Sun Life FTSE MPF Hong Kong Index Fund
Sun Life Rainbow MPF Scheme
Data as of 2026-06-30
Straight talk on this fund
- Down 1.3% over the past year — 23 out of 30 HK equity MPF funds. near the bottom of the group. But the 5-year record is still negative (-3.4% a year) — the rebound hasn't filled the hole yet.
- Fund expense ratio 0.92% a year — 31 bps below the median HK equity fund (1.23%), middle of the range (peers: 0.58%–1.91%). 31 bps below the median — that cost edge compounds every year.
- Risk class 6, near the top of the scale. Worst calendar year on record: 2021 (-16.5%). If that volatility keeps you up at night, size the position accordingly.
- Top 10 index constituents (HSBC Holdings PLC, Tencent Holdings Ltd, Alibaba Group Holding Ltd…) are 43.8% of the index — this isn't the manager betting on favorites, it's the index itself being top-heavy. Buying this tracker means riding those heavyweight constituents up and down.
- This is an index tracker — its mandate is to mirror the FTSE MPF Hong Kong Index, not beat it. The portfolio (HSBC Holdings PLC, Tencent Holdings Ltd, Alibaba Group Holding Ltd… — the index's own heavyweights) matches the job description. Expect index-like returns minus the 0.92% fee — you're paying for replication, not stock-picking.
- In its best calendar year (2025) it made 36.3%; in its worst (2021) it lost 16.5% — 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 43.8% of the fund. HSBC Holdings at 9.9% is the largest single position. The top three together are 26.7%. This is a concentrated portfolio. As an index tracker, return equals the index minus fees and tracking error — there is no stock-picking alpha to assess.
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.
As an index tracker, stock selection is not the manager's call — the index decides. What matters is tracking: how closely the fund follows its benchmark, and at what cost.
Passive index tracker with top-10 concentration of 43.8%; return equals index minus fees. Can serve as a portfolio core, paired with other styles for diversification. Suggested horizon 5+ years.
Investment Objective
Seeks to provide members with investment results that, before fees and expenses, closely track the performance of the FTSE MPF Hong Kong Index.
Trailing Returns ⓘ
| 3 Months | 1 Year | 3 Years | 5 Years | 10 Years | Since Launch | Year to Date | |
|---|---|---|---|---|---|---|---|
| Cumulative | -6.57% | -1.26% | +31.50% | -15.84% | +44.12% | +29.74% | -11.39% |
| Annualised | — | -1.26% | +9.55% | -3.39% | +3.72% | +2.09% | — |
Calendar Year Returns ⓘ
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Return (%) | +36.27% | +18.95% | -12.61% | -15.08% | -16.53% |
Returns are net of fees. Past performance is not indicative of future returns.
Dollar Cost Averaging Return ⓘ
Cumulative Return
| Year to Date | 3 Months | 1 Year | 3 Years | 5 Years | 10 Years | Since Launch | |
|---|---|---|---|---|---|---|---|
| Return (%) | -9.27% | -6.02% | -9.86% | +15.83% | +16.99% | +10.94% | +15.43% |
Calendar Year Return
| 2021 | 2022 | 2023 | 2024 | 2025 | YTD | |
|---|---|---|---|---|---|---|
| Return (%) | -16.53% | -15.08% | -12.61% | +18.95% | +36.27% | N/A |
Fund Commentary
For the three months ended 30 June 2026, the iShares Hong Kong Equity Index Fund returned -6.38%. This compared to a FTSE MPF Hong Kong Index return of -6.52% for the corresponding period, so a performance difference of +0.14% for the quarter. The fund delivered returns of +3.90%, -2.27%, and -7.99% for the months of April, May, and June respectively. Among the top positive contributing stocks in the fund during the quarter were HSBC Holdings PLC, Lenovo Group Ltd, Hua Hong Grace Semiconductor Ltd, Kingboard Laminates Holdings Ltd, and NetEase Inc. The biggest detractors of portfolio performance over the quarter were Alibaba Group Holding Ltd, Tencent Holdings Ltd, Xiaomi Corp, AIA Group Ltd and BYD Ltd H.
Portfolio Allocation
Top 10 Holdings
| # | Security name | Holdings Weight |
|---|---|---|
| 1 | HSBC Holdings PLC | 9.9% |
| 2 | Tencent Holdings Ltd | 8.8% |
| 3 | Alibaba Group Holding Ltd | 8.0% |
| 4 | AIA Group Ltd | 3.7% |
| 5 | China Construction Bank Corp | 3.5% |
| 6 | Industrial & Commercial Bank of China Ltd | 2.5% |
| 7 | Hong Kong Exchanges & Clearing Ltd | 2.0% |
| 8 | Meituan - Class B | 1.8% |
| 9 | Xiaomi Corp - Class B | 1.8% |
| 10 | NetEase Inc | 1.8% |
| Total | 43.8% |
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.