DIS Funds become MPF’s most popular investment as members shun Chinese equities

6 February 2020

MPF members are seeking to minimize risks says leading MPF research analyst.

MPF Ratings, an independent provider of MPF research, today released its December quarter MPF Fund Flow and Market Share Report (FMS), by highlighting the MPFA’s much vaunted DIS Core Accumulation Fund had become the MPF industry’s most popular investment by net inflows (see table 1), attracting 22.8% of total net inflows, in the final three months of December 2019 as members steered clear of HK/China equities which, despite being the largest asset class by market share (24.3%), only ranked 13th for net inflows.

Table 1: Industry Share of MPF Assets and Rank of Quarterly Net Inflows by Fund Types as at 31 December 2019*

*Source: MPF Ratings

 

Launched on 1 April 2017 as a ready-made low cost investment solution, DIS has benefitted from recent global uncertainty. That’s the view of Francis Chung (叢川普), Chairman of MPF Ratings. “Historically MPF investors have looked to HK/China equities for growth, but turmoil creates uncertainty,” according to Mr Chung before adding, ”And with uncertainty and little or no return from cash, investors are sensibly balancing risk and return.  DIS offers MPF investors with a low cost, easy to implement investment solution which offers both growth opportunities and shelter from investment volatility. In short, a sensible for choice for MPF members.”

MPF Ratings’ FMS also reported that Manulife and Sun Life’s continued to grow their market share aggressively with their respective market share of Net Inflows continuing to far exceed their share of Assets Under Management (see Table 2) as insurance companies continued to take market share from banks, a trend which now sees insurance companies control over 48% of the market share for MPF assets (see chart 1), and one unlikely to change soon as MPF members capitalize of the diversification and cost benefits of DIS.

 
Table 2: Industry Share of MPF Assets and Rank of Quarterly Net Inflows by Scheme Sponsor as at 31 December 2019*

*Source: MPF Ratings

 
Chart 1: Industry Share of MPF Assets and Quarterly Net Inflows by Type of Scheme Sponsor as at 31 December 2019*

*Source: MPF Ratings

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