August 2022 MPF Fund Performance Analysis
2022 has been a challenging year for all MPF members and investors in general with rising inflation, rising interest rates and ongoing geopolitical conflicts.
As of 31st August 2022, all MPF equity, bond and mixed assets funds are in negative territories and the following is a snapshot of short, intermediate and long-term performance of some popular MPF fund categories from market-leading MPF providers:
Among equity fund categories, Hong Kong and China equity funds have the worst performance across the near-term and long-term timeframe while US equity funds have the best performance. While no one knows when the trend will continue or when the tide will reverse in the future, instead of putting all your eggs in one basket(country/region/sector), you can diversify by choosing a global equity fund which demonstrates a respectable performance over similar timeframes. With this strategy, the fund will take care of rebalancing country allocation and reduce the risk of over-concentration in one country/region.
If you would like more diversification to bond funds, the core accumulation fund category is a good option. It is the more aggressive one of the 2 funds made up of the default investment strategy (DIS) and its near and intermediate term performance has been respectable. With a 60/40 split in equity/bond asset, it has a good balance of risk and return due to its low fee(<1%)and global diversification features.
Please contact us if you want more information about the fund choices from various MPF trustees.
Last Update: 30th September 2022