Top 10 MPF funds by year-to-date investment return as of 31 December 2020:

Rank Fund Name Scheme Name / Trustee YTD return as of 31 December 2020
1 BOC-Prudential My Choice China Equity Fund BOC-Prudential My Choice / BOCI-Prudential Trustee Limited 51.75%
2 Mass Greater China Equity Fund Mass MPF / YF Life Trustees Limited 51.05%
3 Principal Smart Plan - Dynamic Greater China Equity Fund Allianz Global Investors 46.94%
4 Allianz Asian Fund - A Allianz Global Investors / Bank Consortium Trust Company Limited 45.78%
5 Mass US Equity Fund Mass MPF / YF Life Trustees Limited 43.08%
6 Sun Life Rainbow Greater China
Equity Fund - B
Sun Life Rainbow / Sun Life Pension Trust Limited 42.96%
7 Allianz Oriental Pacific Fund - A Allianz Global Investors / Bank Consortium Trust Company Limited 41.70%
8 Allianz Greater China Fund - A Allianz Global Investors / Bank Consortium Trust Company Limited 40.88%
9 BCOM Joyful Greater China Equity Fund BCOM Joyful / Bank of Communications Trustee Limited 40.62%
10 AIA Prime Greater China Equity Fund AIA Prime Value Choice / AIA Company (Trustee) Limited 40.24%

Source: Mercer MPF Fund Performance Report

Note: Past performance is neither an adequate test of comparative performance nor a reliable indicator of absolute level of returns in the future.

   Speed Read 

  • In 2020 Q1, all equity funds experienced a sharp drop with an average of -18.1%, while a significant recovery has taken place in Q2 and Q3, averaging 15.3% and 5.4% respectively.
  • In 2020 Q4, strong performance has been observed among equity funds with exposures in Asia ex Japan, Greater China and actively managed Hong Kong Equity Funds.
  • Greater China Equity Fund has been the best-performing asset class year-to-date in 2020, winning 7 out of 10 places for the top 10 funds of the period in terms of investment performance. On the contrary, that Hong Kong Index Tracking Funds has been the worst-performing asset class, followed by MPF Conservative Funds, averaging 0.0% and 0.5% respectively.
  • Greater variation in performance is observed within equity asset classes in such turbulent market, in particular actively managed funds in general did notably better than passively managed funds.
  • The market sentiment remains optimistic while eyeing for a significant economic bounce in 2021, prompting the outperformance of equity asset classes, being more appealing than other asset classes such as bonds.
  • Does it Matter: A 1% difference in annual investment return can result in ~50% difference in accumulated retirement benefits over a 40-year saving period.

   What Mercer Can Do For You 

  • Review providers for best in market fees and services
    o   Negotiate with existing provider to improve fees and services
    o   Select new providers to replace or add for diversification from incumbent
  • Implementation MPF solutions and employee communications
  • Support employee engagement programs as it relates to MPF benefits
  • Bring you latest market insights from our vantage point in the industry

Please contact our consultants if you wish to discuss this further.

Ambrose Lau: (852) 3476 3961/ ambrose.lau@mercer.com

Rendzina Cheung: (852) 2301 7569/ rendzina.cheung@mercermarshbenefits.com

About Mercer

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