Principal MPF - simple plan

Transcription

1 Principal Mandatory Provident Fund Principal MPF - simple plan offering document Exclusive Distributor

2 Principal MPF - Simple Plan exclusively distributed by AXA Trustee Exclusive Distributor Principal helps people and companies around the world build, protect and advance their financial well-being through retirement, insurance and asset management solutions that fit their lives. Our employees are passionate about helping clients of all income and portfolio sizes achieve their goals offering innovative ideas, investment expertise and real-life solutions to make financial progress possible. Principal is a provider of investment and retirement solutions in Hong Kong. We combine our capabilities in global investment management, retirement leadership and asset allocation expertise to provide retirement and asset management services as well as award-winning mutual funds and investment products to businesses, individuals and institutional investors. AXA is a world leading insurance and asset management group and is the No. 1 insurance brand in the world for 9 consecutive years*. We are proud to serve over 1 million customers in Hong Kong and Macau #. AXA Hong Kong is committed to continuously develop and enhance our life & savings, health, property & casualty and retirement solutions in order to satisfy the different needs of our individual and corporate customers. Our purpose is to empower people to live a better life. Principal, Principal and symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc, a member of the Principal Financial Group. * Source: Interbrand Best Global Brand 2017 (by brand value). # Including customers of AXA China Region Insurance Company Limited, AXA China Region Insurance Company (Bermuda) Limited (incorporated in Bermuda with limited liability), and AXA General Insurance Hong Kong Limited

3 Principal MPF Simple Plan Offering document IMPORTANT INFORMATION 1. The Principal MPF Conservative Fund in the Plan does not guarantee the repayment of capital. 2. You should consider your own risk tolerance level and financial circumstances before making any investment choices. When, in your selection of constituent funds, you are in doubt as to whether a certain constituent 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 constituent fund(s) most suitable for you taking into account your circumstances. 3. Please be reminded that in the event that you do not make any investment choices or if you submit an investment mandate which is invalid in the circumstances set out in the relevant scheme enrollment form, your contributions made and/or benefits transferred into Principal MPF Simple Plan will be invested into the Principal MPF Conservative Fund in accordance with the default fund arrangement as stated in section 6.5 of this offering document, and such constituent fund may not necessarily be suitable for you. 4. Fees and charges of a MPF conservative fund can be deducted from either: (i) the assets of the constituent fund; or (ii) members account by way of unit deduction. The Principal MPF Conservative Fund uses method (i) and, therefore, unit prices/nav/fund performance quoted have incorporated the impact of fees and charges. 5. You should read this offering document for further details including product features, fees and charges and risk factors. A member who reaches the retirement age of 65, or attains the age of 60 and retires early may apply for withdrawal of all or part of his mandatory contributions by completing and sending to the Trustee a duly completed claim form and subject to such terms as the Trustee may, subject to the applicable provisions of the MPF Ordinance or the Regulation, from time to time prescribe. Please refer to Section 7.5 Payment of Benefits for further details. The Sponsor accepts responsibility for the information contained in this offering document as being accurate at the date of publication. However, neither the delivery of this offering document nor the offer or agreement to participate in the Plan shall under any circumstances constitute a representation that the information contained in this offering document is correct as of any time subsequent to such date. This offering document may from time to time be updated. In this offering document, references to the consent or approval of the Mandatory Provident Fund Schemes Authority (Authority) mean such consent or approval as may be required pursuant to the Mandatory Provident Fund Schemes Ordinance (MPF Ordinance), its subsidiary legislation and any codes or guidelines issued by the Authority pursuant thereto and references to the consent or approval of the Securities and Futures Commission (Commission) mean such consent or approval as may be required pursuant to the Securities and Futures Ordinance (Chapter 571) of the Laws of Hong Kong, its subsidiary legislation and any codes or guidelines issued by the Commission pursuant thereto. Any approval, consent or authorisation granted by the Authority or the Commission does not imply official recommendation of the Plan or the Approved Pooled Investment Funds (APIFs). Important: If you are in doubt about the meaning or effect of the contents of this document, you should seek independent professional advice. Date of Publication: December 2016

4 Fourth Addendum to the Offering Document for Principal MPF Simple Plan (the Offering Document ) This Fourth Addendum should be read in conjunction with and forms part of the Offering Document for Principal MPF Simple Plan (December 2016 edition) (the Offering Document ), the First Addendum dated 12 December 2016, the Second Addendum dated 12 December 2016 and the Third Addendum dated 28 February By this Fourth Addendum, the Offering Document shall be amended as follows: A. Change of Address With effect from 16 October 2017: (i) Section 1 DIRECTORY OF PARTIES on page 1 of the Offering Document shall be amended by: (a) replacing the paragraph headed Investment Managers of all Constituent Funds in its entirety with the following: Investment Managers of all Constituent Funds PRINCIPAL ASSET MANAGEMENT COMPANY (ASIA) LIMITED 30/F Millennium City Kwun Tong Road Kwun Tong, Kowloon Hong Kong (b) replacing the address of Principal Asset Management Company (Asia) Limited under paragraph headed Investment Managers of the Underlying APIFs (in respect of Constituent Funds in the form of feeder funds) in its entirety with the following: 30/F Millennium City Kwun Tong Road Kwun Tong, Kowloon Hong Kong (c) replacing the paragraph headed Trustee in its entirety with the following: Trustee PRINCIPAL TRUST COMPANY (ASIA) LIMITED Registered Office 30/F Millennium City Kwun Tong Road Kwun Tong, Kowloon, Hong Kong 1

5 (d) replacing the paragraph headed Sponsor in its entirety with the following: Sponsor PRINCIPAL INSURANCE COMPANY (HONG KONG) LIMITED Registered Office 30/F Millennium City Kwun Tong Road Kwun Tong, Kowloon Hong Kong (ii) The footer on page 29 of the Offering Document shall be amended by replacing the address of Principal Trust Company (Asia) Limited in its entirety with the following: 30/F Millennium City Kwun Tong Road Kwun Tong, Kowloon Hong Kong With effect from 1 December 2017: (iii) Section 3.4 Investment Managers of the Underlying APIFs (renumbered pursuant to page 2 of the Third Addendum) on page 3 of the Offering Document shall be amended by replacing the address of Principal Global Investors (Hong Kong) Limited under the sub-section Sub- Investment Managers in its entirety with the following: Unit Central Plaza 18 Harbour Road Wan Chai Hong Kong B. Changes relating to the Constituent Funds With effect from 12 December 2017: (i) Section 1 DIRECTORY OF PARTIES on page 1 of the Third Addendum shall be amended by replacing the paragraph headed Investment Managers of the Underlying APIFs (in respect of Constituent Funds in the form of feeder funds) in its entirety with the following: Investment Managers of the Underlying APIFs (in respect of Constituent Funds in the form of feeder funds) PRINCIPAL ASSET MANAGEMENT COMPANY (ASIA) LIMITED 30/F Millennium City Kwun Tong Road Kwun Tong, Kowloon Hong Kong (ii) Each reference to each of Principal Fidelity Global Equity Fund, Principal Fidelity Asia Pacific Equity Fund and Principal Templeton Global Bond Fund whenever it appears in the Offering Document shall be replaced with the words Principal Dynamic Global Equity Fund, Principal Dynamic Asia Pacific Equity Fund and Principal Dynamic Global Bond Fund respectively. 2

6 (iii) Section 3.4 Investment Managers of the Underlying APIFs (renumbered pursuant to page 2 of the Third Addendum) on page 3 of the Offering Document shall be amended by: (a) replacing the first paragraph under it in its entirety with the following: The investment manager of the APIFs in which the constituent funds in the form of feeder funds invest is Principal Asset Management Company (Asia) Limited. (b) adding the following two constituent funds as the last two sub-bullet points under the first bullet point under it: Principal Core Accumulation Fund Principal Age 65 Plus Fund (c) replacing the paragraph under the sub-section Sub-Investment Managers after the first bullet point in its entirety with the following: Under the trust deed of the relevant APIFs managed by PAM and subject to the requirements under the MPF Ordinance and the Regulation, PAM may delegate all or any of its duties, powers and discretions to another corporation. Currently, the following entities are sub-investment manager, delegates or sub-delegate of the relevant underlying APIFs of the constituent funds mentioned above: (d) deleting the second and third bullet points under it in its entirety without replacement. (iv) Section 5 CONSTITUENT FUNDS on page 6 of the Offering Document shall be amended by replacing the second paragraph under it in its entirety with the following: All constituent funds are currently denominated in Hong Kong dollars. Each of the constituent funds (other than the Principal Dynamic Hong Kong Equity Fund, Principal Dynamic Global Equity Fund, Principal Dynamic Asia Pacific Equity Fund and Principal Dynamic Global Bond Fund) is currently a feeder fund investing entirely in a single Unit Trust APIF managed by investment managers as described in Section 3.4 above. Each of the Principal Dynamic Hong Kong Equity Fund, Principal Dynamic Global Equity Fund, Principal Dynamic Asia Pacific Equity Fund and Principal Dynamic Global Bond Fund is a portfolio management fund investing in two or more Unit Trust APIFs and/or Approved Index-Tracking Funds. For a constituent fund that is a portfolio management fund, it may invest in APIFs and/or Approved Index-Tracking Funds managed by the investment manager of the constituent fund or any affiliate(s) of the investment manager. The investment manager of the constituent fund, in deciding which APIFs and/or Approved Index-Tracking Funds the constituent fund may invest, will exercise its professional and independent judgment, taking into account members interests. (v) Section 5.1 Investment Objectives and Policies on page 6 of the Offering Document shall be amended by: (a) replacing the sub-heading under subsection 5.1(5) with the following: Principal Dynamic Global Equity Fund 3

7 (b) replacing the second paragraph of subsection 5.1(5) in its entirety with the following: Investment Policy: The constituent fund will invest in two or more APIFs and/or ITCISs managed by different managers, which in turn, invest in a diversified portfolio of global equities and have the flexibility to invest in fixed income securities and money market in a limited manner. Normally, around 98% of the assets will be invested in equities and around 2% in cash or cash equivalent. The actual portfolio will at times vary considerably from the above as market, political, structural, economic and other conditions change. Neither the constituent fund nor the underlying APIFs and/or ITCISs will enter into any securities lending agreement, repurchase agreement or enter into any financial futures contracts or financial options contracts. (c) replacing the sub-heading under subsection 5.1(6) with the following: Principal Dynamic Asia Pacific Equity Fund (d) replacing the second paragraph of subsection 5.1(6) in its entirety with the following: Investment Policy: The constituent fund will invest in two or more APIFs and/or ITCISs managed by different managers, which in turn, invest directly into the Asia Pacific equity markets and have the flexibility to invest in the money market in a limited manner. Normally, around 95% of the assets will be invested in equities and around 5% in cash or cash equivalent. The actual portfolio will at times vary considerably from the above as market, political, structural, economic and other conditions change. Neither the constituent fund nor the underlying APIFs and/or ITCISs will enter into any securities lending agreement, repurchase agreement or enter into any financial futures contracts or financial options contracts. (e) replacing the sub-heading under subsection 5.1(7) with the following: Principal Dynamic Global Bond Fund (f) replacing the second paragraph of subsection 5.1(7) in its entirety with the following: Investment Policy: The constituent fund will invest in two or more APIFs and/or ITCISs managed by different managers so that at least 70% of the assets of the constituent fund are invested in fixed income securities issued by governments and governmental agencies globally. Investment assets include debt obligations (bonds), preferred stocks, corporate debt obligations and convertible securities. Neither the constituent fund nor the underlying APIFs and/or ITCISs will enter into any securities lending agreement, repurchase agreement or enter into any financial futures contracts or financial options contracts. (g) replacing the last paragraph of section 5.1 in its entirety with the following: The Trustee does not intend to enter into futures and options contracts or engage in securities lending activities for the account of the constituent funds. Although the Trust Deed does not prohibit the lending of assets of constituent funds to third parties, the Trustee does not intend to exercise this power in the normal course of managing the constituent funds. 4

8 (vi) Subsection 5.3(m) headed Fund of funds risk on page 3 of the Third Addendum shall be replaced in its entirety with the following: (m) Fund of funds risk The assets of each of the Principal Dynamic Hong Kong Equity Fund, Principal Dynamic Global Equity Fund, Principal Dynamic Asia Pacific Equity Fund and Principal Dynamic Global Bond Fund will be invested in two or more Unit Trust APIFs and/or Approved Index-Tracking Funds which are managed by different investment managers. While PAM will select Unit Trust APIFs and Approved Index- Tracking Funds for these constituent funds investments with a view to allowing these constituent funds to achieve their investment objectives, there can be no assurance that the investment objectives can be achieved nor the selection of Unit Trust APIFs or Approved Index-Tracking Funds will result in an effective diversification of investment risks. (vii) The table headed as follows under Section 5.6 Investment Structure and the Underlying APIFs on page 10 of the Offering Document shall be amended by replacing the table (amended by page 3 of the Third Addendum and page 13 of the First Addendum) in its entirety with the following: Name of Constituent Funds Principal Growth Fund Principal Balanced Fund Principal Stable Fund Investment Structure Invest solely in a unit trust APIF, Principal MPF Fund Principal MPF Growth Fund Invest solely in a unit trust APIF, Principal MPF Fund Principal MPF Balanced Fund Invest solely in a unit trust APIF, Principal MPF Fund Principal MPF Stable Fund At the underlying APIF level Investment manager Principal Asset Management Company (Asia) Limited Principal Asset Management Company (Asia) Limited Principal Asset Management Company (Asia) Limited Sub-investment manager/ delegate of the investment manager Principal Global Investors, LLC Principal Global Investors (Hong Kong) Limited Principal Global Investors, LLC Principal Global Investors (Hong Kong) Limited Principal Global Investors, LLC Principal Global Investors (Hong Kong) Limited Fund Type Mixed Assets Fund Global maximum equity 100% Mixed Assets Fund Global maximum equity 85% Mixed Assets Fund Global maximum equity 45% 5

9 Name of Constituent Funds Principal MPF Conservative Fund Principal Dynamic Global Equity Fund Principal Dynamic Asia Pacific Equity Fund Principal Dynamic Global Bond Fund Principal Dynamic Hong Kong Equity Fund Principal Core Accumulation Fund Investment Structure Invest solely in a unit trust APIF, Principal MPF Fund Principal MPF Conservative Fund Invest in two or more unit trust APIFs and/or Approved Index- Tracking Funds Invest in two or more unit trust APIFs and/or Approved Index- Tracking Funds Invest in two or more unit trust APIFs and/or Approved Index- Tracking Funds Invest in two or more unit trust APIFs and/or Approved Index- Tracking Funds Invest solely in a unit trust APIF, Principal Unit Trust Umbrella Fund Principal Core Accumulation Fund At the underlying APIF level Investment manager Principal Asset Management Company (Asia) Limited Sub-investment manager/ delegate of the investment manager Principal Global Investors, LLC Principal Global Investors (Hong Kong) Limited Fund Type Money Market Fund Hong Kong Multi-managers* Nil Equity Fund Global Multi-managers* Nil Equity Fund Asia Pacific Multi-managers* Nil Bond Fund Global Multi-managers* Nil Equity Fund Hong Kong Principal Asset Management Company (Asia) Limited Principal Global Investors, LLC Note: Principal Global Investors (Hong Kong) Limited acts as sub-delegate Mixed Assets Fund (Global) 6

10 At the underlying APIF level Name of Constituent Funds Investment Structure Investment manager Sub-investment manager/ delegate of the investment manager Fund Type Principal Age 65 Plus Fund Invest solely in a unit trust APIF, Principal Unit Trust Umbrella Fund Principal Age 65 Plus Fund Principal Asset Management Company (Asia) Limited Principal Global Investors, LLC Note: Principal Global Investors (Hong Kong) Limited acts as sub-delegate Mixed Assets Fund (Global) * The identities of multi-managers may change as a result of any changes to the underlying APIFs as the Investment Manager may from time to time determine. (viii) Section 10.1 Fee Table on page 21 of the Offering Document shall be amended by deleting the sub-rows Principal Fidelity Global Equity Fund (Note g), Principal Fidelity Asia Pacific Equity Fund (Note g) and Principal Templeton Global Bond Fund (Note h) from the row beginning with Management fees 7 (Note e) under the table headed (C) Annual Fund Operating Charges & Expenses Of Constituent Funds & Underlying APIFs. (ix) Section 10.1 Fee Table on page 4 of the Third Addendum shall be amended by replacing the row beginning with Management fees 7 of constituent funds in the form of portfolio management funds (Note e) under the table headed (C) Annual Fund Operating Charges & Expenses Of Constituent Funds & Underlying APIFs with the following: Type of charges & expenses Management fees 7 of constituent funds in the form of portfolio management funds (Note e) Name of constituent fund Principal Dynamic Hong Kong Equity Fund Principal Dynamic Global Equity Fund Principal Dynamic Asia Pacific Equity Fund Principal Dynamic Global Bond Fund Current level Deducted from 1.59% p.a. of NAV Relevant assets of the Constituent Fund 1.75% p.a. of NAV Relevant assets of the Constituent Fund 1.75% p.a. of NAV Relevant assets of the Constituent Fund 1.49% p.a. of NAV Relevant assets of the Constituent Fund 7

11 (x) Subsection APIF level (for constituent funds in the form of feeder fund) on page 24 of the Offering Document in note (e) of the EXPLANATORY NOTES, such heading being added pursuant to page 4 of the Third Addendum shall be amended by: (a) deleting the rows in relation to Principal Fidelity Global Equity Fund, Principal Fidelity Asia Pacific Equity Fund and Principal Templeton Global Bond Fund from the table with the following header immediately after the subsection: APIFs under the following Constituent Fund Management Fee Current Level Maximum Level (% p.a. of NAV) The Percentages consist of (b) deleting the footnote # immediately after the table under the subsection without replacement. (xi) The note immediately after the table described in paragraph (x)(a) above (i.e. on page 5 of the Third Addendum) shall be replaced in its entirety with the following: Note: The information in the table above is not applicable to the Principal Dynamic Hong Kong Equity Fund, Principal Dynamic Global Equity Fund, Principal Dynamic Asia Pacific Equity Fund and Principal Dynamic Global Bond Fund as the management fee for each of the abovementioned constituent funds will be charged at the constituent fund level (such management fee will cover also any fees payable at the underlying fund level). (xii) The EXPLANATORY NOTES section on page 25 of the Offering Document shall be amended by removing note (g) and (h) in their entirety and accordingly each reference to note (i) in the Offering Document shall be replaced with note (g); Except as amended by this Fourth Addendum, the Offering Document remains in full force and effect. Principal Trust Company (Asia) Limited 16 October

12 Third Addendum to the Offering Document for Principal MPF Simple Plan (the Offering Document ) This Third Addendum should be read in conjunction with and forms part of the Offering Document for Principal MPF Simple Plan (December 2016 edition) (the Offering Document ), the First Addendum dated 12 December 2016 and the Second Addendum dated 12 December By this Third Addendum, the Offering Document shall be amended as follows with effect from 28 February 2017 (save for the change set out in section 3(i) below, which will take immediate effect): 1. Appointment of investment manager of all constituent funds (i) Section 1 DIRECTORY OF PARTIES on page 1 of the Offering Document shall be amended by: (a) inserting the following paragraph immediately after the paragraph headed Sponsor : Investment Manager of all Constituent Funds PRINCIPAL ASSET MANAGEMENT COMPANY (ASIA) LIMITED Unit Central Plaza 18 Harbour Road Wanchai Hong Kong (b) replacing the paragraph headed Investment Managers of the Underlying APIFs in its entirety with the following: Investment Managers of the Underlying APIFs (in respect of Constituent Funds in the form of feeder funds) PRINCIPAL ASSET MANAGEMENT COMPANY (ASIA) LIMITED Unit Central Plaza 18 Harbour Road Wanchai Hong Kong FIL INVESTMENT MANAGEMENT (HONG KONG) LIMITED Level 21, Two Pacific Place 88 Queensway Admiralty Hong Kong FRANKLIN TEMPLETON INVESTMENTS (ASIA) LIMITED 17/F Chater House 8 Connaught Road Central Hong Kong 1

13 (ii) Section 3 PRINCIPAL MPF SIMPLE PLAN on page 2 of the Offering Document shall be amended by inserting the following paragraph immediately below the first paragraph under the section: Under the Trust Deed, subject to the approval of the Commission and the Authority, the Trustee (with the agreement of the Sponsor) has the power to appoint a person as an investment manager to manage all or part of the assets of the scheme. Principal Asset Management Company (Asia) Limited (PAM) has been appointed as the investment manager of all constituent funds. The underlying unit trust APIFs are managed by investment managers as described in Section 3.4 below. (iii) A new Section 3.3 shall be inserted under Section 3.2 headed The Sponsor on page 2 of the Offering Document: 3.3 Investment Manager of the Constituent Funds For all constituent funds of the Plan, PAM has been appointed as the investment manager. (iv) The existing Section 3.3 Investment Managers of the Underlying APIFs and Section 3.4 How to Join the Plan on page 3 of the Offering Document shall be renumbered as Sections 3.4 and 3.5 respectively and the corresponding headings in the table of contents shall be updated accordingly. (v) The renumbered Section 3.4 Investment Managers of the Underlying APIFs on page 3 of the Offering Document shall be amended by replacing the words Principal Asset Management Company (Asia) Limited and Principal Asset Management Company (Asia) Limited (PAM) whenever they appear with the words PAM. 2. Restructure of the Principal RCM Hong Kong Fund (i) Each reference to Principal RCM Hong Kong Fund whenever it appears in the Offering Document shall be replaced with the words Principal Dynamic Hong Kong Equity Fund. (ii) The renumbered Section 3.4 Investment Managers of the Underlying APIFs on page 3 of the Offering Document shall be amended by: (a) (b) deleting the words and RCM Asia Pacific Limited appearing in the first paragraph under it without replacement; and deleting the fourth bullet point under it in its entirety without replacement. (iii) Section 5 CONSTITUENT FUNDS on page 6 of the Offering Document shall be amended by replacing the second paragraph under it in its entirety with the following: All constituent funds are currently denominated in Hong Kong dollars. Each of the constituent funds (other than the Principal Dynamic Hong Kong Equity Fund) is currently a feeder fund investing entirely in a single Unit Trust APIF managed by investment managers as described in Section 3.4 above. The Principal Dynamic Hong Kong Equity Fund is a portfolio management fund investing in two or more Unit Trust APIFs and/or Approved Index-Tracking Funds. 2

14 (iv) Section 5.1 Investment Objectives and Policies on page 6 of the Offering Document shall be amended by: (a) replacing the sub-heading under subsection 5.1(8) with the following: Principal Dynamic Hong Kong Equity Fund ; and (b) replacing the second paragraph of subsection 5.1(8) in its entirety with the following: Investment Policy: The constituent fund pursues its investment objective by investing in two or more Unit Trust APIFs and/or Approved Index-Tracking Funds, which in turn, invest in a diversified portfolio of Hong Kong equities. Such underlying Unit Trust APIFs and Approved Index-Tracking Funds may or may not be managed by PAM and/or its affiliates. Normally 95% of the assets of the constituent fund will be invested in Hong Kong equities, while the remaining will be held in, cash or short-term deposits. Any holding of cash or short term deposits is to provide liquidity and/or for any other purpose as the investment manager considers appropriate. (v) Section 5.3 Risk Factors on page 10 of the First Addendum shall be amended by inserting the following paragraph immediately after the end of subsection 5.3(l): (m) Fund of funds risk The assets of the Principal Dynamic Hong Kong Equity Fund will be invested in two or more Unit Trust APIFs and/or Approved Index-Tracking Funds which are managed by different investment managers. While PAM will select Unit Trust APIFs and Approved Index-Tracking Funds for the constituent fund s investments with a view to allowing the constituent fund to achieve its investment objectives, there can be no assurance that the investment objectives can be achieved nor the selection of Unit Trust APIFs or Approved Index-Tracking Funds will result in an effective diversification of investment risks. (vi) The table headed as follows under Section 5.6 Investment Structure and the Underlying APIFs on page 10 of the Offering Document shall be amended by replacing the row relating to Principal RCM Hong Kong Fund in its entirety with the following: Name of Constituent Funds Principal Dynamic Hong Kong Equity Fund Investment Structure Invest in two or more unit trust APIFs and/or Approved Index- Tracking Funds Investment manager of the underlying APIF (each, Underlying Fund ) Sub-investment manager (as indicated with # ) / investment adviser (as indicated with*) of the Underlying Fund Fund Type Multi-managers* Nil Equity Fund Hong Kong * The identities of multi-managers may change as a result of any changes to the underlying APIFs as the Investment Manager may from time to time determine. 3

15 (vii) Section 10.1 Fee Table on page 21 of the Offering Document shall be amended by: (a) amending the table headed (C) Annual Fund Operating Charges & Expenses Of Constituent Funds & Underlying APIFs : (I) (II) deleting the sub-row Principal RCM Hong Kong Fund from the row beginning with Management fees 7 (Note e) adding the following row immediately after the row beginning with Management fees 7 (Note e) with the header as follows: Type of charges & expenses Name of constituent fund Current level Deducted from Management fees 7 of constituent funds in the form of portfolio management funds (Note e) Principal Dynamic Hong Kong Equity Fund 1.59% p.a. of NAV Relevant assets of the Constituent Fund (b) inserting the following sub-heading immediately below the words Constituent fund level in note (e) of the EXPLANATORY NOTES : (i) Constituent funds in the form of feeder fund (c) (d) replacing the sub-heading APIF level in note (e) of the EXPLANATORY NOTES in its entirety with the sub-heading APIF level (for constituent funds in the form of feeder fund) ; inserting the following paragraph immediately before the re-named subsection APIF level (for constituent funds in the form of feeder fund) in note (e) of the EXPLANATORY NOTES : (ii) Constituent funds in the form of portfolio management funds The management fee of each constituent fund includes (a) the Trustee fee (currently up to a maximum of 0.5% p.a. of NAV), (b) the Sponsor fee (currently up to a maximum of 1.5% p.a. of NAV), (c) any investment management fees payable to PAM for managing the constituent fund, (d) any investment management fee (where applicable) payable to the investment manager of the underlying Unit Trust APIFs and/or Approved Index-Tracking Funds in which the constituent fund invests, and (e) any trustee and administration fee (where applicable) of such underlying APIFs and/or Approved Index- Tracking Funds. The Trustee and/or the Sponsor may, from its respective fees, pay the fees charged by other service providers including at present the fees to the Administrator and the investment manager of the constituent fund. (e) deleting the words and RCM appearing in the first paragraph under the subsection Constituent fund level in note (e) of the EXPLANATORY NOTES without replacement; 4

16 (f) replacing the first sentence appearing in the second paragraph under the subsection Constituent fund level in note (e) of the EXPLANATORY NOTES in its entirety with the following: Currently, for the Principal MPF Conservative Fund, the Principal Growth Fund, the Principal Balanced Fund and the Principal Stable Fund, the maximum rate of the management fee at the constituent fund level is 4.00%. (g) replacing the last sentence appearing in the second paragraph under the subsection Constituent fund level in note (e) of the EXPLANATORY NOTES in its entirety with the following: In respect of the Principal Fidelity Global Equity Fund, the Principal Fidelity Asia Pacific Equity Fund, the Principal Templeton Global Bond Fund and the Principal Dynamic Hong Kong Equity Fund, the management fee at the constituent fund level is subject to a maximum rate of 2.00%. (h) deleting the row in relation to Principal RCM Hong Kong Fund from the table with the following header immediately after the renamed subsection APIF level (for constituent funds in the form of feeder fund) in note (e) of the EXPLANATORY NOTES : APIFs under the following Constituent Fund Management Fee Current Level Maximum Level (% p.a. of NAV) The Percentages consist of (i) inserting the following note immediately after the table described in (h) above: Note: The information in the table above is not applicable to the Principal Dynamic Hong Kong Equity Fund as the management fee for the Principal Dynamic Hong Kong Equity Fund will be charged at the constituent fund level (such management fee will cover also any fees payable at the underlying fund level). (j) deleting the word and RCM appearing in footnote ^ immediately after the table under the renamed subsection APIF level (for constituent funds in the form of feeder fund) in note (e) of the EXPLANATORY NOTES without replacement. 3. Miscellaneous changes (i) (ii) The Offering Document shall be amended by inserting the words or immediately after the words whenever they appear in the Offering Document. Paragraph 2 of the First Addendum shall be amended by replacing the words interactive voice recording system appearing in the definition of Specific Investment Instruction in section 6.5A MPF Default Investment Strategy (to be introduced by paragraph 2 of the First Addendum) with the words interactive voice response system. Except as amended by this Third Addendum, the Offering Document remains in full force and effect. Principal Trust Company (Asia) Limited 28 February

17 Second Addendum to the Offering Document for Principal MPF Simple Plan (the Offering Document ) This Second Addendum should be read in conjunction with and forms part of the Offering Document for the Principal MPF Simple Plan (the Offering Document ) and the First Addendum dated 12 December By this Second Addendum, the Offering Document shall be amended as follows with effect from 1 April 2017 (being the commencement date of the MPF default investment strategy): 1. The section headed TABLE OF CONTENTS shall be amended by inserting the following immediately after the line 6.5. Mandates to Invest : 6.5A MPF Default Investment Strategy. 2. The subsection headed 6.5 Mandates to Invest on page 13 of the Offering Document shall be amended by: (a) replacing the first paragraph under it in its entirety with the following: On becoming a member of the Plan, a member must give a written investment mandate to the Trustee by completing the investment mandate section on an application for membership setting out how amounts paid by or on behalf of the member to the Plan are to be invested in the constituent funds and returning it to the Trustee. In the absence of a member s valid investment mandate, the Trustee will invest such amounts (net of charges) in the DIS. Where a member has multiple capacities under the Plan, the investment arrangement applies to the account of the member in each capacity individually. In other words, if a member is an employee member and a personal account member and wishes to switch his accrued benefits and contributions under the account related to his/her employee member status into DIS, such switching will only impact the account related to his/her employee member status and not the account related to his/her personal account member status. Any change of investment mandate only applies to future contributions and will therefore not affect the existing investments of the accrued benefits. For the avoidance of doubt, any change of mandate instruction given after enrolment and not meeting the requirements for a Specific Investment Instruction will be rejected, and in that case, the existing investment allocation (in respect of future contributions and accrued benefits transferred from another MPF scheme) will remain unchanged. (b) inserting the following paragraph immediately after the second paragraph: In respect of an account of a member for which no investment instruction was given but for whatever reasons some but not all of the accrued benefits in that account are invested in the default fund (designated by the Trustee with the agreement of the Sponsor from time to time currently the Principal MPF Conservative Fund and prior to 10 January 2011, the Principal Cash Fund) immediately before 1 April 2017, unless the Trustee has received any specific investment instructions, the member s accrued benefits (including future contributions and accrued benefits transferred from another MPF scheme) in that account will be invested in the same manner as accrued benefits in that account were invested immediately before 1 April

18 3. The subsection headed 6.6 Switching Instructions on page 13 of the Offering Document shall be amended by the replacement of the first paragraph under it in its entirety with the following: A member has the right to give a switching instruction (the minimum investment allocation in any constituent fund selected must be an integer percentage and 100% of the switch-out total must be invested in one or more constituent fund(s)) to switch all or part of his/her units in a constituent fund into units in another constituent fund by giving a duly completed change in investment form to the Trustee. Provided that the switching instruction is valid, the switching instruction will take effect as soon as practicable, and in any case, within one calendar month (subject to any suspension in the determination of the net asset value of any relevant constituent fund) after receipt of the change in investment form by the Trustee. Any invalid switching instruction (e.g. the switch-in total is less than or exceeds 100% of the switch-out total) will be rejected and will not be processed. For the avoidance of doubt, where a member switches all or part of his/her existing investments, such switching instruction only applies to existing investments and not the new contributions. Any switching instruction given after enrolment and not meeting the requirements for a Specific Investment Instruction will be rejected, and in that case, existing investment (in respect of the existing accrued benefits) will remain unchanged. 4. The subsection headed 8.1 Transfers to Other Schemes on page 16 of the Offering Document shall be amended by inserting the following paragraph at the end of the subsection: Any money paid to the Plan after the relevant member s accrued benefits have been transferred to another MPF scheme under this section 8.1 (e.g. outstanding contributions and contribution surcharge) will be transferred to the transferee MPF scheme as soon as practicable and will not be invested. 5. The subsection headed EXPLANATORY NOTES on page 23 of the Offering Document shall be amended by replacing the third paragraph under explanatory note (e) in its entirety with the following: Following is a breakdown of the management fees in respect of each constituent fund (other than the Principal Core Accumulation Fund and Principal Age 65 Plus Fund) on the constituent fund level and the underlying APIF or Approved Index-Tracking Fund level. Except as amended by this Second Addendum, the Offering Document remains in full force and effect. Principal Trust Company (Asia) Limited 12 December

19 First Addendum to the Offering Document for Principal MPF Simple Plan (the Offering Document ) This First Addendum should be read in conjunction with and forms part of the Offering Document for the Principal MPF Simple Plan (the Offering Document ). The Offering Document will be available on our website at or you may request a copy of it by contacting our Customer Service Hotline at or By this First Addendum, the Offering Document shall be amended as follows with effect from 1 April 2017 (being the commencement date of the MPF default investment strategy): MPF DEFAULT INVESTMENT STRATEGY 1. The section headed IMPORTANT INFORMATION on the cover page of the Offering Document shall be amended by: (a) replacing paragraph 3 in its entirety with the following: 3. Please be reminded that in the event that you do not make any investment choices or if you submit an investment mandate which is invalid in the circumstances set out in the relevant scheme enrolment form, your contributions made and / or benefits transferred into Principal MPF Simple Plan will be invested into the DIS as stated in section 6.5A of this offering document. (b) inserting the following paragraphs after paragraph 3: 4. You should consider your own risk tolerance level and financial circumstances before investing in the DIS. You should note that the Principal Core Accumulation Fund and the Principal Age 65 Plus Fund may not be suitable for you, and there may be a risk mismatch between the Principal Core Accumulation Fund and the Principal Age 65 Plus Fund and your risk profile (the resulting portfolio risk may be greater than your risk preference). You should seek financial and / or professional advice if you are in doubt as to whether the DIS is suitable for you, and make the investment decision most suitable for you taking into account your circumstances. 5. You should note that the implementation of the DIS may have an impact on your MPF investments and benefits. You should consult with the Trustee if you have doubts on how you are being affected. ; and (c) renumbering the existing paragraph 4 as paragraph 6, and the existing paragraph 5 as paragraph The following paragraphs shall be inserted after the subsection headed 6.5 Mandates to Invest on page 13 of the Offering Document: 6.5A MPF Default Investment Strategy The following definitions shall apply to this offering document: Higher Risk Assets has the meaning given to it in the MPF Ordinance, and generally means equities or similar investments. 1

20 Lower Risk Assets means those assets not being Higher Risk Assets, including without limitation global bonds and money market instruments. Reference Portfolio means, in respect of each of the Principal Core Accumulation Fund and the Principal Age 65 Plus Fund, the MPF industry developed reference portfolio adopted for the purpose of DIS to provide a common reference point for the performance and asset allocation of the Principal Core Accumulation Fund and the Principal Age 65 Plus Fund (as the case may be). Specific Investment Instruction means: (I) an instruction for investment allocations, which meets the following requirements: the minimum investment allocation in any Constituent Fund selected must be 5%; must be an integer (e.g. 6% and not 6.5%); and the total (or in the case of any switching instruction, the switch-in total) must be 100%; or (II) any confirmation by a member (whether made verbally or through hard copy submission, online submission, , IVRS (interactive voice recording system) or mobile apps) with regard to any investment arrangements of the existing accrued benefits and / or future contributions and accrued benefits transferred from another scheme. The Specific Investment Instruction for employer s mandatory and voluntary contributions may be different from the Specific Investment Instruction for employee s mandatory and voluntary contributions or special voluntary contributions. Any investment mandate, change of investment mandate or switching instruction must meet the requirements for a Specific Investment Instruction. The MPF default investment strategy ( DIS ) is a ready-made investment arrangement mainly designed for those members who are not interested or do not wish to make an investment choice, and is also available as an investment choice itself for members who find it suitable for their own circumstances. For those members who do not make an investment choice, their contributions and accrued benefits transferred from another MPF scheme will be invested in accordance with the DIS. The DIS is required by law to be offered in every MPF scheme and is designed to be substantially similar in all MPF schemes. Asset allocation of the DIS The DIS aims to balance the long term effects of risk and return through investing in two Constituent Funds, namely the Principal Core Accumulation Fund and the Principal Age 65 Plus Fund, according to the pre-set allocation percentages at different ages. The Principal Core Accumulation Fund will invest around 60% in Higher Risk Assets (Higher Risk Assets generally mean equities or similar investments) and 40% in Lower Risk Assets (Lower Risk Assets generally mean bonds or similar investments) of its net asset value whereas the Principal Age 65 Plus Fund will invest around 20% in Higher Risk Assets and 80% in Lower Risk Assets. Both Constituent Funds adopt globally diversified investment principles and use different classes of assets, including global equities, fixed income, money market and cash, and other types of assets allowed under the MPF legislation. 2

21 De-risking of the DIS Accrued benefits invested through the DIS will be invested in a way that adjusts risk depending on a member s age. The DIS will manage investment risk exposure by automatically reducing the exposure to Higher Risk Assets and correspondingly increasing the exposure to Lower Risk Assets as the member gets older. Such de-risking is to be achieved by way of reducing the holding in the Principal Core Accumulation Fund and increasing the holding in the Principal Age 65 Plus Fund throughout the prescribed time span as detailed below. Diagram 1 below shows the target proportion of investment in riskier assets over time. The asset allocation stays the same up until 50 years of age, then reduces steadily until age 64, after which it stays steady again. Diagram 1: Asset Allocation between constituent funds in the DIS Lower Risk Assets (mainly global bonds) Higher Risk Assets (mainly global equities) 40% 60% 80% 20% Principal Core Accumulation Fund Principal Age 65 Plus Fund Under Age Note: The exact proportion of the portfolio in Higher Risk Assets / Lower Risk Assets at any point in time may deviate from the target glide path due to market fluctuations. The above de-risking is to be achieved by annual adjustments of asset allocation gradually from the Principal Core Accumulation Fund to the Principal Age 65 Plus Fund under the DIS. Save for the circumstances set out in this section De-risking of the DIS, switching of the existing accrued benefits among the Principal Core Accumulation Fund and the Principal Age 65 Plus Fund will be automatically carried out each year on a member s birthday and according to the allocation percentages in the DIS De-risking Table as shown in Diagram 2 below. If: (a) (b) the member s birthday is not on a business day, then the investments will be moved on the next available business day, or the member s birthday falls on 29 February and in the year which is not a leap year, then the investments will be moved on 1 March or the next available business day. If there is any exceptional circumstance, e.g. market closure or suspension of dealing, on the member s birthday which makes it impossible for the investments to be moved on that day, the investments will be moved on the next available business day when there is no such exceptional circumstance. If the relevant member notifies the Trustee of his / her updated birthday, then the Trustee will as soon as practicable adjust the allocation between the Principal Core Accumulation Fund and the Principal Age 65 Plus Fund according to his / her updated birthday, and effect the de-risking in the future years according to the DIS de-risking table in Diagram 2 below and his / her updated birthday. 3

22 If the Trustee receives one or more of the specified instructions, including but not limited to subscription (e.g. contribution or fund transfer-in), redemption (e.g. fund transfer-out or withdrawals) or switching instructions on or before the date on which the annual de-risking is to take place and such specified instruction(s) are being processed on the date on which the annual de-risking is to take place, while the annual de-risking will only take place after completion of these instructions, the annual de-risking will be completed on the original derisking date. In particular, members should refer to the cut-off time and the required time to complete (after the date of receipt of completed instruction) as set out in the Trustee Service Comparative Platform in the MPFA s website (collectively, the required timeframe ) before submitting a valid switching instruction or change of investment mandate instruction in order to ensure that the instruction can be processed on or prior to the de-risking date. Any valid switching instruction or change of investment mandate instruction received by the Trustee before the annual de-risking but not meeting the required timeframe may only be completed after the annual de-risking. For further details on when the various types of instructions will be processed, please contact the Trustee s customer service hotline at or or visit the Trustee s website at The smallest amount of units of the Principal Age 65 Plus Fund and / or the Principal Core Accumulation Fund that can be issued in the annual de-risking under the DIS shall be a fraction of not less than one-ten thousandth. Please refer to Section 6.4 Investment in Constituent Funds and Section 6.6 Switching Instructions for details regarding the handling procedures for subscription, redemption and switching respectively. Members should be aware that the above de-risking will not apply where the member chooses the Principal Core Accumulation Fund and the Principal Age 65 Plus Fund as individual fund choices (rather than as part of the DIS). In summary, under the DIS: when a member is below the age of 50, all existing accrued benefits and all contributions and accrued benefits transferred from another MPF scheme will be invested in the Principal Core Accumulation Fund; when a member is between the ages of 50 and 64, all existing accrued benefits and all contributions and accrued benefits transferred from another MPF scheme will be invested according to the allocation percentages between the Principal Core Accumulation Fund and the Principal Age 65 Plus Fund as shown in the DIS De-risking Table below. The de-risking on the existing accrued benefits will be automatically carried out as described above; when a member reaches the age of 64, all existing accrued benefits and all contributions and accrued benefits transferred from another MPF scheme will be invested in the Principal Age 65 Plus Fund; if the member has reached 60 years of age before 1 April 2017, unless the member has given a Specific Investment Instruction, the member s accrued benefits (including future contributions and accrued benefits transferred from another MPF scheme) will be invested in the same manner as at 31 March 2017; for a deceased member, de-risking will cease once the Trustee has received proof of the death of the member to the Trustee s satisfaction. If de-risking has already been taken place between the death of the member and the time at which the Trustee received the satisfactory proof of such death, such de-risking will not be undone, although no further de-risking will take place in respect of the deceased member. 4