Mercer today released its Q3 Mandatory Provident Fund (MPF) Market Shares Report as at 30 September 2018. Total assets under management (“AUM”) in the MPF system increased from HK$ 852 billion of Q2 to HK$ 858.2 billion this quarter, a net increase of HK$ 6.2 billion, or +0.7%.
HSBC / Hang Seng (27.2% combined) remains the largest provider in terms of size of assets, followed by Manulife (23.0%) and AIA (9.3%).
Overall, the MPF system lost HK$ 6.1 billion during the period due to investment performance, despite net inflows (contributions received less benefits paid) of HK$ 12.3 billion. Manulife has taken up the largest share (36.5%) of the net inflows in the quarter, followed by Sun Life (23.5%), which explains their steady growth in market share in Q3.
Positive net inflows to lower risk sectors and DIS funds
In this quarter, there was also a positive net inflow into lower risk sectors such as bond funds, cash funds and the Default Investment Strategy (DIS) funds, which together made up over 60% of total net inflows.
There were continuous net fund inflows into DIS funds and its percentage of total net fund inflows was higher than the previous quarter. This has gradually increased the proportion of DIS funds in the total MPF AUM to 3.5%.
“With increasing volatility in global stock markets in Q3, there is a general risk-off sentiment in markets. It has led some MPF members to switch to low-risk funds in order to fend off the market downturn,” said Billy Wong, Mercer’s Health & MPF Business Leader, Hong Kong.
“However, MPF members should remember that MPF is a long-term investment with regular contributions over time, and our advice would be to avoid redeeming a fund because of market movements and predictions. Members should review their MPF investment regularly to ensure that it is in line with their investment objectives, preferred asset allocation and risk tolerance level,” Mr Wong added.
Overall MPF Satisfaction Index levels remain relatively static
The Mercer MPF Satisfaction Index (MPF SI) recorded a score of 48.9 in October 2018, up from 46.9 in September.
During the past year (Nov 17- Oct 18) the Hang Seng index has fallen 16% (at an average monthly fall of 1.3%), however MPF satisfaction levels have hovered consistently around 50 out of 100 over time.
“A positive return is not the only factor contributing to MPF member satisfaction levels. We believe engagement is the key driver in MPF satisfaction levels and as such we encourage MPF members to review their portfolios at least once a year and eventually they will feel more satisfied about the scheme,” said Mr Wong.
Note to editors
The Mercer MPF SI was conducted by Nielsen to track the satisfaction level of MPF members. The survey interviews more than 2000 respondents per year who are among the working population with MPF and whose monthly personal income is not less than HKD 7,100 (minimum threshold eligible for MPF membership). The survey was conducted through methods of online self-completion (age 20 – 54) and offline street intercept (age 55 or above).
The service level comparison is based on data collected from Mercer MPF SI results, in which the providers are ranked based on the average satisfaction score as indicated by survey participants for 12 months ending June 30, 2018. Due to the uneven distribution of survey participants among the different providers, any provider with less than 1% of the total survey participant population will not be included in the results.
Mercer delivers advice and technology-driven solutions that help organizations meet the health, wealth and career needs of a changing workforce. Mercer’s more than 23,000 employees are based in 44 countries and the firm operates in over 130 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), the leading global professional services firm in the areas of risk, strategy and people. With nearly 65,000 colleagues and annual revenue over $14 billion, Marsh & McLennan helps clients navigate an increasingly dynamic and complex environment. Marsh & McLennan Companies is also the parent company of Marsh,which advises individual and commercial clients of all sizes on insurance broking and innovative risk management solutions;Guy Carpenter, which develops advanced risk, reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities; and Oliver Wyman, which serves as a critical strategic, economic and brand advisor to private sector and governmental clients. For more information, visit www.mercer.com. Follow Mercer on Twitter @Mercer.
滙豐 / 恒生（市佔率合計27.2％）仍然是資產規模最大的強積金營辦商，其次是宏利（23.0％）及友邦（9.3％）。
美世通過諮詢建議和技術驅動的解決方案協助企業滿足其變化不斷的工作團隊的健康、財富和職業發展需求。美世在全球超過 130 多個國家開展業務營運，擁有逾 23,000 名僱員，分佈於 44 個國家。美世是威達信集團（Marsh & McLennan Companies，紐交所代碼：MMC）的全資子公司。威達信集團是一家全球性，提供風險、戰略與人力資本相關專業服務的國際集團公司，在全球擁有將近 65,000 名僱員，年收入逾 140 億美元。威達信集團同時也是達信（Marsh）、佳達（Guy Carpenter）、和奧緯（Oliver Wyman）等市場領先公司的母公司。威達信協助客戶應對日益變化和複雜的商業環境。如需更多資訊，請瀏覽 www.mercer.com，或在 Twitter 上關注美世 @Mercer。