16th October 2025
Surprising asset class gains popularity as eMPF creates unintended consequence
MPF Ratings’ Q2 2025 MPF Asset Class Fund Flows Summary has now been uploaded.
Key points are as follows:
- Q3 2025 saw MPF attract estimated net inflows of $8.0bn (See Table 1), the lowest Q3 net inflows since 2021. The decline contributed to a 2025 year-to-date net-inflow estimate of $31.6bn, the lowest year-to-date since 2021.
- DIS funds received over 50% of MPF’s quarterly net-inflows for the first time ever, attracting approximately 55.4%, or $4.82bn in net-inflows in Q3. (Also see Table 1)
- Interest in US Equities continues, with net-inflows rebounding from its ‘Liberation Day’ lows. Approximately $3.9bn or 44.3% of total Q3 net-inflows went into the US. (Also see Table 1)
- As the MPF system transitions to eMPF, an establishing trend is the dominance of four sponsors Manulife, HSBC, Sun Life and AIA. (See Table 2)
- At the end of September, the MPF system achieved a Q3 return of 6.41%, resulting in a year-to-date return of 15.83%, propelling MPF total assets to a record high of approximately$1.530tr, equivalent to an average MPF account balances of $319,200 for 4.79m MPF members.
Francis Chung (叢川普), Chairman of MPF Ratings Ltd, Hong Kong’s independent Mandatory Provident Fund (MPF) research specialist highlighted the record demand for the MPFA mandated DIS funds and the dominance of MPF’s four biggest sponsors as he released MPF Ratings’ highly anticipated Q3 2025 MPF Asset Class Fund Flow Summary which notably showed that the MPF system received approximately $8bn in Q3 2025, its lowest Q3 net-inflow since 2021. Cumulatively, 2025 year-to-date net-inflows are approximately $31.6bn, the lowest first 9-month total since 2021, and 18% lower than the system’s 5-year historical first 9-month average of $38.7bn.
Quotes:
What the net inflow results reveal about MPF member behaviour
“For the first time ever, DIS funds accounted for well over 50% of MPF’s Q3 net-inflows. MPF members are finally recognizing the benefits of the MPFA mandated low cost well diversified DIS strategy. DIS has the added benefit of an age based automatic de-risking mechanism making it an excellent fund choice for most MPF members.”
Is highly concentrated competition an unintended consequence of eMPF?
“Q3 continues a trend seen initially in the first half of the year where the 4 biggest MPF providers attracted net-inflow shares larger than their overall market share while the opposite happened for the other providers. While Manulife, HSBC, Sun Life, and AIA move forward the others are falling behind. Perhaps an unintended consequence of eMPF is a highly competitive but concentrated MPF market.”
Why has MPF continued to experience historical declines in MPF net inflows?
“Despite average MPF account balances totalling approximately $320,000, MPF’s September quarter net-inflow was approximately $8bn, the worst result since 2021. A combination of factors, rather than just one, could account for the slowdown. Permanent departures, reduction in Voluntary Contributions, and retirees taking monies out of the system could all account for outflows.”
Table 1: 2025 Q3 and Year-To-Date MPF Asset Class Net Inflows
Source: MPF Ratings
Table 2: 2025 Q3 and Year-To-DateMPF Scheme Sponsor Net Inflows
Source: MPF Ratings
^ Orientiert Group, the scheme sponsor of AMTD MPF Scheme, has been renamed as oOo Group
