Members gained HK$6,990 each in October — after Q3 wiped out HK$58.7 billion

October’s thaw

After the third quarter’s mainland and Hong Kong market turmoil, October brought clearer skies. Thomson Reuters Lipper data shows MPF gained 4.66 per cent month on month, lifted by rebounding Japan, A-share, US and Hong Kong equity funds — roughly HK$6,990 per member. But year to date, MPF is still down 1.12 per cent on average: on the current HK$150,000 average balance, that is about HK$1,680 lost.

Q3: the biggest quarterly shrinkage in 15 years

Gadbury, which tracks MPF data, reports total MPF assets at HK$561.3 billion at end-September — down more than HK$58.7 billion quarter on quarter, the largest quarterly drop since the scheme’s launch 15 years ago. October’s 4.66 per cent rebound has recovered only part of the losses.

The winners: a Korea fund up 23.11% this year

October’s top performers were the HSBC MPF self-select US equity fund and its Hang Seng counterpart, both up 11.4 per cent — and both up 1.41 per cent year to date. This year’s biggest gainer is the Haitong MPF Retirement Fund’s Korea fund (Class A) at +23.11 per cent, followed by the Manulife MPF Japan Equity Fund under the Manulife Global Select scheme at +13.24 per cent.

Pricier fees, winning returns: 1.81% versus the 1.6% average

MPFA data puts the two year-to-date leaders’ latest expense ratios at 1.81 per cent and 1.96 per cent, above the 1.6 per cent average — pricier, but winning on returns. The comparison is worth members’ attention: fees are one variable in returns, but not the only one. In volatile markets, asset allocation and market selection often matter more than a few tenths of a point in charges.