January Records Significant Gains in Pension Funds Driven by AI Boom

The pension market experienced exceptional performance in January. Pension funds reached the comprehensive index at 296.2 points, reflecting a 3.4% growth. According to RTHK reports, the average earnings per beneficiary reached HKD 11,085. This positive result solidified pension funds as an attractive investment alternative amid the global technological growth landscape.

Equity Funds Lead the Rise with a 4.8% Return

The equity segment showed the best response during the period. Equity funds overall experienced a 4.8% return, significantly outperforming other investment segments. This performance was accompanied by a favorable reception of other fund types: mixed asset funds recorded a 3.5% return, while fixed income funds remained more conservative with just 0.3%. In contrast, Hong Kong dollar bond funds showed the only negative note, with a -0.3% return.

Asia Emerges as the Main Driver: Asian Funds Reach 8.7%

The geographic distribution of performance revealed a clear Asian leadership. Asian equity funds led the results with an 8.7% return, positioning themselves well above other regions. Chinese equity funds followed closely with 7.4%, while Hong Kong registered 6.9%. In contrast, U.S. markets showed a more tempered performance, with U.S. equity funds achieving only a 1% return. This contrast highlights the differentiated capacity of funds based on their geographic exposure.

Artificial Intelligence: The Catalyst Behind Market Dynamism

According to GUM analysis, the accelerated development of artificial intelligence has transformed demand in key sectors of the technology supply chain. AI has driven unprecedented demand for memory and semiconductors, particularly in regions such as Greater China, Japan, and South Korea. These geographic areas represent critical links in the semiconductor and AI supply chain, which largely explains the strengthening of funds with Asian exposure. Simultaneously, market expectations of a weakening U.S. dollar have channeled additional capital flows into Asian assets, amplifying the appeal of equity funds focused on these regions.

Stock Fund Outlook: Maintaining an Upward Trend

GUM’s forward-looking view suggests that global stock markets will continue an upward trajectory in the short term. Non-U.S. equity funds emerge as particularly promising options for investors. Regionally, Asian funds are seen as the most favorable, followed by European options. However, funds with European exposure face uncertainty due to trade tensions between the United States and Europe, such as the recent dispute over Greenland, which could alter expected performance.