The University MPF Scheme

Transcription

1 September 2010

2 The University MPF Scheme Master Trust Scheme (MTS) Fidelity Retirement Master Trust (FRMT) BOC-Prudential Easy- Choice MPF Scheme (BOC-Prudential) Effective Date 1 December November 2010 Investment Manager Trustee FIL Investment Management (HK) Limited HSBC Institutional Trust Services (Asia) Limited (HSBC) BOCI-Prudential Asset Management Limited BOCI-Prudential Trustee Limited (BOCI-Prudential) Investment Funds Asset Size as at 30 Jun 2010 i) Total ii) PolyU portion i) HK$14.2 billion ii) HK$0.7 billion i) HK$25.4 billion ii) Not applicable

3 The University MPF Scheme Highlight of Scheme Switching Guideline: Two scheme switching exercises every year, with effective dates on 1 May and 1 November; Members may switch for not more than once every calendar year; New appointees may join scheme switching exercises only after 3 months of joining the University; and Once members elect to change the MTS, all their accrued benefits in the existing MTS should be redeemed and transferred to the new MTS.

4 The University MPF Scheme Highlight of Scheme Switching Timeline (for Nov 2010): Date 20 working days 4 Oct 2010 preceding T T - 6 working day T - 1 working day 22 Oct 2010 (cut-off, 5pm) 29 Oct 2010 T 1 Nov 2010 T + 6 working day T + 10 working day T + 13 working day 9 Nov 2010 (cut-off, 5pm) 15 Nov Nov 2010 Activities Deadline for members to submit the below forms: 1. Election Form for Switching of MPF Scheme 2. Membership Enrolment Form Last day for HSBC to accept switching-out members instruction to change investment allocation under FRMT Dealing date: HSBC to redeem members benefit balance holdings under FRMT 1st day of membership under BOC-Prudential Last day for BOCI-Prudential to accept switching-in members instruction on change of investment allocation for transferred benefit balance Dealing date: BOCI-Prudential to subscribe for fund units Members can view their transfer-in benefit balance in BOC-Prudential via internet

5 The University MPF Scheme Members who elect to switch between the two MTSs should: a) Read and understand Guideline on Switching of MPF Scheme and Timeline on Switching of MPF Scheme; and b) Return the completed forms below to the Finance Office by the prescribed closing date: i) Member s Election Form for Switching of MPF Scheme ii) Membership Enrollment Form (for the new MTS).

6 The University MPF Scheme All documents about the scheme switching are available at the Staff Personal Corner of FO website as follows:

7 Presentation to the Hong Kong Polytechnic University Fidelity Retirement Master Trust Members Briefing Session 17 September FIDELITY INVESTMENT MANAGERS

8 Fidelity Retirement Master Trust ( FRMT ) 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. 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. 2 FIDELITY INVESTMENT MANAGERS

9 Table of Contents 1 Company and Organizational Background 2 The Preferred Provider Performance Unique Product Range Long-term Commitment 56 Your Investment Needs in One Account Appendix 8 3 FIDELITY INVESTMENT MANAGERS

10 Company and Organizational Background 4 FIDELITY INVESTMENT MANAGERS C/N:HM 07/780

11 Why should you stay with Fidelity Retirement Master Trust? Preferred and trusted retirement investment partner Outstanding and solid performance Long-term commitment to Hong Kong pension Your investment needs in one account Unique product range 5 FIDELITY INVESTMENT MANAGERS

12 The Preferred Provider 6 FIDELITY INVESTMENT MANAGERS C/N:HM 07/780

13 Fidelity the Preferred Provider Worldwide One of the world s largest pension providers US Largest 401(k) providers in the US Administered 19.5% of assets in (401k) plans 33,000 plans with US$660 billion of assets UK Leading service provider since 1994 Over 400 pension plans with 5.9 billion of assets Hong Kong Largest provider for ORSO defined contribution schemes Largest independent asset manager for MPF Preferred Provider by Clients around the World NB: Fidelity / Fidelity International means FIL Limited, established in Bermuda, and its subsidiary companies. In addition to these resources, we also have access to resources based in US of our affiliated company, FMR LLC, and its subsidiaries. Research Professionals include associates and analysts, country and sector fund managers who retain research responsibility, and technical and quantitative analysts who are part of the Equity Research groups. Source: Towers Watson FIL Limited and FMR LLC, 31 March, FIDELITY INVESTMENT MANAGERS C/N:HM 08/0388

14 Performance 8 FIDELITY INVESTMENT MANAGERS C/N:HM 07/780

15 The Core for Solid Performance One of the largest proprietary research teams in the world, with over 900 dedicated investment professionals and presence in 25 countries Boston 142 Portfolio Management 302 Research Professionals 71 Traders 56 Division management & other 571 Total professionals Europe 69 Portfolio Management 113ResearchProfessionals 21 Traders 28 Division management & other 221 Total professionals Japan 16 Portfolio Management 35 Research Professionals 5 Division management & other 56 Total professionals Total Assets under Management*: Fidelity International: US$215.9 billion Institutional Assets: US$ 67.3 billion Retail Assets: US$134.1 billion Asia Pacific ex-japan 23 Portfolio Management 54 Research Professionals 19 Traders 6 Division management & other 102 Total professionals NB: Fidelity / Fidelity International means FIL Limited, established in Bermuda, and its subsidiary companies. In addition to these resources, we also have access to resources based in US of our affiliated company, FMR LLC, and its subsidiaries. Research Professionals include associates and analysts, country and sector fund managers who retain research responsibility, and technical and quantitative analysts who are part of the Equity Research groups. *The difference between the sum of Institutional/Retail and Total Fidelity International AUM is the assets Fidelity International manages for FMR LLC which is approximately USD14.5 billion. Data is unaudited. Source: FIL Limited and FMR LLC, 31 March, FIDELITY INVESTMENT MANAGERS C/N:HM 08/0388

16 Outstanding Performance for both short-term and long-term 1 Year 3 Year p.a. 5 Year p.a. Return Median Ranking Return Median Ranking Return Median Ranking Growth Fund 11.00% 9.50% 5/ % -7.40% 2/ % 3.60% 2/23 Balanced Fund 9.90% 8.10% 9/ % -5.70% 3/ % 2.80% 2/30 Stable Growth 9.10% 6.00% 5/ % -1.60% 1/ % 4.10% 1/21 Capital Stable 7.60% 4.90% 2/ % 0.70% 2/ % 3.80% 3/20 Hong Kong Equity 13.30% 11.40% 9/ % -1.50% 3/ % 12.40% 9/19 Asia Pacific Equity 21.70% 14.60% 1/5 0.50% -8.00% 1/4 Global Equity 9.50% 9.00% 12/ % % 5/ % -1.70% 5/15 Hong Kong Bond 6.50% 4.10% 1/5 5.10% 4.80% 1/5 3.10% 2.80% 1/5 World Bond 6.70% 4.00% 8/ % 4.80% 6/ % 3.50% 6/9 MPF Conservative Fund 0.01% 0.00% 10/ % 0.84% 15/ % 1.41% 15/26 SaveEasy % SaveEasy % SaveEasy % SaveEasy % SaveEasy % Source: Towers Watson MPF Performance Book, as at 30 June FIDELITY INVESTMENT MANAGERS

17 MPF performance as at 31 Jul 2010 Cumulative performance (in %) Jul 2010 Q Year to date Last 1 year Last 3 years Last 5 years Since fund inception Growth Balanced Stable Growth Capital Stable Global Equity Asia Pacific Equity N/A Hong Kong Equity Hong Kong Bond World Bond MPF Conservative * * Fees and charges of MPF Conservative can be deducted from either (i) the assets of the fund or (ii) members' account by way of unit deduction. This fund uses method (i) and, therefore, its unit prices / NAV / fund performance have incorporated the impact of fees and charges. Source: Fidelity International, as at 31 Jul 2010, net of fees, in HKD HM06/ FIDELITY INVESTMENT MANAGERS

18 MPF performance as at 31 Jul 2010 Cumulative performance (in %) Jul 2010 Q Year to date Last 1 year Since fund inception Fidelity SaveEasy Fidelity SaveEasy Fidelity SaveEasy Fidelity SaveEasy Fidelity SaveEasy Source: Fidelity International, as at 31 Jul 2010, net of fees, in HKD HM06/ FIDELITY INVESTMENT MANAGERS

19 MPF annual performance In % Growth Balanced Stable Growth Capital Stable Global Equity Asia Pacific Equity Hong Kong Equity Hong Kong Bond World Bond MPF Conservative* Fidelity SaveEasy 2020 Fidelity SaveEasy 2025 Fidelity SaveEasy 2030 Fidelity SaveEasy 2035 Fidelity SaveEasy Growth, balanced, Stable Growth, Capital Stable, Hong Kong Equity and MPF Conservative were incepted on 01 Dec 2000, Global Equity on 02 Jul 2003, Asia Pacific Equity on 07 Aug 2006, Hong Kong Bond and World Bond on 08 Jul 2003, all Fidelity SaveEasy on 27 Oct Past performance is not indicative of future performance. + performance since date of inception to the end of the relevant calendar year. * Fees and charges of MPF Conservative can be deducted from either (i) the assets of the fund or (ii) members' account by way of unit deduction. This fund uses method (i) and, therefore, its unit prices / NAV / fund performance have incorporated the impact of fees and charges. Source: Fidelity International, net of fees, NAV to NAV, in HKD HM09/ FIDELITY INVESTMENT MANAGERS

20 Outstanding and Solid Performance Hong Kong Pension Funds Awards Investment Performance Awards Hong Kong MPF schemes provider Best Equity Pension Group over 3 years Best Mixed-Asset Pension Group over 3 years Best Equity Asia Pacific ex Japan fund over 3 years - FRMT Asia Pacific Equity Fund Best Equity Global fund over 3 years and 5 years - FRMT Growth Fund Best Mixed Asset HKD Aggressive fund over 3 years and 5 years - FRMT Balanced Fund Best Mixed Asset HKD Balanced fund over 3 years - FRMT Stable Growth Fund Best Mixed Asset HKD Conservative fund over 3 years - FRMT Capital Stable Fund Source: Fidelity International, as at 19 March FIDELITY INVESTMENT MANAGERS

21 Unique Product Range 15 FIDELITY INVESTMENT MANAGERS C/N:HM 07/780

22 Your Investment Choices Fidelity Retirement Master Trust Fidelity SaveEasy Funds Higher Potential Return Money Market Fund Equities Bonds Short-term Instruments Bond Funds Fidelity SaveEasy 2020 Fund Fidelity SaveEasy 2025 Fund Fidelity SaveEasy 2030 Fund Lifecycle Funds Fidelity SaveEasy 2035 Fund Fidelity SaveEasy 2040 Fund Global Equity Fund Balanced Fund Asia Pacific Equity Fund Growth Fund Equity Funds Hong Kong Equity Fund Lower Potential Return Stable Growth Fund Capital Stable Fund Hong Kong Bond Fund World Bond Fund MPF Conservative Fund * Lower Investment Risk Higher Investment Risk * Fees and charges of MPF Conservative Fund can be deducted from either (i) the assets of the fund or (ii) members' account by way of unit deduction. This fund uses method (i) and, therefore, its unit prices / NAV / fund performance have incorporated the impact of fees and charges. HM09/ FIDELITY INVESTMENT MANAGERS

23 Long-term Commitment 17 FIDELITY INVESTMENT MANAGERS C/N:HM 07/780

24 Long-term Commitment to Hong Kong Pensions Managing retirement monies has been a heritage for Fidelity around the world Focuses on growth in Asia Hong Kong is the regional headquarter for Fidelity in Asia Pacific Managing Hong Kong pension assets since 1988 The largest asset manager for ORSO defined contribution schemes in Hong Kong Largest independent asset manager for MPF One of the largest dedicated local servicing team for pension clients and members in Hong Kong Your Pension Investment Partner who always stand by you 18 FIDELITY INVESTMENT MANAGERS

25 Your Investment Needs in One Account 19 FIDELITY INVESTMENT MANAGERS C/N:HM 07/780

26 Services for Pension Members Account enquiry and management Secure online access via 24 Hour automated phone service at Access to Retirement Specialists Investor education Communication based on life stages Quarterly e-presentation Fidelity myplan A calculator to help you find out how much money you may need A checker to see if your finances are on track Help setting goals and managing your portfolio more easily Additional contributions Special Voluntary Contributions Personal Investments One-stop service platform Enrolment Starter Kit Pre-retirement planning Retirement Planning & Guidance Rollover Service 20 FIDELITY INVESTMENT MANAGERS

27 Additional Considerations as a MPF member A simple guide for new or existing members to provide tips on: Consolidating their preserved accounts to increase efficiency. Access everything through one point of contact. Receive one annual member benefit statement. Easy application of investment strategy. A simple guide for existing members to consider toping up their retirement savings by setting up: An Special Voluntary Contribution account No front end loads, contribution fees or switching fees lump-sum investment or direct debit arrangement Four free withdrawals per year at any time 21 FIDELITY INVESTMENT MANAGERS C/N:HM 07/1165

28 Other Investment Needs A simple guide to departing employees to provide information on: Managing retirement assets with ease. Investing their retirement years to fence off inflation. Easy options to manage retirement benefits. Dedicated Investor Centre Professional one-on-one consultation Free investment education seminars Convenient rollover services 22 FIDELITY INVESTMENT MANAGERS

29 Appendix 23 FIDELITY INVESTMENT MANAGERS C/N:HM 07/780

30 Benchmark Components MPF Scheme Indices (%) Hong Kong Equity Asia Pacific Equity Global Equity Growth Balanced Stable Growth Capital Stable Hong Kong Bond World Bond MPF Conservative Fund * Equities FTSE World (35% hedged to HK$) 100 FTSE AW North America FTSE MPF Hong Kong Index FTSE AW Japan FTSE AW Asia Pacific (ex Japan ex HK ) FTSE AW Europe Bonds Citigroup WGBI (25% hedged to HK$) Citigroup WGBI (35% hedged to HK$) 100 HSBC HKD Bond 100 Cash month HIBOR Source: Fidelity International, indices in %. * Fees and charges of MPF Conservative Fund can be deducted from either (i) the assets of the fund or (ii) members' account by way of unit deduction. This fund uses method (i) and, therefore, its unit prices / NAV / fund performance have incorporated the impact of fees and charges. HM08/ FIDELITY INVESTMENT MANAGERS

31 Benchmark Components MPF Scheme Indices SaveEasy SaveEasy SaveEasy SaveEasy SaveEasy (%) 2020 Fund 2025 Fund 2030 Fund 2035 Fund 2040 Fund Equities FTSE AW North America FTSE MPF Hong Kong Index FTSE AW Japan FTSE AW Asia Pacific (ex Japan ex HK with India capped at 5%) FTSE AW Europe Bonds S&P / Citigroup World Govt Bond Index Hedged to HK Source: Fidelity International, Indices in %, as at 30 Sep 2009 HM08/ FIDELITY INVESTMENT MANAGERS

32 Important information - MPF This document has been requested by the Hong Kong Polytechnic University and prepared by Fidelity for the Hong Kong Polytechnic University in Hong Kong only for informational purposes and may not be reproduced or circulated without written consent from Fidelity. FIL Limited, established in Bermuda, and its subsidiaries are commonly referred to as Fidelity or Fidelity Investment Managers. 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. Investment involves risks. Past performance is not indicative of future performance. Please refer to the Principal Brochure of Fidelity Retirement Master Trust for further information including the risk factors. If investment returns not denominated in HKD or USD, US/HK dollar-based investors are exposed to exchange rate fluctuations. Please also note that equities, bonds and cash deposits are different in nature, investment risk associated with cash deposits are normally lower than equities and bonds. 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. For MPF retirement schemes The On-going Costs Illustrations (for all Constituent Funds of the Master Trust except for the MPF Conservative Fund) that illustrate the on-going costs on contributions to constituent funds of the Master Trust and the Illustrative Example (for the MPF Conservative Fund) are distributed with the Principal Brochure. Before making any investment decisions concerning MPF investments, you should ensure that you have the latest version of these documents which can be obtained from the Trustee or the Investment Manager at their addresses stated in the Principal Brochure. Fidelity, Fidelity Investment Managers, and Fidelity Investment Managers and Globe Logo are trademarks of FIL Limited. This material is issued by FIL Investment Management (Hong Kong) Limited. 26 FIDELITY INVESTMENT MANAGERS HM08/1147

33 Issuer: BOCI-Prudential Asset Management Limited

34 Important Information 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. Please be reminded that in the event that you do not make any investment choices or if you submit an investment mandate of which the total of the allocated percentage does not equal to 100%, your contributions made and/or benefits transferred into BOC-Prudential Easy- Choice Mandatory Provident Fund Scheme will be invested into BOC-Prudential Stable Fund in accordance with the default fund arrangement as stated in member enrolment form and principal brochure section 4.4, and such fund may not necessarily be suitable for you. Fees and charges of a MPF conservative fund can be deducted from either (i) the assets of the fund or (ii) members account by way of unit deduction. The BOC-Prudential MPF Conservative Fund uses method (i) and, therefore, unit prices/ NAV/ fund performance quoted have incorporated the impact of fees and charges. You should not solely rely on the stand-alone marketing material to make any investment decision, please refer to the Principal Brochure of the BOC-Prudential Easy-Choice Mandatory Provident Fund Scheme for further details (including risk factors, fees and charges, and fund information). 1

35 Content 1. Introduction 2. Why choosing BOC-Prudential Easy-Choice Mandatory Provident Fund Scheme (the Scheme )? A. Company Background & Strength B. Special Rate C. Fund Choices & Investment Performance D. Support & Services E. Enrolment Procedure 2

36 1. Introduction If you believe seeking a medium-to to-long term and stable return is the objective of MPF investment, you will focus on the portfolios and investment managers that meet this criterion. Other than returns, what factors will you also consider when choosing a MPF service provider? We would like to share our viewpoints with you here. 3

37 2. Why choosing BOC-Prudential Easy-Choice MPF Scheme? Selection Criteria of MPF Service Provider for Employee? 4 Background and Background and Strength of the Strength of the MPF Service Provider MPF Service Provider Fund Performance Fund Performance Reasonable Reasonable Management Fee Management Fee Full Support & Full Support & Service Commitment Service Commitment Variety of Enquiry Variety of Enquiry Arrangements Arrangements Privileged Offers Privileged Offers to Members to Members By Bank By Bank

38 A. Company Background & Strength 5

39 2. Why choosing BOC-Prudential Easy-Choice MPF Scheme? Bank of China Limited and Prudential plc bring together The solid reputation and financial strength of the BOC International and BOC(HK) AND The superb experience in pension fund management of Prudential We are devoted to providing professional and quality MPF services 6

40 2. Why choosing BOC-Prudential Easy-Choice MPF Scheme? Management and Administration Trustee Administrator Custodian Investment Manager BOCI-Prudential Trustee Limited BOCI-Prudential Trustee Limited BOCI-Prudential Trustee Limited BOCI-Prudential Asset Management Limited 7

41 2. Why choosing BOC-Prudential Easy-Choice MPF Scheme? Establishment of BOCI-Prudential Asset Management Limited October 1999 Launch of BOC-Prudential Easy-Choice Mandatory Provident Fund Scheme January 2000 Launch of BOCHK BOCI-Prudential Guaranteed Funds January 2002 Launch of AUD Guaranteed Fund March 2002 Launch of BOCHK Investment Funds Series July 2002 Open up Macau Pension Fund Business October 2002 Start providing MPF service for Civil Servant Provident Fund Scheme June 2003 Become a service provider for Government Employees MTS November 2006 Launch of NCB Investment Funds Series June 2007 Set up and listing of W.I.S.E. CSI 300 China Tracker July 2007 Investment Funds provided for the NCB QDII Scheme August 2007 Investment Funds provided for the BOCHK Bauhinia QDII Scheme November 2007 Set up and listing of W.I.S.E. CSI HK 100 China Tracker TM May 2008 Set up and listing of W.I.S.E. SSE 50 China Tracker TM April

42 B. Special Rate 9

43 BOC-Prudential Easy-Choice MPF Scheme Fees and Charges(for The HK Polytechnic University Employees) Total Fees (per annum) BOC-Prudential MPF Conservative Fund 1%* BOC-Prudential Bond Fund 1.1%* The remaining 8 funds 1.25%* *The numbers are referring to the fees after rebate. For further details, please refer to Fees and Charges of MPF (The HK Polytechnic University Employees) Pamphlet. "Total Fee" indicates the maximum percentage a member would pay for investing in the relevant Fund. 10

44 C. Fund Choices & Investment Performance 11

45 2. Why choosing BOC-Prudential Easy-Choice MPF Scheme? Investment involves risks. Past performance is not indicative of future performance. Price of units and the income from them may go down as well as up. Please refer to the Principal Brochure of BOC-Prudential Easy-Choice MPF Scheme before making any investment decision. The scheme information below is solely for your reference. You should not make any investment decision solely on the basis of this information. 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. 12

46 2. Why choosing BOC-Prudential Easy-Choice MPF Scheme? Constituent Fund Name BOC-PRUDENTIAL GROWTH FUND Risk^ HIGH Investment Portfolio Equities Bonds Cash, time deposits, money market or fixed income securities Normal Asset Allocation % 0-30% 0-20% BOC-PRUDENTIAL BALANCED FUND MODERATE TO HIGH Equities Bonds Cash, time deposits, money market or fixed income securities 40-80% 20-60% 0-20% BOC-PRUDENTIAL STABLE FUND LOW TO MODERATE Equities Bonds Cash, time deposits, money market or fixed income securities ^This risk rating is determined by BOCI-Prudential Asset Management Limited % 40-90% 0-20% Lifestyle Funds 13

47 2. Why choosing BOC-Prudential Easy-Choice MPF Scheme? Constituent Fund Name Risk^ Investment Portfolio Normal Asset Allocation Umbrella Unit Trust*: % Global equity sub-fund 20-80% Asia equity sub-fund 0-40% BOC-PRUDENTIAL HIGH China equity sub-fund 0-30% GLOBAL EQUITY Hong Kong equity sub-fund 0-30% FUND Japan equity sub-fund 0-30% European equity sub-fund 0-50% Approved ITCIS 0-10% Cash and time deposits 0-30% BOC-PRUDENTIAL ASIA EQUITY FUND HIGH Umbrella Unit Trust*: Asia equity sub-fund Approved ITCIS Cash and time deposits ^This risk rating is determined by BOCI-Prudential Asset Management Limited. *Amongst the constituent funds, only BOC-Prudential MPF Conservative Fund will directly invest in permissible investments. BOC-Prudential Japan Equity Fund and BOC-Prudential Bond Fund will invest in the BOC-Prudential Unit Trust Fund, which is an umbrella unit trust consisting of eight sub-funds (the Umbrella Unit Trust ). The remaining seven constituent funds will invest in the Umbrella Unit Trust and/or the Index-tracking Collective Investment Schemes approved by the Authority ( approved ITCIS ) and managed by the investment manager of the Scheme % 0-10% 0-30% Equity Funds 14

48 2. Why choosing BOC-Prudential Easy-Choice MPF Scheme? Constituent Fund Name BOC-PRUDENTIAL CHINA EQUITY FUND BOC-PRUDENTIAL HONG KONG EQUITY FUND BOC-PRUDENTIAL JAPAN EQUITY FUND Risk^ VERY HIGH HIGH HIGH Investment Portfolio Umbrella Unit Trust*: China equity sub-fund Approved ITCIS Cash and time deposits Umbrella Unit Trust*: Hong Kong equity sub-fund Approved ITCIS Cash and time deposits Umbrella Unit Trust*: Japan equity sub-fund Cash and time deposits ^This risk rating is determined by BOCI-Prudential Asset Management Limited. *Amongst the constituent funds, only BOC-Prudential MPF Conservative Fund will directly invest in permissible investments. BOC-Prudential Japan Equity Fund and BOC-Prudential Bond Fund will invest in the BOC-Prudential Unit Trust Fund, which is an umbrella unit trust consisting of eight sub-funds (the Umbrella Unit Trust ). The remaining seven constituent funds will invest in the Umbrella Unit Trust and/or the Index-tracking Collective Investment Schemes approved by the Authority ( approved ITCIS ) and managed by the investment manager of the Scheme. Normal Asset Allocation % 0-10% 0-30% % 0-10% 0-30% % 0-30% Equity Funds 15

49 2. Why choosing BOC-Prudential Easy-Choice MPF Scheme? Constituent Fund Name Risk^ Investment Portfolio Normal Asset Allocation BOC-PRUDENTIAL BOND FUND LOW TO MODERATE Umbrella Unit Trust*: Global bond sub-fund Cash and time deposits % 0-30% BOC-PRUDENTIAL MPF CONSERVATIVE FUND VERY LOW Deposit + debt securities 100% ^This risk rating is determined by BOCI-Prudential Asset Management Limited. *Amongst the constituent funds, only BOC-Prudential MPF Conservative Fund will directly invest in permissible investments. BOC-Prudential Japan Equity Fund and BOC-Prudential Bond Fund will invest in the BOC-Prudential Unit Trust Fund, which is an umbrella unit trust consisting of eight sub-funds (the Umbrella Unit Trust ). The remaining seven constituent funds will invest in the Umbrella Unit Trust and/or the Index-tracking Collective Investment Schemes approved by the Authority ( approved ITCIS ) and managed by the investment manager of the Scheme. Low Risk Funds^ 16

50 2. Why choosing BOC-Prudential Easy-Choice MPF Scheme? Fund Rebalancing (Example) After re-balancing by members 50% BOC-Prudential Stable Fund 30% BOC-Prudential Growth Fund 50% BOC-Prudential MPF Conservative Fund Re-balancing 30% BOC-Prudential Balanced Fund 10% BOC-Prudential Bond Fund Unlimited times times of of fund fund re- rebalancing and and change of of investment mandate by by members 30% BOC-Prudential MPF Conservative Fund All percentage must be an integer with a minimum of 10% per each selected fund and the total equals to 100%. 17

51 2. Why choosing BOC-Prudential Easy-Choice MPF Scheme? Best MPF over Three years Japan Equity BOC-Prudential Japan Equity Fund Hong Kong, Best MPF Manager 3 years BOCI-Prudential Asset Management Limited * Lipper Hong Kong Fund Awards 2010 evaluates the funds based on the performance as of 31 December You should not make any investment decision based on information contained herein. Rather, the information relating to the Lipper Fund Awards designations is only for your reference. Past performance is not indicative of future performance. For details of the awards (e.g. participation criteria and assessment methodology etc.), please refer to the website of Lipper at 18

52 D. Support & Services 19

53 2. Why choosing BOC-Prudential Easy-Choice MPF Scheme? Provide Scheme Pamphlet and Annual Benefit Statement to employers and employees Distribute Member Certificate to employees directly Provide Fund Re-Balancing Statement after scheme members made changes in their investment portfolio and fund re-balancing BOCI-Prudential Quarterly MPF Factsheet and Newsletter MPF Investment Performance & Service Review Seminar Bi-Monthly seminars are offered throughout the year The HK Polytechnic University MTS Administration Hotline 20

54 2. Why choosing BOC-Prudential Easy-Choice MPF Scheme? Enquiry Services and Information Update Website The HK Polytechnic University MTS Administration Hotline ATM Bank of China (HK) Internet Banking Contribution Enquiries Account Balance Enquiries Unit Fund Price N/A N/A Enquiries Change of Investment N/A N/A Mandate for future Contributions Re-balancing of N/A N/A existing account balances Forms Request N/A N/A 21

55 2. Why choosing BOC-Prudential Easy-Choice MPF Scheme? The HK HK Polytechnic University MTS Administration Hotline The The HK HK Polytechnic University MTS Fund Product Hotline Office Hour Monday - Friday: 9:00 am 7:00 pm Saturday : 9:00 am 1:00 pm 22

56 E. Enrolment Procedure 23

57 2. Why choosing BOC-Prudential Easy-Choice MPF Scheme? Enrolment Procedure Provide interested members with Enrolment Kits and Application Forms HR Dept. Member s Cert Provide Enrolment Data BOCI-Prudential Members HR Dept. Signed Member Enrolment Form Member s s Certificate will be mailed directly to individual employee 24

58 2. Why choosing BOC-Prudential Easy-Choice MPF Scheme? Member Enrolment Form 25

59 2. Why choosing BOC-Prudential Easy-Choice MPF Scheme? Member Enrolment Form Any amendments made on the selection, please kindly sign next to it. 26

60 2. Why choosing BOC-Prudential Easy-Choice MPF Scheme? Member Enrolment Form 27