MPF performance ranking: equity funds lost nearly 20% in Q3 2011

Hong Kong stocks tumbled 4,806 points in the third quarter of 2011, a 21.5% plunge that spared no one — including MPF members. Lipper data released that October showed all MPF funds down 12.25% on average for the quarter, surpassing the falls seen when the financial crisis broke out and marking the largest quarterly loss since the MPF system began in 2000, at nearly HK$20,000 per member.

Which MPF fund categories fell hardest in Q3 2011?

The Q3 2011 MPF performance ranking puts equity funds at the bottom, down 19.96% on average for the quarter and a further 12.01% in September alone, trailing every other category. The best performers were bond funds, up 0.13%, with money market funds also in positive territory at 0.03% — the only two categories to stay above water.

China equity funds fell 26.88%, the weakest of all

Among equity funds, China equity funds suffered most in the quarter with a 26.88% drop, followed by Greater China equity funds at 24.51% and Korea equity funds at 24.2%. Hong Kong equity funds, popular with local members, lost 22.71%.

Excluding new contributions that quarter and based on total net assets of HK$384.475 billion as of June 2011, MPF assets shrank by HK$47.098 billion in three months — about HK$18,500 per member across roughly 2.541 million employees and self-employed persons. September alone saw a 7.75% average fall, the steepest monthly drop since the 12.2% plunge of October 2008.

In a market rout, the choice of fund category matters more than many expect. Members can review performance by category through MPF fund comparison, or learn about different asset classes at the retirement investment education hub.