【August 2, 2024】 – GUM announces the MPF performance of July today. In July 2024, the “GUM Comprehensive MPF Index” rose by 0.4% to 238 points, while the “GUM MPF Equity Fund Index” fell by 0.3% to 316 points. The “GUM MPF Mixed Assets Fund Index” increased by 1.2% to 243 points, and the “GUM MPF Fixed Income Fund Index” rose by 0.7% compared to the previous month, reaching 128 points. In July 2024, the average gain per member in the MPF was HK$ 1,160, with a total gain of HK$ 13,835 for the year.
GUM’s Managing Director, Michael Chan, pointed out “The U.S. presidential election situation has been fluctuating, economic data has been mixed, and global stock markets have seen significant adjustments. The long-term policy directions proposed at the Third Plenary Session, such as fiscal reforms and domestic housing policies, have not been able to provide a clear boost to the China and Hong Kong stock markets in the short term. Instead, driven by a risk-averse sentiment, the China and Hong Kong bond markets have received support.”
For the asset allocation, GUM’s Strategy and Investment Analyst, Martin Wan, further stated, “Given the increased volatility in the global stock markets, investors may consider increasing their allocation to fixed income funds in order to reduce the risk of their investment portfolio. Among fixed income options, the “MPF Conservative Fund” is a stable choice that can generate stable returns in a high-interest environment. Additionally, “bond funds” are also a good option, as bond prices are expected to rise with the approaching interest rate cut cycle, although investors should be aware that the volatility of bond funds may be higher than that of the “MPF Conservative Fund”.”
Table 1: Overall performance of MPF and average return in July
| Index | Value | July Return (%) | 2024 YTD Return (%) |
| GUM MPF Composite Index | 238 | 0.4% | +5.7% |
| GUM MPF Equity Fund Index | 316 | -0.3% | +7.7% |
| GUM MPF Mixed Asset Fund Index | 243 | +1.2% | +5.7% |
| GUM MPF Fixed Income Fund Index | 128 | +0.7% | +1.7% |
| Average MPF Gain/Loss Per Member Note 1 (HK$) | +1,160 | +13,835 | |
Analysis of Equity Fund Performance
The GUM MPF Equity Index Fund experienced a slight decline in July, ending a 5-month consecutive rise. The Asia, Greater China and Hong Kong equity funds saw some degree of adjustment in July. However, the “Japan Equity Fund”, “US Equity Fund”, “Global Equity Fund” and “Asian Equity Fund” have still managed to maintain double-digit gains YTD.
Table 2: Ranking of Equity Fund Performance According to July 2024 Return
| Ranking | Equity Sub-category Fund Index | July Return (%) | 2024 YTD Return (%) |
| 1 | Japan Equity Fund | 4.2% | 18.1% |
| 2 | Other Equity Fund | 1.7% | 9.9% |
| 3 | United States Equity Fund | 1.4% | 15.3% |
| 4 | European Equity Fund | 1.0% | 6.2% |
| 5 | Global Equity Fund | 0.9% | 11.1% |
| 6 | Asian Equity Fund | -0.5% | 10.1% |
| 7 | Hong Kong Equity (Index Tracking) Fund | -1.5% | 2.7% |
| 8 | Hong Kong Equity Fund | -1.9% | 0.8% |
| 9 | Greater China Equity Fund | -3.2% | 3.4% |
Analysis of Mixed Assets Fund Performance
The GUM MPF Mixed Assets Index Fund performed relatively well in July, with an overall return of 1.2%. The top two fund categories in July were the “DIS – Age 65 Plus Fund” and the “DIS – Core Accumulation Fund”, which recorded gains of 1.7% and 1.6% respectively. From Table 3, it can be seen that mixed asset funds with lower equity allocations performed better in July. In terms of YTD returns, the best performing mixed asset funds are the “DIS – Core Accumulation Fund” and the “Mixed Assets Fund (80% to 100% Equity)”, with returns of 7.8% and 7.4% respectively.
Table 3: Ranking of Mixed Assets Fund Performance According to July 2024 Return
| Ranking | Mixed Assets Sub-category Fund Index | July Return (%) | 2024 YTD Return (%) |
| 1 | DIS Age 65 Plus Fund | 1.7% | 2.7% |
| 2 | DIS Core Accumulation Fund | 1.6% | 7.8% |
| 3 | Mixed Asset Fund – (>20-40% Equity) | 1.6% | 1.8% |
| 4 | Other Mixed Asset Fund | 1.3% | 1.8% |
| 5 | Mixed Asset Fund – (>40-60% Equity) | 1.2% | 3.6% |
| 6 | Mixed Asset Fund – (>80-100% Equity) | 1.0% | 7.4% |
| 7 | Dynamic Allocation Fund | 1.0% | 3.6% |
| 8 | Mixed Asset Fund – (>60-80% Equity) | 0.8% | 5.3% |
| 9 | Target-Date Fund | 0.4% | 7.0% |
Analysis of Fixed Income Fund Performance
The fixed income funds performed well in July, with all 8 fund categories recording positive returns. The top two fund categories in July were “Global Bond Fund” and “Hong Kong Dollar Bond Fund”, which recorded returns of 2.3% and 1.9% respectively. The bond funds primarily benefited from the global economy’s impending interest rate cut cycle, as well as the general market expectation that the Federal Reserve will cut interest rates 1-2 times this year, which has been favourable for bond fund performance. The fixed income funds with the best YTD returns so far are the “Hong Kong Money Market Fund” and the ” Hong Kong Dollar Bond Fund”, recording gains of 2.6% and 2.5% respectively.
Table 4: Ranking of Fixed Income Fund Performance According to July 2024 Return
| Ranking | Fixed Income Sub-category Fund Index | July Return (%) | 2024 YTD Return (%) |
| 1 | Global Bond Fund | 2.3% | -0.9% |
| 2 | Hong Kong Dollar Bond Fund | 1.9% | 2.5% |
| 3 | Asian Bond Fund | 1.8% | 1.8% |
| 4 | RMB Bond Fund | 1.0% | 1.2% |
| 5 | HKD Money Market Fund | 0.9% | 2.6% |
| 6 | RMB & HKD Money Market Fund | 0.9% | 0.7% |
| 7 | Guaranteed Fund | 0.6% | 1.3% |
| 8 | Conservative Fund | 0.3% | 2.3% |
Remarks:
The average MPF return per member is calculated using total MPF assets HK$1,225,937 millions of the previous month (30 June 2024). The number of MPF Scheme members was 4,754,000 as of 31 December 2023. The latest average assets per member was HK$257,875 as of 30 June 2024. The GUM MPF Composite Index return for July 2024 as of July 31, 2024.”
*The growth of all fund categories indexes is calculated by asset-weighted point-to-point growth. The data for July 2024 return is summarized from 1 July to 31 July 2024.
中文版本：
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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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