GUM: The risk appetite for MPF investments is gradually increasing, with approximately HKD 3 billion flowing into equity funds in the past two months
A report released by GUM, a Hong Kong Mandatory Provident Fund consultancy, shows that members' investment attitudes have gradually become more positive recently, with approximately HKD 3 billion flowing into equity funds over the past two months, mainly concentrated in U.S. and Hong Kong stock funds. By the end of August, the total assets of the Mandatory Provident Fund market rose to HKD 14.8 trillion, with a net inflow of HKD 2.02 billion into equity funds, while both mixed asset funds and low-risk assets experienced net outflows
According to the Zhitong Finance APP, Hong Kong's Mandatory Provident Fund (MPF) consultancy GUM released an analysis report on the MPF market for August, indicating that as of the end of August, the total assets of the MPF market increased by 1.8% to HKD 1.48 trillion. GUM estimates that there was a net inflow of HKD 2.02 billion into equity funds in August, while both mixed asset funds and lower-risk assets (fixed income funds) experienced net outflows, estimated at HKD 150 million and HKD 1.87 billion, respectively. It is estimated that a total of HKD 3 billion flowed into equity funds in July and August.
The top five asset classes with the highest net inflows are "U.S. Equity Funds," "Pre-set Investment Strategy - Core Accumulation Fund," "Hong Kong Equity Funds (Index Tracking)," "Global Equity Funds," and "Japanese Equity Funds." Among them, the top three, U.S. Equity Funds, DIS Core Funds, and Hong Kong Equity Funds (Index Tracking), have been the highest net inflow fund categories for two consecutive months, with their net inflow rankings remaining the same as in July.
The top five asset classes with the highest net outflows are "MPF Conservative Funds," "Mixed Asset Funds (80% to 100% Equity)," "Guaranteed Funds," "Mixed Asset Funds (60% to 80% Equity)," and "Other Equity Funds."
GUM's Director of Strategy and Investment Analysis, Yun Tianhui, pointed out that in the past two months, members' investment attitudes have become increasingly aggressive, allocating funds to equity funds, with inflows primarily into U.S. and Hong Kong equity funds for two consecutive months. U.S. equity funds recorded a net inflow of HKD 920 million in August; after experiencing large-scale net outflows in March and April of this year, members have begun to gradually return to U.S. equity funds. Hong Kong equity funds (index tracking) saw a net inflow of HKD 820 million, possibly due to members gradually regaining confidence in Hong Kong stocks influenced by the strength of the Hang Seng Index
