The Dutch pension asset manager's Asia Pacific head of real estate says his team has just had one of its busiest years ever and that 2021 is looking similarly promising.
Equity funds posted an average return of 7.20%, outperforming all other types of funds and posting their highest average return since September 2007.
Funds that invest in China, Hong Kong, and Greater China shares were the top three performers, posting an average return of 15%, 10.82%, and 8.80%, respectively. These equity funds were bolstered by the Chinese governmentÆs unexpected new measures to reduce the stamp duty on equity trading from 0.3% to 0.1% and speculation of further government actions to support the equity markets on the mainland.
Bond funds posted an average loss of 1.63% and were the only asset class that produced a loss for the month. Mixed-asset funds posted an average return of 2.51%, with mixed-asset Hong Kong dollar aggressive funds outperforming the asset class with an average return of 4.19%.
Several fundamental parameters such as the US housing market, unemployment rate, wage growth, and food and natural resource prices suggest that the global investment climate remains challenging, says Eric Wong, head of Hong Kong research at Lipper.
Investors must remain vigilant and should avoid overweighting their portfolios in high-volatility assets until these fundamental parameters have consistently improved, he notes.
Hong Kong established the MPF in December 2000. Monthly mandatory contributions from workers and employers are capped at HK$1,000 each.
Average April performance of MPF portfolios, by asset type:
Mixed Assets +2.51%
Money Market +0.07%
Top five MPF equity funds in April:
ING MPF M T Bas S-HK Equity +17.38%
ING MPF M T Compre S-HK Equity +17.34%
Principal MPF 800-China Equity +15.53%
BOC-Prudential Easy-Choice MPF S-China Equity +14.46%
BCOM Joyful Hong Kong Dynamic Equity Fund +13.90%
Sunsuper and QSuper appoints CIO for combined entity; State Street appoints heads of HK and Taiwan; Nothern Trust rebuilds Apac team; Manulife IM names emerging markets fixed income CIO; RBC Wealth Management hires four into HK; Lombard Odier hires two senior equity managers; Allianz Global Investors appoints Asia hand as equity CIO; and more.
Investors from China and the US are expected to continue buying assets in each other’s markets despite the blacklist of Chinese firms with military and surveillance ties.
Stronger government actions are needed to meet the Paris Agreement goal of limiting global temperature rise to 1.5 degrees, investors such as Hesta and CDPQ signed in a statement.
AsianInvestor explains why we chose the winners of the second half of our 2021 fund manager winners, by major local markets.