Hong Kong pension fund performance

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In Hong Kong, the Mandatory Provident Fund (MPF) system was implemented on December 1, 2000. Under this system, most employees and their employers are required by law to make monthly contributions to a MPF, which are based on the level of salary and the period of employment. These MPFs are managed by approved private organizations according to criteria set out by the government.

There are three types of MPF schemes:

  • Master Trust Schemes: the most common type of MPF scheme, open to the employees of participating employers, self-employed persons and persons with accrued benefits to be transferred from other schemes.
  • Employer-sponsored Schemes: membership in this type of scheme is limited to the employees of a single employer and its associated companies.
  • Industry Schemes:schemes specially established for employees of the catering and construction industries, particularly casual employees (i.e. workers employed on a day-to-day basis or for a fixed period of less than 60 days). [1]

FTSE provides a series of MPF tracking indexes. [2]

According to the MPF Schemes Authority fee comparative platform, the average FER (fund expense ratio) of the available funds in the MPF is 1.70%. [3]

References

  1. Types of MPF Schemes, Mandatory Provident Fund Schemes Authority. Viewed 8 Jan. 2014.
  2. FTSE MPF Index Series. Viewed 8 Jan, 2014.
  3. Fee Comparative Platform, Mandatory Provident Fund Schemes Authority. Viewed 8 Jan. 2014.