Market sell-down leaves MPF funds in the red
Pension scheme slips 0.87 per cent in May as stocks in Japan and emerging economies drop
The Mandatory Provident Fund, which covers the city's 2.5 million employees, sank back into the red last month as Japanese and emerging-market stocks fell.
The 458 investment funds under the retirement scheme reported an average month-on-month loss of 0.87 per cent after a gain of 1.9 per cent in April, according to data provider Lipper.
For the first five months of the year, the MPF recorded an average gain of 2.74 per cent, far short of the 12.07 per cent growth seen in the same period last year.
Almost all categories of funds suffered losses last month. The exceptions were stock funds investing in the United States and Europe, and the most conservative fund types that put their money in bank deposits.
Japanese equity funds, the best performers in the first four months, performed the worst last month with an average loss of 5.89 per cent. This came as the Nikkei-225 Index fell 15 per cent after gaining 33 per cent in the first four months.