MPF results unaffected by banking crisis

6th April 2023

Late market rally sees MPF continue its strong start to 2023

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

Key points are as follows:

MPF return for March was up by 2.53% (as measured by the MPFR All Fund Performance Index), taking Q1 results up to 4.06%, the best first quarter since Q1 2019.
After reporting a loss in February, MPF recorded an investment gain of $27.2bn for March and $42.7bn for Q1 2023, equivalent to $5,800 for the month and $9,100 for year-to-date per MPF’s 4.69m members.
Despite European and the US banking concerns affecting global markets, all asset classes produced positive returns for March and year-to-date.
US Equity Funds and Bond Funds rose 7.59% and 3.20% respectively in the first quarter (as measured by the MPFR US Equity Fund Index and MPFR Bond Fund Index), their best quarter since Q4 2021 and Q1 2016 respectively.
Total MPF assets ended March 2023 at approximately $1.108tr (up 2.90% for the month and 5.38% for the quarter), or an average account balance of $236,000 (up $6,700 for the month and $12,000 for the quarter) per member.

Francis Chung (叢川普), Chairman of MPF Ratings Ltd, Hong Kong’s independent provider of MPF research, views and education emphasized the value and necessity of a strong and secure retirement savings system as he announced strong MPF first quarter 2023 results.

The MPF system saw investment returns up 2.53% in March and 4.06% in the first quarter with all asset classes contributing positively to MPF’s best calendar year start since 2019. Total asset size now stands at approximately $1.108tr, or the average equivalent of $236,000 per MPF’s 4.69m members.

Quotes:

Late March market rally sees MPF produce its best quarterly start to a calendar year since 2019

“A late market rally in March put MPF on track to produce its best quarterly start to a calendar year since 2019 and sees average member account balances at $236,000, but markets continue to be highly sensitive to both positive and negative news, reinforcing the importance of long term investing and diversification.”

Despite concerns over European and US banking instability MPF produces positive returns to highlight the value and necessity of a strong and secure retirement savings system

“Protection of savings is the foremost consideration for retirement saving but the ability to produce strong investment returns in a quarter characterized by high volatility and trans-Atlantic banking instability highlights the proficiency of MPF. MPF members can have full confidence that MPF is highly robust and highly secure in its ability to safeguard member assets operationally.”

Table 1: MPF Ratings’ MPFR Index returns by asset class (as at 31st March 2023)