Hong Kong’s Mandatory Provident Fund’s equity fund category posted a return of 16% in the 12 months to March, the highest among the six types of funds in the retirement scheme, as strong technology sector earnings drove stock market gains in the city and the Mainland.
The equity fund category accounts for 46% of the MPF’s HK$1.63 trillion (US$208.9 billion) of assets.
The mixed asset category, which makes up 34% of the scheme’s assets, earned the second highest return of 12.7%.
The Mandatory Provident Fund Schemes Authority (MPFA), regulator of the MPF industry, released the figures in a statement on April 8.
More than 30% of MPF assets are allocated to Hong Kong and China, where the benchmark stock indices rose 8.4% and 15.2%, respectively, in the 12 months to March.
The MPFA reminded MPF members that the retirement scheme is designed for long-term investments, and that timing the market could hurt their savings.
“This may lead to buying high, selling low, and adversely impact MPF investment returns during the accumulation phase of scheme members,” the regulator says. “Scheme members are encouraged to make sound personal investment plans based on their life stage, financial situation and risk tolerance.”
