【Hong Kong, November 5, 2024】 – GUM today announced the performance of the MPF for October. In October 2024, the “GUM MPF Composite Index” fell by 2.8% to 247.0 points; the “GUM MPF Equity Fund Index” decreased by 3.6% to 336.1 points; the “GUM MPF Mixed Asset Fund Index” dropped by 3.3% to 248.2 points; and the “GUM MPF Fixed Income Fund Index” declined by 0.5% to 128.5 points. All MPF indices experienced a decline. In October 2024, the average loss per MPF member was HKD 7,953, while the total gain from the beginning of the year was HKD 23,416.
GUM’s Managing Director, Michael Chan, pointed out ” The central government’s economic stimulus policies have led to a strong performance in the Hong Kong and mainland stock markets, with the market hitting a peak of 23,000 points at one point. Although there was a correction in October, the Hang Seng Index has remained above 20,000 points. Reports indicate that mainland China plans to issue 10 trillion yuan in bonds. Meanwhile, U.S. economic data has been generally stable, and the market widely expects the Federal Reserve to slow down its rate hike pace, boosting confidence in a “soft landing” for the U.S. economy. Driven by the rebound in Hong Kong stocks, it is anticipated that the overall performance of the Mandatory Provident Fund (MPF) will be quite optimistic this year.”
For the asset allocation, GUM’s Strategy and Investment Analyst, Martin Wan stated, “In October, the MPF saw varying degrees of decline in both stock and bond categories, with all equity fund classes recording negative returns. As the U.S. elections approach, potential political and economic changes may increase uncertainty. It might be wise to continue diversifying risks across different equity regions and even consider increasing allocations to fixed income funds to balance the risk. Conservative MPF funds continue to record positive returns and can serve as a safe haven for investors’ capital.”
Table 1: Overall performance of MPF and average return in October
| Index | Value | October Return (%) | 2024 YTD Return (%) |
| GUM MPF Composite Index | 247.0 | -2.8% | 9.6% |
| GUM MPF Equity Fund Index | 336.1 | -3.6% | 14.5% |
| GUM MPF Mixed Asset Fund Index | 248.2 | -3.3% | 7.9% |
| GUM MPF Fixed Income Fund Index | 128.5 | -0.5% | 2.4% |
| Average MPF Gain/Loss Per Member Note 1 (HK$) | -7,953 | +23,416 | |
Analysis of Equity Fund Performance
The GUM MPF Equity Fund Index saw an overall return decline of 3.6% in October. All equity funds recorded losses, with the “European Equity Fund” and the “Hong Kong Equity Fund” experiencing the largest declines at 5.5% and 5.2%, respectively. In Europe, the ongoing Russia-Ukraine war and conflicts involving Israel and neighbouring regions have weakened the performance of the “European Equity Fund.” Meanwhile, the Hong Kong stock market, overly optimistic about policies, experienced a significant rise but has since returned to a more cautious stance, affecting the performance of the “Hong Kong Equity Fund.” Year-to-date through 2024, all types of equity funds have maintained positive returns, with the “Hong Kong Equity Fund (Index Tracking)” achieving a return of 21.4%.
Table 2: Ranking of Equity Fund Performance According to October 2024 Return
| Ranking | Equity Sub-category Fund Index | October Return (%) | 2024 YTD Return (%) |
| 1 | United States Equity Fund | -0.9% | 18.0% |
| 2 | Global Equity Fund | -2.4% | 12.7% |
| 3 | Japanese Equity Fund | -3.0% | 15.2% |
| 4 | Hong Kong Equity Fund (Index Tracking) | -4.0% | 21.4% |
| 5 | Asian Equity Fund | -4.2% | 13.0% |
| 6 | Greater China Equity Fund | -4.3% | 17.4% |
| 7 | Other Equity Fund | -4.9% | 5.3% |
| 8 | Hong Kong Equity Fund | -5.2% | 16.1% |
| 9 | European Equity Fund | -5.5% | 2.5% |
Analysis of Mixed Assets Fund Performance
The GUM MPF Mixed Asset Fund Index recorded an overall return decline of 3.3% in October. The MPF market saw declines in both stocks and bonds, with all fund categories within mixed asset funds reporting losses. The funds with the smallest declines were the “DIS Age 65 Plus Fund” and the “DIS Core Accumulation Fund,” which fell by 1.9% and 2.2%, respectively. On the other hand, while the “Mixed Asset Fund – (>80-100% Equity)” experienced the largest drop at 4.3%, it remains the best-performing category of mixed asset funds year-to-date, with an increase of 11.3%. The category with the poorest performance year-to-date is the “Other Mixed Asset Fund,” which still achieved a positive return of 2.1%. Overall, all mixed asset funds have maintained positive returns year-to-date.
Table 3: Ranking of Mixed Assets Fund Performance According to October 2024 Return
| Ranking | Mixed Assets Sub-category Fund Index | October Return (%) | 2024 YTD Return (%) |
| 1 | DIS Age 65 Plus Fund | -1.9% | 3.0% |
| 2 | DIS Core Accumulation Fund | -2.2% | 8.7% |
| 3 | Other Mixed Asset Fund | -2.3% | 2.1% |
| 4 | Dynamic Allocation Fund | -2.4% | 6.4% |
| 5 | Mixed Asset Fund – (>20-40% Equity) | -3.2% | 2.7% |
| 6 | Mixed Asset Fund – (>40-60% Equity) | -3.6% | 5.3% |
| 7 | Mixed Asset Fund – (>60-80% Equity) | -3.9% | 8.1% |
| 8 | Target-Date Fund | -4.2% | 11.1% |
| 9 | Mixed Asset Fund – (>80-100% Equity) | -4.3% | 11.3% |
Analysis of Fixed Income Fund Performance
The GUM MPF Fixed Income Fund Index experienced an overall return decline of 0.5% in October. Among fixed income funds, only the “MPF Conservative Fund” recorded a positive return, rising by 0.3%. Conversely, the worst-performing fund in October was the “Global Bond Fund,” which fell by 3.0%. This decline was attributed to market expectations that the U.S. Federal Reserve would slow down its interest rate cuts, projecting only a reduction of 0.25% to 0.5% before the end of the year, putting pressure on global bond performance. Consequently, the “Global Bond Fund” has become the only fund in the fixed income category to record a loss year-to-date, with a decline of 1.2%. The best-performing fixed income fund year-to-date is the “Hong Kong Money Market Fund,” achieving a return of 3.5%.
Table 4: Ranking of Fixed Income Fund Performance According to October 2024 Return
| Ranking | Fixed Income Sub-category Fund Index | October Return (%) | 2024 YTD Return (%) |
| 1 | MPF Conservative Fund | 0.3% | 3.1% |
| 2 | HKD Money Market Fund | -0.2% | 3.5% |
| 3 | Guaranteed Fund | -0.7% | 2.2% |
| 4 | RMB & HKD Money Market Fund | -0.9% | 1.8% |
| 5 | RMB Bond Fund | -1.2% | 3.1% |
| 6 | Hong Kong Dollar Bond Fund | -1.3% | 3.1% |
| 7 | Asian Bond Fund | -1.6% | 2.6% |
| 8 | Global Bond Fund | -3.0% | -1.2% |
Remarks:
- The average MPF return per member is calculated using total MPF assets HK$1,326,663 millions of the previous month (as of 30 September 2024). The number of MPF Scheme members was 4,754,000 as of 31 December 2023. The latest average assets per member was HK$279,062 as of 31 October 2024. The GUM MPF Composite Index return for October 2024 as of October 31, 2024.
*The growth of all fund categories indexes is calculated by asset-weighted point-to-point growth. The data for October 2024 return is summarized from 1 October to 31 October 2024.
－ 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.
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