【Hong Kong, August 21, 2024】GUM released the MPF Market Analysis Report July 2024 today. As of July 31, the total assets of the MPF market rose by 0.9% to HKD1.24 trillion. In terms of market share, Manulife remained in the lead with a share of 28.0%, followed by HSBC (17.7%) and Sun Life (10.8%) 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 0.33%. HSBC’s market share increased by 0.10%, primarily driven by investment return. Sun Life’s market share had the largest drop, reaching 0.22%. Among the non-top five providers, the market shares of Principal and BCT decreased significantly, dropping by 0.14% and 0.13% respectively. [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 | 28.0% | 0.17% | 0.16% | 0.33% |
| 2 | HSBC | 17.7% | -0.02% | 0.12% | 0.10% |
| 3 | Sun Life | 10.8% | 0.07% | -0.29% | -0.22% |
| 4 | AIA | 9.1% | 0.02% | 0.05% | 0.07% |
| 5 | BOC-Prud | 7.3% | 0.04% | -0.01% | 0.03% |
| 6 | BCT | 7.1% | -0.01% | -0.12% | -0.13% |
| 7 | Hang Seng | 5.7% | -0.02% | 0.04% | 0.02% |
| 8 | Principal | 5.3% | -0.16% | 0.02% | -0.14% |
| 9 | Fidelity | 4.3% | -0.03% | 0.04% | 0.01% |
| 10 | BEA | 2.6% | -0.03% | 0.00% | -0.03% |
In July 2024, “Equity Funds” and “Fixed Income Funds” saw net inflows of HKD0.52 billion each, while “Mixed-asset Funds” experienced a net outflow of HKD1.04 billion. The net inflow for “Equity Funds” contracted, while “Mixed-asset Funds” have seen net outflows for seven consecutive months this year. This indicates that members have a divergent outlook on the market, shifting their investments toward equity or fixed income funds. [Refer to Table 2 for more details]
Table 2：Net Fund Switching in Major Asset Categories in 2024 YTD
The top five asset classes with the highest net switching out in July were “Mixed Asset Fund (>80-100% Equity)”, “Hong Kong Equity Fund”, “Mixed Asset Fund (>60-80% Equity)”, “Greater China Equity Fund”, and “European Equity Fund”. The first and third highest net switching out asset classes were mixed-asset funds with a higher equity allocation, collectively recording a net outflow of around HKD1.43 billion. Meanwhile, asset classes with a stronger correlation to the China and Hong Kong markets also experienced significant net outflows. [Refer to Table 2 and Table 3 for more details]
On the other hand, the top five asset classes with the highest net switching in during July included “United States Equity Fund”, “Global Equity Fund”, “DIS – Core Accumulation Fund”, “Global Bond Fund”, and “DIS – Age 65 Plus Fund”. The top two, both equity funds, saw a combined net inflow of HKD1.96 billion, indicating that members remain confident in the equity market. Additionally, “Global Bond Fund” recorded a net inflow of nearly HKD550 million in July, accounting for 33.3% of the total net inflow for Global Bond Funds since the beginning of 2024.
GUM’s Strategy and Investment Analyst, Martin Wan, pointed out, “From the beginning of the year to July, a continuous inflow of HK$12.8 billion into US equity funds reflects members’ unwavering confidence in the US stock market. Additionally, nearly HK$550 million flowed into Global Bond Funds in July, likely due to a shift towards risk aversion following the stock market decline in July, and also driven by the increasing expectation of interest rate cuts attracting funds to bond investments. With the US election uncertainties and economic recession risks impacting the market, the global market is expected to be more volatile in the second half of the year. Members should remain cautious, properly diversify their investments, and avoid excessive concentration in a single market.”
Table 3: Top Five Fund Asset Types with Net Fund Switching out in 2024 July (in HK million)
| Rank | Asset Class | 2024 July | 2024 YTD |
| 1 | Mixed Asset Fund- (>80-100% Equity) | (HK$892) | (HK$5,197) |
| 2 | Hong Kong Equity Fund | (HK$671) | (HK$4,780) |
| 3 | Mixed Asset Fund- (>60-80% Equity) | (HK$536) | (HK$3,924) |
| 4 | Greater China Equity Fund | (HK$351) | (HK$3,412) |
| 5 | European Equity Fund | (HK$291) | (HK$148) |
Table 4: Top Five Fund Asset Types with Net Fund Switching in 2024 July (in HK million)
| Rank | Asset Class | 2024 July | 2024 YTD |
| 1 | United States Equity Fund | HK$987 | HK$12,859 |
| 2 | Global Equity Fund | HK$968 | HK$3,563 |
| 3 | DIS Core Accumulation Fund | HK$581 | HK$4,960 |
| 4 | Global Bond Fund | HK$547 | HK$1,644 |
| 5 | DIS Age 65 Plus Fund | HK$295 | HK$1,423 |
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