HONG KONG - Hong Kong-based retirement funds have soared over 20% since the end of March on the back of strong regional stock markets, according to a research by fund manager RCM.
In May, these funds recorded their highest ever monthly performance with returns of 8%.
In addition, the company estimates that balanced funds have achieved an average of 10.5% for the year so far.
RCM Asia Pacific chief executive Mark Konyn said: "Retirement fund performance has recovered in the second quarter as a result of strongly improved investor sentiment and in particular the excellent recovery we have seen in Hong Kong and regional stock markets."
The company attributes the stock market's recovery since the end of the March to improving credit conditions, early signs of a possible economic recovery in the US, and investors' willingness to take more risk in their portfolios.
"The recent reversal should be viewed in context of previous disappointments. Between October 2007 and February 2009 balanced funds lost over 40%. The recovery this year has clawed back 27% and funds are still 25% from their previous peak," Konyn added.
He also noted the regular investment approach of the MPF system benefited longer term retirement investors.
"There are many institutional investors globally that have not participated fully in the recent rally having withdrawn from the market when the global economy faltered in the fourth quarter last year. MPF investors have benefited from their regular contribution being invested throughout this period," Konyn said.
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.