MPF Funds Split 48.93 Points in July as Korea Funds Crash

HONG KONG — MPF research platform MPFGo’s July 2026 monthly performance report reveals an extreme dispersion in MPF fund returns: the top performer, the BEA China Tracker Fund, returned +14.67%, while the worst performer, the Haitong Korea Fund-Class T, lost 34.26% — a single-month gap of 48.93 percentage points. The top-10 funds averaged a +13.18% return, while the bottom-10 averaged -20.24%, a 33.42-point divergence that lays bare how concentrated regional MPF exposures have become.

Top 10: All Hong Kong / China Equity-Linked

Every fund in MPFGo’s top-10 list for July was tied to Hong Kong or Mainland China equities, with all delivering double-digit monthly gains:

• BEA China Tracker Fund: +14.67% (YTD -2.08%)
• Hang Seng China Enterprises Index Fund: +14.38% (YTD -2.05%)
• Manulife MPF Hang Seng ESG Fund: +12.88%
• My Tracker Fund of Hong Kong: +12.88%
• Hang Seng Index Fund: +12.87%
• Invesco Hang Seng Index Fund – Unit Class A: +12.87%

Notably, the BEA China Tracker and Hang Seng China Enterprises Index funds still posted year-to-date losses of -2.08% and -2.05% respectively. Other top-10 funds ranged from -0.06% to +2.21% YTD, indicating that much of July’s rally was rebound and repair from earlier 2026 drawdowns rather than fresh momentum.

Bottom 10: Korea, Asia and Regional Equity Funds

Losers clustered around Korea, Asia and regional equity strategies:

• Haitong Korea Fund – Class T: -34.26% (YTD still +38.98%)
• Haitong Asia Pacific Fund – Class T: -27.41% (YTD +34.60%)
• Multiple BEA Asian Equity Funds: -22.03% to -22.55%
• Haitong Worldwide Diversified Fund – Class T: -19.55%

Although the Haitong Korea Fund lost 34.26% in July, it still posted a +38.98% year-to-date return, with BEA’s three Asian equity funds ranging from +17.92% to +19.07% YTD. The fund posting the worst monthly result can simultaneously be one of the year’s strongest performers — short-term rankings and longer-term performance can paint very different pictures.

Korea Tech Sell-Off: A Microcosm of the AI Trade Cooling

Korea’s market was the principal driver of July’s Asian fund rout. Korean equities had rallied sharply in the first half of 2026 on surging AI and high-bandwidth memory (HBM) demand, lifting semiconductor-heavy Korean and Asian funds to strong YTD returns.

In July, that trade unwound. Concentrated profit-taking hit the sector as markets reassessed valuations, the sustainability of AI capex, memory demand and competitive dynamics. Because Korean equities and many Asia funds carry heavy weights in large-cap tech and semiconductor names, the pullback magnified their monthly drawdowns. The Haitong Korea Fund’s 34.26% July drop — paired with a 38.98% YTD gain — perfectly captures the coexistence of sharp short-term correction and strong year-to-date gains.

What MPF Members Should Take Away

Three lessons stand out from the MPFGo data:

• Concentration risk: Regional funds (especially Korea and Asia) carry outsized exposure to single sectors like semiconductors; review underlying holdings rather than relying on fund names.
• Short-term ≠ long-term: Haitong Korea lost 34% in a month but is still up 38.98% YTD — monthly rankings are an unreliable gauge of fund quality. Rolling 3-, 5- and 10-year returns are more meaningful.
• DIS funds as a default: The MPFA-mandated Default Investment Strategy funds (Core Accumulation Fund, Age 65 Plus Fund) automatically rebalance equity-bond exposure by age and remain a robust default for members without the time to research.

Conclusion: Lessons from a Polarised Month

July 2026 once again demonstrated the value of diversification inside MPF. When Hang Seng Index funds rose 12.87% and Korea equity funds fell 34.26% in the same month, the risks of single-market bets were laid bare. MPFGo’s data is a reminder that monthly volatility on MPF statements is normal — long horizons, regular contributions and broad diversification remain the cornerstones of retirement saving.

Source: MPFGo July 2026 MPF Monthly Performance Research Report (4 August 2026); Zhitong Finance.