MPF Chases Record 4th Straight Year of Gains as Sept Dip Looms

MPF Ratings has released its latest report: as markets enter the final trading week of September, the MPF system is currently showing a modest investment loss of approximately -0.22% (measured by the MPFR All Fund Performance Index as at 21 September).

On track for a 4th consecutive positive year

Despite the expected monthly loss, the system remains on course for a solid 1.77% third-quarter and 7.55% year-to-date return. A positive result this year would mark MPF’s 4th consecutive year of gains — a feat seen only once before, between 2003 and 2007.

Per-member return

September’s investment loss is projected at HK$3.8bn, or HK$768 across MPF’s 4.97 million members. Yet Q3 and year-to-date investment gains are still expected to reach HK$29.6bn and HK$118.3bn respectively — HK$5,959 and HK$24,453 per member.

Assets dip slightly but accounts stay healthy

After factoring in contributions and investment results, total MPF assets are forecast to ease from the August record high of HK$1.706tr to about HK$1.705tr at end-September, still up HK$151bn year-to-date, with an average account balance of HK$343,242.

Asset-class divergence

At the asset-class level, US equities are currently MPF’s best performer in September, while Asian equities continue to lead year-to-date, buoyed by strong but highly volatile returns from the technology-dominated Korean and Taiwan markets.

Guard against complacency

Francis Chung, Chairman of MPF Ratings, warned that markets continue to navigate interest-rate, tariff and inflation hurdles with geopolitics front and centre, urging members to guard against complacency and reaffirming the critical role of diversification and the MPFA-mandated low-fee Default Investment Strategy (DIS) funds.

Source: MPF Ratings