Unusual member behaviour and sponsor’s growing dominance seen in MPF’s 2025 fund flow results

15th January 2026

Despite big fund flow rebound MPF records its lowest annual net inflows since 2021

Key points are as follows:

Q4 2025 saw MPF attract estimated net inflows of $12.01bn (See Table 1), a 42% rebound from the previous quarter’s $8bn which was MPF’s lowest Q3 net inflows since 2021.
Despite the final quarter rebound, the system recorded its lowest annual net inflow number since 2021 ($46.87bn), an estimated $43.41bn. (See Table 1)
Despite producing MPF’s best performance, Hong Kong & China equities saw very significant annual net outflows, conversely, 2025’s worst performing asset class also proved to be MPF’s most popular. MPF Conservative Funds ranked first, attracting over 42% of MPF’s annual net inflows. (See Table 2)
Manulife, MPF’s largest sponsor, exercised its dominance in Q4 2025, attracting more than approximately 194% in net inflows compared to the 2^nd ranked sponsor. This final quarter dominance saw Manulife gain approximately 35% of MPF’s annual net inflows; more than 63% than the second ranked sponsor. (See Table 3)
At the end of 2025, the MPF system achieved an annual return of approximately 16.73%, propelling MPF total assets to a record high of approximately$1.554tr, equivalent to an average MPF account balances of $324,081 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 today revealed that MPF’s 2025 annual fund flow results highlighted the dominance of MPF’s biggest sponsor, as well as unusual behaviour that may have cost members significantly. When releasing MPF Ratings’ highly anticipated 2025 MPF Asset Class Fund Flow Summary Mr Chung also pointed out that the MPF system received net inflows totalling approximately $12.01bn in Q4 2025, a 42% rebound from the $8bn received in Q3 2025. Cumulatively the system received $43.41bn in annual net inflows, the lowest annual total since 2021, and 12% lower than the system’s 5-year historical annual average of $49.4bn.

Quotes:

Putting MPF’s 2025 net inflows into context

“MPF’s $12.01bn December quarter net inflow was 42% higher than the September quarter. This jump helped the system record $43.41bn in annual net inflows but did not prevent the system from recording its lowest annual total since 2021, and equivalent to 12% below the system’s 5-year historical annual average of $49.4bn.

Manulife dominates MPF’s 2025 net inflows

“2025’s final quarter saw Manulife, MPF’s largest sponsor, attract approximately 39% of the system’s net inflows, more than 194% higher than the next best sponsor. The annual trend was similar with Manulife attracting approximately 63% more net inflows than its nearest competitor.”

MPF’s annual net inflow results reveal unusual and potentially costly member behaviour

“While Hong Kong & China equities was MPF’s best performing asset class in 2025, unusually it also saw major annual net outflows. Conversely, 2025’s worst performer, MPF Conservative Funds, attracted MPF’s highest annual net inflows. In a year where MPF returned more than 16% MPF members who tried to ‘time the market’ by moving money into Conservative Funds made a big mistake. We implore MPF members to stop trying to time the market, rather focus on long term diversified investing. The best approach is to invest through DIS funds. All MPF schemes are mandated to offer DIS. They’re well diversified, highly fee competitive, and ideal for long term investing.”

Table 1: 2025 Q4 and Full Year MPF Asset Class Net Inflows