25th July 2024
MPF’s assets currently at an all-time high
Key points are as follows:
- The MPF system is currently producing a marginal positive return for July 2024. If July’s current month-to-date investment gain of approximately 0.79% (as measured by the MPFR All Fund Performance Index as at 22nd of July) (See Table 1) is maintained it would be MPF’s 5th monthly gain in 2024; contributing to an estimated year-to-date gain of 5.98%.
- In absolute dollar terms, July’s current month-to-date investment gain would be equivalent to $4.2bn (or $900 per MPF’s 4.75m members) contributing to a year-to-date investment gain of $63.9bn (or $13,400 per member).
- Japan equities is expected to top MPF’s performance table for July and year-to-date, followed by US and Global equities. A 16.82% year-to-date Japanese equities gain would be its 3rd best first 7 months’ performance since MPF’s launch, while a 15.77% and 11.75% respective year-to-date gain for US and Global equities would be their 5th best first 7 months’ performance.
- After factoring in contributions, total MPF assets are currently on track to end July at approximately $1.23tr (up $8.2bn from end of June and $93.5bn for year-to-date), which if achieved would be MPF’s all-time record high again, equivalent to an average MPF account balance of $259,600 for MPF’s 4.75m members (up $1,700 from end of June and $19,700 for year-to-date).
- Stock rotation out of the so-called “Magnificent 7” could put brakes on MPF’s all time asset size record in the short term as investors seek better value in other areas.
Francis Chung (叢川普), Chairman of MPF Ratings Ltd, Hong Kong’s independent provider of MPF research, views and education today pointed out that the current US equity correction could momentarily put the brakes on MPF’s all-time record asset level in July. Aided by $4.2bn in current July earnings and $63.9bn for the year, MPF Ratings says average MPF account balances have reached $260,000 but as investors shift money away from the America’s so-called “Magnificent 7”, a correction in US equity markets is happening with previously ignored smaller, attractively valued companies being the primary beneficiary at the expense of large technology companies.
Quotes:
5th positive month out of 7 is still a possibility
“If July ends positively for MPF, it will be its 5th positive month out of 7. An excellent result which has only happened on eight other occasions since MPF’s inception.”
Total MPF assets are presently at an all-time record high
“Based on MPF Ratings forecasted numbers, MPF’s total assets are currently around $1.23tr, the highest total assets on record. A profoundly positive result equivalent to $259,600 for each of MPF’s 4.75m members, however it is questionable if this level will remain at the end of the month as the current rotation from the momentum driven technology heavy mega-cap shares will affect many investors.”
Outlook for 2024 – Equity sector rotation would have caught people off guard
“All equity markets have contributed positively to MPF’s strong year to date results however July has been characterized by rotation out of momentum driven technology heavy mega-cap shares into other areas of the market. Investors who try to market time their investments have been caught off guard by this transition serving to highlight the simplicity and importance of diversified long term focused investing by utilizing cost effective, well diversified funds such as the MPFA’s mandated DIS funds.”
Table 1: MPF Ratings’ MPFR Index returns by asset class (as at 22nd July 2024)

Source: MPF Ratings