【Hong Kong, December 4, 2024】 – GUM today announced the performance of the MPF for November 2024. In November 2024, the “GUM MPF Composite Index” rose by 0.1% to 247.3 points; the “GUM MPF Equity Fund Index” fell by 0.3% to 334.9 points; the “GUM MPF Mixed Asset Fund Index” increased by 0.7% to 250.0 points; and the “GUM MPF Fixed Income Fund Index” rose by 0.2% to 128.8 points. In November 2024, MPF members earned an average of HKD 326 each, with a cumulative total of HKD 23,742 earned from the beginning of the year.
GUM’s Managing Director, Michael Chan, pointed out “The U.S. presidential election has concluded, with President-elect Trump’s policies of corporate tax cuts and deregulation set to benefit corporate growth, thereby driving the U.S. stock market upward. However, his use of tariffs as a negotiation tool has increased global trade barriers. The National People’s Congress proposed 6 trillion yuan in debt relief for local governments, which did not meet market expectations for fiscal stimulus, and under the shadow of a new round of trade wars, the Hong Kong and China stock markets have been volatile and declining, dragging down the overall performance of MPF equity funds. From the beginning of the year until now, the average return for MPF members has reached 9.7%. If the Central Economic Work Conference in December introduces further fiscal stimulus measures, there’s hope that the MPF returns for this year could achieve double-digit growth.”
For the asset allocation, GUM’s Strategy and Investment Analyst, Martin Wan stated, “Donald Trump and his cabinet nominees have very clear reform agendas. Members managing their MPF should carefully consider the long-term impacts of this U.S. administration on their investment portfolios, such as reducing government spending, investigating the pharmaceutical and food industries, taking a hawkish stance towards China, and tariff negotiations. If one finds it difficult to judge, more aggressive investors might consider diversifying into “Global Equity Funds” or the “DIS Core Accumulation Fund”. For those with a lower risk appetite, diversifying into “MPF Conservative Funds” or “Global Bond Funds” could be a prudent choice.”
Table 1: Overall performance of MPF and average return in November
| Index | Value | November Return (%) | 2024 YTD Return (%) |
| GUM MPF Composite Index | 247.3 | 0.1% | 9.7% |
| GUM MPF Equity Fund Index | 334.9 | -0.3% | 14.1% |
| GUM MPF Mixed Asset Fund Index | 250.0 | 0.7% | 8.6% |
| GUM MPF Fixed Income Fund Index | 128.8 | 0.2% | 2.6% |
| Average MPF Gain/Loss Per Member Note 1 (HKD) | +326 | +23,742 | |
Analysis of Equity Fund Performance
The GUM MPF Equity Fund Index saw an overall return drop of 0.3% in November. Following Trump’s election win, the U.S. stock market atmosphere was red-hot, with the best-performing equity fund categories being the “United States Equity Fund” and “Global Equity Fund” rising by 6.0% and 3.5% respectively. Conversely, the worst performers were the “Hong Kong Equity Fund,”, “Hong Kong Equity Fund (Index Tracking),” and “Greater China Equity Fund,” which fell by 4.3%, 4.3%, and 4.2% respectively, dragging down the overall performance of MPF equity funds. Since the beginning of 2024, most equity fund categories have shown double-digit growth, with the U.S. Equity Fund being the only one to exceed a 20% return so far.
Table 2: Ranking of Equity Fund Performance According to November 2024 Return
| Ranking | Equity Sub-category Fund Index | November Return (%) | 2024 YTD Return (%) |
| 1 | United States Equity Fund | 6.0% | 25.1% |
| 2 | Global Equity Fund | 3.5% | 16.7% |
| 3 | Japanese Equity Fund | 2.6% | 18.2% |
| 4 | Other Equity Fund | 0.4% | 5.7% |
| 5 | European Equity Fund | -1.2% | 1.3% |
| 6 | Asian Equity Fund | -2.6% | 10.0% |
| 7 | Greater China Equity Fund | -4.2% | 12.5% |
| 8 | Hong Kong Equity (Index Tracking) | -4.3% | 16.2% |
| 9 | Hong Kong Equity Fund | -4.3% | 11.1% |
Analysis of Mixed Assets Fund Performance
Mixed assets fund, which focus on diversified regional investments, performed steadily, with the GUM MPF Mixed Asset Fund Index seeing an overall return increase of 0.7% in November. Funds with a higher proportion of U.S. stocks like the “DIS Core Accumulation Fund” and the ” DIS Age 65 Plus Fund” were the top performers for the month, with gains of 2.6% and 1.6% respectively. On the other hand, mixed assets fund with a higher exposure to Hong Kong stocks, such as “Mixed Asset Fund- (80-100% Equity)” and ” Mixed Asset- (60-80% Equity),” fell by 0.2% and 0.1% respectively. Year-to-date, mixed asset funds that have achieved double-digit returns include the “DIS Core Accumulation Fund,”, “Target-Date Fund,” and “Mixed Asset- (80-100% Equity),” with increases of 11.6%, 11.2%, and 11.0% respectively.
Table 3: Ranking of Mixed Assets Fund Performance According to November 2024 Return
| Ranking | Mixed Assets Sub-category Fund Index | November Return (%) | 2024 YTD Return (%) |
| 1 | DIS Core Accumulation Fund | 2.6% | 11.6% |
| 2 | DIS Age 65 Plus Fund | 1.6% | 4.7% |
| 3 | Mixed Asset- (20-40% Equity) | 0.3% | 3.1% |
| 4 | Mixed Asset- (40-60% Equity) | 0.3% | 5.6% |
| 5 | Other Mixed Asset Fund | 0.2% | 2.4% |
| 6 | Target-Date Fund | 0.1% | 11.2% |
| 7 | Dynamic Allocation Fund | -0.1% | 6.4% |
| 8 | Mixed Asset- (60-80% Equity) | -0.1% | 8.0% |
| 9 | Mixed Asset- (80-100% Equity) | -0.2% | 11.0% |
Analysis of Fixed Income Fund Performance
The GUM MPF Fixed Income Fund Index saw an overall return increase of 0.2% in November. Following Donald Trump’s election as the U.S. President, the U.S. Dollar Index rose above 107. Due to Asian bond funds predominantly investing in Asian USD bonds, they benefited from the strong US dollar, making them the best-performing category in fixed income funds for November with a 0.7% rise. Conversely, the worst performer was the “RMB Bond Fund,” which fell by 1.2% due to the weakening of the yuan. Among fixed income funds, the “Global Bond Fund” is the only one to have recorded a loss year-to-date, down by 0.5%. This is attributed to market expectations that Trump’s policies, such as imposing tariffs and deporting undocumented immigrants leading to a labor shortage, would increase inflationary pressures in the short term, prompting the Federal Reserve to reduce the number of rate cuts, thereby pressuring global bond funds.
Table 4: Ranking of Fixed Income Fund Performance According to November 2024 Return
| Ranking | Fixed Income Sub-category Fund Index | November Return (%) | 2024 YTD Return (%) |
| 1 | Asian Bond Fund | 0.7% | 3.3% |
| 2 | Global Bond Fund | 0.7% | -0.5% |
| 3 | Conservative Fund | 0.2% | 3.4% |
| 4 | Hong Kong Dollar Bond Fund | 0.2% | 3.3% |
| 5 | HKD Money Market Fund | 0.2% | 3.6% |
| 6 | Guaranteed Fund | 0.0% | 2.2% |
| 7 | RMB & HKD Money Market Fund | -0.8% | 0.9% |
| 8 | RMB Bond Fund | -1.2% | 1.9% |
Remarks:
- The average MPF return per member is calculated using total MPF assets HK$1,291,525 millions of the previous month (as of 31 October 2024). The number of MPF Scheme members was 4,754,000 as of 31 December 2023. The latest average assets per member was HK$271,671 as of 31 October 2024. The GUM MPF Composite Index return for November 2024 as of November 30, 2024.
*The growth of all fund categories indexes is calculated by asset-weighted point-to-point growth. The data for November 2024 return is summarized from 1 November to 30 November 2024.
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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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