MPF returns of 1.18 pc slowest in three months, trailing HSI's 3pc

Investment funds in the Mandatory Provident Fund scheme, which covers 2.4 million employees in the city, reported their slowest growth in three months last month, with returns trailing the performance of the benchmark Hang Seng Index.

The 456 MPF funds reported an average return of 1.18 per cent last month while the Hang Seng Index rose 3 per cent, data provider Lipper reported.

The funds grew 2.13 per cent in October and 4.18 per cent in September. For the first 11 months of this year, the funds reported an average return of 8.12 per cent, well short of the 12.07 per cent gain for the whole of last year but a substantial improvement on the loss of 8.42 per cent in 2011.

All types of equities funds, mixed-asset funds and money market funds saw positive returns last month, as well as for the first 11 months of the year. However, various bond funds suffered losses last month and in the 11 months.

Asia-Pacific bond funds were the worst performers last month, recording an average 1.53 per cent loss, followed by global bonds with a 0.58 per cent loss and Hong Kong dollar bonds with a loss of 0.47 per cent.

They were also the worst performers in the first 11 months, with Asia-Pacific bond funds reporting an average loss of 4.46 per cent, Hong Kong dollar bond funds a loss of 2.6 per cent and global bond funds a loss of 2.02 per cent.