GUM: In March, the total assets of the Mandatory Provident Fund fell by nearly HKD 96 billion, while members increased their holdings in Japanese stock funds amid the turmoil

The GUM report indicates that as of March 31, the total assets of the Mandatory Provident Fund (MPF) market fell by 5.9% to HKD 1.53 trillion, primarily due to the impact of the US-Iran conflict, resulting in a monthly decline of nearly HKD 96 billion.

During the period, MPF members exhibited heightened risk aversion, with an estimated net outflow of approximately HKD 4.48 billion from equity funds, marking the month with the highest net outflow since last year's "Liberation Day" related to Trump's tariffs. Among these, the net outflow was largest from Hong Kong equity funds (including index tracking funds) and Greater China equity funds, while mixed asset funds saw an estimated net outflow of about HKD 1.2 billion.

On the other hand, fixed income funds experienced an estimated net inflow of HKD 5.68 billion, making it the month with the highest net inflow since "Liberation Day," primarily flowing into the conservative funds and guaranteed funds categories of the MPF. Notably, Japanese equity funds were the only equity funds to record a net inflow in March, marking three consecutive months of net inflows this year