I read with interest and concern the report ("Wider MPF choice to include riskier options", April 26). Certainly, as an Asia-led power shift from West to East bolsters confidence in the region, the appetite for risk has begun to make something of a comeback among Asian investors, but at what cost?
Yes, a pension fund must grow to counteract the impact of inflation, but it should also be about ensuring you have a nest egg ready for retirement rather than a means by which to risk your pension money in the pursuit of short-term gain.
Indeed, RCM Asia Pacific chief executive Mark Konyn was wise to suggest that when the new regulation comes into effect next year, investors should limit the percentage of Mandatory Provident Fund contributions invested in higher-risk options to 15.
I would go further and suggest that if riskier options are to be made available to MPF contributors, then investor education should become a more integral part of the fund management process.
For too long, poor corporate governance has enabled many financial advisers to line their own pockets when they should instead be concentrating on protecting the assets of their clients.
We need training advisers to educate investors on the products they are investing in and the importance of portfolio diversification, as well as remuneration structures that are not commission-based.
This would go some way to narrowing the widening gap between financial adviser and investor and to restoring investor confidence in financial services in general.
Lucy McNulty, Asia editor, the wealthnet