MPF loses 4.53 per cent of value in first half
Managers warn of volatility ahead, and urge employees to adopt diversified approach to reduce risk
Britain’s vote to leave the European Union is expected to have hurt investments within Hong Kong’s Mandatory Provident Fund, experts said on Wednesday, after data revealed a 4.53 per cent drop in values during the first half year.
Managers are now warning of further volatility ahead, and have urged employees to adopt a diversified approach to their constituent investments, to reduce further risk.
Of the funds that cover 2.5 million employee members in Hong Kong, Japanese equities were the worst performers, with a loss of 12.47 per cent from the beginning of this year to June 24, according to the data from Morningstar.
They were followed by European equity funds, down 9.3 per cent, while the Greater China equity funds lost 7.17 per cent. Hong Kong equity funds lost 7.18 per cent.
Global bonds were the best performers in the period, with a 4.71 per cent return, while Asian bond funds also increased 4.33 per cent in value.
Fidelity International investment director Terrence Kan Lap-hang said the equities markets in the first six months were hurt by the Chinese economic slowdown, the continued terrorist threat globally, and nerves over the Brexit vote in Britain.