The Bank of East Asia

Insurance, MPF & Trust

Investment Choices

BEA (MPF) Value Scheme (the “Scheme”) consists of the following constituent funds. Members can also choose to invest in Default Investment Strategy Note 1.

Constituent FundRisk Class Note 5
(as at 30/09/2023)
Investment Policy
BEA Growth Fund Equities: 60% to 90%
Cash, Debt Securities and / or Money Market Instruments: 10% to 40%
BEA Balanced Fund   Equities: 40% to 60%
Cash, Debt Securities and / or Money Market Instruments: 40% to 60%
BEA Stable Fund   Equities: 10% to 40%
Cash, Debt Securities and / or Money Market Instruments: 60% to 90%
BEA Global Equity Fund Equities: invest not less than 70% in equities
Money Market Instruments, Cash or Cash Equivalents: any remaining assets
BEA Asian Equity Fund Note 2, 3 Equities: invest 70% to 100% 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: 0% to 30%
BEA Greater China Equity Fund Note 3 Equities : Invest not less than 70% directly in equities, which may include less than 30% in China A-shares and/or China B-shares
Other Securities (as permitted under Schedule 1 to the General Regulation): Up to 10%
Cash or cash equivalents : Any remaining assets
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 Global Bond Fund Short to Long Term Government Bonds: 20% to 100%
Short to Long Term Corporate Bonds: 0% to 80%
The Approved Pooled Investment Fund will invest 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)
BEA MPF Conservative Fund Note 4 Short Term Deposits and Debt Securities: 100%
BEA Core Accumulation Fund Note 1 Higher Risk Assets (such as global equities): 55% to 65%
BEA 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) Value 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.
   
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.
   
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.
   
Note 4 : 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.
   
Note 5 : 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 are provided and reviewed by BEA Union Investment Management Limited quarterly.

Risk Class

Fund Risk Indicator
Equal or above Less than
1 0.0% 0.5%
2 0.5% 2.0%
3 2.0% 5.0%
4 5.0% 10.0% 
5 10.0% 15.0%
6 15.0% 25.0%
7 25.0%  

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) Value Scheme.