Mandatory Provident Funds averaged a loss of 2.0% in February, which led the year-to-date loss of Hong Kong workers’ pensions to deepen to 4.7%.
MPFs investing in Hong Kong equity, which endured a 14.2% correction in 2021, saw a robust start in the new year. The asset class, which consists of 47 active and passive products, held up relatively well in January, as most other asset classes recorded bigger losses. But the group was unable to keep up the momentum to recoup losses from last year’s correction. The group’s February performance again entered the negative territory and it was the worst performer, dropping almost 4% on average. During the period, the poorest performer for the category (and the whole MPF universe) was Principal Simple Plan-Dynamic HK Eq, which slid 4.8%.
However, the single fund that recorded the largest loss of the month was AMTD Invesco Europe. The European equity fund, which carries an one-star rating, fell 5.2% in February in the midst of Russia’s invasion of Ukraine.
Bottom 10 Funds
|
MPF |
Morningstar Category |
Morningstar Rating Overall |
1-Month Return |
|
AMTD Invesco Europe |
HK MPF Europe Equity |
Ù |
-5.19 |
|
Principal Simple Plan-Dynamic HK Eq |
HK MPF Hong Kong Equity |
ÙÙ |
-4.80 |
|
Principal Smart Plan-Dynamic HK Eq |
HK MPF Hong Kong Equity |
ÙÙÙ |
-4.79 |
|
BOC-Pru Easy Choice CSI HK 100 Tracker |
HK MPF Hong Kong Equity |
ÙÙÙ |
-4.67 |
|
BCOM HSI Tracking (CF) Fund |
HK MPF Hong Kong Equity |
ÙÙ |
-4.66 |
|
AIA MPF - PVC Hong Kong and China |
HK MPF China & Greater China Equity |
ÙÙ |
-4.66 |
|
Hang Seng MPF-ST Plus-HSI Tracking |
HK MPF Hong Kong Equity |
ÙÙ |
-4.64 |
|
HSBC MPF-ST Plus-HSI Tracking |
HK MPF Hong Kong Equity |
ÙÙ |
-4.64 |
|
BEA (VS) Hong Kong Tracker |
HK MPF Hong Kong Equity |
ÙÙ |
-4.64 |
|
Fidelity RMT-Hong Kong Tracker |
HK MPF Hong Kong Equity |
ÙÙ |
-4.64 |
|
Bottom 5 MPF Category |
Average 1-Month Return |
|
HK MPF Hong Kong Equity |
-3.88 |
|
HK MPF China & Greater China Equity |
-3.54 |
|
HK MPF Europe Equity |
-3.43 |
|
HK MPF US Equity |
-3.00 |
|
HK MPF Target Date |
-2.81 |
Turning to the top funds, products that invest with lower risk exposure became February’s winners. Nine of the top ten performers were money market funds, with most of them investing in instruments denominated in Hong Kong dollar and Renminbi.
|
MPF |
Morningstar Category |
Morningstar Rating Overall |
1-Month Return |
|
BEA (MTS) RMB & HKD Money Market |
HK MPF Other Money Market |
- |
0.91 |
|
My Choice RMB & HKD Money Market Fund |
HK MPF Other Money Market |
- |
0.90 |
|
BOC-Pru Easy Choice RMB & HKD Money Mkt |
HK MPF Other Money Market |
- |
0.84 |
|
BEA (IS) RMB & HKD Money Market |
HK MPF Other Money Market |
- |
0.83 |
|
Schroder MPF RMB and HKD Fixed Inc B |
HK MPF China Bond |
Ù |
0.79 |
|
Allianz RMB Money Market – T |
HK MPF Other Money Market |
- |
0.79 |
|
Allianz RMB Money Market – A |
HK MPF Other Money Market |
- |
0.79 |
|
Allianz RMB Money Market – B |
HK MPF Other Money Market |
- |
0.79 |
|
Sun Life MPF RMB & HKD B |
HK MPF Other Money Market |
- |
0.79 |
|
Sun Life MPF RMB & HKD A |
HK MPF Other Money Market |
- |
0.78 |
The best categories in terms of performance were dominated by lower-risk options. Other than money-market funds, China, Hong Kong dollar, and Asia bond funds posted a return near zero.
|
MPF Category |
Average 1-Month Return |
|
HK MPF Other Money Market |
0.82 |
|
HK MPF China Bond |
0.60 |
|
HK MPF HKD Money Market |
0.00 |
|
HK MPF HKD Bond |
-0.50 |
|
HK MPF Asia Bond |
-0.50 |
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