23 April 2021
March performance decline erodes MPF’s solid yearly start
Key points are as follows:
- No MPF scheme generated positive investment performance in the month of March 2021 as the industry generated a median loss of -0.90% (see table 1). The first monthly loss in 6 months.
- Despite the loss MPF assets still grew by 2.65% in the first quarter of 2021, an increase of $30.14bn, or an average $6,759 for each of MPF’s 4.46m members whose average account balance is now $262,235.
- On a relative basis, March was a strong performance month for big scheme sponsors with AIA’s Prime Value Choice, HSBC’s SuperTrust Plus, and Manulife’s Global Select (MPF) Scheme ranking 1,4 and 6 respectively (also see table 1).
- The MPF industry’s 28.3% rolling 1yr performance (also see table 1) is the best in over 7 years.
In releasing MPF Ratings’ the MPF schemes’ net return performance numbers for March and the first quarter of 2021, MPF Ratings’ Chairman, Mr Francis Chung (叢川普) observed the following, “Despite MPF net returns declining for the 1st time in six months MPF member account balances are still at near record highs. It is essential that in the face of a global coronavirus resurgence, inflation concerns and high equity valuations MPF members must remain well diversified and invested for long term. If they do so then I feel sure they will be rewarded with even greater MPF wealth. Time in market and diversification, not market timing and speculation, are key to long term wealth creation.”
Table 1: MPF Assets and Net Returns ranked by 1-Month Net Returns as at 31 March 2021 (by MPF Scheme)
Source: MPF Ratings