong MPF performance could lead to higher demand for low-cost ITCISs and other funds as members look to further enhance long-term returns and reduce risk.
Francis Chung (叢川普), Chairman of MPF Ratings Ltd, Hong Kong’s independent provider of MPF research, views and education today announced that he expects MPF total assets to reach $1.471tr, and by doing so, exceed its all-time record size for a 4th consecutive month. Factoring both contributions and investment gains, the average MPF account balances for MPF’s 4.79m members should end August at approximately $306,749 which would also be another all-time record.
According to Mr. Chung, 2025’s MPF results are the system’s best in eight years, and with records being repeatedly broken, he believes that MPF members may begin to demand new fund offerings to ensure this positive momentum continues.
Quotes:
Record $306,749 average MPF account balance has caught the attention of MPF members
“MPF is expected to reach $1.471tr by the end of August, the equivalent of $306,749 for each of MPFs 4.79m members. We believe this record result could encourage members to look to their MPF providers for new cost-effective investment and retirement products.”
New MPF products – ITCIS could play a key part
“The MPFA has highlighted the imperative that MPF schemes’ range of Constituent Funds be sufficiently diverse to address the needs scheme members as Hong Kong’s population ages and financial markets become more volatile. With record MPF account balances, it’s our expectation that schemes will respond with new investment funds to differentiate themselves from competitors, and that Index Tracking Collective Investment Schemes (ITCIS), with their low costs, liquidity and diversification characteristics, will play a critical role in this product development”.
Members record run is an opportunity to consolidate
“Record account balances, and MPF’s best performance in 8 years could tempt members to chase returns, but rather than be tempted, MPF Ratings’ ongoing message to MPF members is to remain well diversified, invested for the long term, and to remember that every MPF scheme offers Default Investment Strategy (DIS) funds. They’re low-fee ready-made diversified fund options. For the vast number of MPF members DIS remains an excellent option to consider.”
Table 1: MPF Ratings’ MPFR Index returns by asset class (as at 20th August 2025)
Source: MPF Ratings
