Battered by rising interest rates and volatile stock markets, local retirement funds posted negative returns in the first six months of this year, according to asset manager Dresdner RCM Global Investors.
Dresdner estimates its pension funds lost 4.5 per cent in the first half of this year. The company estimates the median return of the industry at minus 6 per cent.
'We think the worst is behind us,' Dresdner RCM Global Investors Asia director Mark Konyn (right) said.
'And we expect volatility to return to more normal levels.' Dresdner estimates the return on its funds for the year to June 30 at 19.6 per cent and the industry median at 9.4 per cent.
Corporate earnings would be crucial to Asian market performance in the second half, Mr Konyn said.
Dresdner expects the mainland to lead the region this year, with earnings per share rising 36.8 per cent. Hong Kong earnings per share are forecast to grow 16.8 per cent.
