MPF Laggards Recover in January

Index-tracking Hong Kong equity MPFs were the best performers.  

Kate Lin, CAIA 10 February, 2022 | 11:51
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Mandatory Provident Funds that track the Hong Kong Hang Seng Index topped the chart of 475 products available to the city’s workers, with a return ranging between 1.6% and 1.9% in January. The asset class recovered slightly after a difficult year in 2021. Hong Kong equity (both active and passive funds) dipped 14.15% on average to rank as the worst-performing Morningstar Category.

MPF

Morningstar Category

Morningstar Rating Overall

1-Month Return

BEA (MTS) Hong Kong Tracker

HK MPF Hong Kong Equity

ÙÙ

1.91

BEA (IS) BEA Hong Kong Tracker

HK MPF Hong Kong Equity

ÙÙ

1.90

Fidelity RMT-Hong Kong Tracker

HK MPF Hong Kong Equity

ÙÙ

1.90

BCT (Pro) Hang Seng Index Tracking Fund

HK MPF Hong Kong Equity

ÙÙÙ

1.88

Invesco MPF Hang Seng Index Tracking H

HK MPF Hong Kong Equity

ÙÙ

1.88

Manulife GS MPF HSI Tracking

HK MPF Hong Kong Equity

Ù

1.88

Principal 800 Hang Seng Index Tracking N

HK MPF Hong Kong Equity

Ù

1.88

Invesco MPF Hang Seng Index Tracking A

HK MPF Hong Kong Equity

Ù

1.87

AIA MPF - PVC Hong Kong and China

HK MPF China & Greater China Equity

ÙÙ

1.86

Principal Smart Plan-Hang Seng Index Tra

HK MPF Hong Kong Equity

Ù

1.86

BEA (VS) Hong Kong Tracker

HK MPF Hong Kong Equity

ÙÙ

1.85

 

The list of the bottom 10 funds is dominated by many of the portfolios that receive a 5-star Morningstar Rating. Manulife GS MPF Euro Eq, Mass MPF US Equity, three share classes of the Allianz Oriental Pacific Fund, and Haitong’s Global Diversification were among the top performers over the three-year period.

MPF

Morningstar Category

Morningstar Rating Overall

1-Month Return

Manulife GS MPF Euro Eq

HK MPF Europe Equity

ÙÙÙÙÙ

-13.68

Mass MPF US Equity

HK MPF US Equity

ÙÙÙÙÙ

-11.91

Allianz Oriental Pacific Fund - A

HK MPF Aggressive Allocation

ÙÙÙÙÙ

-10.42

Allianz Oriental Pacific Fund - B

HK MPF Aggressive Allocation

ÙÙÙÙÙ

-10.40

Allianz Oriental Pacific Fund - T

HK MPF Aggressive Allocation

ÙÙÙÙÙ

-10.40

Haitong Global Diversification A

HK MPF Global Equity

ÙÙÙÙÙ

-10.32

Haitong Global Diversification-T

HK MPF Global Equity

ÙÙÙÙÙ

-10.30

Haitong Asia Pacific (ex-HK) A

HK MPF Asia ex-Japan Equity

Ù

-10.05

Haitong Asia Pacific (ex-HK) T

HK MPF Asia ex-Japan Equity

Ù

-10.04

Haitong Korea A

HK MPF Other Equity

 

-9.37

 

All MPF categories, except China bond which recorded a 0.13% single-month gain, posted a loss in January. Other less risky asset classes in the Hong Kong dollar and other money markets showed more resiliency, giving a flat return.

MPF Category

Average 1-Month Return

HK MPF China Bond

0.13

 

HK MPF HKD Money Market

-0.03

 

HK MPF Hong Kong Equity

-0.04

 

HK MPF Other Money Market

-0.12

 

HK MPF HKD Bond

-1.32

 

       


Four of the best-performing categories in 2021 experienced a retreat in January. Wild swings in the US equity market came against a backdrop of a significant shifting landscape for Federal Reserve policy and interest rates. On average, US and global equity MPFs lost 5.97% and 5.68%, respectively. The European equities started strong in the new year but things quickly turned south as vaccine supply shortages, low vaccination rates, and a continued rise in new coronavirus cases weighed heavily on the region’s major markets. Europe equity funds fell 4.86%.

MPF Category

Average 1-Month Return

HK MPF Other Equity

-6.40

HK MPF US Equity

-5.97

HK MPF Global Equity

-5.68

HK MPF Europe Equity

-4.86

HK MPF Japan Equity

-4.71

 

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About Author

Kate Lin, CAIA

Kate Lin, CAIA  is a Data Journalist for Morningstar Asia, and is based in Hong Kong

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