Financial Data and Key Metrics Changes - The company ended Q3 2025 with record assets under management of $871 billion, an increase driven by gains from money market and equity strategies [4] - Total revenue for Q3 increased by $44.6 million or 10% compared to the prior quarter, with contributions from higher money market assets and equity assets [15] - Operating expenses rose by $32.2 million or 10% from the prior quarter, primarily due to higher distribution expenses [15] Business Line Data and Key Metrics Changes - Equity assets increased by $5.7 billion, or 6%, from the prior quarter, despite slightly negative net sales of $130 million [4] - Fixed income assets reached a record high of $101.8 billion, with total net sales improving by $4.1 billion in Q3 [7] - Alternative private markets saw a decrease of about $1.7 billion in assets, mainly due to real estate fund transactions [8] Market Data and Key Metrics Changes - Money market assets increased by $18 billion to reach $653 billion, with money market fund assets rising by 5% to $492.7 billion [12] - The company's estimate of money market mutual fund market share remained at about 7.11% at the end of Q3 [15] Company Strategy and Development Direction - The company is actively developing MDT distribution opportunities outside of the U.S., with strong interest from institutions and intermediaries [5] - The acquisition of FCP, a U.S.-based real estate investment manager, is expected to facilitate entry into the U.S. real estate market [10] - The company is committed to digital asset initiatives, including tokenized money market funds and participation in blockchain technology projects [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the MDT franchise, highlighting a strong pipeline of new RFPs and growing momentum [19] - The institutional pipeline is described as very strong, with over $2 billion expected to fund in the near term [22] - Management anticipates that expenses will rise in line with revenue growth, particularly due to the FCP acquisition and ongoing investments in digital assets [21] Other Important Information - The company paused its open market share repurchase during negotiations with FCP but plans to resume in Q4 [17] - Cash and investments at the end of Q3 were $647 million, with expectations to use a portion for the FCP acquisition [16] Q&A Session Summary Question: MDT franchise growth potential - Management indicated enthusiasm and optimism regarding the MDT franchise, with net sales of about $660 million through October 24 and a strong global pipeline [18][19] Question: Expense trajectory over the next year - Management expects expenses to rise due to the FCP acquisition and ongoing initiatives, but anticipates that these will be accompanied by revenue growth [20][21] Question: Institutional investor allocations and opportunities - The institutional pipeline is strong, with various mandates won across different countries, and about two-thirds expected to fund in Q4 [22][23]

Core Insights - The overall return of Hong Kong's Mandatory Provident Fund (MPF) dropped by 1.4% as of October 17, resulting in an average loss of HKD 4,449 per person [1] - Year-to-date, the MPF composite index has increased by 14.2%, with an average gain of HKD 38,932 per person [1] Fund Performance - Among the three major indices, the stock fund index fell by 2.5%, the mixed asset fund index decreased by 0.7%, while the fixed income fund index rose by 0.1% [1] - In October, the Hong Kong stock fund experienced a significant decline of 6.5%, although it still recorded a year-to-date increase of 28% [1] - The Greater China stock fund also saw a decline of 5% in October, but it maintained a strong year-to-date return of 31.1%, leading the annual performance [1] Market Analysis - GUM indicated that the stock funds were under pressure in October, which was the primary factor dragging down overall performance [1] - Despite the market adjustment in October, the MPF has still achieved positive returns year-to-date [1] - Members are encouraged to review their asset allocation strategies based on their risk tolerance, balancing short-term volatility with long-term growth potential [1]

Core Insights - The total assets of the Mandatory Provident Fund (MPF) market in Hong Kong increased by 1.8% to HKD 1.48 trillion as of the end of August [1] - There was a net inflow of HKD 2.02 billion into stock funds in August, while mixed asset funds and lower-risk assets experienced net outflows of HKD 150 million and HKD 1.87 billion, respectively [1] - A total of HKD 3 billion flowed into stock funds over July and August [1] Fund Inflows - The top five asset categories with the highest net inflows were "US Stock Funds," "Pre-set Investment Strategy - Core Accumulation Funds," "Hong Kong Stock Funds (Index Tracking)," "Global Stock Funds," and "Japanese Stock Funds" [1] - The US Stock Funds, DIS Core Funds, and Hong Kong Stock Funds (Index Tracking) have consistently been the top three categories for net inflows for two consecutive months, maintaining the same ranking as in July [1] Fund Outflows - The top five asset categories with the highest net outflows were "MPF Conservative Funds," "Mixed Asset Funds (80% to 100% Stocks)," "Guaranteed Funds," "Mixed Asset Funds (60% to 80% Stocks)," and "Other Stock Funds" [1] - The trend indicates a shift in investment attitudes, with members becoming more aggressive in their allocations towards stock funds [2] Market Sentiment - The investment sentiment has shifted positively, with members increasingly allocating funds to US and Hong Kong stock funds, reflecting a recovery in confidence towards the Hong Kong market influenced by the strong performance of the Hang Seng Index [2] - In August, US stock funds recorded a net inflow of HKD 920 million, indicating a gradual return to US stock funds after significant outflows earlier in the year [2] - Hong Kong stock funds (index tracking) saw a net inflow of HKD 820 million, suggesting a renewed confidence among members [2]

Group 1 - The core viewpoint is that the MPF market continues to show a steady upward trend, with a recorded return of 1.6% in August and an overall increase of 11.9% year-to-date [1] - The average return per person in August was HKD 4,956, while the average gain since the beginning of the year reached HKD 32,657 [1] - Stock funds remain the primary driver of MPF performance, with the stock fund index rising by 16.7% year-to-date [1] Group 2 - The best-performing fund in August was the Japanese stock fund, which recorded a 5.5% increase, and a year-to-date growth of 17.1% [1] - The Greater China stock fund and Hong Kong stock fund also performed well, with increases of 4.3% and 2.5% respectively, the latter achieving a year-to-date increase of 26.2% [1] - The US stock fund had the weakest performance, with only a 1.3% increase in August and a year-to-date return of 8.4%, indicating recent volatility in the US stock market [1] Group 3 - The MPF market is characterized by a strong performance in Asian and local markets, with mixed asset funds benefiting from the stock market's upward trend [1] - Fixed income funds maintained stability but offered limited returns [1] - GUM advises members to regularly review their asset allocation based on their risk tolerance and retirement goals, highlighting the long-term growth potential of stock funds despite short-term volatility [2]

Group 1 - The core viewpoint of the report is that wealthy investors expect an average return of 9% on their investment portfolios by 2025, despite concerns about macroeconomic factors such as market downturn risks, interest rate fluctuations, and inflation pressures [1] - The survey conducted in May 2025 included 1,517 wealthy investors from Hong Kong and mainland China, all possessing investable assets of HKD 1 million or more [1] - 69% of respondents prioritize capital preservation as their main investment goal for 2025, while 61% plan to increase their investment allocations in the next 12 months [1] Group 2 - Wealthy investors typically hold four or more asset classes to diversify their portfolios, with Hong Kong investors favoring bonds and mainland investors leaning towards alternative investments like gold and commodities [1] - Investment funds remain a core component of their portfolios, with approximately 60% of respondents indicating they hold such funds, and over half (56%) preferring fixed income funds [1] - More than half (64%) of wealthy investors express interest in investing in overseas markets, particularly with mainland investors showing a strong interest in the Singapore market (27%) [1] Group 3 - Wealthy investors are increasingly focusing on digital assets, with 42% already investing in this area and 18% planning to enter the market, indicating strong investment momentum [2] - Concerns regarding the security of digital asset custody (38%) and regulatory transparency (37%) are prevalent among investors [2] - Investors are actively seeking long-term growth opportunities driven by technology and innovation, including sectors such as technology and artificial intelligence (63%), sustainable development (39%), and health and science industries (36%) [2]