2022 third quarter MPF fund performance review
All MPF equity, bond and mixed assets funds fell further in the 3rd quarter of 2022 and are in negative territories year-to-date as inflation, rising interest rates, geopolitical conflicts continue to haunt the market.
The following is a snapshot of near-term, intermediate and long-term performance of some popular MPF fund categories from market leading MPF providers:
Among the equity fund categories, Hong Kong and China equity funds fell the most in the 3Q and became the worst performing fund category across near-term and long-term timeframe, almost eroding all the gains from the past 10 years.
US equity funds lost grounds but fell less on a relative basis and still boost a healthy return across the intermediate and long-term timeframe.
Global equity funds and core accumulation funds also continue to offer respectable performance across different time frames. If you intend to stay invested in the market, these two fund categories offer global diversification across different countries/sectors so you do not have to worry about putting all your eggs in one basket. Core accumulation funds have a 60/40 split in equity/bond asset allocation which provides further asset diversification.
In the MPF and investment world, high fund fees do not necessarily mean better performance and low fees leave more capital to work for you and may provide better odds to outperform in the long run. Some of these global equity funds and all core accumulation funds offer low total expense ratios (less than 1%). Beside fund costs, MPF members can also periodically review own portfolio allocations according to the investment objectives, timeframe and risk tolerance levels.
Looking ahead, market will closely monitor inflation data in the US and Europe as well as potential escalation or breakthrough with geopolitical conflicts.
Please contact us if you want more information about the fund choices from various MPF trustees.
Last Update: 26th October 2022