Session 4 - Yan Chee Cheng - MPFA - Hong Kong - China.pdf

1、OECD/IOPS Global ForumImplementing Life Cycle Strategies through Default Investment Strategy(DIS)in Mandatory Provident Fund(MPF)7 November 2025CHENG Yan CheeManaging DirectorMandatory Provident Fund Schemes AuthorityHong Kong,China1Importance of Having a Well-designed Investment Strategy in the MPF

2、 System2Financial literacy:Overall rankingRanking in“financial knowledge”*3*The OECD International Network on Financial Education(OECD/INFE)is a network initiated by the OECD that promotes and facilitates international co-operation between policy makers and other stakeholders on financial education

3、issues worldwide.The OECD/INFE survey gauged financial literacy levels among adult populations in a number of OECD and non-OECD jurisdictions.Importance of Having a Well-designed investment Strategy in the MPF System(contd)Many MPF scheme members are equipped with adequate knowledge and competence t

4、o formulate and regularly refine their MPF portfoliosSome may not have adequate/confidence in their financial knowledge,and they may:become disengagedavoid making investment choices still feel obligated to make choices as MPF is their key retirement protection Some with financial knowledge but may:n

5、ot have time to manage MPFbe inclined to consider ready-made solutionsDemand for well-designed investment solution3Major Features of DISxLife-cycle investment approach*Growth assets:Mainly global equities;Lower-risk assets:Mainly global bonds.0%20%40%60%80%5051525354555657585960616263Growth assets*L

6、ower-risk assets*Investment proportionAge49 or below64 or above4Launched in April 2017 Each MPF scheme is required to provide a regulated DIS comprising two mixed assets funds with different risk profile,i.e.Core Accumulation Fund(CAF)and Age 65 Plus Fund(A65F)Automatic de-risking through adjusting