HSBC: Still Optimistic on MPF Returns?

What was HSBC’s 2011 outlook?

In August 2011, HSBC reported its MPF business profit up 29% for the first half and said full-year MPF returns still looked optimistic. The 29% profit jump rode the first half’s markets; management saw volatility ahead but a positive long run.

What did the data say?

The MPFA’s money-weighted measure showed 0.2% growth for H1 2011; Lipper’s time-weighted measure showed a 1.05% fall. Either way, long-term investing is MPF’s essence — short-term swings shouldn’t drive decisions.

What should members do?

Rather than timing markets, nail the basics: review portfolios regularly and pick reasonably priced funds. Find steady long-term performers at MPF fund comparison.