Performance in China MPFs Continues to Swing

US equity funds were at the bottom.

Kate Lin 13 June, 2022 | 8:01
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MPF account holders had a flat return of 0.3% on average in May, with only four out of 23 categories having a negative return. However, the minimal monthly gain did not help ease the pain suffered since the beginning of 2022. Hong Kong workers lost 10.2% on average over the course of five months.

Hong Kong and China & greater China equity MPFs continue to vacillate with their month-on-month performance. While they were among the top performers in May, China & greater China equity MPFs remained a year-to-date loser, delivering a 15.2% loss to Hong Kong workers on average. Hong Kong equity MPFs have performed slightly better, recording a 11.1% loss over the same period.

Driving the turn in performance in May has been an end to the mass lockdown undertaken in Shanghai on June 1. The period leading up to a relaxation saw strengthening investor confidence, which led Morningstar China Index to touch its most recent bottom around mid-May. After recovering from the worst, the market still registered a year-to-date loss of 15.4%.

U.S. stocks were trading down on red-hot inflation numbers and Fed’s more aggressive tightening measures, leaving the Morningstar US Market Index down roughly 14% this year. MPFs investing in U.S. equities lost 0.4% in May. 

Mass MPF European Equity was the top performer of May, returning 3.2% for the month. Another European equity fund that was among the best performers was AMTD Invesco Europe, which gained 2.1%. Other top-performing funds belong to either Hong Kong or China & greater China equity categories. However, none of the May winners returns positively year-to-date, with their losses ranging between 6% and 20%. 

Mass MPF US Equity, which lost 4.7% in May, was the worst performer. It was closely followed by Manulife GS MPF Euro Eq’s 4.0% loss. Hong Kong, China & Greater China, Asia-Pacific ex-Japan equity MPFs under MyChoice Family took another three spots in the bottom performers. The rest of the list is filled with global equity and Asia ex-Japan equity funds.

 

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About Author

Kate Lin

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

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