How Could MPF Hold Up in Late 2011?

What did a reader ask in July 2011?

With first-half reports saying MPF lost across the board, how should the mix change to protect itself amid global uncertainty? The answer: year-to-date, everywhere except the US was negative across Asia and developed markets, so MPF’s fall was expected. Europe’s debt mess and a likely Greek restructuring remained unclear; but the writer didn’t see European debt badly hitting Asian corporate earnings — as long as a Greek default wasn’t worse than expected, Asian equities could rise again once things clarified.

How should investors position?

Deploy into higher-risk China/Hong Kong or Asian equity funds; MPF is long-term — don’t churn the mix on temporary markets.

Thinking of switching?

Check funds’ risks and performance first at MPF fund comparison.