24 May 2025
Highlights
- Available through AIA MPF – Prime Value Choice, a Gold rated MPF scheme
- Best performing MPF European equity fund year-to-date
- Excellent diversification benefits
- Access to unique companies
- Active portfolio management offers opportunity for enhancing returns
La Dolce Vita
As summer approaches, Mr. MPF asks: is there a better place to be than Europe in summer? Or, for that matter, in winter, spring, or fall? With its sun and sea in summer, snow and skiing in winter, grape harvests in the fall, and blooming flowers in spring, Europe truly sparkles in every season. But did you know it’s also an excellent all-season investment option? Europe has something to offer every investor. Curious? Read on.
71%
If you’ve read any of Mr. MPF’s blogs, you’ll know how diversification obsessed MPF Ratings is. Spreading investments reduces risk. Sure, you might miss out on the very best returns in a single year, but you’ll be glad when you avoid the very worst, too. For long-term investors, consistent returns are key, and having 71% of your investment in one market is hardly diversified.
71%? Yes, 71%. This might surprise some, but with the recent strong performance of the US market, its stock market now dominates the world, to the tune of an astounding 71%. In other words, for every $100 invested in a global equity fund, $71 goes into a single market.
Diversify diversification
While investing in a global equity fund gives exposure to various markets worldwide, having nearly 70% allocated to one market doesn’t feel overly diversified. By investing in regional funds, such as AIA MPF Prime Value Choice – European Equity Fund, MPF members can diversify away from US shares while accessing some fascinating companies. Investing regionally allows for more control over your diversification and investment strategy.
US and Europe – the perfect blend
When Mr. MPF thinks of the US, he thinks of Apple, Microsoft, and Nvidia. In Europe, it’s Roche, Novartis, and AstraZeneca. Technology vs. Healthcare. Or fast fashion vs. high fashion, with Walmart in the US and LVMH in Europe. Different companies, industries, and investment characteristics. Growth vs. value, dividend growth vs. dividend yield. Neither is consistently better than the other but combining both ensures more consistent long-term investment outcomes.
Why AIA MPF Prime Value Choice – European Equity Fund?
Over the past two years, MPF’s US equity fund segment has delivered returns of more than 20%. However, past performance doesn’t guarantee future results. While 2023 and 2024 were strong years for the American stock market, 2025 has been volatile, with the median MPF US equity fund down -5.76% for the year. Meanwhile, the equivalent MPF European fund achieved a return of +11.10%—a staggering 17% difference (as measured by MPF Ratings). This performance gap underscores the diversification benefits of investing across the US and Europe.
And the best-performing European equity fund in 2025? The AIA MPF Prime Value Choice – European Equity Fund.
The AIA MPF Prime Value Choice – European Equity Fund is an actively managed fund designed to achieve long-term capital growth by investing in equity securities of companies listed, based, or operating primarily in Europe. Through active management, the fund seeks to outperform the benchmark, and with a track record of being consistently among the top-performing funds for the past five years, it’s clear the fund manager has delivered excellent results.
If market trends continue, more MPF members may start diversifying regionally rather than sticking solely to global equity funds. It’s a weird thing to say, but you’ll be diversifying your diversification.
This article was written by MPF Ratings, Hong Kong’s independent provider of MPF research, views, and education. The information in this blog is general in nature and does not consider your personal situation. You should assess whether the information meets your needs and, where appropriate, seek professional advice from a financial adviser.
