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Main global stock markets are generally under pressure
Employees lost $5,424 in the first three quarters

(28 September 2018 – Hong Kong) As of 26 September, the Convoy MPF Composite Index was 230.31, with a 0.10% increase month-to-month and a 2.55% decrease January-to-date. The Convoy MPF Equity Index was 247.18, increased by 0.28% month-to-month and fell by 3.81% year-to-date. The Convoy MPF Bond Index was 151.77, decreased by 0.68% month-to-month and fell by 2.39% year-to-date. According to the MPFA's announcement, the number of MPF scheme members was 4.27 million as of December 2017. Each employee lost an average of $203 in September and lost an average of $5,424 in first nine months of this year.

 

Stability of Politics and Monetary policy in Japan Restore Stock Market Confidence

Convoy Financial Services Limited said that the global financial markets were full of uncertainties in September, including the prolonging of the China-US tariff war, the continuing seesaw situation of the Brexit debate, and the pressure exerted from the US Federal Reserve raised interest rates on the new markets, resulted in a prolonged stress on the major global stock markets. The Asian stock market continued to sell-off, Asian (Ex-Japan and Hong Kong) Equity Funds decreased by 2.08% month-to-month. Meanwhile, the US technology stocks stopped rising and the US stocks fluctuated along with the substantial increase in the possibility of raising the tariffs of all Chinese commodities by the US.

 

On the other side, the Japan stock markets rose in the month due to the favourable news. Shinzō Abe, the Prime Minister of Japan, has a great chance to win in the internal election of the Liberal Democratic Party in September. Therefore, the political environment and policy implementation in Japan are expected to remain stable. Out of the market expectation, Japan raised the annual GDP growth in the second quarter to 3%, which was the fastest increase rate since the first quarter of 2016. Besides, the central bank of Japan decided to maintain the super-simulative monetary policies, so the market continued to have sufficient liquidity. Since the Japan stocks were supported, Japan Funds were also favoured with an 3.64% increase month-to-month.

 

Summary of Performance of MPF Key Funds Class in September:

  • Equity Funds:
    • Japan Equity Funds performed well relatively with an 3.64% increase month-on-month and an 0.21% decrease January-to-date.
    • Asian (Ex-Japan and Hong Kong) Equity Funds performed the worst, recorded a 2.08% decrease month-on-month and a 6.20% decrease January-to-date.
  • Bonds Funds:
    • RMB Bond Funds performed well relatively, recorded an 0.53% increase month-on-month and a 1.12% decrease January-to-date.
    • Asian Bond Funds performed the worst, recorded a 1.07% decrease month-on-month and a 3.45% decrease January-to-date.
  • Default Investment Strategy:
    • The Core Accumulation Funds of the DIS increased by 0.02% month-on-month, increased by 1.78% January-to-date.
    • The Age 65 Plus Funds of the DIS increased by 0.41% month-on-month, increased by 0.25% January-to-date.

 

Convoy MPF Index Trend

  • SOURCE: CONVOY FINANCIAL SERVICES LIMITED, WEBSITE OF MPFA AND THOMSON REUTERS LIPPER
  • COMPILED BY THE CONVOY FINANCIAL SERVICES LIMITED
  • DISCLAIMER: THE CONTENT IS FOR REFERENCE ONLY AND DOES NOT CONSTITUTE ANY SUGGESTION AND OFFER FOR INVESTMENT. PLEASE DO NOT RELY ON THIS ARTICLE FOR YOUR INVESTMENT DECISION. INVESTMENT INVOLVES ELEMENTS OF RISK AND THE HISTORICAL DATA OF THE FUNDSS IS NOT NECESSARILY AN INDICATOR OF THEIR FUTURE PERFORMANCE. CONVOY FINANCIAL SERVICES LIMITED ("CONVOY") HAS UNDERTAKEN REASONABLE EFFORT TO PREPARE THE CONVOY MPF INDICES. CONVOY CANNOT GUARANTEE THE ACCURACY
 

Performance of Key Funds Classes:

Funds Classes

Month-On-Month

January-To-Date*

Asia (Ex-Japan) Equity Funds

-1.52%

-8.39%

Asia (Ex-Japan and Hong Kong) Equity Funds

-2.08%

-6.20%

Asia Bond Funds

-1.07%

-3.45%

China Equity Funds

0.31%

-4.92%

European Equity Funds

1.44%

-1.01%

Global Bond Funds

-0.63%

-2.43%

Global Equity Funds

0.46%

2.38%

Greater China Equity Funds

-0.86%

-7.27%

Guarantee Funds

-0.37%

-1.59%

HKD Bond Funds

-0.70%

-1.91%

HKD Money Market Funds

0.00%

0.41%

Hong Kong Equity Funds

-0.10%

-6.77%

Hong Kong Equity (Index Tracking) Funds

0.07%

-4.55%

Japan Equity Funds

3.64%

-0.21%

Lifestyle Funds – (>20% - 40% Equity)

-0.42%

-2.26%

Lifestyle Funds – (>40% - 60% Equity)

-0.29%

-2.32%

Lifestyle Funds – (>60% - 80% Equity)

-0.08%

-2.46%

Lifestyle Funds – (>80% - 100% Equity)

0.23%

-2.38%

MPF Conservative Funds

0.05%

0.32%

Other Funds

0.06%

-1.84%

Asia Pacific (Ex-Japan) Equity Funds

-1.07%

-5.18%

RMB and HKD Money Market Funds

-0.60%

-2.19%

RMB Bond Funds

-0.53%

-1.12%

US Equity Funds

-0.44%

8.84%

DIS – Age 65 Plus Funds

-0.41%

-0.25%

DIS – Core Accumulation Funds

-0.02%

1.78%

* Performance is calculated from 31 DECEMBER 2017 to 26 SEPTEMBER 2018

SOURCE: CONVOY FINANCIAL SERVICES LIMITED, WEBSITE OF MPFA AND THOMSON REUTERS LIPPER

COMPILED BY CONVOY FINANCIAL SERVICES LIMITED

 

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0.0.25-SNAPSHOT[Mon Nov 30 2020 12:18:20 GMT+0800 (HKT)]08e3c186ef8d2fab71bffc5baf2a785089220695