The GUM MPF Performance Index rose 3.4% in Jan 2026 to 296.2 points, delivering an average monthly gain exceeding HK$11K — a solid start to the year. With returns largely driven by equity markets, GUM Chief Investment Officer Christopher breaks down the performance and shares our first-quarter outlook.

What Drove January’s Positive MPF Performance?

Several supportive factors contributed:

• Ongoing rate-cutting cycle shifting capital from money markets to equities, boosting stock prices
• Weaker US dollar benefiting non-US regions and encouraging inflows into global markets
• Sustained AI enthusiasm and optimism for global growth
• China’s expected 5% GDP growth target for the year

Strongest MPF Equity Fund Category and Top Performer

Asian Equity Funds led the way with an 8.7% return. Bank of East Asia stood out, with both plans exceeding 14%:

• BEA (MPF) Master Trust Scheme — Asian Equity Fund
• BEA (MPF) Industry Scheme — Asian Equity Fund

Still Hold or Add to China-HK? What About Europe?

GUM remain positive on China-Hong Kong markets. Despite last year’s 30% gains and expected higher volatility, valuations remain attractive. Members can maintain or selectively add exposure based on risk tolerance.

European Equity Funds also merit attention. Stable inflation, easing risks, and Germany’s 0.2% real GDP growth in 2025 (ending two years of contraction) support recovery. Fiscal stimulus and the ECB’s low-rate policy add tailwinds, making European equities a compelling non-USD diversification option—though members should monitor US-Europe relations.

Summary

January delivered strong MPF gains for members. China-Hong Kong and European equities offer Q1 opportunities, but volatility is likely to rise. Regular portfolio reviews and risk-aligned adjustments are recommended.

Want the latest MPF insights or a personalised 2026 strategy? Contact GUM’s experts today to build a plan that keeps your retirement savings growing steadily.