Sep 17, 2013

Cory Diary : CPFIS-OA investors

Read a page from CPF site today. Here's my notes.

83% of CPFIS-OA investors should have leave their money with CPF in 2011 as they make less than 2.5% or lose money. If we think single year cannot be counted, it get worst in 2012 with 84% despite the market did pick-up for the year.

Losses constituted slightly more than half for both years .... so what is going on ?

Few possibilities

1. Low PE/SME stocks that maybe out of reach of CPFIS-OA investors
2. "Loud" counters that is widely known but business wise may not be as good
3. Dividends maybe excluded
4. ...

Whichever the case, we need the authority to manage the scheme properly or responsibly. I would suggest basic investment examination for people who want to withdraw their fund for gold or equity investments.

17th Sept'13


  1. Have rules to protect the dumbos from their money? What about folks who make money? The same rules are killing folks who can make money (aka me) ..... i.e. these CPF rules are crazy!

  2. Well i am sure you are above average to beat the test and work within the rules easily. And if this fails, i doubt you need those "reserve" anyway to move up with your life either!

  3. Unfortunately, your response is one that is so typical of those civil servants that come up with the rules => shallow. If you think harder about it, why should the government have any preference for an asset class. But the CPF's rules are such that, property is preferred over any other asset class especially if one gets to keep the profits too. At the same time, the rules recommend that one should place 100% of the CPF with some fund manager, despite statistics showing that they are under performing multiple indices. What is the logic? Mainly to "protect" some poor sods from their money, while enriching the fund management industry unfairly.....

  4. From your own statement, I think you are confusing Rules with Recommendation. If you can do better, you can invest in equities with CPF subject to limits. Is still a significant amount to play with but i would prefer to use on property first. I have seen policy in other countries where you can neither do both while their currency continues to slide.