7th May 2025
April’s market rollercoaster ends where it all began as Trump blinks on tariffs
MPF Ratings’ April MPF Performance Survey has now been uploaded.
Key points are as follows:
- A tumultuous April saw the MPF recover steep early month losses to record a modest monthly investment loss of -0.61% (as measured by the MPFR All Fund Performance Index). (See Table 1)
- The marginal April loss was the system’s 2nd monthly 2025 loss, but with markets recovering in the second half of April, the MPF system avoided falling to a year-to-date loss. (Also see Table 1)
- In absolute dollar terms, April’s investment loss is approximately -$8.2bn (or -$1,700 per MPF’s 4.79m members), while year-to-date investment gains are at $26.6bn (or $5,600 per member).
- In the middle of April all equity categories were recording losses, however all staged significant recoveries with Japan equities recording the best monthly result, and while Hong Kong and China equities was the system’s worst performing April asset class, a monthly loss of -3.94% still puts MPF’s largest asset class up 7.54% for the year.
- Contrasting 2025 fortunes forHong Kong and China equities and US equities. While local markets recorded a 7th best first 4-month performance since MPF’s launch, US equities, with a loss of -6.21%, recorded its 4th worst first 4-month performance. (Also see Table 1)
- April total MPF assets total approximately $1.333tr (down $4.5bn from March but up $42.3bn for year-to-date), the 3rd highest level since MPF’s launch, and equivalent to an average MPF account balance of $278,100 (down $900 from March but up $8,800 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 believes most MPF members would be feeling a sense of relief that major equity markets recovered most of early April losses by the end of the month.
While MPF members may feel relief, Mr Chung pointed out that the recovery was a result of US’s decision to momentarily reverse some of its initial tariff plans, and that such erratic and unconventional behaviour is unlikely to disappear, resulting in expected ongoing market volatility.
Mr Chung made his comments when he released MPF Ratings’ April MPF Performance Survey, a month which saw the MPF system recover sharp losses to be down only -0.61% for the month. Despite the loss, the system remains up on a year-to-date basis with total MPF assets at $1.333tr, the equivalent of $278,100 per MPF’s 4.79m members.
Quotes:
Trump says people were getting “yippy”, MPF members say “yippee” they did.
“On April 2nd, President Donald Trump announced sweeping tariff hikes that had the immediate effect of sending global equity markets sharply down. On April 9, Trump reversed the decision, saying that people were getting ‘yippy’. MPF members are saying ‘yippee’ they did. This erratic behaviour highlights the importance of long-term, diversified investing.”
Don’t be relieved, be educated.
“Let April be a lesson. Investing and saving for retirement is a long-term journey and there will be unpredictable moments. To mitigate unpredictability, focus on long-term investing and diversification while taking time to improve financial literacy. There are excellent financial literacy tools available in Hong Kong, many are freely available and MPF Ratings urges members to take advantage of these.”
DIS is one of the simplest and best decisions a member can make.
“MPF Ratings regularly sees MPF members move into Money Market funds AFTER equity markets fall dramatically. No one makes money buying high, panicking and then selling low. In 2017, the MPFA introduced DIS, which is well diversified and low-cost. Members don’t need to risk their retirement by making poor investment decisions. Investing MPF contributions through DIS is one of the simplest and best decisions a member can make.”
Table 1: MPF Ratings’ MPFR Index returns by asset class (as at 30th April 2025)
Source: MPF Ratings
Table 2: 10 best performing MPF constituent funds for the month of April 2025
Source: MPF Ratings
Table 3: 10 best performing MPF constituent funds for year-to-date 2025
Source: MPF Ratings
