As highlighted previously, equities drove a strong MPF start in 2026, with the GUM MPF Index up 3.4% to 296.2 points and average monthly gains over HK$11,000. For members avoiding full equity exposure, GUM Chief Investment Officer Christopher analyses fixed income and mixed asset funds’ January performance and deployment ideas.

Conservative Positioning: Top MPF Fixed Income Funds

In the rate-cutting cycle, fixed income funds edged up 0.3% overall in January. Global Bond Funds led with a 0.99% return.

Standouts:

1. Principal MPF Scheme Series 800 — Principal International Bond Fund (Class I): 1.52%
2. MASS Mandatory Provident Fund Scheme — Global Bond Fund: 1.50% (just 0.02% behind!)

Seeking Slightly Higher Returns: MPF Mixed Asset Options

Mixed asset funds rose 3.5%—close to equities’ 4.8%. With positive equity momentum, higher-stock allocations outperformed. The aggressive category (80–100% equity) returned 5.2%.

Leaders:

1. BCT (MPF) Pro Choice — BCT (Pro) E90 Mixed Asset Fund: 5.6%
2. Hang Seng Mandatory Provident Fund – SuperTrust Plus — Growth Fund: 5.5%

Hands-Off DIS: Which MPF Plans Led?

The DIS Core Accumulation Fund averaged a modest 2.1% gain, limited by lower China-Hong Kong exposure. Better performers:

1. Haitong MPF Retirement Fund — Haitong Core Accumulation Fund (Class A): 4.0%
2. BOC-Prudential – My Choice Mandatory Provident Fund Scheme — My Choice Core Accumulation Fund: 2.4%

Rate Cuts Slowing: Will MPF Returns Decline?

Interest rates significantly impact MPF categories—high rates favour fixed income and money market funds; lower rates benefit bonds and equities.

Recent US inflation concerns, plus the upcoming Fed chair change (Trump nominee Jay Powell viewed as hawkish, contrasting Trump’s rate-cut preference), have created uncertainty. Markets now expect rates to hold at 3.5–3.75% through H1, with cuts possibly delayed to June. News flow will be frequent—members should stay alert.

Summary

January provided stable returns for conservative members via fixed income and mixed assets. With slower rate cuts ahead, these categories remain viable in the near term without major disruption. Effective MPF management, regardless of risk preference, is key to building retirement savings.

Ready to craft your ideal 2026 MPF strategy? Contact GUM’s experts today to build a plan that keeps your retirement savings growing steadily.