All 25 HKIFA MPF categories posted positive returns in the 12 months ending April 2025, despite recent volatilities around tariffs, according to data from HKIFA. (Appendix Chart 1)
Hong Kong Equity Index-tracking funds topped the performance chart by gaining an average 28.92% during the period, followed by China equity funds with an average 26.06% gain. Investor sentiments towards Hong Kong and Mainland China markets have notably improved since DeepSeek’s breakthrough in artificial intelligence technology in early 2025.
US Equity funds ranked among the top in both 3-year and 10-year performance among the HKIFA MPF categories, with average cumulative returns of 30.88% and 150.26% respectively.
Since the inception of the MPF system in Dec 2000, the average annualised net return of equity funds, mixed assets funds, and bond funds reached 4.5%, 4.0%, and 1.8% respectively as of Mar 2025, according to data from Mandatory Provident Fund Schemes Authority (MPFA). The annualised inflation rate was 1.8% during the same period.
Long-term Diversification is Key
Mr. Philip Tso, co-chair of the HKIFA Pensions Subcommittee, said, “We maintain a cautious outlook on equities for the rest of 2025. Ongoing geopolitical tensions are expected to persist, leading to greater volatilities and a flight to assets perceived as safer, such as gold and short-term US government debt. It is essential for investors to maintain a balanced and diversified portfolio to effectively capitalise on the potential growth while managing risks.”
Ms. Chalotte Chan, co-chair of the HKIFA Pensions Subcommittee, remarked, “MPF investments can span decades, and members should bear in mind the long-term investment horizon. While members are encouraged to take an active and flexible approach in allocating their assets, excessive trading might erode returns due to market timing risks. Members should regularly review the MPF portfolio based on their life stage, financial situation and risk tolerance level.”
The Default Investment Strategy (DIS) and lifestyle funds are examples of MPF funds that are globally diversified across equities and bonds. Over the 3-year period ending April 2025, the DIS Core Accumulation funds returned a cumulative 18.83% on average; Lifestyle funds with an equity exposure of 80% or more recorded a cumulative 13.22% gain during the same period, according to HKIFA data.
Continuous Upgrades for MPF System
The MPF system has undergone continuous enhancements to broaden investment opportunities and ease the MPF management experience, ultimately improving retirement outcomes for scheme members:
- Investible assets: Over the years, the scope of permissible asset classes has been broadened, including the inclusion of listed real estate investment trusts (REITs), gold exchange traded funds and more approved stock exchanges for MPF investment purposes. Legislation has also been amended to facilitate MPF investment in debt securities issued or unconditionally guaranteed by the Central People’s Government, the People’s Bank of China and Mainland policy banks. In May 2025, MPFA clarified the permissibility of listed private equities (PE) funds for investment by MPF funds and outlined the general criteria for approval. The expanded investment scope enables investment managers to build a more diversified MPF portfolio to reduce risks and potentially improve the long-term returns for scheme members.
- eMPF Platform and Full Portability: The eMPF platform was launched in June 2024 and is currently onboarding trustees in phases. It aims to centralise and digitalise all MPF schemes’ administrative processes.
Once all MPF trustees and schemes are onboard the eMPF Platform, and with the implementation of “full portability” of MPF benefits, members can view, consolidate, and manage their entire MPF portfolio seamlessly on this centralised online platform.
Mr. Phillip Saran, vice-chairman of the HKIFA Pensions Subcommittee, added, “The eMPF platform and full portability will empower members with full autonomy over their retirement savings, thereby catalysing market competition and driving fee reductions over the long run. HKIFA is committed to collaborating with the regulators and industry stakeholders to optimise MPF members’ retirement journey through digitisation and product innovation.”
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Appendix
Chart 1: Average Performance HKIFA MPF Fund Categories
(As of Apr 30, 2025, Ranked by 3-year performance)
| HKIFA MPF Category | Average Cumulative Return | ||
| in HKD (%) | |||
| 1 Year | 3-Year | 10-Year | |
| Japanese Equity (3) | 7.21 | 42.13 | 61.27 |
| United States Equity (17) | 8.73 | 30.88 | 150.26 |
| Global Equity (22) | 7.75 | 26.53 | 80.72 |
| European Equity (13) | 6.53 | 26.21 | 51.72 |
| Default Investment Strategy – Core Accumulation Fund (23) | 7.93 | 18.83 | 54.49 |
| Lifestyle – (>80-100% Equity) (17) | 10.19 | 13.22 | 34.96 |
| Hong Kong Equity (Index Tracking) (16) | 28.92 | 13.00 | -0.70 |
| Lifestyle – (>60-80% Equity) (22) | 9.05 | 10.35 | 29.61 |
| Hong Kong Dollar Money Market (2) | 4.32 | 9.12 | 11.60 |
| Hong Kong Dollar Bond (6) | 7.03 | 8.38 | 12.73 |
| MPF Conservative Fund (23) | 3.19 | 8.36 | 12.01 |
| Other Fund (40) | 7.67 | 7.65 | 24.69 |
| China Equity (9) | 26.06 | 6.46 | -21.04 |
| Pacific Basin ex Japan Equity (15) | 5.81 | 6.22 | 28.52 |
| Lifestyle – (>40-60% Equity) (16) | 7.53 | 5.98 | 19.16 |
| Default Investment Strategy – Age 65 Plus (23) | 6.05 | 5.93 | 20.25 |
| Asian Bond (5) | 6.26 | 5.18 | 8.00 |
| Guaranteed Fund (8) | 4.80 | 4.05 | 3.11 |
| Lifestyle – (>20-40% Equity) (17) | 6.55 | 3.63 | 10.04 |
| RMB Bond Fund (5) | 2.87 | 2.47 | 9.34 |
| RMB and HKD Money Market (5) | 1.47 | 0.34 | 7.96 |
| Asia ex Japan Equity (10) | 4.72 | -0.25 | 19.91 |
| Hong Kong Equity (21) | 21.12 | -0.78 | -7.93 |
| Global Bond (19) | 5.67 | -1.05 | -5.56 |
| Greater China Equity (13) | 11.24 | -4.38 | 13.70 |
Source: HKIFA/Lipper, A Refinitiv Company/Willis Towers Watson/FTSE. Figures as of Apr 30, 2025. The performance is calculated on the basis of bid-to-bid or net asset value(NAV)-to-NAV, gross income reinvested at ex-dividend date, in Hong Kong Dollar.