MPF schemes see loss of 2.43% in January

06 February 2014   Category: News, Asia, Global, Hong Kong   By Asia Asset Management

Hit by the unfavourable market conditions, Hong Kong’s Mandatory Provident Fund’s average returns plunged into the red in December and January. The average losses suffered in January were 2.43%, according to fund consultancy Lipper.

Only five out of 24 MPF schemes managed to keep their returns in the black last month. Funds investing in the pharmacy and health sectors topped their peers with a return of 1.54%. It was followed by global bonds and HK$ bond mandates that delivered returns of 0.58% and 0.29%, respectively.

CNY bond mandates, the new fund choice with less than a year track record, secured a return of 0.29% in January.    

The downtick of Asian stock markets brought down equity performances. Hong Kong equities were down 5.32% while Korea equities and China equities mandate fell 6.73% and 7.07%, respectively.