In January, the average earnings from the Mandatory Provident Fund were HKD 11,000, with one type of fund making a profit of 8.7%

The Mandatory Provident Fund (MPF) consultant GUM announced the performance of the MPF for January, with its "MPF Composite Index" rising by 3.4%, resulting in an average gain of HKD 11,085 per person. The MPF Research Fund Rating was also released, showing a return of 3.42% for January, with an absolute investment income of approximately HKD 53.2 billion, translating to an average gain of about HKD 11,091 per member among the 4.79 million MPF members. GUM's Chief Investment Officer, Liu Jia-hong, stated that the new year has started strongly for the MPF, with Asian equity funds leading the way as the best-performing MPF category in January, rising by as much as 8.7%. The ongoing development of AI continues to boost demand for memory and semiconductors, keeping growth momentum strong in China, Taiwan, Japan, and South Korea as part of the AI supply chain. Additionally, the market's expectation of a weakening US dollar has attracted capital inflows into Asia. GUM: Optimistic about Asian and European Markets He believes that global stock markets are still on an upward trend, but non-US dollar assets are more attractive, with the Asian market being the most favored, followed by Europe. However, the latter is more susceptible to changes in US-European relations, such as the recent trade disputes arising from issues related to Greenland. In terms of asset allocation, GUM's Director of Strategy and Investment Analysis, Yun Tianhui, indicated that the current price-to-earnings ratio of the benchmark index is about 27 times, which is still considered high. Unless US corporate earnings growth significantly exceeds expectations, the upside potential is limited. Members with heavy holdings in US equity funds may consider diversifying into lower-valued Asian or European funds. ↓↓↓ See the performance of various funds ↓↓↓ Equity Fund Rankings Rank Equity Fund Index January 2026 Return (%) 1 Asian Equity Fund 8.7% 2 Greater China Equity Fund 7.4% 3 Hong Kong Equity Fund 6.9% 4 Hong Kong Equity Fund (Index Tracking) 6.6% 5 European Equity Fund 3.9% 6 Japanese Equity Fund 3.9% 7 Global Equity Fund 2.9% 8 Other Equity Funds 1.2% 9 US Equity Fund 1.0% Mixed Asset Fund Rankings Rank Mixed Asset Fund Index January 2026 Return (%) 1 Mixed Asset Fund (80% to 100% Equity) 5.1% 2 Target Date Fund 4.8% 3 Mixed Asset Fund (60% to 80% Equity) 4.4% 4 Dynamic Asset Allocation Fund 3.5% 5 Mixed Asset Fund (40% to 60% Equity) 3.2% Rank Mixed Asset Fund (20% to 40% Stocks) 2.4% --- --- --- 7 Default Investment Strategy - Core Accumulation Fund 2.1% 8 Other Mixed Asset Funds 1.3% 9 Default Investment Strategy - Fund After Age 65 0.8% Fixed Income Fund Rankings Rank Fixed Income Fund Index January 2026 Return (%) 1 Global Bond Fund 1.0% 2 Renminbi Bond Fund 0.7% 3 Renminbi and Hong Kong Dollar Money Market Fund 0.5% 4 Guaranteed Fund 0.3% 5 Asian Bond Fund 0.2% 6 Hong Kong Money Market Fund 0.2% 7 MPF Conservative Fund 0.2% 8 Hong Kong Dollar Bond Fund -0.3% Source: GUM MPF Rating: Total Assets Will Exceed HKD 1.6 Trillion MPF Rating Chairman Cong Chuanpu stated that the Hong Kong and China stock markets started strong this year, and history shows that when the local market performs well, the MPF often performs excellently as well. Therefore, there is optimism about the local market this year; however, MPF members are likely to face challenges of volatility, which further highlights the importance of diversified investment. Including contributions, the total assets of the MPF are expected to exceed HKD 1.6 trillion for the first time by the end of January, reaching HKD 1.61 trillion, an increase of HKD 56.2 billion from the end of December last year, marking the ninth consecutive month of historical highs for MPF assets. This corresponds to an average account balance of HKD 335,834 for the 4.79 million MPF members, also setting a historical record