Employees who put their Mandatory Provident Fund contributions into stock funds might have received a paper loss in the first quarter.
According to index compiler FTSE, the benchmark MPF stock funds fell in a range of 3.58 per cent to 13.34 per cent during the period.
Michael Lim, managing director of FTSE Asia Pacific, said the benchmark indices represented the returns of MPF stock funds where fund managers were investing MPF money according to the weighting of the indices.
However, Mr Lim said the actual returns on the 50 MPF stock funds might differ from the benchmark due to varying investment strategies.
The MPF is the compulsory retirement scheme that 1.6 million employees have joined. They and their bosses must each pay 5 per cent of an employee's monthly salary into funds.
There are about 280 MPF investment funds offered by the 20 services providers.
