HK MPFs gain 1.4% in H1 2011

Lipper data shows MPF funds gained 1.4% in the first half of this year, reversing a 4.83% loss in H1 2010 — though well down from the 12.97% surge in H2 2010. Bond MPFs led all asset classes with a 3.17% gain; mixed-asset MPFs came second at 1.75%.

Which fund type led in H1?

Bond funds, up 3.17% — the best-performing asset class. Risk-averse money chased bonds; mixed-asset funds followed at 1.75%.

Why slower than H2 2010?

A high base from H2 2010’s 12.97% surge plus choppy H1 markets narrowed the gains. Moving from -4.83% to +1.4% is still a clear year-on-year improvement.

What should workers take away?

Short-term swings are normal — the MPF is a long-term investment. Rather than chasing half-year gains, check whether your fund mix matches your risk tolerance.

Compare MPF fund performance at MPF fund comparison.