MPF 強積金. Monthly Investment Report. Fidelity Retirement Master Trust

Transcription

1 MPF 強積金 Monthly Investment Report Fidelity Retirement Master Trust

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3 Contents For Fidelity Retirement Master Trust, please note: You should consider your own risk tolerance level and financial circumstances before making any investment choices. When, in your selection of funds, you are in doubt as to whether a certain fund is suitable for you (including whether it is consistent with your investment objectives), you should seek financial and/or professional advice and choose the fund(s) most suitable for you taking into account your circumstances. The MPF Conservative Fund under the Fidelity Retirement Master Trust does not guarantee the repayment of capital. You should not invest based on this document alone and should read the Principal Brochure of Fidelity Retirement Master Trust for further information including the risk factors. Fidelity SaveEasy Funds are not savings deposits and involve investment risks and this product may not be suitable for everyone. Investors should also consider factors other than age and review their own investment objectives. 1-2 Market Review 3 Performance Summary 4-19 Fidelity Retirement Master Trust - Fund Fact Sheets 20 Glossary Fidelity Retirement Master Trust Fund Fact Sheets Index Tracking Funds Fidelity Hong Kong Tracker Fund... 4 SaveEasy Funds Fidelity SaveEasy 2020 Fund Fidelity SaveEasy 2025 Fund Fidelity SaveEasy 2030 Fund Fidelity SaveEasy 2035 Fund Fidelity SaveEasy 2040 Fund Equity Funds Asia Pacific Equity Fund Global Equity Fund Hong Kong Equity Fund Lifecycle Funds Balanced Fund Capital Stable Fund...14 Growth Fund...15 Stable Growth Fund...16 Bond Funds Hong Kong Bond Fund...17 World Bond Fund Money Market Funds MPF Conservative Fund *...19 The index tracking fund under the Fidelity Retirement Master Trust is subject to market risk of the sector or market tracked by the relevant index, tracking error risk, passive management risk, early termination risk, etc. Please refer to the Risk Factors section in the Principal Brochure of Fidelity Retirement Master Trust for further information. Fidelity SaveEasy Funds are not savings deposits and involve investment risks. This product may not be suitable for everyone. Investor should also consider factors other than age and review their own investment objectives. * Fees and charges of MPF conservative funds can be deducted from either (i) the assets of the fund or (ii) members' account by way of unit deduction. MPF Conservative Fund under the Fidelity Retirement Master Trust uses method (i) and, therefore, its unit prices / NAV / fund performance have incorporated the impact of fees and charges. The purchase of a Unit in the MPF Conservative Fund is not the same as placing funds on deposit with a bank or deposit-taking company. ( ) ( ) ( )

4 Market Review Asia Pacific (ex. Japan) Asia Pacific ex Japan stocks were largely unchanged. Monetary easing in China supported equities, though global growth concerns weighed on sentiment. At a sector level, energy and materials stocks declined as crude oil and iron ore prices fell sharply. Conversely IT and financials were among the best performers. The Chinese and Hong Kong markets gained as the People s Bank of China (PBoC) cut its key interest rates for the first time since July 2012 to spur growth. Chinese financials rallied after the PBoC reduced the one year lending rate by 0.40% to 5.6% and the one year deposit rate by 0.25% to 2.75%. The highly anticipated Shanghai-Hong Kong Stock Connect programme also got underway, allowing investors in both markets to trade each other s stocks. Meanwhile, China s October economic data, such as fixed asset investment, industrial production and new lending, were broadly weak. In Hong Kong, third quarter GDP growth rebounded sequentially as household consumption and exports rose strongly. However, retail sales growth decelerated in October as prodemocracy protests weighed on consumer sentiment. Buying activity by foreign investors boosted Taiwanese equities. Furthermore, export orders growth was robust in October owing to strong global demand for mobile devices. The South Korean market gained as major export-oriented companies announced share buyback programmes. The depreciation of the Korean currency against the US dollar also lifted sentiment towards exporters. Singaporean equities ended higher as third quarter GDP growth was upgraded significantly owing to positive revision to growth across sectors. Conversely, weakness in the resources and consumer staples sectors led the Australian market lower. Despite stronger-thanexpected jobs growth, the unemployment rate was unchanged in October amid a rise in the number of job seekers. On a month-on-month basis, September retail sales were stronger than anticipated, and October building approvals significantly exceeded forecasts. Indian equities rose against the backdrop of falling inflation and better-thanexpected economic growth over the July September period compared to a year ago. The Indonesian market gained as the government raised fuel prices to reduce its subsidy bill and fund development plans. Against this backdrop, Bank Indonesia raised its benchmark interest rate to curb inflationary risks. Buying activity by foreign investors supported Thai stocks. Third quarter GDP growth from a year earlier was slower-than-expected as sluggish exports partly offset the improvement in private consumption and investment. The Philippines market gained in light of healthy earnings announcements. Sentiment received further support as declining crude oil prices are expected to boost private consumption. Conversely, weakness in the energy and financials sectors weighed on the Malaysian market. The pace of economic expansion decelerated over the third quarter due to weak investment and exports. Japan In early November, the double bonanza from the Bank of Japan (BoJ) and the Government Pension Investment Fund continued to lift the market. Although share prices fell sharply in response to weaker-than-expected GDP data, they soon rebounded amid speculation that Prime Minister Shinzo Abe would call a snap election and postpone the second consumption tax hike. The broad-based TOPIX outperformed other developed markets in yen terms. In US dollar terms, however, Japanese stocks saw a modest decline as the yen weakened to 118 against the US dollar. Overseas investors were strong net buyers of Japanese stocks through the first three weeks of November, whereas individuals sold heavily as the market advanced. At a sector level, materials, consumer discretionary and information technology (IT) registered the strongest gains. Beneficiaries of a weaker yen and lower oil prices performed particularly well. Conversely, the energy sector fell quite sharply and defensive areas of the market also underperformed. In addition to the benefits of a weaker yen, restructuring and cost-saving measures contributed to the improvement in earnings. The Japanese economy has struggled to recover from the consumption tax hike that went into effect in April 2014, which led to a pullback in demand and exacerbated a decline in real incomes. Real GDP slumped by 7.3% annualised in the April June quarter and unexpectedly contracted by a further 1.6% in the July September period, pushing Japan into a technical recession. While much of the third-quarter decline was due to inventory adjustments, consumer spending failed to rebound meaningfully and corporate investment remained weak. Subsequent data points showed that industrial production unexpectedly increased in October, led by the strong output of capital goods, and inventories fell for a second straight month. Meanwhile, the core inflation rate fell below 1% (excluding the impact of the sales tax hike). United States US equities advanced in November as rising corporate profits and a steadily improving US economy helped push the stock market to record highs during the month. The broader US economy continued to show further underlying strength, with third quarter GDP growth revised up to an annual rate of 3.9% from an advance estimate of 3.5%. The Federal Reserve (Fed) released minutes from its October monetary policy board meeting, which showed that policymakers are confident about the US economic recovery. The minutes also revealed that the Fed remains concerned about the possibility that inflation could edge lower in the near term. This led to speculation that the central bank may delay its first interest rate rise. Elsewhere, the decline in oil prices continued to impact the energy sector, the biggest laggard during the month. Global oil supply has outpaced demand, largely due to the expansion in US production from unconventional sources as well as Libya s decision to ramp-up output. The consumer discretionary and consumer staples sectors registered the largest gains amid expectations that lower gas prices could lead to increased consumer spending. In other economic news, US core consumer prices (excluding food and energy) rose 0.2% in October. However, falling gasoline prices left the overall consumer price index unchanged. In the labour market, October nonfarm payrolls increased and the unemployment rate fell to a 6-year low. Continental Europe European equities rebounded sharply in November after European Central Bank (ECB) President Mario Draghi said that the central bank will expand its asset purchase programme if inflation fails to show signs of returning to the targeted level of 2.0%. Better-than-expected corporate earnings were also well-received by the market. However, the European Commission lowered the growth forecast for the region, citing weak investment and heightened geopolitical risks, which curbed gains. At a sector level, telecommunications, consumer discretionary and technology were the best performers, while utilities lagged the broader market. The energy sector was among the weakest performers as these stocks tracked oil prices lower. Large and mid-cap companies outperformed their smaller peers, whereas growth companies performed better than value stocks. Macroeconomic data releases during the month were challenging. The eurozone Markit s Composite Purchasing Managers Index (PMI), seen as a lead indicator of growth, fell unexpectedly to 50.1 in November. This is barely above the 50 mark that separates growth from contraction. In fact, manufacturing PMIs in the eurozone s three biggest economies Italy, Germany and France came in below the 50 mark. However, Spain s manufacturing sector grew strongly, with its Markit s PMI rising to 54.7 in November compared to 52.6 in October. The eurozone inflation rate also fell to 0.3% in November as energy prices tumbled, suggesting that deflation remains a threat for the region. On a positive note, the eurozone s economic sentiment rose slightly in November for a second straight month as a pick-up in industry sentiment outweighed increased pessimism among consumers. The region s GDP also recorded slightly better-than-expected growth of 0.2% in the third quarter. United Kingdom UK equities advanced in November following two months of declines as expectations for increased stimulus measures from the world s major central banks lifted investor sentiment. Most sectors ended the month in positive territory. Telecommunications stocks were among the best performers. Food producers, chemicals and personal goods sectors also outperformed the broader market, while oil & gas, mining and industrial engineering companies recorded negative returns. On the economic front, the annual rate of UK inflation edged up slightly to 1.3% in October, but remains well below the Bank of England s (BoE) target of 2% for the 11th month in a row. The Office of National Statistics (ONS) said the annual rate of Consumer (CPI) inflation rose from a five-year-low of 1.2% in September. On the policy front, the BoE s Monetary Policy Committee (MPC) voted 7-2 to hold interest rates at their historic low of 0.5%. Emerging Markets Emerging market equities as a whole rose in November despite regional variances. Renewed concerns over economic growth in China hurt stocks in developing countries that are dependent on exports to the country. In Asia, Chinese stocks rose, despite weaker economic data, as the government announced a surprise interest rate cut in an effort to increase money supply. However, Malaysian markets declined due to concerns that decreasing oil prices its key export item will negatively affect the economy. Meanwhile, markets in Latin America declined. Mexican stocks fell as investors were unnerved by rising social unrest over the recent disappearance of some students, who protestors allege were abducted with the support of state police. Colombian shares were dragged down by weak oil prices. In Brazil, sentiment was hurt by concerns over subdued manufacturing activity in China, a key market for commodity exports such as iron ore. Equities in the emerging Europe, Middle East and Africa region declined as falling crude oil prices impacted the financial markets of the region s oil exporting countries. The Russian rouble suffered from a double whammy of continuing political tensions in east Ukraine and weaker commodity prices that may intensify Russia s economic problems. Elsewhere, Nigerian equities slid on the back of falling oil prices. Economic news in the region was mixed. South Korea reported a strong current account surplus in October, supporting the central bank s full-year target. In Latin America, the Mexican economy expanded at a slowerthan- expected pace in the September quarter, leading the central bank to cut its annual growth forecast. Elsewhere, consumer inflation accelerated in Russia, fuelled by rising food prices and a falling rouble. Turkey kept its interest rates unchanged and maintained a tight monetary policy given the high inflation. Meanwhile, quarterly GDP growth in South Africa accelerated given an end to the labour unrest in the mining sector. Bond Most fixed income markets continued their impressive run this year and posted solid gains in November. Markets rallied on the back of mixed economic data, especially lower inflation figures, which led investors to believe that global central banks would keep interest rates lower for longer. In addition, oil prices spiralled to a four-year low after the Organization of the Petroleum Exporting Countries (OPEC) decided that it would not reduce its output target, spurring speculation of a further decline in global inflation. Yields on US Treasuries were more than those offered by its Group of 7 (G7) peers, making them more attractive to investors even as the US economy expanded. In Europe, ECB President Mario Draghi s statement that the central bank was prepared to do more to stimulate the sluggish eurozone economy sparked a late rally. Sovereign yields edged lower, with Germany s 10-year bund hitting a record low. The 10- year yield on French government bonds also fell below 1% for the first time. In the UK, the BoE lowered its growth forecast, leading to speculation that the central bank will delay raising rates. Elsewhere, China announced an unexpected rate cut, and there are rising expectations that it will lower its growth target for 2015 to 7%. On the macro front, data from Europe was somewhat disappointing, as inflation was revised lower and PMIs came in below market expectations. In the US, the economy grew faster in the third quarter than previously estimated and the unemployment rate held at 5.8%. Elsewhere, Japan also reported a slowdown in inflation in October for the third consecutive month. 1 Source: Monthly Market Review (November), as at 30/11/2014 FIL Limited and its subsidiaries are commonly referred to as Fidelity or Fidelity Worldwide Investment. Fidelity only gives information about its products and services. Any person considering an investment should seek independent advice on the suitability or otherwise of the particular investment. Fidelity, Fidelity Worldwide Investment, the Fidelity Worldwide Investment logo and F symbol are trademarks of FIL Limited. The material is issued by FIL Investment Management (Hong Kong) Limited.

5 Monthly Market Review Fidelity Fidelity Worldwide Investment FIL Limited Fidelity Fidelity Worldwide Investment Fidelity Worldwide Investment FFIL Limited % 5.6% 0.25% 2.75% TOPIX %79 1.6% 10 1% %3.9% % % 11 Markit Markit % % % 11 2% 91.2% 0.5% (OPEC) 1% % 5.8% 10 2

6 Performance Summary Fidelity Retirement Master Trust 富達退休集成信託 As at 30/11/2014 Name of Constituent Fund Currency YTD 3 Months 3 Fund % Annual Performance % 1 Year 1 3 Years 3 5 Years 5 10 Years Index Tracking Funds 追蹤指數基金 Fidelity Hong Kong Tracker Fund ~ SaveEasy Funds 儲蓄易 基金 Fidelity SaveEasy 2020 Fund 2020 Fidelity SaveEasy 2025 Fund 2025 Fidelity SaveEasy 2030 Fund 2030 Fidelity SaveEasy 2035 Fund 2035 Fidelity SaveEasy 2040 Fund Equity Funds 股票基金 Asia Pacific Equity Fund Global Equity Fund Hong Kong Equity Fund Lifecycle Funds 人生階段基金 Balanced Fund Capital Stable Fund Growth Fund Stable Growth Fund Bond Funds 債券基金 Hong Kong Bond Fund World Bond Fund Money Market Funds 貨幣市場基金 MPF Conservative Fund* * The index tracking fund under the Fidelity Retirement Master Trust is subject to market risk of the sector or market tracked by the relevant index, tracking error risk, passive management risk, early termination risk, etc. Please refer to the Risk Factors section in the Principal Brochure of Fidelity Retirement Master Trust for further information. Fidelity SaveEasy Funds are not savings deposits and involve investment risks. This product may not be suitable for everyone. Investor should also consider factors other than age and review their own investment objectives. * Fees and charges of MPF conservative funds can be deducted from either (i) the assets of the fund or (ii) members account by way of unit deduction. MPF Conservative Fund under the Fidelity Retirement Master Trust uses method (i) and, therefore, its unit prices / NAV / fund performance have incorporated the impact of fees and charges. The purchase of a Unit in the MPF Conservative Fund is not the same as placing funds on deposit with a bank or deposit-taking company. ( ) ( ) ( ) Source: Fidelity, NAV to NAV, based on denominated currency Investment involves risks. Past performance is not indicative of future performance. Please refer to the Principal Brochure of Fidelity Retirement Master Trust for further details including the risk factors. This material is issued by FIL Investment Management (Hong Kong) Limited. () () 3

7 Fidelity Retirement Master Trust - Fidelity Hong Kong Tracker Fund 富達退休集成信託 - 富達香港盈富基金 As of 30/11/2014 Equity Fund - Hong Kong The Constituent Fund aims to achieve long-term capital growth by investing all or substantially all of the fund assets into the Tracker Fund of Hong Kong ( TraHK ). The TraHK s investment objective is to provide investment results that closely correspond to the performance of the Hang Seng Index of Hong Kong. The manager of TraHK (State Street Global Advisors Asia Limited) seeks to achieve the investment objective of TraHK by investing all, or substantially all, of TraHK s assets in the shares in the constituent companies of the Hang Seng Index in substantially the same weightings as they appear in the Hang Seng Index. TraHK TraHK TraHK TraHK TraHK Launch Date 28/06/2013 Unit NAV HK$ Fund Size HK$111.70M Risk Indicator (3-Year Standard Deviation) 2013 Hong Kong equities were subdued over the quarter. Weaker-thanexpected Chinese manufacturing data renewed worries about an economic slowdown in the mainland, while concerns over prodemocracy protests subdued Hong Kong stock market. In particular, the consumer discretionary sector fell out of favour amid concerns that these demonstrations may further weaken retail sales, while additional weakness in Macau gaming revenues also hurt sentiment. Encouragingly, Hong Kong s labour market remained strong, with unemployment rate at a low level. Going forward, Hong Kong is likely to experience a slower pace of economic activity, given expectations of moderating Chinese GDP growth. The slowdown in tourist arrivals from mainland China continues amid the ongoing anti-corruption drive. This could impact the consumer sector, particularly sales of luxury goods and consumer electronics. Hong Kong equities continue to be supported by attractive valuations on a medium to long term basis. Nonetheless, the much-awaited Shanghai-Hong Kong Stock Connect marks a notable shift towards greater market convergence and should lead to higher stock market turnover in Hong Kong Fund 5.32% -2.83% 2.29% % Index 7.18% -2.40% 4.61% % Fund N/A N/A 2.29% % Index N/A N/A 4.61% % 1 N/A N/A 4.66% % /13 08/13 10/13 12/13 02/14 04/14 06/14 08/14 10/14 HSBC HOLDINGS PLC 13.34% TENCENT HOLDINGS LIMITED 8.85% CHINA MOBILE LTD 7.41% AIA GROUP LTD 6.87% CHINA CONSTRUCTION BANK CORP H SHRS H 6.31% INDUSTRIAL & COM BK OF CHINA H SHRS H 4.95% BANK OF CHINA LTD H SHRS H 4.05% HUTCHISON WHAMPOA LTD 2.64% CNOOC LTD 2.58% CHINA LIFE INSURANCE CO H SHRS H 2.55% TOTAL 59.55% Industry Breakdown 行業投資分佈 45.9% Financials 9.6% Information Technology 9.6% Properties and Construction 8.3% Telecommunications 8.2% Energy 5.0% Utilities 4.4% Conglomerates 4.1% Consumer Services 4.9% Others* * Others may include cash, account payables, account receivables and/or other industries. / / Fund 基金 Index 指數 Total Return Index Return 基金總回報 指數總回報 2013~ 7.36% 13.14% as of 30/09/ /09/2014 The index tracking fund under the Fidelity Retirement Master Trust is subject to market risk of the sector or market tracked by the relevant index, tracking error risk, passive management risk, early termination risk, etc. Please refer to the Risk Factors section in the Principal Brochure of Fidelity Retirement Master Trust for further information. The Hang Seng Index measures the performance of largest and most liquid companies listed on the Main Board of the Stock Exchange of Hong Kong Limited and is compiled by adopting free float-adjusted market capitalisation weighted methodology. Details of the index methodology and further information in relation to the Hang Seng Index are available at As for other important news of the Hang Seng Index, Hang Seng Indexes Company Limited will also make announcements through press releases and at Please also refer to Appendix II of the Principal Brochure of Fidelity Retirement Master Trust for further information on the Hang Seng Index including the disclaimer of the index provider. II Source: Datastream, index performance is calculated as a total return with dividend reinvested. Datastream 1 This is the return achieved through investing the same amount at the end of each month, comparing the total contributions with their current / in. / Fidelity Fidelity Worldwide Investment FIL Limited Fidelity Fidelity Worldwide Investment Fidelity Worldwide Investment F FIL Limited 4

8 Fidelity Retirement Master Trust - Fidelity SaveEasy 2020 Fund 富達退休集成信託 - 富達 儲蓄易 2020 基金 As of 30/11/2014 Mixed Assets Fund - Global and initially with a greater exposure to equities and thereafter, as the year 2020 is approached, greater exposure to bonds and cash The Constituent Fund aims to achieve long term capital growth for investors to 2020, and to invest typically in a wide range of investments covering markets throughout the world, initially with a greater exposure to equities and thereafter, as the year 2020 is approached, greater exposure to bonds and cash. The Constituent Fund also aims to maintain an asset allocation appropriate to achieve a combination of income and long term capital growth as the relevant target year approaches whilst managing the volatility of returns in the short term Fund Manager Pek Ng Launch Date 27/10/8 Unit NAV HK$ Fund Size HK$167.38M Risk Indicator (3-Year Standard Deviation) 10.50% % Global equities declined in US dollar terms over the third quarter of 2014, recording their largest quarterly drop in over two years. Weak economic data in China and concerns about growth and disinflation in Europe dampened investor sentiment. At the same time, strong housing data from the US led investors to worry that the US Federal Reserve (Fed) may raise interest rates sooner than expected. Geopolitical tensions in Ukraine and the Middle East, as well as pro-democracy protests in Hong Kong also added an element of caution to the markets. However, expectations of continued support from central banks and new policy measures announced by the European Central Bank supported investor sentiment. Fixed income markets posted mixed returns in the third quarter, with government bonds rallying as global central banks reinforced their accommodative monetary stance. Over the quarter, the exposure to fixed income securities was increased given slowing growth in Europe and emerging markets. The equity allocation to Japan was retained. The Bank of Japan s monetary easing and upbeat first-quarter corporate earnings results make a positive case for Japanese equities, especially at a time when current market valuations are low. Economic growth in the US remained healthy. Despite the recent, overall valuations appear to be within historical norms. This bodes well for stock prices going forward. Meanwhile, the allocation to European equities was reduced in view of geopolitical risks in the region. However, accommodative monetary policies should remain supportive. Meanwhile, the growth outlook for the Asia Pacific region remains healthy % -1.41% 3.50% 40.74% 34.61% % N/A N/A 3.50% 12.07% 6.12% % 1 N/A N/A 2.53% 16.02% 21.30% % /08 10/09 10/10 10/11 10/12 10/13 10/14 HSBC HOLDINGS PLC 2.79% TENCENT HOLDINGS LIMITED 2.13% AIA GROUP LTD 1.76% CHINA CONSTRUCTION BANK CORP H SHRS H 1.73% INDUSTRIAL & COM BK OF CHINA H SHRS H 1.67% CHINA MOBILE LTD 1.54% BANK OF CHINA LTD H SHRS H 1.09% USTN 0.75% 31/10/ % 31/10/ % CHEUNG KONG HLDGS LTD 0.86% TOYOTA MOTOR CORP 0.86% TOTAL 15.51% Fund % % % % % 8~ 7.96% Fund Allocation by Asset Class 資產類別投資分配 HONG KONG EQUITY FUND 29.57% JAPANESE EQUITY FUND 11.53% ASIA PACIFIC EQUITY FUND* * 11.13% AMERICAS EQUITY FUND 18.57% EUROPEAN EQUITY FUND 17.61% GLOBAL BOND FUND 11.72% CASH & OTHERS -0.13% * May include investments in Japan and Hong Kong. as of 30/09/ /09/2014 / in. / Fidelity SaveEasy Funds are not savings deposits and involve investment risks. This product may not be suitable for everyone. Investor should also consider factors other than age and review their own investment objectives. 5 Fidelity Fidelity Worldwide Investment FIL Limited Fidelity Fidelity Worldwide Investment Fidelity Worldwide Investment F FIL Limited

9 Fidelity Retirement Master Trust - Fidelity SaveEasy 2025 Fund 富達退休集成信託 - 富達 儲蓄易 2025 基金 As of 30/11/2014 Mixed Assets Fund - Global and initially with a greater exposure to equities and thereafter, as the year 2025 is approached, greater exposure to bonds and cash The Constituent Fund aims to achieve long term capital growth for investors to 2025, and to invest typically in a wide range of investments covering markets throughout the world, initially with a greater exposure to equities and thereafter, as the year 2025 is approached, greater exposure to bonds and cash. The Constituent Fund also aims to maintain an asset allocation appropriate to achieve a combination of income and long term capital growth as the relevant target year approaches whilst managing the volatility of returns in the short term Fund Manager Pek Ng Launch Date 27/10/8 Unit NAV HK$ Fund Size HK$144.09M Risk Indicator (3-Year Standard Deviation) 10.95% % Global equities declined in US dollar terms over the third quarter of 2014, recording their largest quarterly drop in over two years. Weak economic data in China and concerns about growth and disinflation in Europe dampened investor sentiment. At the same time, strong housing data from the US led investors to worry that the US Federal Reserve (Fed) may raise interest rates sooner than expected. Geopolitical tensions in Ukraine and the Middle East, as well as pro-democracy protests in Hong Kong also added an element of caution to the markets. However, expectations of continued support from central banks and new policy measures announced by the European Central Bank supported investor sentiment. Fixed income markets posted mixed returns in the third quarter, with government bonds rallying as global central banks reinforced their accommodative monetary stance. Over the quarter, the exposure to fixed income securities was increased given slowing growth in Europe and emerging markets. The equity allocation to Japan was retained. The Bank of Japan s monetary easing and upbeat first-quarter corporate earnings results make a positive case for Japanese equities, especially at a time when current market valuations are low. Economic growth in the US remained healthy. Despite the recent, overall valuations appear to be within historical norms. This bodes well for stock prices going forward. Meanwhile, the allocation to European equities was reduced in view of geopolitical risks in the region. However, accommodative monetary policies should remain supportive. Meanwhile, the growth outlook for the Asia Pacific region remains healthy % -1.40% 3.61% 42.81% 36.36% % N/A N/A 3.61% 12.61% 6.40% % 1 N/A N/A 2.66% 16.87% 22.36% % /08 10/09 10/10 10/11 10/12 10/13 10/14 HSBC HOLDINGS PLC 3.06% TENCENT HOLDINGS LIMITED 2.35% AIA GROUP LTD 1.94% CHINA CONSTRUCTION BANK CORP H SHRS H 1.90% INDUSTRIAL & COM BK OF CHINA H SHRS H 1.84% CHINA MOBILE LTD 1.69% BANK OF CHINA LTD H SHRS H 1.20% CHEUNG KONG HLDGS LTD 0.95% TOYOTA MOTOR CORP 0.93% HUTCHISON WHAMPOA LTD 0.84% TOTAL 16.70% Fund % % % % % 8~ 8.06% Fund Allocation by Asset Class 資產類別投資分配 HONG KONG EQUITY FUND 32.50% JAPANESE EQUITY FUND 12.49% ASIA PACIFIC EQUITY FUND* * 12.31% AMERICAS EQUITY FUND 19.59% EUROPEAN EQUITY FUND 19.29% GLOBAL BOND FUND 3.95% CASH & OTHERS -0.13% * May include investments in Japan and Hong Kong. as of 30/09/ /09/2014 / in. / Fidelity SaveEasy Funds are not savings deposits and involve investment risks. This product may not be suitable for everyone. Investor should also consider factors other than age and review their own investment objectives. Fidelity Fidelity Worldwide Investment FIL Limited Fidelity Fidelity Worldwide Investment Fidelity Worldwide Investment F FIL Limited 6

10 Fidelity Retirement Master Trust - Fidelity SaveEasy 2030 Fund 富達退休集成信託 - 富達 儲蓄易 2030 基金 As of 30/11/2014 Mixed Assets Fund - Global and initially with a greater exposure to equities and thereafter, as the year 2030 is approached, greater exposure to bonds and cash The Constituent Fund aims to achieve long term capital growth for investors to 2030, and to invest typically in a wide range of investments covering markets throughout the world, initially with a greater exposure to equities and thereafter, as the year 2030 is approached, greater exposure to bonds and cash. The Constituent Fund also aims to maintain an asset allocation appropriate to achieve a combination of income and long term capital growth as the relevant target year approaches whilst managing the volatility of returns in the short term Fund Manager Pek Ng Launch Date 27/10/8 Unit NAV HK$ Fund Size HK$190.46M Risk Indicator (3-Year Standard Deviation) 11.17% % Global equities declined in US dollar terms over the third quarter of 2014, recording their largest quarterly drop in over two years. Weak economic data in China and concerns about growth and disinflation in Europe dampened investor sentiment. At the same time, strong housing data from the US led investors to worry that the US Federal Reserve (Fed) may raise interest rates sooner than expected. Geopolitical tensions in Ukraine and the Middle East, as well as pro-democracy protests in Hong Kong also added an element of caution to the markets. However, expectations of continued support from central banks and new policy measures announced by the European Central Bank supported investor sentiment. Fixed income markets posted mixed returns in the third quarter, with government bonds rallying as global central banks reinforced their accommodative monetary stance. Over the quarter, the exposure to fixed income securities was increased given slowing growth in Europe and emerging markets. The equity allocation to Japan was retained. The Bank of Japan s monetary easing and upbeat first-quarter corporate earnings results make a positive case for Japanese equities, especially at a time when current market valuations are low. Economic growth in the US remained healthy. Despite the recent, overall valuations appear to be within historical norms. This bodes well for stock prices going forward. Meanwhile, the allocation to European equities was reduced in view of geopolitical risks in the region. However, accommodative monetary policies should remain supportive. Meanwhile, the growth outlook for the Asia Pacific region remains healthy % -1.40% 3.61% 43.37% 36.87% % N/A N/A 3.61% 12.76% 6.48% % 1 N/A N/A 2.71% 17.13% 22.65% % /08 10/09 10/10 10/11 10/12 10/13 10/14 HSBC HOLDINGS PLC 3.15% TENCENT HOLDINGS LIMITED 2.42% AIA GROUP LTD 2.00% CHINA CONSTRUCTION BANK CORP H SHRS H 1.96% INDUSTRIAL & COM BK OF CHINA H SHRS H 1.90% CHINA MOBILE LTD 1.74% BANK OF CHINA LTD H SHRS H 1.24% CHEUNG KONG HLDGS LTD 0.98% TOYOTA MOTOR CORP 0.96% HUTCHISON WHAMPOA LTD 0.87% TOTAL 17.22% Fund % % % % % 8~ 7.96% Fund Allocation by Asset Class 資產類別投資分配 HONG KONG EQUITY FUND 33.53% JAPANESE EQUITY FUND 12.83% ASIA PACIFIC EQUITY FUND* * 12.68% AMERICAS EQUITY FUND 20.02% EUROPEAN EQUITY FUND 19.67% GLOBAL BOND FUND 1.40% CASH & OTHERS -0.13% * May include investments in Japan and Hong Kong. as of 30/09/ /09/2014 / in. / Fidelity SaveEasy Funds are not savings deposits and involve investment risks. This product may not be suitable for everyone. Investor should also consider factors other than age and review their own investment objectives. 7 Fidelity Fidelity Worldwide Investment FIL Limited Fidelity Fidelity Worldwide Investment Fidelity Worldwide Investment F FIL Limited

11 Fidelity Retirement Master Trust - Fidelity SaveEasy 2035 Fund 富達退休集成信託 - 富達 儲蓄易 2035 基金 As of 30/11/2014 Mixed Assets Fund - Global and initially with a greater exposure to equities and thereafter, as the year 2035 is approached, greater exposure to bonds and cash The Constituent Fund aims to achieve long term capital growth for investors to 2035, and to invest typically in a wide range of investments covering markets throughout the world, initially with a greater exposure to equities and thereafter, as the year 2035 is approached, greater exposure to bonds and cash. The Constituent Fund also aims to maintain an asset allocation appropriate to achieve a combination of income and long term capital growth as the relevant target year approaches whilst managing the volatility of returns in the short term Fund Manager Pek Ng Launch Date 27/10/8 Unit NAV HK$ Fund Size HK$182.15M Risk Indicator (3-Year Standard Deviation) 11.26% % Global equities declined in US dollar terms over the third quarter of 2014, recording their largest quarterly drop in over two years. Weak economic data in China and concerns about growth and disinflation in Europe dampened investor sentiment. At the same time, strong housing data from the US led investors to worry that the US Federal Reserve (Fed) may raise interest rates sooner than expected. Geopolitical tensions in Ukraine and the Middle East, as well as pro-democracy protests in Hong Kong also added an element of caution to the markets. However, expectations of continued support from central banks and new policy measures announced by the European Central Bank supported investor sentiment. Fixed income markets posted mixed returns in the third quarter, with government bonds rallying as global central banks reinforced their accommodative monetary stance. Over the quarter, the exposure to fixed income securities was increased given slowing growth in Europe and emerging markets. The equity allocation to Japan was retained. The Bank of Japan s monetary easing and upbeat first-quarter corporate earnings results make a positive case for Japanese equities, especially at a time when current market valuations are low. Economic growth in the US remained healthy. Despite the recent, overall valuations appear to be within historical norms. This bodes well for stock prices going forward. Meanwhile, the allocation to European equities was reduced in view of geopolitical risks in the region. However, accommodative monetary policies should remain supportive. Meanwhile, the growth outlook for the Asia Pacific region remains healthy % -1.32% 3.69% 43.49% 37.00% % N/A N/A 3.69% 12.79% 6.50% % 1 N/A N/A 2.81% 17.16% 22.69% % /08 10/09 10/10 10/11 10/12 10/13 10/14 HSBC HOLDINGS PLC 3.19% TENCENT HOLDINGS LIMITED 2.45% AIA GROUP LTD 2.03% CHINA CONSTRUCTION BANK CORP H SHRS H 1.99% INDUSTRIAL & COM BK OF CHINA H SHRS H 1.92% CHINA MOBILE LTD 1.76% BANK OF CHINA LTD H SHRS H 1.25% CHEUNG KONG HLDGS LTD 0.99% TOYOTA MOTOR CORP 0.97% HUTCHISON WHAMPOA LTD 0.88% TOTAL 17.43% Fund % % % % % 8~ 7.95% Fund Allocation by Asset Class 資產類別投資分配 HONG KONG EQUITY FUND 33.97% JAPANESE EQUITY FUND 12.98% ASIA PACIFIC EQUITY FUND* * 12.83% AMERICAS EQUITY FUND 20.14% EUROPEAN EQUITY FUND 19.55% GLOBAL BOND FUND 0.66% CASH & OTHERS -0.13% * May include investments in Japan and Hong Kong. as of 30/09/ /09/2014 / in. / Fidelity SaveEasy Funds are not savings deposits and involve investment risks. This product may not be suitable for everyone. Investor should also consider factors other than age and review their own investment objectives. Fidelity Fidelity Worldwide Investment FIL Limited Fidelity Fidelity Worldwide Investment Fidelity Worldwide Investment F FIL Limited 8

12 Fidelity Retirement Master Trust - Fidelity SaveEasy 2040 Fund 富達退休集成信託 - 富達 儲蓄易 2040 基金 As of 30/11/2014 Mixed Assets Fund - Global and initially with a greater exposure to equities and thereafter, as the year 2040 is approached, greater exposure to bonds and cash The Constituent Fund aims to achieve long term capital growth for investors to 2040, and to invest typically in a wide range of investments covering markets throughout the world, initially with a greater exposure to equities and thereafter, as the year 2040 is approached, greater exposure to bonds and cash. The Constituent Fund also aims to maintain an asset allocation appropriate to achieve a combination of income and long term capital growth as the relevant target year approaches whilst managing the volatility of returns in the short term Fund Manager Pek Ng Launch Date 27/10/8 Unit NAV HK$ Fund Size HK$538.40M Risk Indicator (3-Year Standard Deviation) 11.35% % Global equities declined in US dollar terms over the third quarter of 2014, recording their largest quarterly drop in over two years. Weak economic data in China and concerns about growth and disinflation in Europe dampened investor sentiment. At the same time, strong housing data from the US led investors to worry that the US Federal Reserve (Fed) may raise interest rates sooner than expected. Geopolitical tensions in Ukraine and the Middle East, as well as prodemocracy protests in Hong Kong also added an element of caution to the markets. However, expectations of continued support from central banks and new policy measures announced by the European Central Bank supported investor sentiment. Information technology and health care stocks led gains, while materials and energy stocks tracked commodity and crude oil prices lower. Over the quarter, the allocation to Japan was increased. The Bank of Japan s monetary easing and upbeat first-quarter corporate earnings results make a positive case for Japanese equities, especially at a time when current market valuations are low. Economic growth in the US remained healthy. Despite the recent rally in US equity markets, overall valuations appear to be within historical norms. This bodes well for stock prices going forward. Meanwhile, the allocation to European equities was reduced in view of geopolitical risks in the region. However, accommodative monetary policies should remain supportive. Meanwhile, the growth outlook for the Asia Pacific region remains healthy, driven by policy reforms and increased political stability % -1.39% 3.70% 43.82% 37.59% % N/A N/A 3.70% 12.88% 6.59% % 1 N/A N/A 2.83% 17.31% 22.97% % /08 10/09 10/10 10/11 10/12 10/13 10/14 HSBC HOLDINGS PLC 3.20% TENCENT HOLDINGS LIMITED 2.47% AIA GROUP LTD 2.04% CHINA CONSTRUCTION BANK CORP H SHRS H 2.00% INDUSTRIAL & COM BK OF CHINA H SHRS H 1.93% CHINA MOBILE LTD 1.77% BANK OF CHINA LTD H SHRS H 1.26% CHEUNG KONG HLDGS LTD 1.00% TOYOTA MOTOR CORP 0.98% HUTCHISON WHAMPOA LTD 0.88% TOTAL 17.53% Fund % % % % % 8~ 8.46% Fund Allocation by Asset Class 資產類別投資分配 HONG KONG EQUITY FUND 34.12% JAPANESE EQUITY FUND 13.09% ASIA PACIFIC EQUITY FUND* * 12.95% AMERICAS EQUITY FUND 20.32% EUROPEAN EQUITY FUND 19.55% GLOBAL BOND FUND 0.09% CASH & OTHERS -0.12% * May include investments in Japan and Hong Kong. as of 30/09/ /09/2014 / in. / Fidelity SaveEasy Funds are not savings deposits and involve investment risks. This product may not be suitable for everyone. Investor should also consider factors other than age and review their own investment objectives. 9 Fidelity Fidelity Worldwide Investment FIL Limited Fidelity Fidelity Worldwide Investment Fidelity Worldwide Investment F FIL Limited

13 Fidelity Retirement Master Trust - Asia Pacific Equity Fund 富達退休集成信託 - 亞太股票基金 As of 30/11/2014 Equity Fund - Asia Pacific The Constituent Fund aims to focus investment into the equity markets of Asia Pacific, to produce returns that are related to those achieved on the major stock market indices of Asia Pacific, to have the flexibility to invest in bonds in a limited manner, and to manage the volatility of returns in the short term. Fund Manager Polly Kwan Launch Date 07/08/6 Unit NAV HK$ Fund Size HK$2,.14M Risk Indicator (3-Year Standard Deviation) 13.70% 1.66% % -4.64% 4.62% 34.71% 28.96% % N/A N/A 4.62% 10.44% 5.22% % 1 N/A N/A 2.10% 11.53% 15.52% % /06 08/07 08/08 08/09 08/10 08/11 08/12 08/13 08/14 Fund % % % % % % % 6~ 18.95% Asia Pacific ex Japan stocks declined over the quarter. Australian stocks fell, led by weakness in banks due to concerns over higher capital adequacy requirements. South Korean equities retreated on the back of weaker export growth, as competition from Japanese exporter is rising due to a weaker yen. Hong Kong equities declined on concerns over prodemocracy protests. Conversely, positive sentiment surrounding reforms related to state-owned enterprises and an ongoing targeted stimulus environment supported the Chinese market. Pro-growth measures accelerated China s second quarter GDP growth. Recent weak indicators, however, led the People s Bank of China to introduce additional easing measures. Meanwhile, Indian stocks gained amid hopes for policy reforms and an economic revival. At a sector level, materials and energy stocks tracked commodity and oil prices lower, while health care and telecommunications stocks gained. The fund delivered negative returns over the quarter. Security selection in the telecommunications and information technology (IT) sectors detracted from returns. An underweight stance in China Mobile held back relative performance as its share price rose after the mobile operator formed a joint venture with its major Chinese counterparts to share telecommunication infrastructure. Within IT, memory chipmaker SK Hynix fell as investors feared a possible oversupply in the dynamic random access memory (DRAM) industry. In financials, Australia & New Zealand Banking Group hurt returns on concerns over higher capital adequacy requirements. Conversely, the position in India s HDFC Bank gained in anticipation of improved economic activity and credit demand. Stock selection in consumer discretionary further supported returns. Shares in automaker Tata Motors rose in light of the strong performance of its Jaguar Land Rover unit. Elsewhere, in the health care sector, Dr. Reddy s Laboratories supported performance on the back of upbeat results driven by strong growth across key markets. DRAM SK Hynix HDFC Bank Tata Motors Jaguar Land Rover Dr. Reddy s Laboratories COMMONWEALTH BK OF AUSTRALIA 4.46% AUSTRALIA & NZ BANKING GRP 3.74% SAMSUNG ELECTRONICS CO LTD 3.70% TAIWAN SEMICONDUCT MFG CO LTD 3.11% BHP BILLITON LTD 2.96% HDFC BANK LTD (DEMAT) 2.77% TENCENT HOLDINGS LIMITED 2.64% CHINA CONSTRUCTION BANK CORP H SHRS H 2.37% DR REDDYS LABS LTD (DEMAT) 2.34% INDUSTRIAL & COM BK OF CHINA H SHRS H 2.10% TOTAL 30.19% Industry Breakdown 行業投資分佈 40.1% Financials 金融 11.7% Technology 科技 9.2% Health Care 健康護理 8.5% Consumer Goods 消費品 7.4% Industrials 工業 6.3% Telecommunications 電訊 5.4% Oil & Gas 石油及天然氣 5.1% Basic Materials 基本物料 3.3% Utilities 公用事業 3.0% Others* 其他 * * Others may include cash, account payables, account receivables and/or other industries. / / Geographical Breakdown 國家投資分佈 CHINA 23.8% AUSTRALIA 23.1% KOREA (SOUTH) 12.5% TAIWAN 11.8% INDIA 11.7% SINGAPORE 5.0% INDONESIA 2.6% HONG KONG 2.1% CASH & OTHERS 7.4% as of 30/09/ /09/2014 / in. / Fidelity Fidelity Worldwide Investment FIL Limited Fidelity Fidelity Worldwide Investment Fidelity Worldwide Investment F FIL Limited 10

14 Fidelity Retirement Master Trust - Global Equity Fund 富達退休集成信託 - 環球股票基金 As of 30/11/2014 Equity Fund - Global The Constituent Fund aims to focus investment into the global equity markets, to produce returns that are related to those achieved on the major world stock market indices, to have the flexibility to have limited investment into bonds, and to manage the volatility of returns in the short term. Fund Manager Pek Ng Launch Date 02/07/3 Unit NAV HK$ Fund Size HK$2,011.38M Risk Indicator (3-Year Standard Deviation) 10.44% 1.64% 2013 Global equities declined in US dollar terms over the third quarter of 2014, recording their largest quarterly drop in over two years. Weak economic data in China and concerns about growth and disinflation in Europe dampened investor sentiment. At the same time, strong housing data from the US led investors to worry that the US Federal Reserve (Fed) may raise interest rates sooner than expected. Geopolitical tensions in Ukraine and the Middle East, as well as pro-democracy protests in Hong Kong also added an element of caution to the markets. However, expectations of continued support from central banks and new policy measures announced by the European Central Bank supported investor sentiment. Information technology and health care stocks led gains, while materials and energy stocks tracked commodity and crude oil prices lower. Over the quarter, the allocation to Japan was increased. The Bank of Japan s monetary easing and upbeat first-quarter corporate earnings results make a positive case for Japanese equities, especially at a time when current market valuations are low. Economic growth in the US remained healthy. Despite the recent rally in US equity markets, overall valuations appear to be within historical norms. This bodes well for stock prices going forward. Meanwhile, the allocation to European equities was reduced in view of geopolitical risks in the region. However, accommodative monetary policies should remain supportive. Meanwhile, the growth outlook for the Asia Pacific region remains healthy, driven by policy reforms and increased political stability % -0.48% 8.20% 53.99% 58.29% 76.19% % N/A N/A 8.20% 15.48% 9.62% 5.83% 7.05% 1 N/A N/A 3.90% 23.10% 33.31% 43.48% 49.60% /03 07/05 07/07 07/09 07/11 07/13 JPMORGAN CHASE & CO 1.74% EXPRESS SCRIPTS HLDG CO 1.56% MICROSOFT CORP 1.52% CVS HEALTH CORP 1.43% JOHNSON & JOHNSON 1.41% ACE LTD 1.35% AMGEN INC 1.34% US BANCORP 1.30% CIGNA CORP 1.28% SUNCOR ENERGY INC 1.20% TOTAL 14.13% Industry Breakdown 行業投資分佈 23.6% Financials 金融 16.2% Health Care 健康護理 14.9% Consumer Goods 消費品 10.9% Technology 科技 10.6% Consumer Services 消費服務 8.6% Industrials 工業 5.8% Oil & Gas 石油及天然氣 4.0% Basic Materials 基本物料 5.4% Others* 其他 * Fund % % % % % % % % % % 3~ 14.10% Fund Allocation by Asset Class 資產類別投資分配 HONG KONG EQUITY FUND 1.51% JAPANESE EQUITY FUND 8.36% ASIA PACIFIC EQUITY FUND* * 9.54% AMERICAS EQUITY FUND 56.77% EUROPEAN EQUITY FUND 23.97% CASH & OTHERS -0.15% * May include investments in Japan and Hong Kong. as of 30/09/ /09/2014 / in. / * Others may include cash, account payables, account receivables and/or other industries. / / 11 Fidelity Fidelity Worldwide Investment FIL Limited Fidelity Fidelity Worldwide Investment Fidelity Worldwide Investment F FIL Limited