Manulife MPF Hong Kong Equity Fund
Manulife Global Select (MPF) Scheme
Data as of 2026-06-30
Straight talk on this fund
- Risk class 6, near the top of the scale. Worst calendar year on record: 2018 (-18%). That kind of drawdown separates the patient from the panicked.
- Top 10 holdings (Tencent Holdings Ltd, AIA Group Ltd, China Construction Bank Corp…) are 42.4% of the fund — concentrated in a handful of names rather than spread across the market. The top three (Tencent Holdings Ltd, AIA Group Ltd, China Construction Bank Corp) alone are 20.8%: when those names move, the fund moves with them.
- In its best calendar year (2017) it made 46%; in its worst (2018) it lost 18% — that range tells you what you're signing up for.
- For monthly contributors, volatility can be a friend (buy more when down). Near retirement, that ride needs a second thought. When markets are choppy, position size itself is a decision.
Manager's LensWhat the portfolio reveals about the manager's thinking
Top-10 holdings are 42.4% of the fund. Tencent Holdings at 9.6% is the largest single position. The top three together are 20.8%. This is a concentrated portfolio. High conviction — or high concentration risk, depending on your view. Within the top 10, by sector: tech and internet 15.3%, banks 12.5%, insurance 9.4%. Within the top 10, by geography: HK-listed China 15.3%, Hong Kong 14.0%, Mainland China 11.3%. 5 of the top 10 holdings overlap with peers — selective differentiation from the category.
The financials tilt in the top 10 has a rates angle. Systematic models put 10-year fair value well above current yields. If the long end stays elevated, dividend-paying banks and insurers screen relatively better than long-duration growth. Rate pressure is a tailwind for this sleeve — but it cuts the other way for any growth holdings in the mix. With this much China exposure in the top 10, China policy is the swing factor. Stimulus measures support domestic banks and consumption names, while property-sector overhang remains the drag. This portfolio rises or falls with Beijing's policy follow-through. One caveat: concentration amplifies macro moves. When funding liquidity tightens, concentrated portfolios tend to chop harder than diversified ones.
Tencent Holdings at 9.6% means one company's earnings matter more than the rest combined. It is a great company — that does not automatically make it a good stock at this weight. Selective deviations from peers include Hong Kong Exchanges & Clearing (3.4%), Ping An Insurance (3.3%), Meituan-Dianping (3.0%). The financials are cheap for identifiable reasons — property overhang for the banks, rate sensitivity for the insurers. That is not a mystery, it is the price. The question is whether the discount already reflects it.
Barbell: value/income sleeve (banks/insurers 21.9%) paired with Tencent Holdings growth conviction; top-10 42.4%. Manager makes selective deviations from peers (5/10 top holdings overlap). Late-cycle high rates have historically favoured high-dividend value; yield remains attractive versus bonds. Note: near-term liquidity tightening amplifies concentrated-portfolio volatility. The two sleeves respond to macro in opposite directions — time is needed for the complementarity to show; short periods can see both under pressure.
Investment Objective
To provide medium to long term capital growth. Mainly invests in shares of companies listed on Hong Kong Stock Exchange or companies covering different sectors of the economy in Hong Kong and which are listed on any stock exchange.
Trailing Returns ⓘ
| 3 Months | 1 Year | 3 Years | 5 Years | 10 Years | Since Launch | YTD | |
|---|---|---|---|---|---|---|---|
| Cumulative | +0.65% | +7.95% | +31.98% | -21.95% | +42.86% | +141.01% | -1.94% |
| Annualised | — | — | +9.69% | -4.84% | +3.63% | +3.50% | — |
Calendar Year Returns ⓘ
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Return (%) | +32.02% | +14.12% | -14.97% | -22.39% | -15.79% |
Returns are net of fees. Past performance is not indicative of future returns.
Dollar Cost Averaging Return ⓘ
Cumulative Return
| 3 Months | YTD | 1 Year | 3 Years | 5 Years | 10 Years | Since Launch | |
|---|---|---|---|---|---|---|---|
| Return (%) | N/A | N/A | -2.37% | +22.75% | +19.00% | +11.93% | +62.31% |
Annualised Return
| 3 Years | 5 Years | 10 Years | Since Launch | |
|---|---|---|---|---|
| Return (% p.a.) | +13.76% | +6.89% | +2.22% | +3.58% |
Calendar Year Return
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| Return (%) | -14.12% | -4.44% | -11.25% | +9.97% | +12.16% |
Fund Commentary
Investment managers maintain a positive view on China’s equity markets for the following reasons: 1) Chinese Mainland's pro-growth stance on technology and industrial upgrades: Chinese Mainland economy continues to recover, supported by resilient export growth driven by advanced manufacturing upgrades and strengthening global demand for technology products. The growing contribution of renewable energy within the domestic power generation mix also helps reduce vulnerability to external oil price shocks. 2) Improving producer price index: The Chinese Mainland's producer price index (PPI) turned positive in March 2026, reversing the negative trend that persisted since 2022. Supported by anti-involution policies and improving commodity prices, investment managers believe the backdrop is becoming increasingly constructive for corporate earnings and reflation. 3) Increased investment in artificial intelligence (AI) and the domestic technology ecosystem: There is no shortage of home-grown innovation, ranging from AI foundation models and semiconductors to humanoid robotics and industrial automation. Significant government and corporate investments are driving the build-out of data centers, computing infrastructure, and semiconductor capabilities. Investment managers remain constructive on opportunities across AI models, semiconductor equipment, AI infrastructure, networking, optical components, thermal cooling and power equipment supply chains. 4) Beneficiary of the global energy transition and power infrastructure upgrade cycle: The Chinese Mainland stands to benefit from both domestic demand under the 15th Five-Year Plan and the global power infrastructure replacement cycle. Ambitious renewable energy, nuclear power and pumped hydro development targets are expected to support long-term investment opportunities. Aging grid infrastructure in the US and Europe, coupled with rising electricity demand from AI and data centers, should drive sustained demand for Chinese Mainland power and grid equipment manufacturers. 5) Improving earnings outlook for Chinese and Hong Kong markets: The offshore Chinese equity market has been supported by upward earnings revisions in sectors such as materials, healthcare and financials, alongside a vibrant Hong Kong IPO market and steady southbound inflows. Hong Kong's property market has also improved meaningfully in 2026. Meanwhile, signs of stabilization in the Chinese Mainland property market, particularly in Tier-1 cities, are encouraging for broader economic activity. Investment managers continue to see attractive investment opportunities across technology, industrials, power equipment, materials and healthcare sectors.
Portfolio Allocation
Top 10 Holdings
| # | Security name | Holdings Weight |
|---|---|---|
| 1 | HSBC Holdings PLC. | 9.66% |
| 2 | Tencent Holdings Ltd. | 8.20% |
| 3 | Alibaba Group Holding Ltd. | 7.07% |
| 4 | China Construction Bank Corp. | 4.82% |
| 5 | AIA Group Ltd. | 4.15% |
| 6 | ICBC Ltd. | 3.07% |
| 7 | HKEX | 2.54% |
| 8 | Ping An Insurance | 2.34% |
| 9 | Kingboard Laminates Holdings Limited | 1.81% |
| 10 | BYD Company Limited | 1.50% |
| Total | 45.16% |
Fees & Charges
The fund expense ratio shows the total annual cost of running this fund as a percentage of its assets. It is already reflected in the fund price and returns. When comparing similar funds, fees are one of the few factors you can control.
FER is a backward-looking figure from the fund's financial year, taken from provider fact sheets and audited annual reports. It may not yet reflect announced fee cuts.
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