23rd June 2021
One Scheme Sponsor dominates MPF performance league table
MPF Ratings’ May MPF Scheme Net Returns Summary is now available.
Key points are as follows:
- All MPF schemes generated positive monthly investment performance in May 2021, but the dispersion between the best and worst was 1.6%, as the MPF industry generated a median gain of 1.1% (see table 1).
- May’s MPF assets grew 1.6% to a record $1.216 trillion, an increase of $18.632 billion.
- Average MPF account balance for each of MPF’s 4.54m members grew $4,101 to $267,728 in May, an end-of-month all-time record high.
- The Sun Life’s 4 MPF Schemes, which account for 10.6% of the total MPF assets, monopolized the top 4 best net returns in May (also see table 1).
- My Choice Mandatory Provident Fund Scheme recorded the best YTD net return for the 2nd consecutive month (also see table 1).
Sun Life’s dominant performance
In releasing MPF schemes’ net return performance numbers for May MPF Ratings’ Chairman, Mr Francis Chung (叢川普) observed the following, “MPF net assets grew by 1.6% in May, the equivalent of $18.632bn extra dollars in MPF accounts whose average account balance now stands at a record $267,728. While all MPF schemes generated positive returns, the biggest winners were Sun Life’s members with Sun Life’s four schemes monopolizing the top four best investment return positions.”
Managing expectations in June
While May once again saw positive performance, MPF Ratings’ Chairman, Mr Francis Chung (叢川普) took the opportunity to temper performance expectations for June, as he pointedly noted, “June has proven to be a difficult month as equities globally have taken their lead from hawkish comments from US Fed Chairman Jerome Powell. Concerns over inflation and the possible tapering of the Fed’s quant easing policy have led to greater market volatility and downside risks. In such an environment MPF could say some performance impairments in their accounts in June. The key however continues to be remaining invested in the long term and diversification.”
Table 1: MPF Assets and Net Returns ranked by 1-Month Net Returns as at 31 May 2021 (by MPF Scheme)
Source: MPF Ratings