Why Did MPF’s 7% Gain Beat Hong Kong Stocks?

How Did MPF Perform in 2010?

Lipper Hong Kong data showed MPF returned over 7% for 2010, beating the Hang Seng Index’s 5.3% rise. Based on end-2009 net asset values, each worker earned about $8,934 on average.

Which Fund Type Shone Brightest?

Equity funds led with 10.22% for the year — Korea equity funds topped at 17.15%, Asia-Pacific ex-Japan funds followed at 15.19%, and Hong Kong equity funds made 10%. Mixed-asset funds returned 7.6%; bond, money-market and guaranteed funds managed 3.87%, 0.03% and 2.84%.

What Did Experts Suggest?

Convoy’s Siu Mei-fung noted equity funds usually ran ahead of the Hang Seng, and tipped equity funds again for 2011 — though not overly optimistic on China, with Southeast Asia worth a look. Lipper’s Wong Chak-ming expected a favourable environment amid excess liquidity and persistently low rates.
Last year’s winners may not repeat — compare MPF funds on long-term returns and fees to allocate wisely.