MPF Records 5% YTD Loss

Hong Kong equity MPFs struggled to keep up recovery momentum, becoming February’s worst performers.  

Kate Lin, CAIA 08 March, 2022 | 10:57
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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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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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