【March 5, 2024】 – In February 2024, the “GUM MPF Composite Index” rose by 3.1% to reach 227.6 points. The “GUM MPF Equity Fund Index” increased by 5.2% to reach 297.5 points. The “GUM MPF Mixed Asset Fund Index” rose by 2.4% to reach 232.5 points. The “GUM MPF Fixed Income Fund Index” increased by 0.1% compared to the previous month, reaching 125.6 points. In February 2024, the average earnings per member of the MPF were HK$7,384, with a total annual earnings of HK$2,352.
GUM’s Managing Director, Michael Chan, pointed out “The Hong Kong stock market experienced a significant rebound in February. The main reasons for this were the market’s anticipation of stimulus policies from the central government in March and the announcement in the Hong Kong Budget that the stamp duty on the property market would be completely abolished, stimulating citizens’ purchasing intentions. The upcoming “Two Sessions” in March may bring more insights from the central government regarding the economy. Investors should exercise caution and closely monitor market dynamics.” He further stated, “The stock market had a positive start in 2024, with the US and Japanese markets continuing the upward trend from last year. Although the Chinese and Hong Kong markets were relatively weak in January, they experienced a significant rebound in February, with MPF equity funds leading the gains. Additionally, since the market generally believes that the Federal Reserve will not start reducing interest rates until mid-year, “MPF Conservative funds” can still benefit from a high-interest environment, making them a prudent choice for conservative investors.”
Table 1: Overall performance of MPF and average return in February
| Index | Value | February Return (%) | 2024 YTD Return (%) |
| GUM MPF Composite Index | 227.6 | 3.1% | 0.9% |
| GUM MPF Equity Fund Index | 297.5 | 5.2% | 1.3% |
| GUM MPF Mixed Asset Fund Index | 232.5 | 2.4% | 1.1% |
| GUM MPF Fixed Income Fund Index | 125.6 | 0.1% | 0.0% |
| Average MPF Gain/Loss Per Member Note 1 (HK$) | +7,384 | +2,352 | |
Analysis of Equity Fund Performance
In February, MPF Equity funds performed well across the board, with significant rebounds observed in the China and Hong Kong markets. The “Greater China Equity Fund” and the “Hong Kong Equity Fund” were the top performers, rising by 7.2% and 6.8% respectively in February. However, they still recorded a decline of 1.7% and 3.5% respectively YTD. The “US Equity Fund” continued its positive performance after the February reporting period, with a 5.1% increase. The “Asian Equity Fund” rose by 4.4%. In comparison, the “European Equity Fund” had relatively weaker performance, with a modest increase of 2.1%. The “Japan Equity Fund,” which performed the best last month, also saw a rise of 3.1%, leading other equity funds with a total increase of 8.4% for the year.
Table 2: Ranking of Equity Fund Performance According To February 2024 Return
| Ranking | Equity Sub-category Fund Index | February Return (%) | 2024 YTD Return (%) |
| 1 | Greater China Equity Fund | 7.2% | -1.7% |
| 2 | Hong Kong Equity Fund | 6.8% | -3.5% |
| 3 | Hong Kong Equity Fund (Index Tracking) | 6.6% | -3.9% |
| 4 | United States Equity Fund | 5.1% | 6.7% |
| 5 | Asian Equity Fund | 4.4% | 0.9% |
| 6 | Global Equity Fund | 4.1% | 4.6% |
| 7 | Other Equity Fund | 3.3% | 5.5% |
| 8 | Japanese Equity Fund | 3.1% | 8.4% |
| 9 | European Equity Fund | 2.1% | 2.3% |
Analysis of Mixed Assets fund performance
In February, Mixed Asset funds benefited from the rebound in the China and Hong Kong stock markets. The “80% to 100% Equity Fund” and “Target Date Fund” both saw a close to 4% increase. However, the “DIS – 65 Plus Fund,” which has a higher allocation to bonds, had a weaker performance with a slight increase of 0.1%. This is believed to be due to indications from the Federal Reserve that an interest rate cut may not occur in March, which created pressure on the bond market.
For YTD, the “DIS – Core Accumulation Fund,” which has a broader geographical distribution, performed better with a 2.6% increase. These funds benefit from portfolio diversification across different regions, mitigating the risk of a market downturn in a single region.
Table 3: Ranking of Mixed Assets Fund Performance According To February 2024 Return
| Ranking | Mixed Assets Sub-category Fund Index | February Return (%) | 2024 YTD Return (%) |
| 1 | Mixed Asset Fund – (>80-100% Equity) | 3.8% | 1.5% |
| 2 | Target Date Fund | 3.6% | 0.9% |
| 3 | Mixed Asset Fund- (>60-80% Equity) | 2.9% | 0.9% |
| 4 | DIS Core Accumulation Fund | 2.2% | 2.6% |
| 5 | Mixed Asset Fund- (>40-60% Equity) | 1.7% | 0.0% |
| 6 | Dynamic Allocation Fund | 1.6% | -0.2% |
| 7 | Other Mixed Asset Fund | 0.7% | -0.7% |
| 8 | Mixed Asset Fund – (>20-40% Equity) | 0.6% | -0.8% |
| 9 | DIS Age 65 Plus Fund | 0.1% | -0.1% |
Analysis of Fixed Income Fund Performance
According to the current market consensus, it is expected that the Federal Reserve will begin cutting interest rates in the middle of the year. This has put pressure on bond funds, with the “Global Bond Fund” experiencing the worst performance, falling by 1.2% in February. The “Hong Kong Dollar Bond Fund” and “Asian Bond Fund” also declined by 0.7% and 0.5% respectively, with YTD declines of 1.1% and 0.7%.
On the other hand, the “MPF Conservative Fund” and “Guaranteed Fund” have relatively better performance, with increases of 0.3% and 0.2% respectively. The “MPF Conservative Fund” benefits from the high-interest environment and achieved growth of 0.3% in February and 0.7% YTD, making it the top performer among similar funds.
Table 4: Ranking of Fixed Income Fund Performance According To February 2024 Return
| Ranking | Fixed Income Sub-category Fund Index | February Return (%) | 2024 YTD Return (%) |
| 1 | Conservative Fund | 0.3% | 0.7% |
| 2 | Guaranteed Fund | 0.2% | -0.2% |
| 3 | HKD Money Market Fund | 0.1% | 0.4% |
| 4 | RMB Bond Fund | 0.1% | 0.1% |
| 5 | RMB & HKD Money Market Fund | 0.0% | -0.1% |
| 6 | Asian Bond Fund | -0.5% | -0.7% |
| 7 | Hong Kong Dollar Bond Fund | -0.7% | -1.1% |
| 8 | Global Bond Fund | -1.2% | -2.3% |
Remarks:
The average MPF return per member is calculated using total MPF assets of the previous month, which was HK$ 1,121,691 million as of 31 January 2024. The latest average assets per member was HK$238,962 as of 31 January 2024. The number of MPF Scheme members was 4,694,000 as of 31 March 2023. The GUM MPF Composite Index return for February 2024 as of February 29, 2024.
*The growth of all fund categories indexes is calculated by asset-weighted point-to-point growth. The data for February 2024 return is summarized from 1 February to 29 February 2024.
中文版本：
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