MPF back in the red after two years, down 0.5% and HK$1.9 billion in a quarter

The MPFA’s latest data shows MPF fell 0.5% in the three months from April to end-June — before August’s global rout; on Q1 total assets of HK$378.28 billion, members collectively lost nearly HK$1.9 billion.

When was the last quarterly loss?

The last time workers’ “blood-and-sweat money” shrank was over two years ago after Lehman Brothers collapsed: MPF plunged 25.9% in 2009, fortunately rebounding 30.1% the following year. This is the first quarterly loss since Lehman.

What’s the overall scale of MPF?

Total net MPF assets reached HK$384.475 billion at mid-year; across more than 2.54 million members, the average account held HK$151,308 — up HK$6,406 (4.4%) from HK$144,902 at end-2010.

Will August be worse?

The market feared August’s average MPF return was in danger, likely negative again — the 7.74% August plunge confirmed those fears. Short-term swings are inevitable; MPF is a long-term investment, and quarterly figures are no reason for panic switching. Workers should regularly review their MPF fund mix and build a long-term mindset via MPF educational resources.