MPF Extends Gains in May: Average Gain HK$3,682; YTD Cumulative Return HK$17,424

Hong Kong — MPF advisory firm GUM reports that the MPF market has extended its post-April rebound, though overall momentum has moderated. The GUM MPF Composite Index rose 1.1% in May, reaching 301.6, pushing year-to-date returns to 5.3%. On a per-capita basis, members gained HK$3,682 in May, with cumulative YTD returns reaching HK$17,424.

Three Asset Classes Show Divergent Trends

Equity funds continued to deliver positive returns, rising 1.6% in May with YTD gains expanding to 7.1%, remaining the primary driver of overall performance. Mixed asset funds rose 1.1% in sync, reaching 6% YTD. Fixed income funds dipped 0.1%, reflecting the emerging impact of interest rate and currency factors.

Asian Funds Continue to Lead

GUM Chief Investment Director Kenny Lau noted that Asian funds, supported by the AI industry chain, continue to outperform. In May, they further widened the return gap with other regions, with YTD returns exceeding 22%. The technology sector in Asian markets has been the standout, driving MPF overall returns.

Investment Outlook

GUM indicates that while MPF market momentum has moderated from April, the positive trend remains intact. Equity funds remain the core driver. Investors should maintain a long-term investment perspective, focus on Asian markets’ growth potential, and monitor interest rate risks affecting fixed income funds.

Market Outlook: Although May gains were smaller than April’s surge, the 5.3% YTD cumulative return demonstrates overall portfolio resilience. Investors should continue diversification strategies, capture Asian market growth opportunities, and monitor interest rate trends impacting fixed income assets.

Source: GUM MPF Ratings | mpf.hk