23rd April 2026
Data also shows a resurgence in MPF competition in the post eMPF era
MPF Ratings’ Q1 2026 MPF Asset Class Fund Flows Summary has now been uploaded.
Key points are as follows:
- Q1 2026 saw MPF attract estimated net inflows of $11.98bn (See table 1), 0.36% higher than Q1 2025, but 2.9% lower than the 5-year historical quarterly average of $12.34bn.
- DIS funds received almost 35% of MPF’s quarterly net-inflows, however traditional mixed asset funds continue to see net-outflows. (Also see table 1)
- Japanese equities attracted 10.54% of Q1 net-inflows—approximately 13x greater than its 0.81% overall market share of total MPF assets. This surge highlights concerns over short term performance chasing by members. (Also see table 1)
- While large scheme providers continue to dominate absolute net-inflows, Q1 2026 net-inflows were characterized by the resurgence of scheme providers such as Fidelity, BOCI-Prudential, YF Life and China Life who all attracted shares of net-inflow significantly higher than their overall market share (See table 2)
- At the end of March, the MPF system recorded a Q1 loss of -1.98%, with MPF total assets now at approximately$1.535tr, equivalent to an average MPF account balances of $320,109 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 expressed concerns that MPF members appear to be using their MPF to speculate on shorter term market movements rather than focus on long term wealth creation. MPF Ratings released its Q1 2026 MPF Asset Class Fund Flow Summary which showed significant MPF inflows went into Japanese equities in the first 3 months of the year as the system received net-inflows of approximately $12.0bn, 0.36% higher than last year’s corresponding quarter but 2.9% lower than the system’s 5-year historical quarterly average of $12.34bn.
Quotes:
The major concern net-inflow result reveals about MPF member behaviour
“Positively, MPF members are utilizing the MPFA mandated low cost well diversified DIS strategies, however the concern is the use of MPF account balances for short term speculation as evidenced by large inflows into Japanese equities. Net-inflows into Japanese equities, an asset class that’s 0.81% of total MPF assets, were an out-sized 10.54% of MPF’s Q1 net-inflows.”
What the net-inflow data reveals about MPF competition?
“While the big scheme providers continue to dominate absolute net-inflows, the first quarter revealed that competition is returning to the MPF market. Inspired by efficiencies from eMPF, notably Fidelity, BOCI-Prudential and YF Life, attracted significantly higher net-inflows relative to their respective market shares, while BCT also assumed the responsibility for the promotion and sales facilitation of Principal’s MPF schemes. Increased competition will benefit all MPF members in the long term.”
MPF’s key lesson that some members continue to ignore
“Stop speculating and start investing. It defies logic that 10% of net-inflows gets invested in a non-core asset class that’s less than 1% of the MPF market, yet that’s what happened during the quarter. MPF Ratings reiterates our view that the risk of choosing markets and time is far greater than staying invested and diversified. Diversification is key and the MPFA’s mandated DIS funds should be considered by MPF members.”
Table 1: 2026 Q1 Asset Class Net Inflows
Source: MPF Ratings
Table 2: 2026 Q1 MPF Scheme Provider Net Inflows
Source: MPF Ratings
^ BCT assumed the role of Promoter/Sales Facilitator for Principal’s MPF schemes effective January 1, 2026. Source: BCT Corporate Announcement
Table 3: 2026 Q1 Top 10 Highest MPF Constituent Fund Net Inflow Winners
Source: MPF Ratings
