Core Insights - The Hong Kong Mandatory Provident Fund (MPF) recorded a return of approximately 6% in Q2 2025, with total assets reaching a historic high of about HKD 1.43 trillion, and an average account balance of approximately HKD 298,200 [1][2] - Net inflow of funds into the MPF for Q2 2025 was estimated at around HKD 11 billion, the lowest for the same period since 2019, and approximately 16% lower than the average net inflow over the past five years [1] - The conservative funds attracted the most net inflow in Q2 2025, drawing in about HKD 8.4 billion, which accounted for 76.5% of the total net inflow [1] Fund Performance - Despite stable investment performance in Q2 2025, there was a significant net outflow from Hong Kong and mainland China stock funds, as well as U.S. stock funds, influenced by initial tariff impacts from former U.S. President Trump's "liberation day" [2] - The top 10 MPF component funds with the highest net inflows in Q2 2025 were predominantly conservative funds, with 7 out of 10, indicating that members who switched to these funds missed out on the strong market rebound following the tariff announcement [2] - The MPF recorded approximately HKD 80.6 billion in investment income in Q2 2025, highlighting the contrasting performance between conservative funds and those that experienced net outflows [2]