Strong Inflows of HKD 4 Billion to MPF US Equity Funds and DIS Core Accumulation Funds

Feb 23, 2024
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【Hong Kong, February 23, 2024】According to the MPF market share report released by GUM today, as of January, the total assets in the MPF market have declined by 1.7% to HK$1.12 trillion. In terms of market share, Manulife remains the leader with a share of 27.9%, while HSBC (17.6%) and Sun Life (10.9%) continue to hold the second and third positions respectively. Manulife’s market share saw a more noticeable change, increasing by 0.18% compared to the previous month, primarily driven by investment returns. On the other hand, Sun Life’s market share decreased by 0.16%.

Fourth-ranked AIA saw a slight increase of 0.01% in market share, reaching 9.0%. The competition for the fifth position is highly intense, with BOC-Prud slightly surpassing BCT Group to secure the fifth spot. [Refer to Table 1 for details]

Table 1:Market Share of Top 10 MPF Providers in 2024

 2024 Change in Market Shares
Market Share RankingProviderMarket     ShareDue to Net SwitchingDue to Investment ReturnTotal change
1Manulife27.9%0.01%0.17%0.18%
2HSBC17.6%0.00%0.02%0.02%
3Sun Life10.9%0.00%-0.16%-0.16%
4AIA9.0%-0.01%0.02%0.01%
5BOC-Prud7.2%0.01%-0.03%-0.02%
6BCT7.2%-0.01%-0.05%-0.06%
7Hang Seng5.7%0.00%-0.02%-0.02%
8Principal5.5%0.01%0.02%0.03%
9Fidelity4.3%0.01%0.00%0.01%
10BEA2.6%0.00%0.02%0.02%

In January 2024, a total of HK$1.35 billion was transferred into “Equity fund”, while HK$1.1 billion and HK$0.25 billion were respectively transferred out from “Mixed asset fund,” and “Fixed income fund”. This could be attributed to the overall strong performance of global stock markets in 2023, which attracted many investors to allocate their funds into equity funds. [Refer to Table 2 for details]

Table 2:Net Fund Switching in Major Asset Categories

In January 2024, the top five fund types with the highest net switching out were “Hong Kong Equity”, “Greater China Equity”, “Mixed Asset (>80% -100% Equity)”, “Mixed Asset (>60% -80% Equity)”, and “Mixed Asset (>40% -60% Equity)”.

On the other hand, the top five asset types with the highest net switching in were “United States Equity”, “DIS Core Accumulation Fund”, “Global Equity”, “Global Bond” and “Japanese Equity “. [Refer to Table 3 and Table 4 for details]

GUM’s Strategy and Investment Analyst, Martin Wan, pointed out, “In 2023, different markets showed divergent performances. The fund switching results in January 2024 indicate that members preferred fund categories with better performance from the previous year, such as “United States Equity” and “DIS Core Accumulation Fund.” However, the US inflation data from last month exceeded market expectations, and the expectation of a rate cut in the first quarter decreased, which could increase the volatility of funds. As the MPF is a long-term retirement investment, MPF members should approach it from a long-term investment perspective and avoid excessively predicting the best market entry timing to chase market fluctuations.“

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

RankAsset ClassJanuary 2024
1Hong Kong Equity-1,225
2Greater China Equity-925
3Mixed Asset- (>80-100% Equity)-855
4Mixed Asset- (>60-80% Equity)-628
5Mixed Asset- (>40-60% Equity)-323

Table 4: Top Five Fund Asset Types with Net Fund Switching in (in million HKD)

RankAsset ClassJanuary 2024
1United States Equity3,140
2DIS Core Accumulation Fund807
3Global Equity673
4Global Bond361
5Japanese Equity298

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