HK retirement funds negative in JanuaryBusiness | 14 Feb 2020 5:26 pm
Each investor of the Mandatory Provident Fund lost 2.63 percent, or HK$5,841 in January amid a “risk-off” mode during the coronavirus outbreak, according to wealth management consultant Gain Miles.
The total assets of the MPF shrank by 2.1 percent from the end of last year to HK$949 billion last month, but investors still have a positive overall return as the loss was offset by a 3.23 percent gain in December.
The worst performer in January was equity funds which saw a loss of 16 percent. Mixed asset funds slid by 4 percent last month while the fixed-income funds stayed.
The coronavirus epidemic has drastically turned market into “risk-off” mode, with major market indices suffering correction as the crisis escalates, the firm said. The impact will be further reflected in the return of end of January, after incorporating such corrections.