Why Did MPF Go Red in May 2011?

What did Lipper’s data show?

A June 2011 report cited Lipper: May’s falling global markets left overall MPF down 0.67% on average — the first negative month of the year after five straight gains; year-to-date returns shrank to 2.97%. Korea equities fell 5.25%, Europe 2.25%; Hong Kong (+0.29%) and Greater China (+0.08%) held up. On March asset values, May lost HK$2.53 billion — HK$1,008 per worker on average.

What did experts say about the outlook?

JPMorgan’s Cui Yongchang called the pullback normal after months of gains — European debt, weak US data, Asian inflation were the drags; the dip was a buying opportunity, with equities still preferred, especially Asia. No need to fear “sell in May”; the second half still promised.

What should workers do?

One red month is no panic — MPF is long-term; it’s a good moment to review your mix at MPF fund comparison.