Hong Kong’s nest egg fund gained 13% in 2024, at the best pace in 4 years for pensioners
The increase of HK$102.4 billion (US$13 billion) works out to HK$21,500 per member, says MPF Ratings
The 4.75 million members of Hong Kong’s Mandatory Provident Fund (MPF) enjoyed a 13 per cent increase in their pension assets in 2024 thanks to the best investment returns in four years.
The MPF earned a combined HK$102.4 billion (US$13 billion) last year, equivalent to HK$21,500 for each member, according to data from MPF Ratings, an independent research firm.
The 379 MPF investment funds generated an average return of 8.8 per cent for the year, compared with a 3.5 per cent gain in 2023 and a loss of 15.7 per cent in 2022. This is the best annual return since an 11.4 per cent gain in 2020.
The strong results boosted the MPF’s total assets to HK$1.29 trillion. The sum, which takes into account investment gains and new contributions from members, works out to HK$271,500 per member. This is 13 per cent higher than a year earlier, indicating an average portfolio increase of HK$31,600 per member.
“2024 has been a productive year for investors,” said Mark Konyn, chief investment officer with AIA, one of the major MPF providers. “Reducing inflation and positive overall returns have supported the growth of retirement savings.”
