MPF Ratings: Hong Kong MPF Members Lost HK$5,060 Each on Average in September, Full-Year Positive Return Still Likely for a Fourth Straight Year

Stock News
Oct 07

According to an MPF research institution, MPF Ratings, market volatility dragged Hong Kong's Mandatory Provident Fund (MPF) to an investment loss of 1.47% in September, though the scheme still managed a positive return of 0.5% in the third quarter, marking its third consecutive quarter of gains, and cumulative returns for the first three quarters of this year held steady at 6.2%. In monetary terms, MPF investments lost about HK$25.1 billion in September. Based on 4.97 million MPF members, this translates to an average loss of roughly HK$5,060 per person. Investment gains narrowed to HK$8.3 billion in the third quarter, or an average gain of HK$1,667 per person; cumulative investment gains for the first three quarters of this year reached HK$96.9 billion, equivalent to an average gain of about HK$20,161 per person.

MPF Ratings noted that September's loss was the third time this year that MPF recorded a negative monthly return, but based on current trends, the scheme is still on track to post a positive return for the full year for a fourth consecutive year, a situation that has occurred only once before (from 2003 to 2007).

Looking at asset classes, rising US interest rates and persistent inflation concerns weighed on the returns of equity and bond funds; however, equities have still outperformed other asset classes so far this year, with Asian equities leading the way.

After accounting for contributions and investment performance, total MPF assets reached HK$1.684 trillion as of the end of September, the third-highest level on record. Based on 4.97 million members, the average account balance stood at about HK$339,000, the sixth-highest level on record.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10