Convoy MPF Index Up 1.42% in October: Transfer Enquiries Double, Performance Leads

This article is a rewrite of a report from November 2012.

In November 2012, Convoy’s investment research unit reported the Convoy MPF Index — the market’s clearest mpf fund performance yardstick — at 169.13 points at end-October, up 1.42% on the month, as US, European and Japanese central-bank easing lifted global risk appetite. In the same week “semi-portability” launched, Convoy’s transfer enquiries doubled versus normal — and what enquirers cared about most was, invariably, mpf fund performance.

MPF performance: which fund type shone in October?

Equity funds; the index’s best constituent fund gained 6.01% in a single month, beating the Hang Seng Index’s 3.85%. Convoy MPF director Chung Kin-keung cautioned: equity funds swing more and carry higher risk, while bond and fixed-income funds are relatively steadier.

When choosing an MPF mix, does performance or fees come first?

Chung: performance usually matters more than fees. Members shouldn’t decide on past performance or fees alone, but weigh fund type, performance and service together. Among transfer enquirers, most favoured schemes with standout fund performance — the 2012 data shows workers vote with their feet for performance first.

When will the switching wave arrive?

Convoy expected early next year. The measure was brand new and citizens needed time to learn the ropes; actual switching would depend on economic conditions then. The market’s expectation matched what followed: transfer cases grew only after the observation period.