Investment Choices
BEA (MPF) Master Trust Scheme (the “Scheme”) consists of the following constituent funds. Members can also choose to invest in Default Investment Strategy Note 1.
| Constituent Fund | Risk Class Note 7 (as at 30/06/2023) | Investment Policy |
|---|---|---|
| BEA (MPF) Growth Fund |  |
Equities: 60% to 90% Cash, Debt Securities and / or Money Market Instruments: 10% to 40% |
| BEA (MPF) Balanced Fund | |
Equities: 40% to 60% Cash, Debt Securities and / or Money Market Instruments: 40% to 60% |
| BEA (MPF) Stable Fund |  |
Equities: 10% to 40% Cash, Debt Securities and / or Money Market Instruments: 60% to 90% |
| BEA (MPF) Global Equity Fund |  |
Equities: invest 70% to 100% in equity markets (including but not limited to the United States, the United Kingdom, Japan, Canada, Germany, Switzerland, Australia and Spain) Cash, Debt Securities and / or Money Market Instruments for cash management purpose: up to 30% |
| BEA (MPF) European Equity Fund | |
Equities: invest 70% to 100% in equity markets (including but not limited to the United Kingdom, France, Germany, Switzerland, Spain, Italy, Netherlands, Sweden and Finland) Cash, Debt Securities and / or Money Market Instruments for cash management purpose: up to 30% |
| BEA (MPF) North American Equity Fund | |
Equities: invest 70% to 100% in equities of companies that are listed in, or derive or are expected to derive a significant portion of their revenues from North America (including but not limited to United States and Canada) Cash, Debt Securities and / or Money Market Instruments for cash management purpose: up to 30% |
| BEA (MPF) Asian Equity Fund Note 2, 3 |
|
Equities: invest at least 70% of its underlying assets in equities of companies listed in the Asian equity markets (including but not limited to Singapore, Malaysia, Korea, Taiwan, Thailand, Indonesia, the Philippines, India, China and Hong Kong but excluding Japan) Cash, Debt Securities and / or Money Market Instruments for cash management purpose: up to 30% |
| BEA (MPF) Greater China Equity Fund Note 3 |  |
Equities: invest 70% to 100% of its underlying assets in Greater China Securities Cash, Debt Securities and / or Money Market Instruments for cash management purpose: up to 30% |
| BEA (MPF) Japan Equity Fund | |
Equities: invest at least 70% of its underlying assets in equities of companies listed in the Japanese equity market Cash, Debt Securities and / or Money Market Instruments for cash management purpose: up to 30% |
| BEA (MPF) Hong Kong Equity Fund | |
Equities: invest 70% to 100% of its underlying assets in equities of companies that are listed in, or derive or are expected to derive a significant portion of their revenues from Hong Kong Cash, Debt Securities and / or Money Market Instruments for cash management purpose: up to 30% |
| BEA China Tracker Fund Note 3 | |
Invest directly in a single Approved Index-Tracking Fund, namely the Hang Seng H-Share Index ETF which aims to provide investment returns that match the performance of the Hang Seng China Enterprises Index as closely as practicable. |
| BEA Hong Kong Tracker Fund | |
Invest directly in a single Approved Index-Tracking Fund, namely the Tracker Fund of Hong Kong which aims to provide investment results that closely correspond to the performance of the Hang Seng Index. |
| BEA (MPF) Global Bond Fund | |
Bonds: invest at least 70% of its underlying assets in a diversified range of global bonds denominated in various major currencies (including but not limited to US dollars, Euro, Pounds Sterling, Japanese Yen and HK dollars) Cash and / or Money Market Instruments: 0% to 30% |
| BEA (MPF) RMB & HKD Money Market Fund Note 4 |  |
Short-Term Deposits (such as certificates of deposits and term deposits) placed with authorised financial institutions in Hong Kong: 90% to 100% Debt Securities including bonds, fixed and floating rate securities, convertible bonds and notes with a remaining maturity period of 2 years or less, issued or distributed outside mainland China by banks, corporations and governments: 0% to 10% |
| BEA (MPF) Long Term Guaranteed Fund Note 5 | |
Equity Securities: 10% to 55% Debt Securities: 25% to 90% Cash & Short Term Investments: 0% to 20% |
| BEA (MPF) Conservative Fund Note 6 |  |
Short-Term Deposits and Debt Securities: 100% |
| BEA (MPF) Core Accumulation Fund Note 1 |
|
Higher Risk Assets (such as global equities): 55% to 65% |
| BEA (MPF) Age 65 Plus Fund Note 1 | |
Higher Risk Assets (such as global equities): 15% to 25% |
Investments inherently involve risks and the unit prices of the constituent funds may go down as well as up. Past performance is not indicative of future performance. For further details including the product features, fees and charges, and risk factors involved, please refer to the MPF Scheme Brochure of the BEA (MPF) Master Trust Scheme.
| Note 1: | 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 a fund choice, and is also available as an investment choice itself, for members who find it suitable for their own circumstances. Members who do not wish to choose an investment option do not have to do so. For those members who do not make an investment choice, their future contributions and accrued benefits transferred from another MPF scheme will be invested in accordance with the DIS. DIS is not a fund – it is a strategy that uses two constituent funds, i.e. the Core Accumulation Fund and Age 65 Plus Fund to automatically reduce the risk exposure as the member approaches retirement age. Core Accumulation Fund will invest around 60% in higher risk assets (higher risk assets generally means equities or similar investments) whereas the Age 65 Plus Fund will invest around 20% in higher risk assets. Switching of the existing accrued benefits among Core Accumulation Fund and Age 65 Plus Fund will be automatically carried out each year on a member’s birthday from the age of 50 to 64 and according to the allocation percentages as shown in the DIS de-risking table. To invest in DIS, member’s instruction must be an instruction to invest 100% of: (A) existing accrued benefits and/or (B) future contributions and accrued benefits transferred from another scheme in the DIS. De-risking mechanism will not apply where the member chooses these constituent funds as standalone investments (rather than as part of the DIS). However, the funds with same name under DIS and non-DIS have the same unit prices. For further details, including the product features, de-risking mechanism and table, fees and charges, investment rules and procedures, and the risk factors involved, please refer to the MPF Scheme Brochure of the Scheme. |
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| Note 2: | Various countries in which this constituent fund will invest are considered as emerging markets. As emerging markets tend to be more volatile than developed markets, any holdings in emerging markets are exposed to higher levels of market risk. |
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| Note 3: | These constituent funds may invest in securities of companies that are domiciled or conduct a significant portion of their business activities in, or derive or are expected to derive a significant portion of their revenues from, China. To the extent that these constituent funds have exposure to such companies, the value of the assets of these constituent funds may be affected by political, legal, economic and fiscal uncertainties within China. Existing laws and regulations may not be consistently applied. |
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| Note 4: | This constituent fund is denominated in HKD only and not in RMB. Its investment in RMB deposits and RMB debt instruments will be subject to additional currency risks. In particular, RMB is currently not a freely convertible currency and is subject to foreign exchange controls and repatriation restrictions imposed by the Chinese government. Also, its investment in offshore RMB debt securities will be subject to additional market / liquidity risks. There is currently no active secondary market for offshore RMB debt securities and therefore, this constituent fund may need to hold investments until maturity date of such offshore RMB debt securities. In addition, although the issuance of offshore RMB debt securities has increased substantially in recent years, supply still lags the demand for offshore RMB debt securities. As a result, new issues of offshore RMB debt securities are usually oversubscribed and may be priced higher than and / or trade with a lower yield than equivalent onshore RMB debt securities. Currently, most of the offshore RMB debt securities available in the market may not meet the requirements under Schedule 1 to the Mandatory Provident Fund Schemes (General) Regulation and therefore, the offshore RMB debts securities available for investment by this constituent fund may be limited which may result in concentration of credit risk. |
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| Note 5: | BEA (MPF) Long Term Guaranteed Fund invests solely in an approved pooled investment fund (the “Underlying Fund”) in a form of insurance policy provided by Principal Insurance Company (Hong Kong) Limited (the "Guarantor"). The Guarantor offers the guarantee of capital and guaranteed rate of return for the Underlying Fund. The guaranteed rate of return for contributions made to the Underlying Fund after 30th September, 2004 was revised. The revised guarantee rate would be the "new applicable rate", which is currently set at 1% p.a. The guaranteed rate of return for contributions made to the Underlying Fund on or before 30th September, 2004 remains unchanged (5% p.a.). The guarantee of capital and the prescribed guarantee rate of return will only be offered if the contributions invested in the Underlying Fund (through the BEA (MPF) Long Term Guaranteed Fund) are withdrawn upon the occurrence of a "qualifying event", which is the receipt by the Guarantor of a valid claim of the accrued benefits of the member upon satisfying any of the following conditions: (a) Attainment of the normal retirement age or retirement at or after the early retirement age but before the normal retirement age; (b) Total incapacity; (c) Death; (d) Permanent departure from Hong Kong;(e) Claim of "small balance"; (f) Termination of the member's employment and the continuous period for which the member has been investing in the Underlying Fund (through the BEA (MPF) Long Term Guaranteed Fund) up to and including the last date of his employment ("qualifying period") is at least 36 complete months. (This only applies if the member is employed in a company participating in the Master Trust). Such qualifying period is determined at the scheme account level. The qualifying period may also be reset to zero if the member (or his personal representative) effects a redemption, switching out or withdrawal of investments from the BEA (MPF) Long Term Guaranteed Fund other than upon the occurrence of a qualifying event. For the avoidance of doubt, condition (f) does not apply to self-employed persons, personal account holders, Special Voluntary Contribution Account Members or Tax Deductible Voluntary Contribution Account holders (g) Terminal illness. The conditions (a) to (e), and (g) apply to employee members, self-employed persons, personal account holders, Special Voluntary Contribution Account Members and Tax Deductible Voluntary Contribution Account holders. If a redemption, switching out or withdrawal of the units of the fund is effected other than the occurrence of a qualifying event as stated above, the guarantee will be affected. Special terms and conditions apply regarding how the guarantee operates. Please refer to the Appendix 1 of the MPF Scheme Brochure for details of the credit risk, guarantee features and guarantee conditions of this constituent fund. |
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| Note 6: | BEA (MPF) Conservative Fund does not provide any guarantee of the repayment of capital. Investment in BEA (MPF) Conservative Fund is not equivalent to placing funds on deposit with a bank or deposit-taking company. BEA (MPF) Conservative Fund is not subject to the supervision of the Hong Kong Monetary Authority. Fees and charges of an MPF conservative fund can be deducted from either (i) the assets of such fund or (ii) Member's account by way of unit deduction. The BEA (MPF) Conservative Fund uses method (i) and, therefore, its unit prices, net asset value and fund performance quoted have reflected the impact of fees and charges. |
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| Note 7: | The risk class is to be assigned to each constituent fund according to the seven point risk classification below based on the latest fund risk indicator of the constituent fund. The fund risk indicator shows the annualised standard deviation based on the monthly rates of return of the constituent funds over the past 3 years to the reporting date of the latest Fund Fact Sheet , which is published on a quarterly basis . Constituent funds with performance history of less than 3 years since inception to the reporting date of the latest fund fact sheet are not required to show the fund risk indicator. The annualised standard deviation of the constituent funds (except BEA (MPF) Long Term Guaranteed Fund) are provided and reviewed by BEA Union Investment Management Limited quarterly. The annualised standard deviation of BEA (MPF) Long Term Guaranteed Fund is provided and reviewed by Principal Insurance Company (Hong Kong) Limited quarterly.
The risk class is prescribed by the Mandatory Provident Fund Schemes Authority according to the Code on Disclosure for MPF Investment Funds and it has not been reviewed or endorsed by the Securities and Futures Commission. The above is for reference only, while the risk class of the fund may change from time to time. For further details including the product features, fees and charges, and risk factors involved, please refer to the MPF Scheme Brochure of the BEA (MPF) Master Trust Scheme |
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