Q4 2023 Newsletter

Sun Life’s MPF is Rank No.1 in MPF Net Asset Cumulative Growth in percentage for the past 10 years¹ and received 34 prestige MPF awards in the past year², including the 10 Year Consecutive Gold³ and the Best New Innovation3 by MPF Ratings.

Please visit our Award webpage to find out more details about the MPF awards received by Sun Life.

1. Source: Gadbury Report – MPF Market Shares and Estimated Net Fund Inflows in the MPF System, Hong Kong (Q4 2013 – Q1 2017) and Mercer MPF Market Shares Report (Q2 2017 – Q3 2023). The cumulative growth in percentage in terms of MPF net asset is calculated by the difference between the MPF net asset market share during Q4 2013 and Q3 2023.

2. April 2023 to March 2024

3. Source: ‘The 2024 MPF Awards’ by MPF Ratings

ESG (Environment, Social and Governance) is becoming the hot topics in various industries, MPF is no exception. With this regard, Sun Life Hong Kong launched the Sun Life MPF Low Carbon Fund in June 2023, reflecting our long-standing purpose of “sustainable development, “responsible investment” and “focus on client choice”. In terms of company operations and administration, we are committed to developing "Go Green Project" with the goal of reducing the use of paper in daily operations by optimizing the customer online platform. Thank you for your support on our Go-Green initiatives which led to achieve below great successes:

• In early 2023, Sun Life Hong Kong launched “e-alert service” to encourage MPF members to opt-in to e-alert service for the sake of environment protection. As a result, as of June 2023, there are 36% more MPF members opt in for e-alert service in comparison with January last year.
• From June to September 2023, Sun Life Hong Kong encouraged participating employers to consider using “Online Remittance Statement” to reduce paper usage during operation. As of October 2023, approximately 80% of our participating employers have opted for “Online Remittance Statement” instead of physical paper ones.

TVC is a form of MPF contributions which can help you save money while enjoying tax deduction. The contributions you make to this TVC account (up to an annual limit of HK$60,000) will be counted as a deductible item when you report your taxable income. Depending on your TVC amount, based on the prevailing highest tax rate (i.e. 17%), the maximum tax savings can reach HK$10,200*.

Plan smart, save more with our TVC special offer, for more details, please visit our TVC webpage at https://www.sunlife.com.hk/en/investments/mpf-and-orso-scheme/tax-deductible-voluntary-contributions/

To make it faster and easier for existing Tax Deductible Voluntary Contribution (TVC) members to submit TVC contributions, we have a new feature in the Sun Life MPF Mobile App or Online Pension Services Centre, which allows them to submit contributions anytime, anywhere, on any digital devices. It can also reduce paper and protect the earth!

*This is the maximum tax concession amount in the year of assessment 2023/2024.

Disclaimer

Investment involves risks and past performance is not indicative of future performance. Investment return may rise as well as fall due to market condition and currency movement which may affect the value of investments. The value of units may vary due to changes in exchange rates between currencies. Emerging markets may involve a higher degree of risk than in developed markets and are usually more sensitive to price movements.

In 2024, we may see a pivot in global monetary policy. At this time last year, markets were still worrying about more aggressive rate hikes. Markets are now paying close attention to the timing of monetary easing. The latest interest rate dot plot from the US Federal Reserve indicates that US may cut interest rates three times in 2024+. The act would be more aggressive than September’s forecast in 2023. With interest rates peaking and the economy staying resilient, corporate earnings may be supported We prefer the US stock market. Overall bond markets have registered decent rebound after sharp fall in US treasury yields since early November last year. Bonds with longer duration can help capture opportunities from falling interest rates as they are more sensitive to interest rate changes. Furthermore, bonds may play a buffering role during an economic downturn. From an asset allocation perspective, bonds diversify portfolios and reduce portfolio volatilities. We expect geopolitical tension to continue in 2024. Demand for precious metals, as safe-haven assets, may increase. After all, a weaker US dollar amid expectations of rate cuts may support prices of precious metals.

+Source: Bloomberg

To learn the market outlook for the first quarter of 2024  provided by Sun Life Asset Management (HK) Limited, you can access the full version of the Market Navigator – Q1 2024 for more details.

Investment involves risks and past performance is not indicative of future performance. Investment return may rise as well as fall due to market condition and currency movement which may affect the value of investments. The value of units may vary due to changes in exchange rates between currencies. Emerging markets may involve a higher degree of risk than in developed markets and are usually more sensitive to price movements.