MPF Members Made HK$12,093 Each in Ten Months: Equity Funds Led, Healthcare Strongest

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

In November 2012, Lipper’s mpf fund performance data shows that third-quarter Western central-bank easing lifted October’s overall MPF by 0.67% on average, and 8.74% cumulatively over ten months. Excluding the year’s new contributions — on end-2011 total net assets of HK$356.035 billion and 2.573 million participants — the average member made about HK$12,093.80 in ten months.

How strong were MPF equity fund returns?

12.46% on average over ten months — far ahead of the whole. October alone averaged 1.23% for equity funds; pharmaceutical and healthcare equity funds led at 18.72% over ten months (down 0.07% in October), Hong Kong equity funds next at 16.82% (up 3.8% in October); China equity funds gained 10.13% (6.16% in October), Greater China 12.87% (1.67% in October).

What about other categories?

Mixed-asset funds rose 8.76% over ten months (0.35% in October); bond funds 4.12% (just 0.01% in October). Equity funds benefited most from central-bank easing while bond funds idled — category divergence was stark in 2012.

What loomed over the final two months?

The US election and the “fiscal cliff”. Lipper Hong Kong research head Ken Wong warned the presidential election and fiscal cliff added equity-market variables; worst case, post-election partisan deadlock on a fix could slow the US economy in early 2013, with global equities adjusting over the coming two months. November 2012’s warning feels familiar today: MPF short-term volatility always finds new excuses.