GUM MPF Express: Hong Kong Stocks Slump, Bond Yields Rise, Average MPF Losses $3,184 in Half a Month

Jan 18, 2024
Reading Time: 5 minutes

Table 1: Overall performance of MPF and average return in January (Half Month)

IndexValueReturns for January 2024 (Half-month)
GUM MPF Composite Index222.48-1.3%
GUMMPF Equity Fund Index287.31-2.2%
GUM MPF Mixed Asset Fund Index227.68-1.0%
GUM MPF Fixed Income Fund Index125.47-0.1%
Average MPF Gain/Loss Per Member Note 1 (HK$)-3,184

Table 2: Performance of MPF Sub-Category Funds Index with
Top 2 Assets Under Management (AUM) in Each Category (as of 15 January 2024)

CategorySub-category Fund IndexReturns for January 2024 (Half-month)
Equity Funds Hong Kong Equity Funds-4.7%
United States Equity Funds+0.3%
Mixed Asset FundsMixed Asset Funds (80 – 100% Equity)-1.6%
Mixed Asset Funds (60 – 80% Equity)-1.3%
Fixed Income FundsMPF Conservative Funds+0.2%
Guaranteed Funds-0.2%
DIS FundsDIS Core Accumulation Funds-0.2%
DIS Age 65 Plus Funds-0.4%

As of 15 January:

  • In 2024, the performance of the MPF was weak, with a decline of 1.3%, resulting in an average loss of HK$3,184 per member.
  • Equity, Mixed Asset, and Fixed Income fund indices all recorded negative returns in mid-January, with equity funds experiencing the largest decline of 2.2%, while Mixed Asset and Fixed Income funds declined by 1.0% and 0.1% respectively.
  • Hong Kong Equity funds fell by 4.7%. Although the Hang Seng Index successfully held above the 17,000 point level in 2023, it experienced a significant drop in January, testing the important support level of 15,000 points.
  • US Equity funds rose by 0.3%. The United States is scheduled to hold a presidential election at the end of the year, and the US Supreme Court will hear an appeal next month regarding the ban on former President Trump from participating in the Colorado presidential primary.
  • The US CPI index increased by 0.3% (YoY) to 3.4% in December, and the yield on 10-year US Treasury bonds crossed the 4% mark, putting pressure on bond funds, resulting in a slight decline.

Note:

  1. Calculation based on total MPF assets of previous month end and total MPF Scheme members 4,694,000 as of 31 March 2023. The latest average assets per member was HK$243,076 as of 31 December 2023. Return of GUM MPF Composite Index is as of 15 January 2024.

*The growth of all fund categories indexes is calculated by asset-weighted point-to-point growth. The data for January 2024 return is summarized from 1 January to 15 January 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. 

Media Enquiries, please contact: 

GUM 

Miss Cherry Chan / Miss Karen Siu 

Phone: (852) 9126-9200 / (852) 6011-5603  

Email: : cherrychan@gumhk.com / karensiu@gumhk.com  

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.

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