Top MPF fund manager recommends technology, export driven stocks
HSBC’s Asia Pacific Equity fund is the year’s top performer, returning 32 per cent, compared with market average 12 per cent
The top Mandatory Provident Fund manager from HSBC says he believes technology and export-oriented stocks will continue to outperform the markets.
Sanjiv Duggal, head of Asian and Indian equities at HSBC global asset management, was sharing his investment tips before the MPF implements the biggest reform in its history on Saturday.
The compulsory retirement fund is set to introduce its new default investment fund, which will adopt the simple strategy of reducing its exposure to the stock market as the employee gets older. It also has a management fee capped at 0.95 per cent, compared with the 1.56 per cent average fee across all MPF funds.
The DIS (Default Investment Strategy) carries a lower risk but also a lower return and will be hard pressed to beat the best performer of the past year – an HSBC Asia Pacific Equity fund which has returned 32 per cent, compared with a market average of 12 per cent. The fund, set up when the MPF launched in the year 2000, has accumulated a 170 per cent return, also the best in the sector.
Many companies we identified as being high quality and having sustainable profitability were indiscriminately sold down in Asia following the Brexit referendum and US election results
Duggal, who manages the winning fund, said wise stock picks have produced good returns. But the many surprising world events last year, ranging from Brexit to Donald Trump’s election as US president, have also provided good investment opportunities.