MPF rating: The net inflow of Hong Kong's Mandatory Provident Fund (MPF) is approximately HK$ 43.41 billion by 2025, the lowest in nearly five years.

The research institution for Hong Kong's Mandatory Provident Fund announced that the Trillions of MPF system recorded a net inflow of approximately HK$120.1 billion in the fourth quarter of last year, a rebound of 42% from HK$80 billion in the third quarter. The total net inflow for the year was approximately HK$434.1 billion, the lowest annual total since 2021, representing a 12% decrease from the system's five-year average annual net inflow of HK$494 billion. The research institution for Hong Kong's Mandatory Provident Fund stated that although Hong Kong and Chinese stocks were the best-performing asset classes last year, there was a significant net outflow for the year. On the other hand, the worst-performing Trillions of MPF conservative funds attracted over 42% of the total net inflow for the year, becoming the most popular category. Members who tried to time the market by switching funds to conservative funds may have missed out on the opportunity for higher potential returns. The research institution for Hong Kong's Mandatory Provident Fund recommended that members focus on long-term, diversified investment strategies, one effective way being through the allocation of Default Investment Strategy (DIS) funds. All Trillions of MPF plans offer this option, which is designed with good diversification characteristics and cost competitiveness, suitable as a long-term investment tool. The Chairman of the research institution for Hong Kong's Mandatory Provident Fund, Trump Tsung, pointed out that the largest sponsor, Manulife, attracted around 39% of the system's net inflow in the fourth quarter of last year, more than 1.94 times higher than the next closest competitor. Manulife received a net inflow of around 63% more than its closest competitor for the full year.