MPF gains 8% in first three quarters: over HK$11,000 per member on average

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

Thanks to coordinated central-bank easing in Q3, global equities rebounded; mpf fund performance for the quarter topped 4%, and for the first nine months averaged a gain of 8% — more than HK$10,000 per member account.

How did Q3 lift returns?

The ECB launched bond-buying rescue measures, the Fed rolled out QE3, and the Bank of Japan expanded easing. The Hang Seng Index jumped 1,357 points in September alone (+6.97%) and 1,398 points for Q3 (+7.2%).

Lipper data showed:

How much did each member earn?

Excluding 2012’s new contributions, on HK$356.035 billion of total net assets at end-2011 across about 2.573 million employees and self-employed persons, each member earned roughly HK$11,152 over the nine months.

Which fund types led?

Equity funds benefited most, with Asia-Pacific ex-Japan equities up 14.38% — the top performer.

What threatened Q4?

A Lipper Hong Kong research head flagged Spain’s debt problems, the US presidential election and America’s “fiscal cliff” as Q4 variables — the cliff mattering most. Worst case: if the two parties failed to agree, the US economy could slide into recession in the first half of 2013, with equities pricing in the damage in Q4 and global markets under pressure.