The best MPF (Mandatory Provident Fund) outperformers for the year 2016 are HSBC and Hang Seng, according to the latest MPF Outperformers, a MPFexpress.com report published and distributed by Willis Towers Watson.
Both HSBC and Hang Seng's MPF-SuperTrust Plus schemes are awarded in the report with two thumbs-up, meaning that 75% or more of their funds performed better than or equal to their respective market medians last year.
Philip Tso, Director of Investments at Willis Towers Watson in Hong Kong, said: "In the MPF industry, many performance reports show the best performers at the fund level according to their category.
“An MPF scheme offers various fund choices to members. Measuring each scheme's proportion of MPF funds with outperformance over a specified period allows performance comparison at the scheme level across various time horizons."
Over the longer term (three years ending 31 Dec 2016), the best outperformers are China Life MPF Master Trust Scheme, Fidelity Retirement Master Trust and Sun Life MPF Master Trust (former Schroders MPF Master Trust) which are also given two thumbs up.
However, the performance of China Life shows two thumbs down in 2016, a reversal from one of the best to the worst.
"MPF scheme is a long term investment. Scheme members should also look at not only last year's performance, but also three-year or longer time horizons to assess the performance of an MPF scheme. The MPF Outperformers report helps us identify which MPF schemes are relatively consistent in terms of the proportion of outperforming funds over various time horizons,” adds Tso.
According to the report, both Fidelity Retirement Master Trust and Invesco Strategic MPF Scheme did very well. All of their MPF funds performed better than or equal to their respective medians over the last five years. By looking across various time horizons, both SunLife MPF Master Trust and Invesco Strategic MPF Scheme have half or more of their MPF funds that are outperformers in all periods covered by the report.
"We can also look for improvement using the report. For example, MPF schemes with weak track records in the past but have performed well in recent years. In the report, both HSBC and Hang Seng have shown this pattern of improvement in terms of its proportion of outperforming funds,” remarks Tso.