GUM MPF Performance Index Highlights October 2023: October MPF Performance Reflects Continued Challenges, Average Loss of HKD 3,940 per Person

Oct 30, 2023
Reading Time: 4 minutes

[Hong Kong – 26 October 2023]

Table 1: Overall MPF Market Performance and Average Gain/Loss Per Member (as of 19 October 2023)

 October 2023 Return (%)2023 YTD Return (%)
GUM MPF Composite Index-1.7%-1.9%
Average MPF Gain/LossPer Member Note 1 (HK$) -3,940-4,411
 October 2023 Return (%)2023 YTD Return (%)
GUM MPF Equity Fund Index-2.2%-4.1%
GUM MPF Mixed Asset Fund Index-2.0%-0.8%
GUM MPF Fixed Income Fund Index-0.2%0.9%

Table 2: Performance of MPF Sub-Category Funds Index with
Top 2 Assets Under Management (AUM) in Each Category (as of 19 October
2023)

CategorySub-category Fund IndexOctober 2023 Return (%)2023 YTD Return (%)
Equity Funds Hong Kong Equity Funds-3.9%-14.2%
United States Equity Funds-0.4%14.6%
Mixed Asset FundsMixed Asset Funds (80 – 100% Equity)-2.5%-1.2%
Mixed Asset Funds (60 – 80% Equity)-2.2%-1.9%
Fixed Income FundsMPF Conservative Funds0.2%2.7%
Guaranteed Funds-0.4%-0.1%
DIS FundsDIS Core Accumulation Funds-1.2%4.2%
DIS Age 65 Plus Funds-1.2%-0.5%

• The MPF had a weak performance in October, recording an average return of -HKD 3,940 per person.
• In October, both equity funds, mixed asset funds, and fixed income funds recorded negative returns. Among them, equity funds and mixed asset funds performed relatively worse, with declines of 2.2% and 2.0% respectively, while fixed income funds experienced a slight decrease of 0.2%.

• The China property developer debt issue continued to escalate, with individual developers facing defaults on overseas US dollar bonds. The Hang Seng Index briefly dropped below 17,000 points. Hong Kong equity funds fell by 3.9%.
• The deteriorating relationship between China and the United States continues, with the US Department of Commerce announcing last month the final regulations of the “Chip and Science Act” to further restrict China’s access to advanced US technology.
• Expectations of market interest rate hikes cooled down, with the majority anticipating interest rates to remain between 5.25% and 5.5% this year. Conservative MPF funds continued to benefit from the high-interest environment, recording stable positive 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$231,785 as of 30 September 2023. Return of GUM MPF Composite Index is as of 19 October 2023.

*The growth of all fund categories indexes is calculated by asset-weighted point-to-point growth. The data for October 2023 return is summarized from 1 October to 19 October 2023.

中文版本:

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