The Mandatory Provident Fund System recorded a net annualised dollar-weighted return of 6.99% between April 1, 2001, and March 31, 2006.

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

The report also analysed 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 asset funds and equity funds produced higher returns than all other fund types, returning annualised returns of 6.9% and 6.61%.

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

As at March 31, the aggregate net asset value of all MPF schemes was $164.61 billion, representing an increase of $28.17 billion over the net contributions made into the system.