5th August 2024
But Nasdaq’s major correction serves as a big warning to members, says industry expert
MPF Ratings’ July MPF Performance Survey has now been uploaded.
Key points are as follows:
- MPF total assets reach an all-time high of $1.236tr as MPF notches another positive month of investment return. July’s MPF return of 0.55% marks MPF’s 5th positive month year-to-date, taking year-to-date gain to 5.74%, its 7th best first 7-month performance since MPF’s inception. (See Table 1).
- In absolute dollar terms, July’s month-to-date investment gain is equivalent to $6.8bn (or $1,400 per MPF’s 4.75m members) contributing to a year-to-date investment gain of $66.4bn (or $14,000 per member).
- Factoring in gains and contributions, Average MPF account balances per 4.75m members is now $259,900 (up $2,100 from June and $20,000 for year-to-date).
- July MPF performance was characterized by positive performances from equity markets globally at the expense of local equities, and also a rebound in bonds.
- MPF’s net inflows in the 2nd quarter of 2024 was $11.77bn, $1.39bn (11%) less than 2023’s corresponding quarter and $2.10bn (15%) less than the previous quarter.
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’ July MPF Performance Survey by pointing out that total MPF assets have reached a new record all-time high on the back of MPF’s 5th positive performance month this year. Aided by approximately $6.8bn in performance earnings in July, average MPF account balances are now approximately just under $260,000 at $259,900.
Quotes:
5 out of 7 months of MPF investment gains adds approximately $66.4bn in MPF earnings in 2024
“MPF has now achieved 5 positive performance months out of 7 in 2024. This has only occurred on eight previous occasions and sees $6.8bn of investment gains in July to take MPF’s year-to-date investment gains to approximately $66.4bn.”
What MPF’s all-time record size means for members
“At $1.236tr, MPF’s total assets have reached their highest level on record, equivalent to $259,900 for each of MPF’s 4.75m members, an amount which is substantial and one that MPF members can no longer treat frivolously. Making the right long term investment decisions for a comfortable retirement is critical.”
Nasdaq entering correction territory is a warning MPF members have too much to lose if they get marketing timing wrong
“With average MPF account balances now at almost $260,000 members have too much to lose if they get market timing wrong. Notably, Friday saw the Nasdaq fall 2.43% to take the index into correction territory. Such volatility reinforces importance of diversified long term investing, a strategy which MPF members can execute simply by utilizing the low cost, well diversified MPFA mandated DIS funds.”
Table 1: MPF Ratings’ MPFR Index returns by asset class (as at 31st July 2024)
Source: MPF Ratings
Table 2: 10 best performing MPF constituent funds for the month of July 2024
Source: MPF Ratings
Table 3: 10 best performing MPF constituent funds for 2024 year-to-date
Source: MPF Ratings
Table 4: 10 worst performing MPF constituent funds for the month of July 2024
Source: MPF Ratings
Table 5: 10 worst performing MPF constituent funds for 2024 year-to-date
Source: MPF Ratings
