Press Release

Convoy MPF Composite Index increased 3.30% in February

All equities rose across the board, recovering lost ground

 

(1 March 2019 – Hong Kong) As of 19 February, the Convoy MPF Composite Index was 227.85, with an 3.30% increase month-to-month and an 7.91% increase January-to-date. The Convoy MPF Equity Index was 245.13 with an increase in 4.55% on a monthly basis and an increase in 10.79% January-to-date, while the Convoy MPF Bond Index was 155.36, with an 0.75% increase month-on-month and an 1.34% increase January-to-date.

 

Global equities kept rising, recovering lost ground

Global equities continued to trend high in February, making up for lost ground since the market corrected in December 2018. All equities also rose across the board. Jerome Powell, the Chair of the US Federal Reserves, reaffirmed that the Federal Reserves would be patient over the interest rates hikes and balance sheet normalization. The US Equity Fund ended up as the best performing developed market of the month, with an 5.45% increase month-to-month.

 

While investors were turning optimistic over the progress of the US-China trade talks, Chinese equities also responded well and outperformed regional peers in Asia, with an 5.03% increase month-on-month. Despite the positive headlines, several economic indicators including European and China PMI continued to hint for a slower growth. Coupled with the pause of the Fed rate hike, treasury yields edged lower in the month and remained underperforming that of the corporate and high yield bonds.

 

Summary of Performance of MPF Key Funds Class in February:

  • Equity Funds:
    • US Equity Funds performed well relatively with an 5.45% month-on-month increase and an 18.58% January-to-date increase
    • Japan Equity Funds performed the worst, recorded an 3.22% month-on-month increase and an 8.84% January-to-date increase
  • Bonds Funds:
    • Asia Bond Funds performed well relatively with an 1.30% month-on-month increase and an 2.35% January-to-date increase
    • Global Bond Funds performed the worst, recorded an slightly 0.62% month-on-month increase and an 1.31% January-to-date increase
  • Default Investment Strategy:
    • The Core Accumulation Funds of the DIS raised by 2.96% month-on-month, up by 8.82% January-to-date
    • The Age 65 Plus Funds of the DIS increased by 1.46%, up by 3.57% January-to-date

 

Convoy MPF Index Trend

  • SOURCE: CONVOY FINANCIAL SERVICES LIMITED
  • 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

3.52%

7.96%

Asia Bond Funds

1.30%

2.35%

China Equity Funds

5.03%

10.83%

European Equity Funds

3.70%

9.48%

Global Bond Funds

0.62%

1.31%

Global Equity Funds

4.49%

13.79%

Greater China Equity Funds

5.39%

10.55%

Guarantee Funds

0.91%

1.91%

HKD Bond Funds

0.96%

1.30%

HKD Equity Funds

5.20%

10.69%

Hong Kong Equity (Index Tracking) Funds

4.86%

10.16%

Japan Equity Funds

3.22%

8.84%

Lifestyle Funds – (>20% - 40% Equity)

1.76%

4.22%

Lifestyle Funds – (>40% - 60% Equity)

2.51%

6.27%

Lifestyle Funds – (>60% - 80% Equity)

3.20%

8.18%

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

3.94%

10.31%

MPF Conservative Funds

0.09%

0.19%

RMB Bond Funds

0.76%

2.37%

U.S. Equity Funds

5.45%

18.58%

DIS – Age 65 Plus Funds

1.46%

3.57%

DIS – Core Accumulation Funds

2.96%

8.82%

 

#MPF Fund sectors based on MPFA Classification

* Performance is calculated from 22 January 2019 to 19 February 2019

SOURCE: CONVOY FINANCIAL SERVICES LIMITED

COMPILED BY CONVOY FINANCIAL SERVICES LIMITED

 

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