After two tenures, AsianInvestor's 2021 Standout CIO Jang Dong-hun looks back on the past six years at Korea's Poba with satisfaction.
Equity funds posted an average return of 7.10%, outperforming all other types of funds in October, just as they did in the previous month.
Among equity funds, portfolios that invested in Asia ex-Japan outperformed those that invested in Europe and the US. Equities funds that focus on Asia-Pacific, South Korea, China, and Hong Kong posted average returns of 17.23%, 16.49%, and 12.57%, respectively.
South Korea shares were boosted by reports of a strong domestic economy and favourable third quarter corporate earnings. Hong Kong shares were driven by abundant liquidity, although that market appears to have stalled due to concerns over in mainland China, particularly concerns over the increase in the reserve requirement ratio of banks and speculation that new measures to cool off the Chinese economy would be introduced.
Hong Kong established the MPF in December 2000. Monthly mandatory contributions from workers and employers are capped at HK$1,000 each.
Average October performance of MPF portfolios, by asset types:
Mixed Assets +4.38%
Money Market +0.32%
Top five MPF equity funds in October, with gain:
Taifook MPF Retirement Fd-Korea +20.92%
Taifook MPF retirement Fd-Asia Pacific +17.23%
Principal MPF 800-China Equity +16.49%
ING MPF T Compre S-HK Equity +16.19%
ING MPF M T Bas S-HK Equity +16.16%
Bottom five MPF equity funds in October, with loss:
Mass MPF Scheme Japan Equity -2.28%
BEA MPF Japan Growth Fund -1.50%
AIA-JF MPF Scheme Japan Equity -0.93%
AIA-JF Premium MPF Japan Equity -0.86%
Manulife Glo Select MPF S-Japan Equity -0.79%
Brunei Investment Agency names head of real estate; Former Temasek CEO Ho Ching joins EQT Future's mission board; APG managing director for global real assets relocates to Hong Kong; Manulife Hong Kong appoints chief financial officer and chief product officer; Wayne Swan commences as Cbus chair; AXA IM appoints head of client group alts Asia; and more.
Census experts say China's population will start to decline at least five years earlier than expected - investors are being warned to keep a weather eye on inflation and structural shifts.
Family offices in Hong Kong want to do more impact investing, but the paucity of ESG talent and the lack of uniform reporting standards are real issues for them.
An impending series of interest rate increases and the deterioration in relations between Russia and the West over Ukraine have worried investors in recent weeks, hence the volatility in US equities in particular.