Why Did Bonds Beat Equities in MPF in Early 2011?
In the first half of 2011, the European debt crisis and slowing US and Chinese growth left equity MPF funds up just 1.21% on average, while bond funds gained 3.17%. Safe-haven flows into bonds lifted the fixed-income side.
What did fund managers expect for the second half?
Anle Financial’s Lin Zhanming expected markets to shrug off the bad news and sentiment to improve, favouring emerging-market equities. Europe and US equity funds led the first half, up 7.7% and 5.37%; for those 20 years from retirement he suggested going aggressive — roughly 40% Asia equities, 30% Greater China, 15% Korea and 15% global equities.
Does bonds winning mean switching to bonds?
Not necessarily. MPF is long-term investing; equities and bonds take turns leading. What matters is matching your age and risk appetite, not chasing short-term winners.
How to pick the right fund types?
Compare MPF funds on fees and track records, then allocate by life stage.
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