Pension Funds Record Gains in January Driven by AI, Although Still Susceptible to Fluctuations

ExpectationFarmer · 2026-02-14T13:13:35+00:00

In January, pension funds grew by 3.4%, with a highlight on equity funds (4.8%). Artificial intelligence is driving growth, while the Asian market remains attractive despite geopolitical uncertainties.

ExpectationFarmer

2026-02-14 13:13:35

Abstract generation in progress

The month of January brought consistent recovery to pension funds, with the comprehensive index reaching 296.2 points, representing a 3.4% increase. Average gains reached 11,085 HKD per participant, according to RTHK data. This performance reflects a market environment that, despite being susceptible to geopolitical uncertainties, maintained positive trends across multiple investment segments.

Diversified Performance by Asset Class

Equity funds showed the strongest performance, with an overall return of 4.8%. By region, Asian funds led with an 8.7% return, while Greater China and Hong Kong recorded 7.4% and 6.9%, respectively. U.S. markets had more modest performance, with only a 1% gain. Outside the equity segment, mixed asset funds returned 3.5%, while fixed income funds accumulated a 0.3% return. Notably, Hong Kong dollar bond funds posted a negative return of 0.3%, reflecting currency pressures.

Artificial Intelligence and Semiconductors Drive Growth Momentum

GUM indicated that artificial intelligence continues to be the main growth driver in regional markets. The accelerated demand for memory and semiconductors has strengthened economic dynamics in key regions such as Greater China, Japan, and South Korea, which form critical links in the global AI supply chain. Simultaneously, expectations of a weakening U.S. dollar attracted significant capital flows into Asian assets, creating favorable conditions for multiple fund categories in the region.

Market Outlook: Opportunities and Risks

The institution maintains a positive outlook on global equity markets, which continue on an upward trajectory. Non-dollar-denominated assets appear as more attractive options in this context. The Asian market remains the top choice among investors, followed by Europe. However, the European scenario proves particularly susceptible to fluctuations in transatlantic trade relations, as demonstrated by recent tensions involving negotiations over Greenland. These geopolitical dynamics underscore the importance of monitoring regional exposures and adjusting strategies as the macroeconomic environment evolves.

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