MPF half year report card

23rd June 2023

$61bn added to MPF accounts

Key points are as follows:

  • The MPF system is expected to record a 4.26% average investment gain in June (as measured by the MPFR All Fund Performance Index) translating to a 2023 first half investment gain of 4.56%.
  • In absolute dollar terms June’s estimated investment gain is equivalent to $30.9bn (or $6,600 per MPF’s 4.69m members), contributing to an estimated six month total investment gain of $33.2bn, the equivalent of $7,100 per member.
  • After factoring in both investment gains and contributions, total MPF assets are presently forecasted to end June 2023 at approximately $1.113tr (up $61.46bn since beginning of 2023), or an average MPF account balance of $237,000 (up $7,400 from the previous month and up $13,100 since the beginning of 2023).
  • US Equities are MPF’s best performing asset class so far in 2023.
  • MPF’s largest asset class, HK & China Equity Funds, with 21% market share is MPF’s performance laggard while the DIS Core Accumulation Fund is MPF’s best diversified fund in first half of 2023.

Francis Chung (叢川普), Chairman of MPF Ratings Ltd, Hong Kong’s independent provider of MPF research, views and education today announced MPF Ratings’ June forecasted returns by highlighting the MPF system’s first half 2023 performance. Taking into consideration a forecasted June investment gain of 4.26% and after factoring in contributions, MPF is expected to add $61.46bn in the first half of 2023 to end June at approximately $1.113tr in size, or the average equivalent of $237,000 per MPF’s 4.69m members.


First half 2023 results

“MPF Ratings is expecting $61.46bn to be added to the MPF system in the first half of 2023. For MPF’s 4.69m members this is an average increase of approximately $13,100 and would take an average individual member’s MPF account balance to approximately $237,000 by the end of June.”

MPF’s investment laggard in the first half of 2023 is HK & China equities

“While MPF’s first half result is solid, the result could have been better but for negative returns from HK & China equities, MPF’s largest asset class is the systems’ biggest performance headwind. 2023 began with Mainland economic optimism but this has given way to concerns of slowing economic growth.”

DIS’ Core Accumulation Fund is MPF’s best diversified fund category and what should members do?

“HK & China equities’ underperformance highlights the difficulties involved in choosing the ‘best’ performing asset class and the importance of diversification. Default Investment Strategy (DIS) (Core Accumulation Fund), is expected to end the first half of 2023 as MPF’s best performing diversified fund category.  Every MPF scheme must offer members Default Investment Strategy (DIS) funds. They’re low fee ready-made diversified fund options and take away the challenge of selecting individual funds. They are a sensible long-term option for most MPF members to consider.”

Table 1: MPF Ratings’ MPFR Index returns by asset class (as at 19th June 2023)

Source: MPF Ratings

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