Surprising winners and losers as MPF records lowest net inflows since 2021

17th January 2025

Data reveals two types of MPF member behaviours

MPF Ratings’ 2024 Annual MPF Asset Class Fund Flows Summary has now been uploaded.

Key points are as follows:

  • Q4 2024 saw MPF attract estimated net inflows of $11.0bn (See Table 1) to take 2024 total estimated numbers to $48.1bn, the lowest annual net inflows since 2021 and 7.9% lower than MPF’s 5-year historical annual average of $52.3bn.
  • On the back of consecutive years of greater than 20% returns, US Equities attracted over 50% of MPF’s estimated annual net inflows. Such was US equity’s popularity, its estimated $24.7bn of net inflows is its highest on record.
  • Despite a 15.9% annual return breaking a 3-year losing streak, Hong Kong and China equities saw an unwanted MPF statistic, net outflows in every quarter of 2024. This trend contributed to a system worst estimated annual net outflow of -$10.5bn.
  • With an estimated 40.4% share of annual net inflows, MPF heavyweight Manulife flexed its dominance by winning approximately $19.4bn of annual net inflows. More than the accumulated total of the next three winners.
  • At the end of December, the MPF system achieved an annual return of 8.82% with total assets of approximately$1.291tr, and average MPF account balances of $271,600 for 4.75m MPF members.

Francis Chung (叢川普), Chairman of MPF Ratings Ltd, Hong Kong’s independent Mandatory Provident Fund (MPF) research specialist today released the organization’s highly anticipated 2024 Annual MPF Asset Class Fund Flow Summary by highlighting the MPF system’s biggest winners and losers over the past year while sharing his view on what the MPF fund flow data is telling us about member behaviour and what to expect in 2025.

Quotes:

Why is MPF net inflow data so highly anticipated by the MPF community

“The final quarter of 2024 saw MPF attract an estimated net inflow of $11bn to take 2024’s total to an estimated $48.1bn. Despite being the lowest total since 2021, the results are highly anticipated as they reveal which funds, asset classes and scheme sponsors are popular with MPF members.”

Who were MPF’s biggest winners and losers?

“The clear winners are US equities and Manulife, while the laggards are local equity markets. Despite recording an estimated return of $15.9% in 2024 to end a 3-year losing streak, Hong Kong and China equities saw net outflows in every quarter. Conversely, US equities received over half of MPF’s net inflows and Manulife flexed its dominance to win more inflows than the next three biggest players combined.”

What the net inflow results are telling us about member behaviour and 2025

“Generally, we’re seeing two types of MPF members. Those committed to diversification and long-term investing as evidenced by the strong support for DIS funds, and those favouring momentum as an investment criterion. How else can one explain the strong support for US equities? A new US president, the spectre of tariffs and inflationary concerns make 2025 an uncertain year. Diversification is an investor’s best asset during times of uncertainty. For this reason, MPF Ratings reaffirms its support for the MPFA’s DIS Funds. By combining diversification, low fees, and an automatic risk reduction mechanism it takes the stress away from choosing investments and timing decisions. It is THE ideal fund option for most MPF members.”

Table 1:  2024 Q4 and Full Year MPF Asset Class Net Inflows

Source: MPF Ratings

Table 2:  2024 Q4 and Full Year MPF Scheme Sponsor Net Inflows

Source: MPF Ratings

^ Orientiert Group, the scheme sponsor of AMTD MPF Scheme, has been renamed as oOo Group

Table 3: 2024 Q4 Top 10 Highest MPF Constituent Fund Net Inflow Winners

Source: MPF Ratings

Table 4: 2024 Full Year Top 10 Highest MPF Constituent Fund Net Inflow Winners

Source: MPF Ratings

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