The GUM MPF Index reached 284.1 points in the first three quarters of 2025, up 15.8%, delivering average member gains exceeding HK$40K —the strongest performance in nearly eight years. Which funds led the way? And how should members position for Q4? GUM Managing Director Michael and Chief Investment Officer Christopher review the highlights and share forward-looking strategies!

Standout MPF Fund Categories in Q1-Q3 and Key Drivers

Greater China and Hong Kong Equity Funds topped the list, with year-to-date returns of 38% and 37% respectively.

Key drivers include supportive central government policies since 2024 that improved market conditions, a strong rebound from prolonged underperformance in China-Hong Kong stocks, and significant AI-related corporate earnings growth boosting the region.

China-HK Rally Nearing One Year: Still Worth Entering?

Despite nearly a year of gains, we believe momentum can persist. Two main reasons: current P/E ratios of only 12–13× leave ample room versus historical peaks of 24–25×; and a red-hot IPO market, with many listings oversubscribed by record multiples (some exceeding 9,000×), signalling robust investor sentiment.

China-HK Stocks Up Over 30% : How to Diversify MPF in Q4?

With China-Hong Kong markets already up more than 30% this year, Q4 calls for prudent MPF diversification. Use Global Equity Funds as a core holding, complemented by preferred equity funds. Alternatively, consider higher-equity mixed asset funds or the MPF Core Accumulation Fund under the Default Investment Strategy for balanced growth.

Fed Rate Cuts Restarted: Positioning for Conservative MPF Members

Although the Fed has begun easing, the pace is expected to remain measured. MPF Conservative Funds still serve as a capital-preservation option, with full-year returns projected around 2%—though falling rates will gradually reduce yields.

MPF Bond funds have largely priced in rate cuts already, limiting further upside. Members should adjust allocations flexibly based on individual risk tolerance.

Summary

The first three quarters of 2025 delivered outstanding MPF results for members. Heading into Q4, China-Hong Kong equities retain potential, but diversification is key to navigating shifts effectively.

Unsure about your next move or want deeper MPF insights? Contact GUM’s MPF experts – we will analyse your situation and design a tailored MPF investment plan to keep your retirement savings growing steadily.