MPF losses top HK$10,000 per worker: what next after the black August

After the “black August”, workers’ MPF went into the red again. Lipper data to end-August 2011: MPF fell 6.76% on average, the worst month since the September–October 2008 tsunami, costing each worker over HK$10,000 in a month and flipping year-to-date returns from positive to negative 5.03%.

Which assets were hit hardest?

Equities were a sea of red, down 11.27% overall. Korea equity, down 17.77%, was the worst casualty; Hong Kong, Greater China, China, Asia-Pacific and Europe equities all fell double digits, while storm-centre North America fell only 7.37%. Bonds remained the haven, up 1.04% against the trend; over eight months, overall equity was still down over 10% while overall bonds rose 5.51%.

How much money was lost?

On MPFA asset values at end-June (excluding July–August contributions), August wiped out nearly HK$26 billion — about HK$10,228 per worker for the month.

How should investors cope?

Near-retirees should shift toward bonds; younger members may buy dips — but never panic-sell and turn paper losses into real ones. MPF is a decades-long marathon; one month’s result should not change the whole race plan. Compare fund types’ downturn performance with MPF fund search.