Why Was MPF Performance Lacklustre in Summer 2011?

Why Was MPF Performance Lacklustre in Summer 2011?

In July 2011, RCM Asia-Pacific CEO Mark Konyn said Greece’s austerity vote and Europe’s deals had reassured global investors, but the sovereign-debt crisis, weak US data and inflation worries in China and India had dented equity confidence. Summer is traditionally Asia’s slow season, when earnings estimates get cut.

How was RCM positioned?

Slightly defensively for retirement investors — trimming cyclicals such as energy stocks (oil prices seen stabilising) while keeping materials (demand still strong). Better conditions were expected from late Q3 into year-end.

What should workers do?

Don’t fiddle because summer is dull. MPF is long-term; defensive positioning is the manager’s job — yours is picking suitable funds and reviewing regularly.

How to pick the right funds?

Think long-term, not quarterly. Compare MPF funds on long-run track records.