MPFA chief asks fund members not to speculate losses

MPF Authority chair Ayesha Macpherson Lau has asked members of the Mandatory Provident Fund scheme not to approach from a speculative perspective on it suffering a steep loss this year. Lau pointed out that the fund has recorded positive returns in 14 years throughout economic cycles and financial market fluctuations since its inception in December 2000 and there were normally rebounds after those years with negative returns. She added that switching MPF funds after a significant drop in the market could easily lead to a situation of “buying high, selling low"”and turn short-term fluctuations into actual investment losses. The MPF had shed about HKD286bn, or HKD62,400 per member, as of October 24, putting the year-to-date loss at around 24%, which is its worst annual performance since 2008.