17th Oct 2025
Mr. MPF recently sat down for a coffee with a retired, overseas-based fund manager to discuss his post-work plans. Travel and emerging New Zealand artists rank high on Tim’s list of interests. But as they say, “once a fund manager, always a fund manager,” so before long, the conversation turned to money.
The discussion was as diverse as it was colourful, with tips ranging from “buy gold” and “invest in AI” to “it’s all too hard, it’s time to sell everything.” But Tim’s most profound statement was this: “As a global resources manager, I can tell you that investing responsibly is a fund manager’s holy grail.” For a professional whose career survived Wall Street crashes, the Asian Financial Crisis, the dot-com bubble, the Global Financial Crisis, and a global pandemic, that’s saying something—something profound enough to raise Mr. MPF’s metaphorical eyebrow.
Tim’s investment thesis was simple and rational. Irresponsible business practices are, by definition, not sustainable over the long term. Companies are being scrutinized more closely, businesses are operating more globally than ever, and global resource use is at record levels. In Tim’s opinion, these factors combined mean that listed companies have no choice but to act responsibly. In doing so, they will reward investors who invest globally, act responsibly, and play the long game.
Now, what Tim didn’t know is that he had just unwittingly described the ethos of the Sun Life MPF Global Low Carbon Index Fund—a fund not available to him, but readily available to MPF members through the Gold rated Sun Life Rainbow MPF Scheme.
The $3.72 billion fund* first caught the MPF industry’s attention when it launched in June 2023, winning “Best New Innovation” honours at the 2024 MPF Awards. Since then, it has delivered an average return of 15.13% per annum, well above the MPF system’s since-inception average annual return of 3.51% (and the 4.39% average annual return of Global Equity). Its success is part of a broader trend, with MPF’s Sustainable Investment fund segment attracting approximately $1.3bn in 2025*. Sun Life’s MPF Global Low Carbon Fund has been a dominant force in this area, capturing 73% of the market*.
The Sun Life MPF Global Low Carbon Index Fund invests against an index targeting companies with 50% lower carbon emissions and fossil fuel reserve intensities, and a 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 is also leading the MPF industry in Environmental, Social, and Governance (ESG) measures. The system’s regulator, the Mandatory Provident Fund Schemes Authority (MPFA), reinforced the necessity of such measures by requiring enhanced ESG disclosure requirements for funds earlier this year.
Sun Life’s MPF Low Carbon Index Fund remains the benchmark for fulfilling both the regulator’s requirements and the investment objectives of its members. In doing so, it also achieves what Tim believes to be the holy grail of investing: to “invest globally, act responsibly, and play for the long term.”
Source: MPF Ratings, as of 30th September 2025
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.
