MPF annual average return rate stands at 5.4%

The overall return of MPF has been higher than its annualised inflation rate of 0.8% since 2000.

The annual average return rate of the Mandatory Provident Fund System from December, 2000, to March this year is, net of fees and charges, 5.4% calculated by way of the dollar-weighted return.

Secretary for Financial Services & the Treasury Prof KC Chan told legislators on Wednesday that in the past five years, net of fees and charges, the annualised return of Equity Funds was 7.4% and that of bond funds and mixed-asset funds was 4.5%.

Since the implementation of the MPF System in 2000, the overall return has been higher than the annualised inflation rate of 0.8% and the average return of any single fund type has not been lower than the inflation rate.

He said the MPF System has played a considerable role in strengthening retirement protection for the public and the existing arrangement is consistent with the mandatory, privately managed retirement contribution scheme advocated by the World Bank.