30 April 2026
At MPF Ratings, we always keep our ear to the ground for interesting MPF funds, so you know what options are out there. Today, we’re spotlighting AIA’s Eurasia Fund, part of their AIA MPF – Prime Value Choice scheme. Here’s why this fund has caught our attention.
What is the fund’s goal?
The AIA Eurasia Fund aims for long-term capital growth by investing in a portfolio of index-tracking funds that cover European and Asia-Pacific equity markets.
How does it invest?
The fund invests through Index-Tracking Collective Investment Schemes. Let’s break down what that means:
- Index: A group of stocks representing a specific part of a market (e.g., a country, sector, or region) that form a benchmark for performance comparison.
- Collective Investment Scheme: Another term for an investment fund.
- Index-Tracking Collective Investment Schemes (ITCIS): These are funds designed to mirror the performance of a specific market index. The AIA Eurasia Fund invests in various ITCISs that track European and Asia-Pacific markets.
Think of the AIA Eurasia Fund as a “fund of funds.” Instead of tracking a single index itself, it builds a diversified portfolio by investing in a collection of different ITCISs. It then actively adjusts its investments between these European and Asia-Pacific funds to enhance returns.
Why Is This a Smart Approach?
Investing in a fund like this offers several key advantages for your retirement portfolio:
- Diversification: Instead of betting on a few individual companies, you’re spreading your investment across a wide range of businesses and sectors in Europe and Asia- Pacific. These may include well-known names such as Samsung, Alibaba, and AstraZeneca*. Diversification is crucial for managing risk, especially when markets are volatile
*AIA MPF – Prime Value Choice’s “Fund Performance Review Fact Sheet” (as at 28th February 2026).
- Lower Costs: Index-tracking funds generally have lower management fees than actively managed funds, meaning more of your money stays invested and working for you.
- Harnessing Dollar-Cost Averaging: Your monthly MPF contributions work perfectly with this strategy, it enables you to buy more fund units when prices are low and fewer when they are high. Over time, this may help lower your average cost per unit while your portfolio grows in value.
What Are the Risks?
Since the fund ultimately invests in equities (stocks), it’s important to remember that its value can be volatile in the short term. This makes a long-term investment horizon crucial.
Additionally, underlying ITCIS of the Eurasia Fund are designed to closely track their respective indices and so are unlikely to outperform the market, however, in an effort to provide enhanced returns over the long term, the Eurasia Fund does make active decisions to allocate between European and Asia-Pacific markets.
The Performance Speaks for Itself
*Source: MPF Ratings’ “MPF Performance Survey” as at 31st March 2026.
So, if you’re looking for long-term growth and exposure to European and Asia-Pacific markets through a single fund, the AIA Eurasia Fund could be a compelling addition to your MPF portfolio. As always though, it’s best to seek professional advice to determine if the fund aligns with your personal financial goals.
The information contained in this blog is not advice, it is for educational purposes, general in nature and does not take into account personal situations. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.
