MPF fund performance: first-half 2012 return of 3.21pc meant HK$4,869 per worker

This article is a rewrite of a report from July 2012.

Hong Kong MPF turned from loss to gain in June 2012, rising 2.37 per cent for the month and 3.21 per cent for the first half. Based on the MPFA’s end-2011 MPF asset total of about HK$390.7 billion (excluding subsequent contributions), the average worker earned HK$4,869 in the first half, with total gains exceeding HK$12.5 billion.

Which fund categories led the first half?

(Source: Lipper Hong Kong, June 2012)

May’s 6.03 per cent plunge had lived up to the “sell in May” saying; June recovered the ground. The long-term numbers were striking too: over 10 and 5 years, Hong Kong equity funds rose 158.9 per cent and fell 4.30 per cent respectively — the champion among all equity fund categories.

What about the second half?

Lipper’s Hong Kong research head cautioned that European debt problems remained unresolved and a new earnings season was approaching, with corporate profits set to move shares and funds directly — volatility would stay high in the second half. Still, the EU’s measures had met market expectations, so the short-term rebound looked set to continue.

A side note: Hong Kong equity funds tended to swing widely, suiting higher-risk investors — mainly younger ones. Workers were advised to weigh their own risk tolerance before choosing funds.