MPF members to record HK$21,542 loss each in March amid Middle East turmoil

Each Mandatory Provident Fund scheme member averagely lost HK$21,542.7 as of March 23 within the month, with an investment decline of about 6.33 percent - on track to be the seventh worst on record and mark the worst performance month since September 2022, according to a pension fund consulting firm MPF Ratings.

MPF is expected to give up around HK$103.3 billion in March, the largest monthly investment loss, as the military intervention in Iran by the US and Israelis has sent energy prices, market volatility, inflation, and recessionary concerns jumping significantly, the firm said.

Total MPF assets are estimated to reach HK$1.53 trillion as of the end of March, down HK$100.3 billion from a month ago, equivalent to an average MPF account balance of HK$319,345 for each member.

All equities funds are recording losses in March, with Japanese equities on track to record their worst month since October 2008, falling 12.5 percent, while the Hong Kong and China equities category is forecasted to record its worst month since October 2022, down 9.26 percent.

In contrast, MPF's long-term results remain solid, with 5-year and 10-year annualised MPF returns of approximately 1.28 percent and 4.01 percent, respectively.