【Hong Kong, July 18, 2024】GUM released the MPF Market Analysis Report June 2024 today. As of June 30, the total assets of the MPF market rose by 1.0% to HKD 1.226 trillion. In terms of market share, Manulife remained in the lead with a share of 27.9%, followed by HSBC (17.7%) and Sun Life (10.9%) in second and third place respectively. Together with fourth and fifth-ranked providers, AIA (9.1%) and BOC-Prud (7.3%), the top five providers accounted for over 72% of the MPF market.

In 2024 YTD, the market share gains of Manulife and HSBC have been more pronounced. Manulife’s market share increased by 0.23%, mainly driven by net switching in. HSBC’s market share increased by 0.09%, primarily driven by investment return. Sun Life’s market share had the largest drop, reaching 0.15%. Next were BCT and Principal, both with a 0.12% drop, with net switching out being the main reason. [Refer to Table 1 for details]

Table 1: 2024 YTD Market Share of MPF Providers (Top 10)

In June 2024, “Mixed-asset Funds” and “Fixed Income funds” experienced HK$0.72 billion and HK$2.5 billion net switching out, respectively, while “Equity Funds” recorded an net switching in of HK$3.22 billion. “Equity Funds” and “Fixed Income Funds” recorded their largest monthly net switching in and net switching out respectively YTD, while “Mixed-asset Funds” has seen net switching out for six consecutive months. The inflow amount for “Equity Funds” was also the highest in the past two years on a monthly basis. This shift in asset allocation reflects scheme members’ appetite for higher risk-reward investment strategies in pursuit of enhanced returns. [Refer to Table 2 for more details]

Table 2：Net Fund Switching in Major Asset Categories in 2024 YTD

In June, the top five asset types with the highest net switching out were “MPF Conservative Fund”, “Guaranteed Fund”, “Mixed Asset- (>60-80% Equity)”, “Mixed Asset Fund (>80-100% Equity)” and “Mixed Asset Fund (>40-60% Equity)”. The top two asset classes with the highest net switching out are “Fixed Income Fund”, with a combined net switching out of 2.5 billion. Within that, “MPF Conservative Fund” and “Guaranteed Fund” accounted for 2.48 billion. The asset classes ranked 3rd to 5th in terms of net switching out are all mixed-asset funds with a higher equity allocation. [Refer to Table 3 for more details]

On the other hand, the top five asset types with the highest net switching in included “United States Equity”, “DIS – Core Accumulation Fund”, “Global Equity”, “Japan Equity”, and “Hong Kong Equity (Index Tracking)”. Aside from the “DIS – Core Accumulation Fund”, the remaining 4 funds are equity funds, demonstrating that the investment style of the members has become more aggressive. It is worth noting that the “Hong Kong Equity (Index Tracking)” recorded net switching in for the first time this year, which is believed to be due to the rebound of the Hang Seng Index in May, leading members to regain confidence in the Hong Kong market. [Refer to Table 4 for more details]

GUM’s Strategy and Investment Analyst, Martin Wan, pointed out, “In June, members showed a significant preference toward investing in equity funds, reflecting their stronger confidence in the market outlook. The main reason is that global stock markets have seen a noticeable improvement since 2023, with the US and Japan stock markets even hitting new highs repeatedly. Although the overall market remains optimistic about the outlook, there are still some uncertainties in the second half of the year, such as the US presidential election, the deterioration of China-US relations, and geopolitical conflicts, which may lead to increased volatility. Members should remain cautious and make investment choices based on their own risk tolerance. Additionally, as the market expects the US to follow the Eurozone in implementing interest rate cuts, this would be beneficial for the performance of bond funds, which is also worth members’ attention.”

Table 3: Top Five Fund Asset Types with Net Fund Switching out in 2024 June (in HK million)

Table 4: Top Five Fund Asset Types with Net Fund Switching in 2024 June (in HK million)

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