Affected by the fluctuations in the stock and bond markets since the beginning of this year, the performance of MPF has been unsatisfactory. Although it rebounded in November, it still recorded a loss of more than 170 billion yuan in the first 11 months. If you take a recent 800-square-foot three-bedroom in Taikoo Shing The unit priced at 11 million yuan, that is, wage earners "lost" a total of 17,000 units!
On a per capita basis, the loss during the period was nearly 40,000 yuan, the worst performance since 2008!
Some experts believe that there is room for improvement in the MPF mechanism, including that the current investment options are not diversified enough. It is suggested that new investment categories such as real estate can be added. The long-term return will definitely outperform the Hang Seng Index.
The MPF recorded a loss of more than 170 billion yuan in the first 11 months, with a per capita loss of nearly 40,000 yuan, the worst performance since 2008.
In the first 11 months, the per capita book loss was nearly 40,000
According to the data provided by Morningstar to "Hong Kong 01", except for May, July and November, which recorded positive returns this year, all other months have negative returns.
From the beginning of this year to December 1, all MPF funds recorded a decline, with an average return of 15.32%.
In terms of annual return, it is the worst performance since 2008.
During the period, the Hong Kong dollar monetary fund, which includes investing in short-term bank deposits, also recorded a decline, but it was already the best performing fund, with an average return of 0.03%.
The worst performers were China and Greater China stock funds, with an average return of 26.55%, followed by Asian stocks (excluding Japan), with an average return of 21.54%.
Simply based on the total assets of the MPF at the end of March of 1,181.795 billion yuan, the loss in the first 11 months was 181.051 billion yuan. Based on the total number of plan members of 4.586 million, the per capita book loss in the first 11 months was 39,500 yuan.
Lei Zhihai said that there are areas for improvement in the MPF, including that the current MPF investment options are not diversified enough. choose.
Experts are not in favor of abolishing MPF but leaving room for improvement
Veteran investor Lin Yiming said that the accumulative performance of the MPF this year has been unsatisfactory, mainly due to fluctuations in the stock and bond markets. US interest rate hikes have affected the performance of US stocks and Hong Kong stocks, and the high interest rate environment is not conducive to the bond market.
At the same time, another major factor plaguing the Chinese and Hong Kong stock markets is the zero-clearing policy in the mainland. Since November, the mainland has begun to optimize and relax the epidemic prevention policy. The stock market rebounded, driving the performance of the MPF.
If we look at the performance of November alone, all funds recorded positive returns during the month, with an average return of 9.91%
In response to voices in the market regarding the abolition of the MPF, or the implementation of semi-independent activities, Lin Yiming suggested that the MPF should be adjusted as an option for wage earners to save and invest, rather than mandatory.
He said that MPF mainly invests in Hong Kong stocks, but the Hang Seng Index has experienced 20 years of fluctuations and has not experienced much cumulative increase. However, MPF needs to charge more than 1% of management fees every year, which makes wage earners lose more than they gain.
Lei Zhihai, the chief investment director of the asset management group, said that he does not agree with the complete abolition of the MPF. He agrees that the original intention of the MPF is to help wage earners save money for retirement. Diversified enough, the MPFA has stricter checks and is unwilling to see higher-risk funds launched, thus limiting investors' choices.
Lin Yiming said that investment in the property market can be used as one of the options for retirement protection for wage earners. The decline in the property market this year is mainly due to the impact of the customs closure and the US interest rate hike. It is expected to rebound by the middle of next year and will definitely outperform the Hang Seng Index in the long run.
MPF as the first phase of expert support
In addition, Shi Yongqing, founder of Centaline Real Estate, recently proposed that the government should allow citizens to use half of their MPF to buy properties for self-occupation.
Lei Zhihai believes that this proposal is worthy of the government's consideration.
He pointed out that Singapore also has a similar policy, but there are relevant mechanisms to control it, and Hong Kong can also follow suit, including requiring wage earners to re-invest funds in the MPF before the deadline.
Lin Yiming said that investment in the real estate market can be used as one of the options for wage earners’ retirement protection, rather than simply supporting the real estate market. The decline in the property market was mainly due to the impact of the customs closure and the US interest rate hike. It is expected to recover by the middle of next year, and it will definitely outperform the Hang Seng Index in the long run.