MPF Beats the Market: up 3.5% as Hong Kong Stocks Fall 0.5%

The latest mpf fund performance figures show overall MPF returned 3.5% over the past year, far outpacing Hong Kong stocks’ 0.5% fall; since the MPF’s inception to this June, MPF returns have beaten inflation 7.4 times over. The figures come from Thomson Reuters Lipper Hong Kong research head Samuel Wong, who reminds workers: “MPF is a long-term investment — do not judge it by short-term gains and losses.”

How strong were MPF returns?

Up 3.5% in a year versus –0.5% for Hong Kong stocks; 7.4 times inflation since inception. Wong reports the past year’s overall MPF return of 3.5% dwarfed Hong Kong equities’ 0.5% decline. From the MPF’s launch to this June, returns outran inflation 7.4-fold. Over the long run, MPF has done its homework.

Which funds drove it?

US equities led at 19.1%; Hong Kong equities gained 12.9%. The year’s best performer was US equity funds at 19.1%, with Hong Kong equity funds up 12.9%. At the other end, Hong Kong bond funds were the sole decliners at –0.3%. US equity strength was the biggest reason MPF beat the market this round.

How should workers read these numbers?

As long-term investors, not short-term scorekeepers. Wong’s reminder stands: MPF is a long-horizon investment — one year of outperformance is no cause for complacency, nor one bad year proof of failure. Diversify and review regularly; that is how you ride out market swings.

To compare charges and returns across MPF funds, visit MPF fund comparison.