MPFs notch up average annual return of 5.22%

03 April 2014   Category: News, Asia, Global, Hong Kong   By Asia Asset Management

Hong Kong’s Mandatory Provident Funds (MPFs) delivered inflation-beating returns of 5.22% on average on a year-on-year basis, according to March statistics from Lipper.  

The result means the defined contribution (DC) retirement scheme was able to provide inflation protection for the majority of its members given that the composite consumer price index (CPI) was 4.3% in the territory for 2013 and inflation was somewhere between 3.9% and 4.6% in the first two months of this year.

In terms of performance, Lipper found European equity and pharmacy and health sector equity to be the best performing investments from the 24 fund categories available – they delivered annual returns of 24.49% and 23.55% respectively. Underperforming components included China equity; Asia-Pacific bonds, guaranteed; Korea equity; and CNY bonds

Product-wise, the BCT (MPF) Pro Choice-BCT (Pro) European Equity fund was the best performer, generating an annual return of 33.43%. It was followed by AMTD MPF-AMTD Invesco Europe fund, which grew by 33.04% over the previous 12 months.