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2018 proved to be a turbulent year for MPF investors with escalating geopolitical uncertainties looming over the global market. According to Gain Miles’ MPF Composite Index, it recorded a cumulative annual drop of 9.18% last year, clocking its largest annual decline in seven years.
“While the market outlook for 2019 continues to be challenging, MPF members are encouraged to manage their MPF investment regularly in order to attain better returns,” urged Michael Chan, managing director of Gain Miles Group.
“However, members in general might not be aware of how good or bad their MPF investment portfolio is performing.”
This is the reason why the pension scheme consultancy launched its Gain Miles MPF Performance Index in January 2018, with the objective of keeping track of the overall MPF performance and providing investors of different risk profiles with an indicative reference benchmark for their investment return.
On top of the Composite Index, three sub-category indices on Equity Fund, Mixed Assets Fund and Fixed Income Fund have been formed based on the asset allocations and risk levels of various funds. Composed of all MPF constituent funds, the index is one of the most comprehensive MPF performance indexes in the market.
“MPF is a long-term investment. Even the smallest difference in returns can eventually result in significant impact on retirement funding,” Chan said.
“With the index in place, employers can choose a more suitable platform for their employees with reference to the performance of MPF schemes, whereas employees can evaluate whether their MPF portfolio outperforms or underperforms the market benchmark, thus signalling the need for review.”
The index is updated on the group’s website on a weekly basis, along with monthly commentary on market reviews and outlooks, hoping to help corporates and their members obtain timely market information and make the best informed decisions.