11 July 2025
What “Mr MPF” Says
Former US president Abraham Lincoln once (allegedly) said, “You can please some of the people all of the time, but you can never please all of the people all of the time.” But when it comes to MPF, I think Sun Life may have found a way to please MPF’s 4.79 million members all of the time. Scratching your head? Think I’ve gone a little crazy? Let me explain.
Over the past year or two, MPF Ratings has highlighted MPF members’ almost laser-like focus on investing in two key asset classes: US equities and Hong Kong/China equities. These two are arguably the most important components of MPF portfolios.
With around 19% of MPF’s total market share, the Hong Kong and China equities fund category is by far the largest, while US equities, despite accounting for only about 10% of MPF’s total market, attracted over 50% of MPF’s new contributions last year. This influx followed two consecutive years of 20%+ annual returns, making US equities the most popular choice.
MPF’s biggest versus MPF’s most popular—it sounds like a titanic contest with only one winner. But why does it have to be “either-or”? Why not both? The good news is that with the Sun Life MPF US & Hong Kong Equity Fund, offered through the Gold Rated Sun Life Rainbow MPF Scheme, not only do you not have to choose, but Sun Life’s MPF US & Hong Kong Equity Fund is unique, the only one of its kind in the MPF market.
And the timing couldn’t be better….
Few things frustrate me more than MPF members trying to time the market or choosing between sectors. Too often, they end up buying high and selling low. Deciding between local shares and the largest share market on the planet is critical, so why not leave that decision to the experts? By investing in the Sun Life MPF US & Hong Kong Equity Fund, you get a professional who makes those tough calls for you—something that should please everyone, all the time.
What “Miss MPF” Says
Getting the Best of Both Worlds with Your MPF
One of the greatest perks of your MPF? The freedom to choose from a variety of funds tailored to your financial goals and risk tolerance.
Remember when we talked about diversification? Spreading your investments globally isn’t just smart—it’s essential. Let’s look at a popular strategy: equity funds. Spoiler alert—they’re a favourite among employees!
Take Sun Life’s MPF US & Hong Kong Equity Fund, for example. It’s the perfect hybrid power duo, giving you access to both US and HK equity markets. A quick refresher: equity funds invest your money in stocks.
What makes this duo so special? Their differences are their strengths (profound, right?). And fun fact, it’s the only one of its kind in the MPF market.
US stocks are like the jocks of the market—supported by resilient earnings growth and a strong economy (and everyone begrudgingly fancies them). Meanwhile, HK stocks are the underappreciated nerds, trading at lower valuations. Think of it as your favourite 90s rom-com: under the surface (or behind those glasses), HK stocks might just be a hidden gem waiting to shine.
Here’s a fun fact: US stocks typically have shorter market cycles—they rise and fall quickly—while HK stocks follow longer cycles. This contrast creates opportunities. While HK stocks might require patience, recent government actions are positioning them for their moment in the spotlight. Think prom king and queen—it’s worth waiting for their crowning moment.
On the other hand, US stocks often offer quicker gratification (though not always). The real magic happens when you balance your portfolio. For example, if you had invested 40% in HK equities and 60% in US equities five years ago, you’d be sitting on a 74% return today*. Not bad, right?
So, whether you’re after quick wins or long-term gains, a balanced approach is the way to go. Why pick one when you can have the best of both worlds?
*Source: Sun Life Asset Management (HK) and Bloomberg Data (as of 3rd June 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.
