【Hong Kong，June 28, 2024】– GUM announces 2024 first half MPF performance today. As of June 24^th, “GUM MPF Composite Index” rose 5.5%; “GUM MPF Equity Fund Index” increased 8.4%; “GUM MPF Mixed Asset Fund Index” rose 4.6%; the “GUM MPF Fixed Income Fund Index” increased 1.0%. Year-to-date, the average person has earned HKD 13,364.

Overall Review and Outlook

In the first half of 2024, the overall performance of the MPF was strong, with all equity funds recording positive returns, mainly benefiting from the good performance of US and Hong Kong related funds. United States Equity currently account for 8.5% of the total MPF assets, making it the largest equity fund category. US stocks have been performing strongly, driven by the artificial intelligence sector, continuously hitting new highs, driving related sectors such as electricity, refrigeration systems, and semiconductors to rise as well.

As for the Hong Kong Equity and Hong Kong Equity (Index Tracking), which account for 7.7% and 4.6% of the total assets respectively, the Hong Kong and mainland markets have rebounded since April, benefiting from the support of central government policies, driving the Hang Seng Index rebounded from 14,500 points to the 18,000 point level. The strong performance of the Hong Kong equity market has also contributed to the overall positive returns of the MPF.

Although MPF achieved impressive results in the first half of the year, it is expected that the second half will have more economic and geopolitical uncertainties, such as the upcoming US presidential election and the US-China dispute over electric vehicle tariffs, which could lead to increased market volatility. The July parliamentary elections in the UK and France are also worth watching. Investors need to remain vigilant and closely monitor market dynamics.

Regarding the outlook for the third quarter of 2024, Michael Chan, the Managing Director of GUM, pointed out: “The global and Chinese markets have both performed well in the first half, with positive factors including the government’s rescue of the real estate market and the relaxation of the Shanghai-Hong Kong Stock Connect restrictions, which has boosted investment sentiment. However, in the second half, the market may be affected by more political factors, such as the US election and China-US relations. Therefore, it is recommended for members to diversify their investments appropriately and avoid excessive concentration in a single asset class, in order to reduce the risk of significant adjustments in individual markets.” 

Table 1: Overall Performance of MPF and Average Return

Figure 1: Analysis of Return in 2024

Equity Fund Performance

Table 2: Ranking of Equity Fund Performance According to 2024 YTD Return

Mixed Assets Fund Performance

Table 3: Ranking of Mixed Assets Fund Performance According to 2024 YTD Return

Fixed Income Fund Performance

Table 4: Ranking of Fixed Income Fund Performance According to 2024 YTD Return

Analysis of Net Fund Switching

Table 5: Year-On-Year Comparison of Net Fund Switching Amount

As of May, the net switching amount of funds reached $21.8 billion, which is the highest year-on-year comparison in 3 years, representing an increase of 125% compared to the previous year, reflecting that members are more actively adjusting their MPF assets.

Table 6: 2024 YTD Estimated Net Transfer of MPF Asset Classes

In terms of asset classes, as of May, there was a total of HK$5.6 billion transferred actively from “Mixed Assets Funds” to other asset classes, with HK$2.1 billion going to “Equity Funds” and HK$3.5 billion going to “Fixed Income Funds”, indicating a polarization in members’ investment orientations.

Table 7: Top 5 Net Inflows/Outflows of Asset Classes

From the fund category perspective, around HK$10.3 billion in funds switched out of China and Hong Kong-related fund categories this year, and another HK$6.6 billion switched out of Mixed Asset Funds with a high equity weighting. At the same time, HK$11.2 billion switched into the better-performing “United States Equity” and “Japan Equity” funds. The remaining funds mainly switched into the “DIS – Core Accumulation Fund”, “Conservative Fund”, and “Global Equity Fund”.

eMPF Platform Officially Launches, GUM Calls for Timely Registration

The eMPF Platform has officially launched on June 26^th, with the first MPF trustee, YF Life Trustees Limited, successfully transitioning to the platform. The other four “pioneers” will also join the Platform before October, with China Life (July 29^th), Bank of Communications (September 3^rd), Standard Chartered (October 2^nd), and Bank of East Asia (BEA (MPF) Value Scheme) (October 29^th) respectively. GUM suggests employers and employees to closely monitor the communications from trustees and register their eMPF accounts in a timely manner.

The Platform will transfer all administrative procedures of the existing schemes from the trustees to the Platform, meaning MPF operators will no longer need to worry about expensive and complex administrative procedures, and create more room for fee reduction. The first “pioneer” YF Life has taken the lead in fulfilling the fee reduction commitment, announcing that it will reduce the fund management fees of nearly 60% of the funds in its scheme by more than 30% starting from September 26^th; China Life has also made fee adjustments for five funds under its schemes. Driven by the eMPF Platform, trustees will be more proactive in improving charges and investment returns, which is believed to effectively enhance the retirement life protection for the people of Hong Kong.

Note:

1. The average return is calculated based on the total MPF market assets of HK$255,297 per capita as of May 31, 2024, with a total of 4,754,000 MPF scheme members as of December 31, 2023. The GUM MPF Composite Index return is as of June 24, 2024.
2. The growth rates of all fund indices are calculated based on asset-weighted, point-to-point returns. The June returns are from June 1, 2024 to June 24, 2024. The year-to-date returns are from January 1, 2024 to June 24, 2024.

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中文版本：

About GUM

GUM is a boutique consulting firm that provides solutions to corporate on MPF and employee benefits. We focus on people and that is why we put “U” in the very core of our brand “GUM”.  Our priorities are always meeting the needs of our corporate clients and their employees, our strategic partners as well as all MPF members of Hong Kong. With our vast market experience and expert teams around actuarial, investment and employee communication, GUM leads the market to innovate, walking hand in hand with our clients to go faster and further.

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Website: www.gumhk.com This document provided the information on an “AS IS” basis. The Company undertakes no obligation to update any of the information contained in this document. Some information contained in this document contains forward-looking statements. The words “believe”, “expect” and similar expressions are also intended to identify forward-looking statements. These forward-looking statements are not historical facts. Rather, these forward-looking statements are based on the current beliefs, assumptions, expectations, estimates, and projections of our management. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Consequently, actual results could differ materially from those expressed, implied or forecasted in these forward-looking statements. Reliance should not be placed on these forward-looking statements.