Private pension assets surge 16.7 pct in June

A total of MOP15.7 billion-worth (US$1.96 billion) of pension fund assets were under the management of private firms as at the end of June, which represents a year-on-year growth of 16.7 per cent, according to the official data of the Monetary Authority of Macau (AMCM). The city had a total of 58 registered pension funds as at the end of the second quarter, up one year-on-year. Of the total, 54 were open funds whilst the other four were closed funds. Meanwhile, the number of registered pension plans increased by 4.5 per cent year-on-year to 991. These private pension fund assets were primarily managed by nine companies – led by AIA International Ltd. The global insurer was managing a total of MOP5.5 billion-worth of pension fund assets as at end-June, increasing 18.2 per cent year-on-year. The amount of assets under its management accounted for 35.06 per cent of the total. Meanwhile, Luen Fung Hang Life Limited was the second biggest player in the market. The company’s managed amount of pension fund assets increased by 14.7 per cent year-on-year to nearly MOP4 billion, accounting for 25.3 per cent of the total. The other three major pension fund asset managers were ICBC (Macau) Pension Fund Management Co. Ltd., Macau Life Insurance Company and China Life Insurance (Overseas) Co. Ltd., which respectively oversaw assets valued at MOP1.97 billion, MOP1.73 billion and MOP1.19 billion. Gaming contributor In fact, the number of participants in pension schemes also posted an increase of 3.9 per cent to 138,352 as at the end of the quarter, accounting for 41 per cent of the city’s total workforce of around 337,368, according to AMCM. Analysed by economic sector, 64,460 of pension scheme contributors worked in the gaming industry, which accounted for 77.1 per cent of the total manpower of 83,600 in the sector. Meanwhile, some 23,451 scheme members were employed by hotels, restaurants and similar, occupying 42.6 per cent of the segment’s total of 55,100. In terms of coverage, 97.3 per cent of the manpower in the fields of electricity, gas and water supply contributed to private pension funds as at the end of the quarter, amounting to 876, whilst 67 per cent of those engaged in financial intermediation, 6,366, had purchased private pension schemes. Nevertheless, only some 1.7 per cent of the city’s 47,100 construction workers had bought their own private pension fund. In addition, some 468 of 27,700 public servants in the city were contributing to private pension schemes as at the end of June.