5 May 2021
Manulife and HSBC/Hang Seng biggest beneficiaries as MPF books another $24bn in earnings in April
MPF Ratings’ April MPF Performance Survey has now been uploaded.
Key points are as follows:
- April MPF system investment gains totaled $23.57bn equating to a 1mth return of 1.89% and an estimated average gain of $5,286 in members’ accounts.
- The average MPF member account balance now stands at a forecasted $267,521, an all-time record high.
- After breaking the $1.2tr threshold intra-month, total MPF assets are expected to close out April at $1.197tr; an end of month all-time record.
- No asset class produced a negative return for the month of April as US equities, as measured by MPF Ratings’ MPFR Equity Fund (US) Index, produced the best return for a 2nd consecutive month (see table 1).
- 8 out of 10 best performing MPF funds in April are US equity funds with 7 out of 10 best performing funds offered on HSBC/Hang Seng and Manulife MPF platforms (see table 2).
When releasing MPF Ratings’ April MPF Performance Survey Francis Chung (叢川普), Chairman of Hong Kong’s specialist independent MPF research group, MPF Ratings, pointed out that April was almost a perfect month for MPF, noting, “April was positive for MPF on many fronts. No asset class produced a negative return, average account balances (at $267,521) reached an all-time record high, and the MPF system has recorded its 10th positive month of growth in the past 12 months.” While the April results were buoyant, Mr Chung reiterated the importance for MPF members to remain vigilant, stating simply, “It is statistically highly unlikely we will see another 10 positive months out of the next 12 months. This doesn’t mean MPF members should be overly concerned, but it does mean they should be vigilant, ensuring their portfolios are positioned appropriately for their retirement goals, are well diversified, and they remain invested at all times rather than trying to time markets. I’m confident if they follow these principles, regardless of the short term direction of markets, members will achieve their long term objectives.”
Table 1: 1-month MPFR Index returns as at 30 April 2021
Source: MPF Ratings
Table 2: 10 best performing MPF constituent funds for April 2021
Source: MPF Ratings
