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Tuesday, July 5, 2016, 17:01

MPF shows recovery in 2016

By Lin Wenjie

MPF shows recovery in 2016
This undated photo shows t wo booklets of "Getting Information about Your MPF" published by the Mandatory Provident Fund Schemes Authority . (Photo provided to China Daily)

HONG KONG - Employees lost an average of HK$1,182 on the Hong Kong Mandatory Provident Fund (MPF) in the first half of 2016.

The fund overall appears to be stabilizing, however. According to data company Thomson Reuters Lipper, the MPF recorded a 0.13 percent gain in June, thanks to the strong performance of Chinese equities. Nevertheless, Britain’s shock exit from the European Union last month weighed on the MPF performance.

The China Equity fund was the best performer in June, recording a 2.54 percent gain, while the Europe Equity fund was the worst performer with a 5.73 percent loss registered.

So far this year, the MPF has lost 0.55 percent, compared to the whole year loss of 2.95 percent registered in 2015. That was the worst annual performance since 2011, when the MPF lost 8.57 percent after the stock and bond markets were battered during the European debt crises.

If calculated according to MPF's aggregate net asset value of HK$592.6 billion at the end of March, the loss in the first half year would amount to HK$3.26 billion and each employee's loss would be HK$1,182.

The MPF recorded negative growth for four consecutive months from last November. The trend reversed in March, followed by negative growth recorded once again in May.

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