For Aggressive Investors: How to Chase MPF Returns

This article is a rewrite of a report from November 2012.

Semi-portability’s biggest gift wasn’t switching rights — it was “mix-and-match” rights: the best funds from different trustees, combined. This “Investment Tips” column built a menu for aggressive investors chasing MPF returns.

How to build an aggressive mix?

Global equities plus Asia (ex-Japan) equities. The column suggested: core in global equity funds to capture worldwide growth; satellite in Asia (ex-Japan) equity funds for emerging-market punch. Both high-volatility, high-potential — suited to young stomachs.

What should they avoid?

Don’t go all-in on China/Hong Kong. China-HK funds swing hardest — poor core holdings. Aggressive doesn’t mean betting it all; diversify by region. After semi-portability, diversification needn’t stay within one trustee — pick whichever runs the best global equity fund.

What is the lesson from 2012?

“Combine the best funds from different trustees” — 2012’s most underrated semi-portability play. Most people only debated switching; few saw switching as a means to a better mix. MPF returns were never about which trustee is cleverest, but whether you use choice to build a mix matching your risk appetite.