According to data from the MPF research firm MPF Ratings, the Mandatory Provident Fund (MPF) system recorded a net inflow of approximately HKD 12.05 billion in the second quarter. This represents a 9.41% increase compared to the same period last year, though it is 2.3% lower than the five-year historical quarterly average net inflow of HKD 12.33 billion.
HSBC and Sun Life were the biggest winners in terms of fund flows during the quarter. The net inflow shares attracted by both providers were significantly higher than their respective overall market shares.
The most popular constituent fund was Manulife's MPF North American Equity Fund, which topped the list with a net inflow exceeding HKD 1.88 billion.
As of the end of June, the MPF system's total assets stood at around HKD 1.67 trillion. With 4.79 million scheme members, the average account balance was approximately HKD 347,500.
Regarding fund flows, US equity funds collectively attracted nearly HKD 9.5 billion in the second quarter, accounting for over 78% of the total net inflow. In contrast, MPF Conservative Funds recorded a net outflow of 46%, indicating a potential shift by members towards participating in the artificial intelligence and technology wave.
Default Investment Strategy (DIS) funds continued to receive strong support, attracting over 40% of the quarter's net inflow. This follows a trend of robust momentum and sustained popularity among members over recent quarters.
Despite the consistent and substantial net inflows into DIS funds, some members continued to engage in short-term trading of their MPF assets. Over the past three months, MPF money market funds saw a net outflow of HKD 5.58 billion, while US equity funds attracted the aforementioned HKD 9.5 billion.
MPF Ratings reiterated that attempting to time the market carries significantly higher risks than maintaining a long-term, diversified investment portfolio, which remains the key to achieving steady returns.
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