Record wealth as MPF delivers 12th positive month since pandemic nadir

3rd June 2021

Pandemic period sees average MPF balances grow by almost $75,000

MPF Ratings’ May MPF Performance Survey has now been uploaded.

  • May MPF average return (as measured by the MPFR All Fund Performance Index) was 1.13%, the 12th positive month of returns since markets bottomed in March 2020 (See Table 1).
  • 1.13% return represents a 150bps rebound in the final week of May.
  • MPF’s total investment gain was $14.70bn, equivalent to an estimated average gain of $3,296 per member.
  • The average MPF member account balance now stands at a forecasted $272,787, an all-time record high and up 37.21% or $73,982 since end March 2020.
  • Total MPF assets close out May at $1.22tr; an end of month all-time record.
  • AIA and HSBC/Hang Seng European equity funds produce best returns in May (See table 2).

MPF Ratings, Hong Kong’s specialist independent MPF research group today released their May MPF Performance Survey by highlighting the wealth created within the MPF system since the coronavirus pandemic reached its market nadir. According to Francis Chung (叢川普), MPF Ratings’ Chairman, average account balances have risen 37.21%, or $73,982, since markets bottomed in March 2020 commenting, “MPF has now generated its 12th month of positive returns since markets bottomed last March.  The wealth created during this period has seen average account balances grow by an extraordinary 37.21% to reach an all-time record high of $272,787.” While May’s results continue an upward trend in MPF performance, Mr Chung also signaled that May’s result also highlighted a reason why MPF members need to exercise caution, “May was a volatile month for equities and if it were not for a strong rebound in the final week, MPF members would have seen losses across funds with exposure to shares. We expect share market volatility to continue and would counsel members to remain vigilant, ensure portfolios are well diversified, and remain invested at all times rather than trying to time markets.”

Table 1: 1-month MPFR Index returns as at 31 May 2021

Source: MPF Ratings

Table 2: 10 best performing MPF constituent funds for May 2021

Source: MPF Ratings

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