MPF fund performance in 2011: down 9.2%, members lose HK$13,000 each

Global equity markets were unsteady through 2011, and MPF fund performance suffered. According to Thomson Reuters Lipper data as of 16 December 2011, MPF recorded an average annual loss of 9.2% — its first full-year loss since the 2008 financial crisis — wiping out about HK$32.9 billion, or over HK$13,000 per member.

How did MPF fund performance fare in 2011?

As of 16 December 2011, MPF posted an average annual return of minus 9.2%; factoring in a modest Hang Seng rally in the final two weeks, the full-year loss was estimated at around 9%. MPF assets shrank by roughly HK$32.9 billion in 2011, costing the average member over HK$13,000; equity funds were the biggest losers, with Greater China equity funds plunging 23.5%, while only bond funds stayed positive at 2.77%.

2011 returns by fund category (as of 16 December 2011)

Equity funds lost big; bond funds stood alone

MPF was flat in the first half of 2011 before the escalating European debt crisis dragged returns down in the second half. Local favourites — Greater China, Hong Kong and China equity funds — all lost more than 20%. The best-performing equity funds were North America plays, losing only 3.2% on average thanks to a strong US market. Bond funds led with a 2.77% average gain, topped by HKD bond funds at 4.43%.

One bad year is not a long-term verdict

MPF is a decades-long retirement saving journey, and single-year market swings are not unusual — members need not switch in panic after a short-term loss. For the long-term risk-return profile of each fund type, see the MPF education hub.