23rd July 2026
40% of net inflows pour into DIS funds as MPF members respond positively to MPFA’s education push
Key points are as follows:
- As markets approach the final trading week of July, MPF is currently showing an investment loss of approximately -0.69% (as measured by the MPFR All Fund Performance Index as at 20th of July). (See table 1)
- A forecasted July return of -0.69% would see MPF’s July year-to-date return reach 4.95%, marking MPF’s 10th best first-7-month result on record.
- As a result of July’s expected pullback, the MPF system is projected to record a monthly loss of -$11.5bn, while year-to-date investment gains remain strong at $77.2bn (representing a July loss of -$2,392 and a YTD gain of $16,102 per member, across 4.79 million scheme members).
- At the asset class level, Hong Kong and China equities are leading MPF’s July performance, despite ranking as the worst-performing equity category year-to-date. Conversely, Asian equities are projected to maintain their lead in year-to-date returns, even after an estimated -7.18% pullback in July. Meanwhile, MPFA’s mandated DIS funds have continued to attract strong investor demand, capturing approximately 40% of all net MPF inflows so far in 2026. (See table 1 and 2)
- After factoring in contributions and investment results, total MPF assets are forecasted to end July at approximately $1.658tr (down $8.5bn from end of June, but up $104.2bn year-to-date), equivalent to an average MPF account balance of $345,856 per MPF’s 4.79m members.
As markets approach the final trading week of July, Francis Chung (叢川普), Chairman of MPF Ratings Ltd, Hong Kong’s independent provider of MPF research, views and education today said that he expects a loss of -0.69% for the month of July. This represents a monthly investment loss of $11.5bn, or $2,392 across MPF’s 4.79 million members. Despite the loss, year-to-date per member gains are at a healthy $16,102, while average member account balances are expected to end July at $345,856. After factoring in contributions, total MPF assets are forecasted to end July at approximately $1.658tr.
Quotes：
After a strong first half of 2026, July fluctuates as markets once grapple with Middle East uncertainty and tech sector valuation concerns
“Afte a strong first half of 2026, July returns have fluctuated as markets once grapple with Middle East uncertainty and valuation concerns in the tech sector, that said, we forecast that MPF has generated a healthy $77.2bn in investment earnings so far this year.”
Expect higher levels of volatility in the 2nd half of 2026 after Asian equities deliver its best-ever first half result
“On the back of strong Korean and Taiwan equity returns, Asian equities delivered their best-ever first-half MPF performance. However, as volatility increases due to valuation and geopolitical concerns, we expect the second half of 2026 to be volatile in these markets, highlighting the importance of diversification.”
DIS is establishing prominence in MPF
“Approximately 40% of MPF’s 2026 net-inflows have been invested in the MPFA mandated low fee Default Investment Strategy (DIS) funds. Collectively, the DIS Core and Age 65+ fund now account for over 11% market share, making DIS MPF’s 2nd largest fund category. It appears members are responding positively to the MPFA’s education push, and are beginning to understand the importance of long-term diversified investing, and the effectiveness of DIS funds in helping members achieve their retirement objectives.”
Table 1: MPF Ratings’ MPFR Index returns by asset class (as at 20th July 2026)
Source: MPF Ratings
Table 2: 2026 Q2 and Year-To-Date Asset Class Net Inflows (as at 30th June 2026)
Source: MPF Ratings
