Multiple records broken as MPF climbs back above $1 trillion

5th December 2022

Despite the system’s rebound annual losses still total $190bn

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

Key points are as follows:

  • MPF’s November returns rebounded strongly with aggregate investment gains of $92.9bn (or $20,300 per MPF’s 4.57m MPF members) reducing the system’s estimated year-to-date loss to -$190.7bn.
  • After factoring in MPF contributions, November average member account balances are approximately $227,700, a monthly increase of $21,200, narrowing 2022 losses to -$30,000.
  • Total MPF assets are now back above the psychologically important $1tr level, at approximately $1.041tr, a level first achieved in July 2020.
  • All asset classes produced positive monthly November returns. The MPF Industry’s (as measured by the MPFR All Fund Performance Index) reported gain was 9.83%. Its best monthly return since MPF’s launch with HK/China equities the major performance contributor.
  • HK/China equities saw a 40.33% month-on-month performance turnaround. October’s -14.82% loss (as measured the MPFR Equity Fund (HK & China) Index) was followed by a 25.50% return. The best monthly return and the best month-on-month turnaround since MPF’s inception.

Led by Hong Kong/China equity’s best monthly performance in MPF’s history, November saw MPF break several records as returns rebound strongly. While releasing its latest performance survey, MPF Ratings, Hong Kong’s independent provider of MPF research, views and opinions highlighted that November also saw HK/China equities produce its largest month-on-month performance turnaround, and the system return above the psychologically important $1 trillion level to reduce the system’s year-to-date investment losses to approximately -$190.7bn.

The performance rebound will be a relief for MPF’s 4.57m members, and while Francis Chung (叢川普), MPF Ratings’ Chairman, cautioned against over optimism, it offered a timely opportunity to highlight positive system initiatives which places MPF on a positive footing heading into 2023.


Records broken in November

“Led by HK/China equities, November saw MPF produce its best monthly performance, the biggest recorded monthly performance turnaround [by HK/China equities] and return above $1 trillion. Notwithstanding the relief strong performance gives MPF members, focus must remain on diversification and long-term investing.”

Despite a challenging year MPF is well positioned for 2023

“While members understandably focus on returns, several recently announced MPFA initiatives, such as the MPF trustee requirement to produce and publish Governance Reports, and new product approval enhancements are significant, placing the onus squarely on MPF schemes to deliver better member outcomes. These positive initiatives warrant greater recognition.”

What should MPF members do?

“MPF Ratings reiterates that diversification and long-term investing, not short-term market speculation, are key to long term wealth creation. Every MPF scheme offers Default Investment Strategy (DIS) funds. They’re low fee ready-made diversified fund options and remain an excellent option for MPF members to consider.”

Table 1: MPF Ratings’ MPFR Index returns by asset class (as at 30 November 2022)

Source: MPF Ratings

Table 2: 10 best performing MPF constituent funds for the month of November 2022

Source: MPF Ratings

Table 3: 10 best performing MPF constituent funds for CYTD of 2022

Source: MPF Ratings

Table 4: 10 worst performing MPF constituent funds for the month of November 2022

Source: MPF Ratings

Table 5: 10 worst performing MPF constituent funds for CYTD of 2022

Source: MPF Ratings

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