Hong Kong’s MPF pension scheme set for more good returns in 2018, Fidelity says
A positive outlook for stock markets around the world means that the fund should build on its best performance in eight years last year
Hong Kong’s Mandatory Provident Fund (MPF) pension scheme should continue to post good returns because of positive outlooks for stock markets in Asia and North America, according to Fidelity International, one of the top managers of the scheme.
The HK$780 billion (US$100 billion) MPF, which covers 2.8 million employees and self-employed people in Hong Kong, recorded its best performance since 2009 last year with a 20.55 per cent return, according to data from fund research company Thomson Reuters Lipper.
“While global markets have already gone through nine years of bullish runs, there are no obvious catalysts to suggest a material change in the direction of the stock market,” Terrence Kan, client portfolio strategist of Fidelity International, said on Tuesday.
Fidelity noted the outlook for bond markets across the globe was negative, with hawkish central banks and political tensions set to push yields higher.
It suggested that MPF members diversify their portfolios instead of focusing on individual markets.
“They can put more money into the Hong Kong market or China market if they like. But it’s always advisable to take a more diversified view,” said Luk Kim-ping, head of Fidelity’s Hong Kong defined contribution business.