MPF Analysis

Age 65 Plus Fund

The Age 65 Plus Fund (ISIN: HK0000844420) is a constituent fund under the Fidelity Retirement Master Trust, a Mandatory Provident Fund (MPF) scheme in Hong Kong. It is one of the two constituent funds that form the Default Investment Strategy (DIS).

Investment Objective

The fund aims to provide stable growth for retirement savings by investing in a globally diversified portfolio. It follows a “low risk” investment strategy compared to the Core Accumulation Fund.

As part of the DIS, the fund maintains a target asset allocation of approximately:

  • 20% Higher-risk Assets: Global equities.
  • 80% Lower-risk Assets: Global bonds and money market instruments.

The fund is primarily a feeder fund, investing in the Fidelity Global Investment Fund (FGIF) - Age 65 Plus Fund (MPF).

Risk Profile

  • Risk Class: 2 (Low risk)
  • Risk Indicator: 5.14% (estimated annualized standard deviation based on recent performance)

This fund is specifically designed for members who are approaching or have reached the age of 65, prioritizing capital preservation and stability over aggressive capital growth.

Fidelity Age 65 Plus Fund NAV history

Chart generated by scripts/fetch_age_65_plus_fund.py. Data is calibrated based on official factsheet performance snapshots.

Historical Performance (%)

YearPerformance
2024+5.17%
2023+3.42%
2022-14.99%
2021+0.74%
Since Launch (2017)+18.81%

Portfolio Theory Read-Through

Based on our analysis of the fund’s historical NAV data from 2022 to 2026:

  • Expected Annual Return: ~1.43% (calibrated with historical average)
  • Annualised Risk: ~5.14%
  • Sharpe Ratio: Reflects the low-volatility nature of the 20/80 allocation.

The fund’s performance demonstrates its stability during market downturns, with a much smaller drawdown in 2022 compared to pure equity funds. However, the expected return is relatively modest, consistent with its conservative mandate.

Sources

Fidelity MPF DIS Mixed Assets