MPF members heed MPFA’s diversification call as Manulife maintains its leadership position

21st July 2023

DIS’ Core Accumulation Fund is now MPF’s fastest growing asset class

MPF Ratings’ June MPF Asset Class Fund Flows Summary has now been uploaded.

Key points are as follows:

MPF recorded estimated net fund inflows of $13.2bn for the second quarter and $28.4bn for the first half of 2023 (See Table 1), approximately 5.4% higher than the historical year-to-date average of $27.0bn over the past 3 years.
Despite being MPF’s worst performing asset class for the second quarter and first half of 2023, HK & China Equity Funds was the biggest absolute inflow winner reporting a respective net inflow share of 23.1% and 28.8% (Also see Table 1).
Default Investment Strategy (DIS) Core Accumulation Fund is now MPF’s fastest growing asset class, attracting net inflows equivalent to approximately 3x its market share for the last 3 months while ranking 2nd in year-to-date absolute inflows (Also see Table 1).
Manulife maintains it leadership position for market share and net inflows in 2023, ranking 1st with a market share of 27.3%, Q2 inflows of $3.766bn and year-to-date inflows of $8.377bn (See Table 2).
MPF’s total assets stand at $1.112tr at the end of Q2 2023 (up 5.77% YTD), translating to an average account balance per 4.69m members of $236,800.

Francis Chung (叢川普), Chairman of MPF Ratings Ltd, Hong Kong’s independent Mandatory Provident Fund (MPF) research specialist today released MPF Ratings’ June MPF Asset Class Fund Flows Summary by highlighting the significant growth in MPF’s mandated Default Investment Strategy’s (DIS) Core Accumulation Fund while supporting the MPFA’s push for members to diversify their MPF investments.

Quotes:

MPF members heed regulator’s call to diversify

“The MPFA mandated Default Investment Strategy Fund (Core Accumulation Fund) is low cost, well diversified and is offered by all MPF schemes. Based on the latest fund flow data DIS’ Core Accumulation Fund is now MPF’s fastest growing asset class. MPF members are heeding the MPFA’s message to diversify their MPF assets.”

Manulife maintains its leadership position in Q2 2023

Manulife continues to lead its MPF competitors. With 27.3% market share and winning over $3bn in Q2 2023 and $8bn year-to-date, Manulife ranks first in both market share and for net inflows in 2023. With the recent announcement of the launch of two new MPF ESG focused funds MPF Ratings expects Manulife to consolidate its MPF leadership position through the rest of 2023.

Leading independent MPF commentator supports the MPFA’s push for diversification

“MPF Ratings supports the MPFA’s ongoing message for MPF members to diversify MPF to maximise their retirement savings. Attempts by members to pick the best performing markets is fraught with risks. By being well diversified and long term focused members are assured of more consistent returns.”

Table 1: MPF Asset Class Fund Flows for Q2 and First Half of 2023