MPF Rises Further in May: Average YTD Gains Top HK$18,000 as Asian Funds Lead the Pack

HONG KONG — The MPF market continued its upward trajectory in May, with the GUM MPF Composite Index rising 1.3% during the month. Year-to-date cumulative return has expanded to 5.6%, with average per-member gains reaching HK$18,200.

Divergent Performance Across Asset Classes

Equity funds rose 1.8% in May, extending year-to-date returns to 7.5%, remaining the primary driver of overall performance. Mixed asset funds gained 1.2%, with YTD returns reaching 6.3%. Fixed income funds slipped 0.1%, continuing to face headwinds from interest rate and currency fluctuations.

Asian Funds Continue to Dominate

Asian funds maintained their stellar performance, powered by the AI and technology supply chain momentum. Year-to-date returns have surpassed 24%, firmly establishing Asian funds as the top-performing regional category. The technology sector in Hong Kong and mainland China equities has been the standout contributor to overall MPF returns.

eMPF Platform Drives Fee Reductions

Following the full operation of the eMPF platform, administrative costs continue to decline. The average fund expense ratio has dropped to 0.85%, a significant improvement from pre-platform levels. The MPFA projects cumulative savings of over HK$50 billion in administrative fees over the coming years, further boosting members net investment returns.

Investment Outlook

Market analysts note that while Mays gains were more moderate than Aprils surge, the 5.6% YTD return demonstrates resilient portfolio performance. Investors are advised to maintain diversified strategies, capitalize on Asian market growth opportunities, and monitor U.S. interest rate policy and geopolitical risks affecting fixed income assets. Over the long term, time in the market not market timing remains the core principle for MPF investing.

Source: GUM, MPF Ratings, MPF.hk