18th November 2021
Will volatility de-rail MPF growth as we approach the end of 2021?
MPF Ratings’ October MPF Scheme Net Returns Summary is now available.
Key points are as follows:
- MPF assets increased $28.27bn to $1.195tr in October, recording a 1-month increase of 2.42%, accounting for almost 50% of MPF’s year-to-date (YTD) growth of 4.91% (See Table 1).
- Average MPF account balance for each MPF member was $263,000 in October, growing $6,000 over 1-month and up by $7,500 YTD.
- All MPF Schemes reported investment gains in October, ranging from 1.0% to 2.5% versus an industry median of 1.9% (Also see Table 1).
- MASS Mandatory Provident Fund Scheme and Manulife Global Select (MPF) Scheme generated the best 1-month and YTD net returns in October (Also see Table 1).
- October’s performance rebound contributed to major industry’s big players Manulife Global Select (MPF) Scheme, Sun Life Rainbow MPF Scheme and AIA MPF – Prime Value Choice reverse their 1-month net returns rank significantly from September (up 23, 17 and 10 places respectively).
In releasing MPF schemes’ net return performance numbers for October MPF Ratings’ Chairman, Mr Francis Chung (叢川普) observed the following, “After several months of volatility October saw all MPF schemes produce positive returns which on average accounted for almost 50% of MPF’s 2021 year-to-date growth. Positively, while we expect returns may continue to be volatile we are also quietly confident the MPF system will end 2021 in positive return territory for a 3rd consecutive year.”
Table 1: MPF Scheme Assets and Net Returns as of 31 October 2021
Source: MPF Ratings