Investing MPF in Japan, US and Asia funds pays off as protests, trade war weigh on Hong Kong stocks in third quarter
- Hong Kong stock funds were the second-worst performers and lost 6.9 per cent during July-September
- In first nine months, Hong Kong stock funds were once again among the worst performers, with an average return of 4 per cent
The 414 investment funds covered by Hong Kong’s Mandatory Provident Fund suffered an average loss of 1.1 per cent during the July to September period, according to data provider Lipper.
Market sentiment has been rattled by the city’s anti-government protests as well as the US-China trade war, and the MPF, which has a combined HK$910.1 billion (US$116.08 billion) in assets under management and serves the city's 2.9 million self-employed and employees, was not untouched by the chaos.
Hong Kong stock funds were the second-worst performers – a single South Korean stock fund lost 7.3 per cent – and lost 6.9 per cent during the quarter. They, however, beat the benchmark Hang Seng Index, which dropped 8.6 per cent during this period, making it the worst performer among major equity gauges globally.
So, did anyone make any money amid the doom and gloom?
According to analysts, anyone who invested their MPF contribution in stock funds focused on Japan, the United States and Asia-Pacific, did well.
Those who invested in Japan stock funds were best off, reporting gains of 2.9 per cent on average. Japanese benchmark Nikkei 225 rose to a 27-year high in September and reported a 6.7 per cent gain for the July to September quarter. The Tokyo Stock Exchange was the best-performing market for the quarter.
