A 4.66% October rebound puts HK$10,440 back in MPF pockets — but Q3’s hole is deeper

October’s fightback: the year’s second-best month

After nearly half a year in the doldrums, MPF staged a comeback in October: the vast majority of funds posted positive returns, lifting the month’s overall return to 4.66 per cent. With total MPF assets at HK$620.1 billion at end-June and 2.77 million registered employees and self-employed persons, that works out at roughly HK$10,440 per member — the year’s second-strongest monthly gain, behind only April’s “big era” rally. Investment advisers credit the stock-market rally for the turnaround.

The hole that remains: HK$21,059 lost per member in Q3

Across the third quarter, the average member lost HK$21,059. Even after October’s rebound, the average employee is still down HK$10,620 for the second half — one good month cannot fill a quarter’s losses.

The October scoreboard

Lipper Asia data shows Japan equity funds led the way with a 9.62 per cent monthly gain, followed by China equity (8.95 per cent) and US equity (8.58 per cent); Hong Kong equity funds came fourth at 8.21 per cent. Of the roughly 483 MPF funds, only 11 fell in October — mostly bond funds, with the worst down less than 0.4 per cent.

Young workers buy equities; the near-retired seek safety

A Hong Kong Baptist University finance scholar cautioned that market swings only affect short-term returns: MPF allocation should follow your age, and lifecycle funds that shift allocation with life stages are worth a look. An MPF business executive at a local wealth manager suggested young employees consider global equity funds for returns, while those nearing retirement should favour funds with a guaranteed-return component to ride out volatility. Asked whether investing on one’s own beats MPF contributions, he noted MPF’s built-in advantages: employer contributions, tax-free withdrawals at retirement and lower investment risk.