[Hong Kong, October 22, 2024] GUM has released the MPF market analysis report for September 2024. As of 30 September, the total assets in the MPF market increased by 5.1% to HKD 1.32 trillion. In terms of market share, Manulife leads with a share of 27.8%, followed by HSBC at 17.8% and Sun Life at 10.9%. Together with AIA (9.0%) and BOC Prudential (7.4%), the top five providers account for over 72% of the MPF market.
For the year to date, HSBC has experienced the most significant increase in market share, rising by 0.23%, primarily driven by investment returns. The largest decline in market share was seen by Principal, which fell by 0.21%, mainly due to net fund switching out. [Refer to Table 1 for details]
Table 1: 2024 YTD Market Share of MPF Providers (Top 10)
| 2024 YTD Change in Market Shares | |||||
| Market Share Rank | Provider | Market Shares | Due to Net Switching | Due to Investment Return | Total change |
| 1 | Manulife | 27.8% | 0.33% | -0.22% | 0.11% |
| 2 | HSBC | 17.8% | -0.01% | 0.24% | 0.23% |
| 3 | Sun Life | 10.9% | 0.08% | -0.20% | -0.12% |
| 4 | AIA | 9.0% | 0.03% | -0.01% | 0.02% |
| 5 | BOC-Prud | 7.4% | 0.05% | 0.09% | 0.14% |
| 6 | BCT | 7.1% | -0.12% | -0.02% | -0.14% |
| 7 | Hang Seng | 5.8% | -0.02% | 0.13% | 0.11% |
| 8 | Principal | 5.3% | -0.20% | -0.01% | -0.21% |
| 9 | Fidelity | 4.3% | -0.05% | 0.05% | 0.00% |
| 10 | BEA | 2.5% | -0.03% | -0.04% | -0.07% |
MPF members continued to exhibit a risk-averse sentiment from August to September, with net fund switching primarily flowing into “Fixed Income Funds” and out of “Equity Funds,” although the net switching amounts began to narrow. Specifically, “Fixed Income Funds” saw a net switching in of HKD 4.72 billion, “Mixed Asset funds” saw a net switching in of HKD 0.48 billion, while “equity funds” experienced a net switching out of HKD 5.20 billion. The market requires more data to assess the risk of an economic recession in the U.S., while awaiting the Federal Reserve’s decision on interest rate and the monetary policy direction of Japan’s newly appointed prime minister in September. Given the lack of clarity from multiple factors, members opted to invest in fixed income fund categories to prepare for future moves. [See Tables 2 and 3 for details.]
Table 2：Net Fund Switching in Major Asset Categories in 2024 YTD (HKD Billion)
Figures may not sum up to the total due to rounding
In September, the five asset classes with the highest net switching out were ‘Hong Kong Equity Funds (index tracking)’, ‘Hong Kong Equity Funds’, ‘Greater China Equity Funds’, ‘Mixed Asset Funds (80% to 100% equities)’, and ‘Mixed Asset Funds (60% to 80% equities)’. All five categories are higher-risk fund types with a strong correlation to the China and Hong Kong markets, collectively seeing net switching out of nearly HKD 6.24 billion. [Refer to Table 3 for more details] The reason may be that the China and Hong Kong markets underperformed leading up to the ‘comprehensive policy’ launched in late September, prompting investors to prioritize reducing their holdings in these funds amid risk-averse sentiments.
On the other hand, the five asset classes with the highest net switching in in September were ‘MPF Conservative Fund’, ‘ DIS Core Accumulation Fund ‘, ‘Global Bond Fund’, DIS Age 65 Plus Fund’, and ‘Guaranteed Fund’. Three of these are fixed-income fund categories, collectively recording net switching in of HKD 4.38 billion, while the other two belong to the ‘Default Investment Strategy Funds (DIS)’, which saw nearly HKD 1.67 billion in net switching in in September. [Refer to Table 4 for more details]
GUM’s Strategy and Investment Analyst, Martin Wan, pointed out, “In September, there was a continued net switching out of 5 billion in funds from Greater China/Hong Kong equity funds. However, after China launched a series of economic stimulus measures on September 24, market sentiment was significantly boosted. The Hang Seng Index surged by 4,000 points, reaching 23,000, with trading volume exceeding 500 billion. The market generally believes that this round of trading included participation from northbound capital, foreign investors, and local investors.”
He continued: “Members should manage their MPF account from a long-term asset allocation perspective, rather than making trading decisions based on short-term volatility. Instead, members should carefully consider whether there have been fundamental changes in the fundamentals of China and Hong Kong market, such as fundamental shifts in central government policies on real estate, the coordination of fiscal and monetary policies, etc. If it is difficult to make a judgment, it may be better to continue diversifying risks across different stock regions.”
Table 3: Top Five Fund Asset Types with Net Fund Switching out in 2024 Sep (in HKD million)
| Rank | Asset Class | 2024 Sep | 2024 YTD |
| 1 | Hong Kong Equity Fund (Index Tracking) | (HK$2,145) | (HK$5,987) |
| 2 | Hong Kong Equity Fund | (HK$2,032) | (HK$8,003) |
| 3 | Greater China Equity Fund | (HK$997) | (HK$5,661) |
| 4 | Mixed Asset Fund – (>80-100% Equity) | (HK$652) | (HK$6,673) |
| 5 | Mixed Asset Fund – (>60-80% Equity) | (HK$418) | (HK$5,008) |
Table 4: Top Five Fund Asset Types with Net Fund Switching in 2024 Sep (in HKD million)
| Rank | Asset Class | 2024 Sep | 2024 YTD |
| 1 | Conservative Fund | HK$3,080 | HK$6,973 |
| 2 | DIS Core Accumulation Fund | HK$968 | HK$6,618 |
| 3 | Global Bond Fund | HK$911 | HK$5,501 |
| 4 | DIS Age 65 Plus Fund | HK$703 | HK$2,980 |
| 5 | Guaranteed Fund | HK$392 | HK$830 |
－ The End －
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