1 Aug 2025
Highlights
- Available through the Sun Life Rainbow MPF Scheme, a Gold rated MPF scheme
- Long and successful track record
- Smart asset allocation
- Automatic portfolio adjustments
- Designed for reliability and peace of mind
“Same same but different”
According to the MPFA, “the Default Investment Strategy (DIS) is a ready-made MPF investment solution that all MPF schemes are required by law to offer.” It was introduced in 2017 and is largely designed for members who either don’t know how to choose MPF funds or don’t have the time to manage their MPF investments.
Aside from the fact that all MPF schemes are required by law to offer DIS, there are also several other common features among all DIS funds. Firstly, there’s an automatic reduction of investment risk as members approach retirement age, also known as “automatic de-risking”. Secondly, fees and expenses are capped to ensure costs are minimised. Lastly, within strict investment guidelines that all schemes must follow, funds are invested locally and internationally, and across various asset classes to minimise volatility and maximise the benefits of diversification.
Offered by all MPF schemes, with fees capped at 0.95% and similar investment guidelines, you’d be forgiven for thinking that all DIS funds should be identical; and you’d be right. But while they are foundationally similar, there are indeed differences, and one that caught Mr MPF’s attention recently is Sun Life Rainbow MPF Scheme’s DIS funds.
What sets Sun Life Rainbow’s DIS funds apart?
In Q2 2025, the Sun Life Rainbow MPF scheme generated a total of $8.17bn in investment earnings for its members. That’s a considerable amount, and notably about 13.4%, or $1.11bn, of the earnings came from the scheme’s DIS Core Accumulation Fund – a proportion that ranked 1st among all MPF schemes. In addition to the strong investment gains, Sun Life Rainbow’s DIS Core Accumulation Fund option is Sun Life’s 3rd most popular fund option this year, as measured by inflows into the Rainbow scheme. So, what’s been setting Sun Life Rainbow’s DIS fund apart in 2025? Simply put, solid earnings and strong inflows.
How did Sun Life Rainbow accumulate strong DIS earnings and inflows in 2025?
Remember, DIS is designed for members who either don’t know how to, or don’t have the time to, choose MPF funds and manage their MPF investments. Educating its MPF members has been critical in steering members to make the right decisions, even if that decision is to not make a decision. High-quality education not only helps members invest in funds that meet their personal needs but also assists members in understanding the benefits of these funds too.
A feature of DIS is that, within strict guidelines, funds are diversified geographically and across various asset classes. This feature aims to ensure that DIS funds deliver consistent returns. No single asset class should dominate DIS returns, and it’s this consistency that has been a hallmark of Sun Life’s DIS funds. With no particular asset class dominating returns, and with minimal fuss, Sun Life managed to accumulate proportionately more investment gains from DIS than any other MPF scheme in the last quarter.
Sun Life’s “secret sauce”?
DIS was launched in 2017, but it turns out Sun Life has been automatically de-risking MPF member money in diversified funds for almost 25 years. It’s true that there is no substitute for experience.
Launched in December 2000 and available from MPF’s very first day, Sun Life’s Fund Cruiser was designed to support MPF members who lacked experience or time or simply didn’t want the burden of managing an MPF investment portfolio regularly. Like DIS, but before the invention of DIS, Fund Cruiser, according to Sun Life, “adopts a pre-determined asset allocation method, which automatically rebalances your MPF portfolio every year according to your age on your birthday.”
Automatically rebalancing and de-risking portfolios since the start of MPF, Sun Life has unparalleled experience and leadership – both of which are invaluable when it comes to maximising retirement monies for MPF members.
Want to learn more about DIS? Head to our Instagram for our educational breakdown post—check it out here!
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.
