MPF half yearly result sees eMPF start coincide with MPF all-time record

4th July 2024

$59.6bn added in 2024 as MPF achieves two major milestone moments

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

Key points are as follows:

MPF total assets set to reach an all-time high of $1.227tr as a modest June investment return of 0.76% contributes to a Q2 2024 return of 2.62% and a year-to-date gain of 5.16%, marking MPF’s best half year start since 2019 and its 6th best since MPF’s inception.
In absolute dollar terms, June’s month-to-date investment gain is equivalent to $9.3bn (or $2,000 per MPF’s 4.75m members) contributing to a quarter-to-date investment gain of $31.1bn (or $6,500 per member) and year-to-date investment gain of $59.6bn (or $12,500 per member).
Factoring in gains and contributions, Average MPF account balances per 4.75m members is now $258,100 (up $2,800 from May, $9,200 from the previous quarter and $18,100 for year-to-date).
With a 13.65% return, US equities topped MPF’s first half year performance table. Extraordinarily, US equities achieved top 3 returns for the 5 months out of 2024’s first 6 months to record its 4th best first six-month performance since MPF’s launch.
MPF’s all-time record asset level has coincided with the official commencement of the MPFA’s much vaunted “eMPF Platform” to create two major MPF milestone moments.

Francis Chung (叢川普), Chairman of MPF Ratings Ltd, Hong Kong’s independent provider of MPF research, views and education today released MPF Ratings’ June MPF Performance Survey by pointing out that total MPF assets are expected to record a new all-time record high level on the back of MPF’s best half year start since 2019. Aided by approximately $59.6bn of first half 2024 earnings derived largely from equity markets globally, average MPF account balances are now approximately $258,100. Coincidentally, MPF’s all-time record asset level has coincided with the official commencement of the MPFA’s much vaunted “eMPF Platform” to create two major MPF milestone moments.

Quotes:

US equity’s shine finally rubs off on other markets as all equity markets contribute to MPF gains

“US equity’s shine finally rubbed off on other markets in the first half of 2024 as all equity markets contribute to MPF gains. Before factoring contributions, approximately $59.6bn of earnings were added to MPF accounts in the first half of 2024. MPF’s best start since 2019 and its 6th best half year start on record should silence even the most ardent MPF critic.”

Two MPF milestone moments

“At $1.227tr MPF is expected to reach its highest total asset level ever, breaking the previous record set in June 2021. The new record is a profoundly positive result for MPF’s 4.75m members that not only coincided with the official commencement of the MPFA’s much vaunted ‘eMPF Platform’ to create two MPF milestone moments, but also reinforces MPF as a highly robust and highly secure retirement savings and investing system that safeguards member assets operationally.”

Outlook for 2024 – investment sentiment appears to be turning as the US market goes over one year without a major sell off

“US equities are leading all market returns. The S&P 500 has now gone over one year without a sell-off greater than 2%, a statistic that suggests positive returns may continue despite ongoing inflation, interest rate and geo-political tensions. MPF Ratings would however caution that there is never investing certainty, only uncertainties, and these uncertainties can only be mitigated through disciplined savings, diversified investing and a focus on the long term.”

Table 1: MPF Ratings’ MPFR Index returns by asset class (as at 30th June 2024)