Update | MPF returns just 0.63 per cent in January; 2014 returns lowest in three years
The Mandatory Provident Fund saw modest average returns of 0.63 per cent in January, sharply down from last year’s return of 1.5 per cent.
Last year’s return was the lowest in three years. The 481 MPF investment funds’ rate of return last month lost out to the Hang Seng Index which rose 3.8 per cent during the month. The January inflation figure has not been released while the figure in December is 4.9 per cent and 3.5 per cent last year.
According to data provider Lipper, Korean equity funds returned the most in January, at 9.47 per cent, followed by Hong Kong equity funds at 2.75 per cent, and Greater China equity funds at 2.14 per cent.
US equity funds, which were the best performers in the last two years, swung to the red with average losses of 3.23 per cent in January. They were the second-worst performers after Other Equity funds, which lost 3.38 per cent.
Yuan bond funds, once a popular choice, suffered a loss, of 1.01 per cent.
Mixed-asset funds, preferred by most employees for their balanced portfolio of bond and equities, returned a modest 0.44 per cent.
