MPF delivers highest recorded earnings

3rd September 2025

As system breaks all-time records attention turns to new funds

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

Key points are as follows:

MPF Ratings’ MPFR All Fund Performance Index was up 1.56% for August and 11.85% year-to-date. The system has now recorded 6 positive return months out of 8 this year and the best year-to-date performance since 2017. (See Table 1)
In absolute dollar terms, August’s investment gain was equivalent to $22.6bn (or $4,717 per MPF’s 4.79m members) and takes total 2025 investment gains to $155bn; the highest aggregate 8-month gain since on record.
Japanese equities led August MPF returns, however, MPF’s strong annual result is led by Hong Kong and China equities which is currently up 26.56%, its best 8-month result since 2017. (Also see table 1)
Total MPF assets inclusive of contributions end the month at a 4^th consecutive all-time record high of around $1.47tr (up $25.6bn from July, and up $183.2bn for year-to-date), and equivalent to an all-time record average MPF account balance of $307,500 (up $5,300 from July, and up $38,200 since the beginning of the year).
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 published his company’s August MPF Performance Survey by revealing that MPF’s total assets had reach $1.47tr to exceed its all-time record size for a 4^th consecutive month while generating $155bn in 2025 aggregate earnings, MPF’s highest 8-month calendar year earnings on record. After factoring both contributions and investment gains, the average MPF account balance for MPF’s 4.79m members ends August at approximately $307,500 , also an all-time record.

According to Mr. Chung, MPF’s unprecedented 2025 year-to-date earnings gain coupled with the MPFA approving growing numbers of Index Tracking Collective Investment Schemes (ITCIS) should see MPF schemes launching new fund offerings, ensuring MPF’s positive earnings momentum continues.

Quotes:

Record $155bn in investment earnings

“MPF’s earnings have so far topped $155bn in 2025. This record 8-month calendar year gain has propelled MPF to a historic $1.47tr size, equivalent of $307,500 for each of MPF’s 4.79m members. This record could encourage MPF providers to utilize the 242 MPFA approved Index Tracking Collective Investment Schemes (ITCIS) and create new cost-effective investment and retirement products for their members.”

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 of scheme members as Hong Kong’s population ages and financial markets become more volatile. MPF Ratings expects schemes will respond positively. Index Tracking Collective Investment Schemes (ITCIS), with their low costs, liquidity and diversification characteristics, will play a critical role in this evolution”.

Members record run is an opportunity to consolidate

“Record account balances, and record earnings 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-free 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 of 31^st August 2025)