Nearly MOP17 billion in private pension fund assets were being managed by nine fund managers as at the end of 2016, an expansion of 18 per cent year-on-year, although the number of total scheme members only registered an increase of 3.5 per cent, according to official data from the Monetary Authority of Macau (AMCM).
Last year, 1,032 pension plans were registered in the territory, of which 1,028 were open funds and four were closed funds, covering a total of 141,878 scheme members, compared to 968 pension plans covering 137,128 members in 2015.
Meanwhile, the number of registered pension funds reached 58 as at the end of the year, an increase of one from 2015.
Global insurer AIA International Ltd held the biggest market share in the private pension fund market during the year, managing a total of 308 pension plans with total assets worth over MOP6.07 billion. The amount, accounting for 35.7 per cent of the market total, represents a notable increase of 20.9 per cent compared to MOP5.02 billion one year earlier.
Luen Fung Hang Life Ltd also saw the amount of pension fund assets under its management of 226.5 plans surge by 18.1 per cent to MOP4.28 billion, as compared to MOP3.63 billion for 2015, making it the second biggest player in the market.
Other primarily fund managers were ICBC (Macau) Pension Fund Management Co. Ltd., Macau Life Insurance Company and China Life Insurance (Overseas) Co. Ltd. which respectively oversaw private fund assets amounting to MOP2.13 billion, MOP1.81 billion and MOP1.3 billion as at the end of 2016, respectively.
By economic sectors, the gaming industry had the highest coverage of private pension funds, with 82.2 per cent of its workers covered by plans.
High coverage of pension funds was also evident in other industries including: financial intermediation; education; and electricity, gas and water supply – with 63.7 per cent, 57.5 per cent and 55.8 per cent of their employees contributing to pension plans, respectively.
However, the official data shows only 2.23 per cent of those employed in the construction sector were covered by pension plans, while only some 1.71 per cent of the city’s public servants bought such pension plans.