GUM: MPF Total Assets Dropped to HKD 1.09 Trillion in September; MPF Members Shifted HKD 7.8 Billion Assets to Equity Funds

Oct 17, 2023
Reading Time: 5 minutes

【Hong Kong, October 17, 2023】According to the market share report released by GUM today, the total MPF assets dropped by 2.4% in September, reaching HKD 1.09 trillion. In terms of market share, Manulife leads with a share of 27.4%, followed by HSBC (17.7%) and Sun Life (11.1%). 

Among the top 10 providers, Manulife has experienced the largest increase in market share since the beginning of 2023, with a growth of 0.41%, which is the highest among all providers. This growth is primarily attributed to investment returns, which contributed to a 0.25% increase. On the other hand, Sun Life suffered the largest decline in market share, with a decrease of 0.19%, mainly due to the negative impact of investment returns (-0.38%).【Refer to Table 1 for details】 

Table 1:Market Share of Top 10 MPF Providers from the Beginning of 2023  

 2023 YTD Change in Market Shares 
Market Share Rank Providers Market     Shares Due to  Net Switching Due to Investment Return Total change 
Manulife 27.4% 0.16% 0.25% 0.41% 
HSBC 17.7% -0.16% 0.03% -0.13% 
Sun Life 11.1% 0.19% -0.38% -0.19% 
AIA 8.9% -0.03% 0.15% 0.12% 
BOC-Prud 7.3% 0.04% 0.03% 0.07% 
Hang Seng 5.8% -0.01% -0.04% -0.05% 
Principal 5.5% -0.12% 0.05% -0.07% 
BCT 5.5% 0.00% -0.02% -0.02% 
Fidelity 4.3% 0.01% -0.03% -0.02% 
10 BEA 2.6% -0.03% 0.01% -0.02% 

MPF Members continue to shift funds to Equity Funds. MPF members have chosen to transfer their funds to equity funds in terms of asset conversion. According to the latest data, in September, a total of HKD 780 million was transferred from mixed asset funds and bond and money market funds (HKD 610 million and HKD 160 million respectively) to equity funds. Despite the ongoing downward trend in the stock markets of Hong Kong and globally during September, some members remain optimistic about the market outlook and continue to increase their allocation to equities. [Refer to Table 2 for details] 

Table 2:Net Fund Switching in Major Asset Categories in September 

In terms of the net fund flows for individual funds, the top five funds with net outflows includes 80% to 100% equity funds, Hong Kong equity funds, 60% to 80% equity funds, Greater China equity funds, and guaranteed funds. On the other hand, the top five asset categories with the highest net inflows include US equity funds, Default Investment Strategy – core accumulation funds, Japan equity funds, global equity funds, and MPF conservative funds. [Refer to Table 3 and Table 4 for details] 

Table 3: Top Five Fund Asset Types with Net Fund Outflows in September 2023 (in million HKD) 

Rank Asset Class Sep 2023 
Mixed Asset- (>80-100% Equity) Fund -586 
Hong Kong Equity Fund -474 
Mixed Asset- (>60-80% Equity) Fund -434 
Greater China Equity Fund -300 
Guaranteed Fund -294 

Table 4: Top Five Fund Asset Types with Net Fund Inflows in September 2023 (in million HKD) 

Rank Asset Class Sep 2023 
United States Equity Fund 959  
DIS Core Accumulation Fund 652  
Japanese Equity Fund 333  
Global Equity Fund 269  
Conservative Fund 209  

GUM’s Strategic and Analytic Consultant, Martin Wan, pointed out, “Although global equity markets remained weak in September, the US economy showed strong performance. The non-farm payroll employment increased by 336,000 in September, and with no significant rebound in US inflation during that month, it may attract some funds to be transferred into equity funds, especially US and Japan funds. At the same time, conservative funds also attracted HKD 200 million in funds due to the benefit from the high-yield cycle.” He reminded MPF members to avoid blindly switching fund portfolios based on short-term market fluctuations and instead determine asset allocation based on risk tolerance and investment objectives. 

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