MPF on course for single-digit returns

Each Mandatory Provident Fund scheme member gained about HK$5,411 on average in the first half of this year, while the full-year returns is expected to be a single-digit number, said MPF consultant GUM yesterday.

GUM estimated that the MPF funds gained 2.2 percent this month as of June 23, bringing an income of HK$5,181 per member. The year-to-date returns amounted to 2.4 percent, or HK$5,411 per member.

The June performance was dragged by market volatility in Hong Kong and Greater China, said GUM.

The three major fund indices also maintained positive returns in the year's first half, with the equity fund index up 3.4 percent at 296 points, the mixed asset fund index up 2.1 percent at 223 points, and the fixed income fund index up 0.1 percent at 123 points.

Looking ahead, GUM said the ongoing wave of artificial intelligence investment in the US will boost MPF returns. The North American equity fund is the best performer so far this year, with a return of 16 percent.

But GUM sees a single-digit return for the full-year MPF investment, amid geopolitical tensions and the slowdown of China's economic recovery.

In addition, GUM said that if the mainland launches targeted policy measures to boost the economy in the second half of the year, Hong Kong stocks would rise to 21,000 points, which would bring a 5-6 percent return for MPF funds.