Calm before the storm

21st May 2021

MPF schemes produce positive returns in April but May maybe a different story

MPF Ratings’ April MPF Scheme Net Returns Summary is now available.

Key points are as follows:

  • All schemes generated positive monthly investment performance in April 2021 as the industry generated a median gain of 2.1% (see table 1).
  • April’s MPF assets grew 2.4% to $1.198 trillion (also see table 1), an increase of $28.353 billion, or an average of $6,358 for each of MPF’s 4.46m members whose average account balance is now $268,593.
  • The MPF industry median year-to-date net return is 3.4% (also see table 1). The average MPF member account balance was up by $13,118.
  • • MASS Mandatory Provident Fund Scheme registered the best return for April, followed by My Choice Mandatory Provident Fund Scheme and Sun Life MPF Master Trust (also see table 1).
  • Market volatility sees YTD returns at risk for some MPF schemes in May.

In releasing MPF schemes’ net return performance numbers for April MPF Ratings’ Chairman, Mr Francis Chung (叢川普) observed the following, “After seeing falls in March, April’s performance rebound was good news for MPF members as MPF account balances once again hit a record high,” before cautioning, “While April MPF performance was strong, May has been volatile and mirrors what we are seeing globally. Ongoing COVID fears, inflation worries, valuation concerns and even crypto mania are all contributing to a negative performance month and from our analysis, some MPF schemes are at real risk of giving up a large majority of their 2021 returns this month.  This volatility only serves to highlight the importance of remaining well diversified and invested for long term.”

Table 1: MPF Assets and Net Returns ranked by 1-Month Net Returns as at 30 April 2021 (by MPF Scheme)

Source: MPF Ratings

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