Table 1: Overall performance of MPF and average return in the first half of December (as of 15 December 2023)

Table 2: Performance of MPF Sub-Category Funds Index with
Top 2 Assets Under Management (AUM) in Each Category (as of 15 December 2023)

As of 15 December:

• In the first half of December, the overall MPF performance continued to rise, recording an average return of HKD 2,369 per person.
• Equity, Mixed asset, and Fixed-Income Fund Indices recorded positive returns in the first half of December. Among them, Mixed Asset Funds performed the best, rising by 2.0%, while Equity funds and Fixed-Income Funds increased by 0.4% and 0.6% respectively.
• The Hang Seng Index continued to hover around 16,500 points, while Hong Kong stock market funds experienced a continuous decline (-2.2%). In contrast, the US equity fund index reached a new high for the year, rising by 3.4% in December.
• US Federal Reserve Chairman Powell stated after the December FOMC meeting that although there is currently no evidence of an economic recession, he does not rule out the possibility of a recession next year. As the policy interest rates are already at or near their peak, further interest rate hikes are unlikely for the time being. He also indicated that interest rate cuts would not necessarily wait for inflation to fall to 2%. It is widely believed in the market that the Federal Reserve will begin cutting rates in March next year.
• Mixed Asset Funds benefited from the upward trend of global equity markets and the expectation of interest rate cuts, showing outstanding performance. Additionally, Bond Funds performed well due to the expectation of interest rate cuts.
• Currently, MPF Conservative funds continue to benefit from the high-interest environment, recording stable positive returns. However, If interest rates begin to decline next year, the returns will correspondingly decrease.

GUM Investment and Strategic Consultant Martin Wan pointed out, “Looking back at the performance of MPF in 2023, US stocks delivered impressive returns of nearly 27% during the period, outperforming other asset classes. However, Hong Kong stocks declined by nearly 16%, as their undervalued nature failed to attract buying interest. As the market anticipates the end of the US interest rate hike cycle, there is a recalibration of asset pricing across various categories. In the first half of next year, we expect a dual win in stocks and bonds, with mixed-asset funds poised to deliver favorable returns.”

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$236,898 as of 30 November 2023. Return of GUM MPF Composite Index is as of 15 December 2023.

*The growth of all fund categories indexes is calculated by asset-weighted point-to-point growth. The data for December 2023 return is summarized from 1 December to 15 December 2023.

中文版本：

－ The End －

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