Core Viewpoint - GUM's strong performance in January indicates a positive start for the year, with significant gains in various fund indices, particularly in Asian stock funds driven by AI demand [1] Performance Summary - The "GUM MPF Composite Index" rose by 3.4% to 296.2 points in January 2026 [1] - The "GUM MPF Equity Fund Index" increased by 4.8% to 431.1 points [1] - The "GUM MPF Mixed Asset Fund Index" saw a rise of 3.5% to 297.5 points [1] - The "GUM MPF Fixed Income Fund Index" grew by 0.3% to 133.2 points [1] - The average gain per person in the MPF for January was HKD 11,085 [1] Market Insights - The Chief Investment Officer, Liu Jia-hong, noted that the demand for memory and semiconductors driven by AI development is strong in China, Japan, and South Korea, contributing to a robust growth momentum in the AI supply chain [1] - There is an expectation of a weakening US dollar, which is attracting funds into Asia [1] - Liu believes that global stock markets are in an upward trend, with Asian markets being the most attractive, followed by Europe, which is susceptible to changes in US-EU relations, as evidenced by recent trade disputes over Greenland [1] Asset Allocation Strategy - GUM's Strategy and Investment Analysis Director, Yun Tianhui, pointed out that the S&P 500's price-to-earnings ratio is approximately 27 times, indicating a relatively high level [1] - Unless US corporate earnings growth significantly exceeds expectations, there is limited upside potential for US stocks [1] - It is suggested that funds heavily invested in US equities should consider diversifying into lower-valued Asian or European funds [1]

Group 1 - The GUM Mandatory Provident Fund (MPF) Composite Index slightly decreased by 0.02% in November, closing at 284.8 points, with an average loss of HKD 64 per member for the month, while year-to-date average gains reached HKD 44,133 [1] - The Chief Investment Officer of GUM, Liu Jia-hong, noted that the U.S. stock market faced pressure due to ongoing government shutdowns and renewed concerns over the AI bubble, leading to an average loss of HKD 4,000 per member in mid-November. However, following the end of the shutdown and strong earnings reports from tech giants, market confidence rebounded, resulting in a rise in the MPF Composite Index during the last trading week [1] - Looking ahead to December, the market is expected to perform positively due to easing panic and rising expectations of interest rate cuts by the Federal Reserve, although volatility in virtual assets may pose risks to mainstream investment markets [1] Group 2 - In terms of asset allocation, GUM's Strategy and Investment Analysis Director, Yun Tianhui, indicated that the performance of the MPF in October and November was similar, characterized by mid-month declines followed by recoveries at the end of the month. Funds with a higher allocation to technology experienced significant volatility due to their higher valuations being more susceptible to news impacts [2] - Despite concerns over the AI bubble spreading to Asia, the Hong Kong stock market demonstrated relative resilience, with the Hang Seng Index maintaining above 25,000 points throughout the month. The current price-to-earnings ratio is only 12-13 times, indicating attractive valuations [2] - Members are advised to regularly review their risk tolerance and investment objectives to avoid impulsive buying and selling based on short-term news [2]