Hong Kong Mandatory Provident Fund Schemes Authority: In the first quarter, the number of MPF accounts withdrawn on the grounds of "permanent departure from Hong Kong" decreased by 9.7% quarterly, involving HKD 1.507 billion
The Hong Kong Mandatory Provident Fund Schemes Authority announced that as of the end of March 2024, the total assets of the Mandatory Provident Fund reached HKD 1.18 trillion, an increase of 129% compared to 10 years ago. In the first quarter of this year, there were 6,500 claims for withdrawing Mandatory Provident Fund contributions due to permanent departure from Hong Kong, involving an amount of HKD 1.507 billion. The total contributions received by the Mandatory Provident Fund amounted to HKD 22.89 billion, an increase of 7% compared to the previous quarter
According to the latest statistics released by the Hong Kong Mandatory Provident Fund Schemes Authority, in the first quarter of this year, there were 6,500 claims for early withdrawal of Mandatory Provident Fund citing permanent departure from Hong Kong, a decrease of 9.7% quarterly and 3% annually. The total amount involved was HKD 15.07 billion, down by 10.7% quarterly and 4.2% annually.
The Mandatory Provident Fund total asset value as of the end of March 2024 was HKD 11.8 trillion, an increase of 129% compared to ten years ago. Since the implementation of the Mandatory Provident Fund system in 2000, the average annualized net return of equity funds and mixed asset funds, which together account for nearly 80% of the total Mandatory Provident Fund assets, has been 3.8%, higher than the corresponding annualized inflation rate of 1.8% during the same period. The cumulative net returns of these two types of funds are 138% and 136% respectively.
As of the end of March 2024, there were 3.31 million Mandatory Provident Fund accounts invested in constituent funds under the Default Investment Strategy (DIS) commonly known as "Lazy Funds," accounting for about 30% of all 11.1 million Mandatory Provident Fund accounts. The total investment assets related to these funds amounted to HKD 117.76 billion, representing 10% of the total Mandatory Provident Fund assets. As of the end of March this year, the core accumulation fund and the fund for those aged 65 and above recorded average annualized net returns of 6.0% and 2.0% respectively. The cumulative net returns of these two types of funds are 50.2% and 14.6% respectively.
In the first quarter of this year, total contributions to the Mandatory Provident Fund amounted to HKD 22.89 billion, an increase of 7% compared to the previous quarter, with HKD 17.11 billion or 75% being mandatory contributions and HKD 5.78 billion or 25% being voluntary contributions. The total amount of benefits paid out was HKD 9.79 billion, a decrease of 2% compared to the previous quarter
