Hong Kong's Mandatory Provident Fund (MPF) System recorded a net annualized dollar-weighted return of 6.99 percent between April 1, 2001, and March 31, 2006, according to a government report issued here Friday.

Mandatory Provident Fund Schemes Authority Executive Director Darren McShane said the findings suggest scheme members take a longer-term view when looking at their MPF investments.

The report also analyzed the investment performance of six MPF funds: equity funds, mixed assets funds, bond funds, guaranteed funds, money market funds and capital preservation funds.

All fund types showed positive returns, net of fees and charges, over the review period. Mixed assets funds and equity funds produced higher returns than all other fund types, returning annualized returns of 6.9 percent and 6.61 percent.

Capital preservation funds and money market funds generated annualized returns of 0.86 percent and 0.60 percent while bond funds and guaranteed funds produced annualized returns of 3.06 percent and 1.26 percent.

As of March 31, the aggregate net asset value of all MPF schemes was 164.61 billion HK dollars (21.10 billion U.S. dollars), representing an increase of 28.17 billion HK dollars ( 3.61 billion U.S. dollars) over the net contributions made into the system.

Source: Xinhua