Sun Life MPF Asian Equity Fund
Sun Life Rainbow MPF Scheme
Data as of 2026-06-30
Straight talk on this fund
- Up 58.1% over the past year — 2 out of 10 Asian equity MPF funds. Respectable. Over 5 years it's made 4.6% a year.
- Fund expense ratio 1.79% a year — 33 bps above the median Asian equity fund (1.46%), middle of the range (peers: 1.23%–1.86%). The cheapest rival's fund expense ratio is 1.23%; over a decade that gap compounds to around 6% of your money. The extra fee has to earn its keep every single year.
- Risk class 6, near the top of the scale. Worst calendar year on record: 2022 (-21.9%). That kind of drawdown separates the patient from the panicked.
- Top 10 holdings (Samsung Electronics Co Ltd, SK hynix Inc, Taiwan Semiconductor Manufacturing Co Ltd…) are 40.9% of the fund — concentrated in a handful of names rather than spread across the market. The top three (Samsung Electronics Co Ltd, SK hynix Inc, Taiwan Semiconductor Manufacturing Co Ltd) alone are 28.6%: when those names move, the fund moves with them. That 58.1% one-year gain didn't come from owning the whole market — it came from those big concentrated bets paying off.
- In its best calendar year (2025) it made 25.8%; in its worst (2022) it lost 21.9% — 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 40.9% of the fund. Samsung Electronics at 11.6% is the largest single position. The top three together are 28.6%. This is a concentrated portfolio. High conviction — or high concentration risk, depending on your view. Within the top 10, by sector: semiconductors 21.7%, tech hardware 14.8%, tech and internet 4.4%. Within the top 10, by geography: Korea 22.3%, Taiwan 15.7%, HK-listed China 2.9%. 6 of the top 10 holdings overlap with peers — selective differentiation from the category.
The defining macro exposure is the AI hardware cycle. 36.5% of the top-10 rides semiconductors and tech hardware. Continued datacenter capex is the tailwind; a capex slowdown or inventory correction is the risk. This segment is also the most sensitive to funding liquidity — when liquidity tightens, concentrated cyclical bets feel it first.
Samsung Electronics at 11.6% 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. Note the second-tier component names in the mix. They carry thinner margins and lumpier orders than the headline chip stocks — higher beta on the same cycle.
Growth: tech and semiconductors at 40.9% of top-10; concentration 40.9%. Manager makes selective deviations from peers (6/10 top holdings overlap). AI capex cycle supports fundamentals, but history warns of valuation compression after capex peaks. Note: near-term liquidity tightening amplifies concentrated-portfolio volatility. High concentration means higher volatility; longer holding periods help smooth cycle swings — best as a satellite, not a single holding.
Investment Objective
Seeks to provide members with long-term capital growth.
Trailing Returns ⓘ
| 3 Months | 1 Year | 3 Years | 5 Years | 10 Years | Since Launch | Year to Date | |
|---|---|---|---|---|---|---|---|
| Cumulative | +37.17% | +58.15% | +81.66% | +25.38% | +142.98% | +183.48% | +37.83% |
| Annualised | — | +58.15% | +21.99% | +4.63% | +9.28% | +5.85% | — |
Calendar Year Returns ⓘ
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Return (%) | +25.82% | +3.98% | +1.26% | -21.90% | -6.78% |
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 (%) | +16.16% | +4.60% | +30.65% | +60.52% | +62.82% | +73.69% | +123.08% |
Calendar Year Return
| 2021 | 2022 | 2023 | 2024 | 2025 | YTD | |
|---|---|---|---|---|---|---|
| Return (%) | -6.78% | -21.90% | +1.26% | +3.98% | +25.82% | N/A |
Fund Commentary
The MSCI Asia ex Japan Index gained 22.1% in USD terms during the second quarter of 2026, driven by strong AI-related demand, an accelerating semiconductor upcycle, and improving global risk sentiment. Robust first-quarter earnings and positive guidance across the AI supply chain, coupled with increased capital spending plans from major US hyperscalers, propelled semiconductor-heavy markets such as Korea and Taiwan to record highs. Consequently, regional performance was heavily concentrated in North Asia, underscoring the region's critical role in the global AI value chain. Korea was the standout performer during the quarter, led by memory semiconductor manufacturers and industrial companies benefiting from strong demand for advanced AI infrastructure. Taiwan also delivered strong returns, supported by continued momentum across its semiconductor foundry, chip design, and broader electronics supply chains. Reflecting the favorable operating environment, earnings expectations were revised materially higher for Korea's Information Technology and Industrials sectors, as well as Taiwan's Information Technology and Materials sectors. Investor sentiment towards Korea was further bolstered by the announcement of substantial government-backed AI investment initiatives aimed at enhancing the country's technological competitiveness. India posted modest gains, supported by resilient domestic demand, stable financial sector fundamentals, and early signs of an earnings recovery. However, earnings forecasts were revised lower across most sectors, reflecting ongoing caution regarding the near-term growth outlook. In contrast, China was among the region's weakest performers. Persistent weakness in the property sector, subdued domestic demand, policy uncertainty, and continued underperformance of offshore internet stocks weighed on both market sentiment and economic activity. Indonesia also lagged the broader region, pressured by lower commodity prices, weaker external demand, and limited exposure to the AI-driven technology and export cycle that dominated regional equity market returns during the quarter.
Portfolio Allocation
Top 10 Holdings
| # | Security name | Holdings Weight |
|---|---|---|
| 1 | Samsung Electronics Co Ltd | 11.6% |
| 2 | SK hynix Inc | 9.2% |
| 3 | Taiwan Semiconductor Manufacturing Co Ltd | 7.8% |
| 4 | MediaTek Inc | 3.3% |
| 5 | Delta Electronics Inc | 1.8% |
| 6 | Tencent Holdings Ltd | 1.7% |
| 7 | SK Square Co Ltd | 1.5% |
| 8 | Hon Hai Precision Industry Co Ltd | 1.4% |
| 9 | ASE Technology Holding Co Ltd | 1.4% |
| 10 | Alibaba Group Holding Ltd | 1.2% |
| Total | 40.9% |
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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