13 June 2025
If you invested $1,000 back in…
Yes, it’s the classic clickbait question we’ve all fallen for—and I’m no exception. I’m always curious to know what a $1,000 investment (in anything) would be worth today.
But today’s blog isn’t about regrets or missed opportunities to cash in on companies that have grown beyond our wildest dreams. Instead, it’s about highlighting the importance of growth.
Take dominant companies like Google, for example. They’ve grown spectacularly over the years, consistently developing innovative, customer-focused products and services while generating extraordinary wealth for their investors.
In the world of MPF, growth and dominance are just as critical. MPF providers with large and growing market shares tend to have a stronger ability to deliver positive member experiences and better long-term investment performance.
Why does market share matter? A larger market share means a provider holds a stronger position in the industry. They control a bigger portion of MPF’s total assets, generating higher revenue. This revenue, when reinvested, allows providers to create better products and services, ultimately improving the MPF experience for members.
But having a large market share isn’t just about dominance—it’s about how that position is used. MPF providers have the power to influence the industry, setting higher standards and guiding its direction in a constructive way. They also can drive positive societal change, using their influence for the greater good.
Growth and dominance are essential—not just for financial success, but for shaping a better future for members and society.
Market share without Growth is…
While market share is important, equally—if not more—important is market share growth. It’s a subtle yet critical distinction.
Failure to innovate or meet customer needs in a constantly changing world leaves even the most dominant companies vulnerable to stagnation. Stand still long enough, and competitors will catch up. Remember Yahoo!? In 1998, an ambitious start-up called Google tried to sell its business to Yahoo! for just US$1 million. At that time, Yahoo! was the world’s leading web search engine provider and rejected the offer. Fast forward to today: Google dominates with over 90% of the global search engine market and generates more than US$350 billion in annual revenue, offering services like maps, phones, and virtual assistants. Yahoo!, on the other hand, laid off 20% of its workforce in 2023 and is now a mere shadow of its former self.
How does an MPF provider grow?
Stagnation invites competitors to catch up. But introducing new products and services not only helps retain existing customers but also attracts new ones. This creates a virtuous cycle, where the customer is at the centre of growth. MPF members benefit the most when they are with a dominant and growing MPF scheme provider.
Successful MPF providers grow by attracting higher MPF contributions than their competitors and delivering strong investment performance. This combination leads to higher revenue, which can be reinvested to systematically develop products and services that meet customers’ savings and investment needs.
A real-life example
To understand how an MPF provider’s growth benefits its members, let’s explore Sun Life, MPF’s 3rd-largest player. Sun Life illustrates the importance of balancing strong MPF contributions with exceptional investment performance, ultimately delivering a better MPF experience for its members.
Rather than remain stagnant, Sun Life has leveraged its growth to introduce a range of new customer-focused products and services, including:
- “MPF Navigator,” a next-generation investment tool.
- “My MPF Choice,” an MPF comparison platform designed to provide members with comprehensive information on all MPF funds.
- The Sun Life MPF Global Low Carbon Index Fund, Hong Kong’s first low-carbon-focused MPF fund.
- The Sun Life MPF Income Fund, offering members a unique and flexible pre- and post-retirement income solution.
Whether for Personal Accounts, Tax Voluntary Contributions, or Special Voluntary Contributions, MPF members now have more options than ever to choose their preferred MPF provider(s). While each member’s priorities and needs may differ, one thing remains consistent: members should look for scheme providers that continuously reinvest in their business, innovate, and prioritize their members.
Oh, and by the way—if you had invested $1,000 in Google when the company went public in 2004, it would now be worth… US$374,000. [Cue Mr. MPF starting to cry.]
*MPF Ratings data as of 30 April 2025
This article was written by MPF Ratings, Hong Kong’s independent provider of MPF research, views, and education. The information in this blog is general in nature and does not consider your personal situation. You should assess whether the information meets your needs and, where appropriate, seek professional advice from a financial adviser.
