Thoughts on the CPFIS review

APS Asset Management founder and chief investment officer Wong Kok Hoi has strong views relating to the review of the CPF Investment Scheme.

The Manpower Ministry has undertaken the review and results are expected sometime next year. The CPF Advisory Panel earlier released its recommendations, which include a proposal for lifecycle funds under the Lifetime Retirement Investment Scheme (LRIS). The funds are likely to be passively managed to keep investment costs low.

Mr Wong believes it is important to note a number of "first principles'' in investments. One is that alpha is a zero sum game. That is, one manager's loss is another's gain. "If a manager loses S$1 million in alpha, then another manager/s elsewhere must have made it. Alpha is like energy where there can never be a net loss at all times,'' he says.