US equities ditched in favour of HK & China

17th February 2022

Members react to MPF’s worst start since 2016

MPF Ratings’ January MPF Asset Class Fund Flows Summary has now been uploaded to MPF Ratings’ media education portal.

Key points are as follows:

  • MPF’s January assets declined -$31.12bn or -2.63% a month on month basis to $1.151tr (See Table 1). 
  • January 1-month net inflows totalled $4.02bn (See Table 1), slightly above 2021’s monthly average of $3.91bn.
  • Average MPF account balance per 4.5m member stands at $253,000 in January, down -$7,000 from December.
  • US Equities, MPF best performing asset class in 2021 recorded January’s worst net inflows (-$440m). MPF’s worst performing asset class in 2021 (HK & China equities) attracted the most inflows ($1,545m), equivalent to a net industry share of 38.5%.
  • BCT Group jumped 6 places to record the best monthly fund inflow ranking improvement (See Table 2).
  • Money Market Funds occupy 4 out of the top 10 most popular funds in January (See Table 3) reflecting member caution.

Francis Chung (叢川普), Chairman of MPF Ratings Ltd, Hong Kong’s independent Mandatory Provident Fund (MPF) research specialist today released MPF Ratings’ January MPF Asset Class Fund Flows Summary by highlighting the US equity profit taking during January as MPF record its worst calendar year start since 2016.

Quotes:

Taking profits in US equities

“US equities recorded its first net outflow in 12 months as MPF recorded its worst start since 2016. Members appear to be profit taking after a strong 2021 which saw US equity funds produce an average of over 25%.”

Where MPF money is going

“Despite concerns over equity markets, support for non-US equities appears strong, especially Hong Kong/China equities which recorded January’s highest net inflows. 

Tone of caution

“Whilst support for equities appears strong, MPF members are also striking a tone of caution with MPF Conservative Funds occupying 4 out of the top 10 most popular MPF funds in January.”

Table 1:  MPF Asset Class Fund Flows as of 31 January 2022

Source: MPF Ratings

Table 2:  MPF Scheme Sponsor Fund Flows as of 31 January 2022

Source: MPF Ratings

Table 3: Top 10 MPF Constituent Fund Inflow Winners for January 2022

Source: MPF Ratings

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