MPF Fund of the Month

Sun Life Global Low Carbon Index Fund

Highlights

  • Available through Sun Life Rainbow MPF Scheme, a Gold rated MPF scheme
  • Dominant fund in MPF’s Sustainable Investment fund category
  • Fulfills MPFA’s sustainable investment principles
  • Innovative fund that’s a market leader
  • Strong investment performance in 2024

Keeping the cake and eating it too

Buy clothes and manufacturers plant trees, fly abroad and airlines offset carbon.

In an ever environmentally educated world, businesses are trying harder than ever to “keep their cake and eat it too”, but with growing focus on sustainable issues is it truly possible to have the best of both worlds?

By offering MPF members the opportunity to create retirement wealth while making a positive impact on the planet; in the world of investing, the Sun Life MPF Global Low Carbon Index Fund is as good as it gets.

Dominance and milestones

Launched in June 2023, Sun Life’s MPF Global Low Carbon Index Fund has firmly established itself as MPF’s Sustainable Investment fund of choice. In 2024, MPF’s Sustainable Investment fund segment attracted approximately $1.5bn with Sun Life’s MPF Global Low Carbon Fund dominating, gaining over 90% of the market.

The Fund’s dominance has also seen it achieve several major milestones in a relatively short period of time. The Fund was named MPF’s Best New Innovation winner by MPF Ratings at the 2024 edition of “The MPF Awards” while in the same calendar year, it achieved an annual return of 13.92% compared to an overall MPF industry return (as measured by the MPFR All Fund Performance Index) of 8.82%, an impressive outperformance of 5.10%. 

From a standing start, the combination of strong investment performance and dominant net inflows has seen the Fund reach approximately $2.38bn in size (as at the end of December 2024) in only 18 months.

Setting the standard for the rest of the industry to follow 

Investment performance and milestones are key success indicators but establishing a legacy underpins long term success.

Sun Life’s MPF Global Low Carbon Index Fund is leading the MPF industry in Environmental, Social and Governance (ESG) measures. To promote better performance the MPF system’s regulator, the Mandatory Provident Fund Schemes Authority (the MPFA) has actively advocated for explicit sustainable investing measurables and benchmarks through its “Principles for Adopting Sustainable Investing in the Investment and Risk Management Processes of MPF Funds”.

The Sun Life MPF Global Low Carbon Index Fund invests against an index targeting companies with 50% reductions in carbon emissions and fossil fuel reserve intensities and 20% uplift in ESG ratings, while excluding companies in sensitive business areas. By defining its Sustainable Investing objectives through the Fund’s benchmark, the Fund has set a new standard for MPF’s ESG measurement to not only fulfil the regulator’s ambitions but has also established a new standard for MPF’s ESG measurement.

With better than industry performance, a focus on rewarding good environmental outcomes, and leading the MPF industry on measuring sustainable outcomes, the Sun Life MPF Global Low Carbon Index Fund, on many levels, offers its investors the opportunity to keep their cake and eat it too.

This article was written by MPF Ratings, Hong Kong’s independent provider of MPF research, views and education. If you would like to know more about the Sun Life Global Low Carbon Index Fund or any other MPF Constituent Fund go to www.mympfchoice.com, MPF’s all-in-one performance platform that provides MPF fund information and tools to compare and review MPF fund performances.


The information contained in this blog is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.

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