6th May 2024
US equities at bottom of MPF performance table after record inflows into world’s largest share market
MPF Ratings’ April MPF Performance Survey has now been uploaded.
Key points are as follows:
- With a 5.89% return, Hong Kong and China equities topped MPF’s April performance table, its 3rd consecutive gain, as the system generated a modest April loss of -0.24% (as measured by the MPFR All Fund Performance Index) to take year-to-date gains to 2.23%. (See Table 1)
- HK and China equities’ 5.89% return outperformed US equities by 9.95%, and was the best monthly outperformance of HK and China equities vs US equities since December 2022.
- US Equities was the worst performing asset class in April occurring just after MPF members shifted an unprecedented $9.2bn in US equities.
- In absolute dollar terms, MPF’s April investment loss is equivalent to -$2.85bn (or -$600 per MPF’s 4.75m members). Year-to-date investment gain is $25.7bn (or $5,400 per member).
- After factoring in contributions, total MPF assets end April at approximately $1.18tr (up $1.15bn from end of March and $43.5bn for year-to-date), equivalent to an average MPF account balance of $249,100 (up $240 from end of March and $9,200 for year-to-date).
Francis Chung (叢川普), Chairman of MPF Ratings Ltd, Hong Kong’s independent provider of MPF research, views and education released MPF Ratings’ April MPF performance survey by highlighting the ongoing rebound in Hong Kong and China equities while US equities produced MPF’s worst asset class loss in April just after members moved an unprecedented $9.2bn into the world’s largest share market.
The MPF system generated a modest monthly loss of -0.24%. In absolute dollar terms, the investment loss is equivalent to -$2.85bn (or -$600 per MPF’s 4.75m members) however year-to-date investment gains continue to be positive at $25.7bn, or $5,400 per member. After factoring in contributions, total MPF assets end April at approximately $1.18tr (up $1.15bn from end of March and $43.5bn for year-to-date), equivalent to an average MPF account balance of $249,100 (up $240 from end of March and $9,200 for year-to-date).
Quotes:
Just after MPF members moved $9.2bn into US equities, it delivers MPF’s worst return
“US equities was MPF’s worst performing asset class and also underperformed local equities by 9.95% in April. This underperformance occurred after MPF members moved a record $9.2bn into US equities highlighting how difficult and risky market timing is. Rather than trade markets, MPF members should focus on diversification and long term investing.”
Strong local equity market performance was April’s MPF performance bright spot
“Despite strong MPF inflows into US equities, with over 17% market share Hong Kong and China equities continues to be MPF’s most important asset class and has now produced three consecutive months of positive returns for the first time in over a year.”
“Inflation and interest rate outlook remain key but the narrative is fluid. What is certain is markets reward companies delivering solid earnings growth. MPF Ratings continues to emphasize how difficult it is to consistently pick the right investments. Diversification and investing through the MPFA’s mandated low fee DIS funds continues to be our preferred 2024 investment approach.”
Table 1: MPF Ratings’ MPFR Index returns by asset class (as at 30th April 2024)
Source: MPF Ratings
Table 2: 10 best performing MPF constituent funds for the month of April 2024
Source: MPF Ratings
Table 3: 10 best performing MPF constituent funds for year-to-date of 2024
Source: MPF Ratings
Table 4: 10 worst performing MPF constituent funds for the month of April 2024
Source: MPF Ratings
Table 5: 10 worst performing MPF constituent funds for year-to-date of 2024
Source: MPF Ratings
