How Did Fund Managers See MPF Returns in 2011?

How Did Fund Managers See MPF Returns in 2011?

In January 2011, RCM Asia-Pacific CEO Mark Konyn called Asian equity valuations reasonable and, with corporate earnings rising, felt optimistic about MPF returns for the year. He expected a first-half rise and possible second-half correction; the wild cards were emerging-market inflation and the European debt crisis.

How fast would MPF assets grow?

Konyn expected Hong Kong MPF assets to triple in ten years, driven by wage growth and contribution-cap reviews. With Hongkongers keen on renminbi, he reckoned 30% of deposits could be RMB within five years — and MPF might get RMB products too.

What did delaying semi-portability mean?

RCM’s Yu Tianyou said the delay meant no big fee cuts short-term. Competition was the real fee cutter.

Did optimism mean going all-in?

No — forecasts change yearly; MPF is long-term. Check long-run data on MPF fund comparison before deciding.