Hong Kong MPF fund performance: October gains 6.64% after two months of losses

Hong Kong MPFs ended two months of losses with an average 6.64% return in October 2011, Lipper figures showed, driven by a sharp rebound in equity MPFs. But the monthly bounce could not repair the year’s damage: MPF was still down 5.29% year to date on average.

How did MPF funds perform in October 2011?

Equity MPFs posted the biggest rebound, up 10.56% on the month; every category gained. China equity led with +15.83%, followed by Greater China (+12.91%) and Asia-Pacific equity (+12.62%). Mixed-asset MPFs gained 6.19% on the global stock recovery, while bond MPFs lagged all categories at +0.89%.

The year’s damage: equities down double digits

Year to date, equity and mixed-asset MPF gains had evaporated 10.35% and 4.21% respectively. Bond MPFs remained the better play, delivering 4.09%. The dispersion told the year’s story in one table: risk assets punished, safe assets rewarded — the exact mirror of 2011’s euro-debt turmoil.

What members can do

A 6.64% month after two losing months is a reminder, not a rescue: single-month figures say nothing about the right allocation. The members who fared best in 2011 were not those who timed October’s rebound but those whose mix already included bonds — diversification working quietly. Review your allocation by time horizon, not by monthly league tables. The MPF education hub explains category risk and return.