All time record US and HK/China performance difference sees MPF members lose out

3rd September 2021

HK/China equities is MPF’s biggest loser

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

Key points are as follows:

  • MPF Ratings’ MPFR All Fund Performance Index recorded a gain of 0.78% in August (See Table 1).
  • HK & China Equity Funds produced August’s worst 1-month return as MPF Ratings’ MPFR Equity Fund (HK & China) Index recorded a loss of -0.36% (also see Table 1).
  • Total MPF investment gain is estimated to be $10.5bn for the month of August. An equivalent average investment gain of $2,300 per member.
  • Total MPF assets are estimated to increase o $1.201tr and after factoring in MPF contributions, the equivalent of MPF average account balances are expected to increase to $264,000.
  • US Equity Funds, Global Equity Funds and European Equity Funds continued to be the best performers for August and on a year-to-date basis (also see Table 1).
  • The ongoing strength of US equities now sees the calendar year-to-date performance difference between HK and China at an all time year-to-date difference of 25.80%.
  • Haitong’s Global Diversification Fund and Manulife Global Select’s MPF Japan Equity Fund produced best returns in August (See table 2).

Francis Chung (叢川普), Chairman of Hong Kong’s specialist independent MPF research group, MPF Ratings today released MPF Ratings’ August MPF Performance Survey by highlighting the record return differential between US and, Hong Kong and China equities. The ongoing outperformance of US equities now sees the year-to-date difference at 25.80% which over an 8 month year-to-date basis period is a record.

On the importance of Hong Kong and China equities to MPF members

“Hong Kong and China equity performance is pivotal to MPF wealth. Not only do MPF’s mixed asset funds have significant exposure to local equities but with an MPF market share of 24% HK/China equities is by far the single largest and most important MPF asset class and therefore the one that most profoundly affects MPF members’ retirement wealth.”

On the performance difference between HK/China and US equities

“Hong Kong/China equities is the only equity asset class that has recorded losses in both August and on a year-to-date basis. The poor performance of HK/China equities is magnified by the continued strong performance of other equity markets around the world, especially the US equity market. So great is the outperformance of US equities relative to HK/China equities the performance difference since the beginning of the year is at an all time record of 25.80%. It is the widest calendar year-to-date performance differential since MPF’s inception.”

Table 1: 1-month and year-to-date MPFR Index returns as at 31 August 2021

Source: MPF Ratings

Table 2: 10 best performing MPF constituent funds for the month of August 2021

Source: MPF Ratings

Table 3: 10 best performing MPF constituent funds for year-to-date 2021

Source: MPF Ratings

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