-$26bn loss adds to MPF’s 2022 performance woes

3rd March 2022

MPF expert urges members not to panic and remain invested

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

Key points are as follows:

  • MPF’s collective investment loss totalled -$26bn in February, an average loss of -$5,700 for MPF’s 4.5m members, taking MPF’s year-to-date collective investment loss to -$61.2bn, or an average loss of -$13,500 per member. 
  • After factoring losses and accounting for MPF contributions, expected total MPF assets to end February at $1.129tr (approximate account balance of $248,000 per MPF member), down 1.92% from the previous month and down 7.60% from MPF’s high which was achieved in June 2021.
  • MPFR All Fund Performance Index, as measured by average investment return of MPF funds, was down -2.02% in February and -4.70% year-to-date (See Table 1). The worst start to a calendar year since 2016 (See Chart 1).
  • February saw losses across the board with HK & China equities recording losses for the 4th consecutive months and US equities, European equities and Global equities (last year’s best MPF performers) also continuing their weak performance (Also see Table 1).
  • MPF expert expects market volatility to continue driven by ongoing inflation and interest rate concerns, Hong Kong’s escalating pandemic situation and Europe’s most hostile situation since 1945.

MPF Ratings, Hong Kong’s specialist independent MPF research group today announced that the MPF system generated an average February loss of approximately -$5,700 for each of MPF’s 4.5m eligible members resulting from MPF’s worst investment performance start to a calendar year since 2016.  Losses were seen across the board with Hong Kong and China equities recording its 4th consecutive monthly loss, and US equities continuing its weak performance. Notably, Bond performance was also weak which is disappointing news for MPF’s conservative investors too. Francis Chung (叢川普), MPF Ratings’ Chairman, urged MPF members not to panic but he continued to caution members that markets in the near term will be extremely volatile.


Worst performance start to MPF since 2016 significantly hurts MPF members

“On the back of MPF’s worst calendar year start since 2016 MPF will produce an estimated loss of -$26bn in February to take 2022 losses to -$61.2bn. For the average MPF Hong Kong worker this represents a loss of approximately $13,500 to start the year, a significant loss, equivalent to almost one month’s salary for the average Hong Kong worker.”

MPF expert urges members to remain invested and not panic as Hong Kong’s escalating pandemic problem and the Ukraine situation damages confidence

“Hong Kong’s escalating pandemic problem and hostilities in Ukraine are damaging the confidence of MPF members who already concerned over global interest rates and inflation. High levels of short term volatility will continue but MPF members should not panic. I urge MPF members to remain invested, be well diversified, and focused on their long term retirement objectives.”

Table 1: 1-month and year-to-date MPFR Index returns as of 28 February 2022

Source: MPF Ratings

Chart 1: February’s year-to-date average investment return of MPF funds from 2016 to 2022

Source: MPF Ratings

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