4th June 2025
System’s resilience rewards MPF with all time record in May
MPF Ratings’ May MPF Performance Survey has now been uploaded.
Key points are as follows:
- MPF Ratings’ MPFR All Fund Performance Index recorded a return of 3.61% for the month of May to confirm the best first 5-month performance since 2017 and the 4th best since MPF’s launch. (See Table 1)
- In absolute dollar terms, May’s investment gain was the equivalent to $48.2bn (or $10,100 per MPF’s 4.79m members) and takes year-to-date investment gains to approximately $74.8bn (or $15,600 per member).
- Equity markets led returns in May, with all major markets recording positive results, including US equities which recorded a return of 6.90% (its best monthly performance since November 2023 and its 17th best since MPF’s launch) to erase all of its 2025 losses, but despite this rebound it still continues to be the laggard equity market this year. (Also see Table 1)
- Despite Moody’s decision to downgrade the US sovereign credit rating from Aaa to Aa1 on the 16th of May, MPF’s Global bonds was still up 0.26% for the month. (Also see Table 1)
- Total MPF assets inclusive of contributions ended May at $1.386tr (up $52.0bn from April and up $94.7bn for year-to-date), a record high since MPF’s launch, and equivalent to an average MPF account balance of $289,100 (up $10,800 from April and up $19,800 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 today highlighted the MPF system’s resilience as he released MPF Ratings’ May’s MPF Performance Survey, a month which saw the MPF system record an investment return of 3.61% for the month, a return which together with contributions took MPF’s total assets to a record high of $1.386tr, the equivalent to an average MPF account balance of $289,100 for each of MPF’s 4.79m members.
Quotes:
As US Treasuries sink, US equities manages to get its head above water…
“Moody’s decision to downgrade the US sovereign credit rating from Aaa to Aa1 has been unsettling, but as US Treasuries sank, US equities managed to get its head above water and is now showing a positive return for the first time since January 2025. Despite this rebound however, US equities continues to be MPF’s laggard asset class this year, a stark contrast from the previous two years when it recorded 20% plus returns.”
Hong Kong and China equities continues to lead the way for MPF in 2025
“After factoring in contributions, MPF’s total size is now at an all-time record of $1.386tr, equivalent to an average account balance of $289,100 for MPF’s 4.79m members. This success is being underpinned by strong Hong Kong and China equity performance which was up 5.62% in May and 13.59% year-to-date, as measured by MPF Ratings’ MPFR Hong Kong and China Equity Fund Index.”
MPF system’s remarkable resilience
“2025 has been a tumultuous year for investors and May was no different. US tariff indecision, mixed earnings results, and Moody’s downgrade of US sovereign credit rating have all conspired to deliver heightened investment volatility, however throughout this volatility, the MPF system has showed a remarkable resilience that saw the system deliver $48.2bn in earnings in May, and $74.8bn in earnings for 2025 to take MPF total assets to a record $1.386tr. That’s an average $289,100 for MPF’s 4.79m members.”
Table 1: MPF Ratings’ MPFR Index returns by asset class (as at 31st May 2025)
Source: MPF Ratings
Table 2: 10 best performing MPF constituent funds for the month of May 2025
Source: MPF Ratings
Table 3: 10 best performing MPF constituent funds for year-to-date 2025
Source: MPF Ratings
