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About the Scheme

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China Life MPF Master Trust Scheme

9 constituent fund choices and Default Investment Strategy in the China Life MPF Master Trust Scheme (the “Scheme”), with diversified investment objectives, risk levels and portfolio are offered, covering money market fund, mixed assets funds, equity funds and guaranteed funds.

 

Investment objective:

To produce returns that are related to those achieved on the major stock market indices of Hong Kong.

Asset Allocation
Cash Bonds Equities
0% 0% 100%*

*Please note that this only represents the target asset allocations of the fund and the actual asset allocations will at times vary considerably from that shown above.

Investment Manager :

FIL Investment Management (Hong Kong) Limited

Investment objective:

To maximize capital appreciation over the long term through investment in global equities.

Asset Allocation
Global Equities
100%

Investment Manager :

Invesco Hong Kong Limited

Investment objective:

To provide capital growth by a long-term investment in global equities so that members are adequately rewarded for foregoing the capital security and higher income that could have been achieved by investing in the money markets.

Asset Allocation
Cash Bonds Equities
3% 7% 90%

Investment Manager :

FIL Investment Management (Hong Kong) Limited

Investment objective:

To provide capital appreciation as well as seek income so as to achieve long term balanced growth in capital.

Asset Allocation
Cash Bonds Equities
5% 25% 70%

Investment Manager :

FIL Investment Management (Hong Kong) Limited

Investment objective:

To provide capital growth by investing in a globally diversified manner.

Asset Allocation
Global Equities Global bonds, Cash and
Money Market Instruments
60% 40%

Investment Manager :

Invesco Hong Kong Limited

Investment objective:

To provide stable growth by investing in a globally diversified manner.

Asset Allocation
Global Equities Global bonds, Cash and
Money Market Instruments
20% 80%

Investment Manager :

Invesco Hong Kong Limited

Investment objective:

To provide a return that is above the guarantee rate of return to participants.

Asset Allocation
Bank Deposit Fixed Income Securities Global Equities
0-50% 50%-80% 0-30%

Investment Manager :

Taiping Assets Management (HK) Company Limited

The investment policy is to invest solely in a relevant insurance policy approved pooled investment fund issued by China Life Insurance (Overseas) Company Limited (incorporated in the People's Republic of China with limited liability) ("China Life (Overseas)") and will in turn solely invest in an underlying unit trust approved pooled investment fund.

Description of the guarantee mechanism:

  • Valuation and dealing of the constituent fund shall be carried out on each dealing day which will be any day on which the banks in Hong Kong are open for business ("Dealing Day") excluding Saturday and Sunday unless it is specified otherwise in the constituent fund particulars stated in the Annexure of the MPF Scheme Brochure for the China Life MPF Master Trust Scheme (“MPF Scheme Brochure”). If the Dealing Day is not a business day, then the first business day thereafter.
  • Members will be entitled to the rate of return guaranteed under the constituent fund calculated in accordance with the guarantee mechanism stated in the following item (iii). The calculation of the guaranteed return of the constituent fund is stated in items (iv) to (v). Capital guarantee will be provided to the members upon satisfaction of either of the 2 circumstances specified in the item (vii) below.
  • Before calculating guaranteed return, the rate of 4% p.a. will be adopted as the guaranteed rate of return for the constituent fund. This guaranteed rate of return is before deduction of all expenses in respect of the constituent fund referred to in the fees and charges in the MPF Scheme Brochure, currently the expenses are about 1.5%. These expenses will be then deducted from the guaranteed rate of return to obtain a net guaranteed rate of return of around 2.5% p.a. for the calculation of guaranteed return of the constituent fund below. The guarantee is year on year.
  • The constituent fund will maintain two accounts for each member for the purpose of calculating guaranteed return, namely: a member account and a guaranteed account.
    The approved trustee will credit into a member’s account with units representing the contributions made by or in respect of each member divided by the offer price of a unit on each Dealing Day. For the avoidance of doubt, any contribution due but unpaid will not be credited.
    The guaranteed account is a notional account containing the opening balance as at 1 January of each financial year ("Opening Balance") and the net contributions made by a member during the financial period. The Opening Balance in relation to a financial year means the balance standing in credit to the guaranteed account as at the beginning of the financial year (1 January). For a member who participates in the constituent fund during the financial year , the Opening Balance will be zero. The Opening Balance in the guaranteed account will be increased by the net guaranteed rate of return of around 2.5% p.a. in item (iii) above. The net contributions will also be increased by the net guaranteed rate of return around 2.5% p.a. on a daily basis on each Dealing Day. These increases will be calculated on a simple interest basis.
  • If, on 31 December of each financial year , the aggregate amount of units standing in credit to the member account multiplied by the unit price is less than the balance of the guaranteed account, the difference will be made up by purchase of additional units with funds from the smoothing provision and if the smoothing provision of the constituent fund is exhausted, sufficient assets must be transferred from the shareholder fund (as referred to in the audited annual accounts) of the guarantor to the constituent fund in order to purchase additional units to make up the remainder of the shortfall. If the balance of the member account is greater than the guaranteed account, the balance of the guaranteed account will be set equal to that of the member account and will become the Opening Balance of the guaranteed account for the next financial year.
  • The guaranteed rate of return may be changed from time to time upon 3 months’ written notice to the employers and members.
  • The constituent fund provides members with capital guarantee. The "capital" to be guaranteed shall comprise of the aggregate contributions and return standing to the members’ account at the time of withdrawal referred to below.
    The constituent fund only provides capital guarantee if a member withdraws:
    • on the first Dealing Day on or after 1 January (or if that day is not a business day, then the first business day thereafter) of each financial period of the Scheme; or
    • by reason of termination of employment (applicable to employee members only).
    The aggregate contributions and return standing to the members’ account are fully exposed to fluctuations in the value of the constituent fund’s assets during the financial year and may suffer loss as a result if members withdraw at any time other than the above 2 circumstances.
  • The guarantor of the Policy APIF is China Life (Overseas). For details of credit risks, guarantee features, guarantee conditions and guarantee mechanism of this China Life Guaranteed Return Fund, please refer to Annexure A- 2 of MPF Scheme Brochure.

Investment objective:

To provide capital preservation in the long-term and offer to enhance return with limited exposure to global equities, while also providing a guarantee return.

Asset Allocation
Global Equities Fixed Income Securities Cash/Bank Deposit
0-30% 50-80% 0-50%

Investment Manager :

Taiping Assets Management (HK) Company Limited

The investment policy is to invest solely in a relevant insurance policy approved pooled investment fund issued by China Life Insurance (Overseas) Company Limited (incorporated in the People's Republic of China with limited liability) ("China Life (Overseas)") and will in turn solely invest in an underlying unit trust approved pooled investment fund.

Description of the guarantee mechanism:

  • Valuation and dealing of the constituent fund shall be carried out on each dealing day which will be any day on which the banks in Hong Kong are open for business ("Dealing Day") excluding Saturday and Sunday unless it is specified otherwise in the constituent fund particulars stated in the Annexure of the MPF Scheme Brochure. If the Dealing Day is not a business day, then the first business day thereafter.
  • The approved trustee will maintain in respect of each scheme member a member fund account.
  • The guarantee return is reflected in the unit price of the constituent fund on 1 January of each financial year. The guaranteed rate of return is 3.5% per annum before deduction of all expenses in respect of the constituent fund referred to in the fees and charges in the MPF Scheme Brochure which is adopted as the first step in calculating the guarantee return and the guarantee is applied on each Dealing Day. Deduction of these expenses results in a net guaranteed rate of return of around 2% per annum. Secondly, the net guaranteed rate of return will be pro-rated on a daily basis and applied in calculating the unit price on each Dealing Day and on 31 December of each financial year.
  • On each Dealing Day, the approved trustee shall credit into member fund accounts with units representing the contributions made by or in respect of members divided by the offer price. For the avoidance of doubt, any contribution due but unpaid shall not be credited. On each Dealing Day including 31 December of each financial year, the approved trustee shall calculate the balance standing in credit to each member fund account by applying the unit price times the number of units outstanding.
  • The guaranteed rate of return may be varied upon 3 months prior written notice to the employers and members, in which event the unit price shall after the expiration of the notice be credited with the new guaranteed rate of return and reduced by the expenses stated in item (iii) above (both calculated on a simple interest basis) starting from the new financial year.
  • In determining the guaranteed rate of return, the guarantor will take into account the Hong Kong Dollars interest rate of the Hong Kong market, the trend of US Dollar interest rate, the performance of actual investment returns, the guarantee charge and the amount of reserve already set aside.
  • The unit price of the constituent fund will be calculated at the end of each financial year on 31 December again by dividing the net asset value (less all expenses above) of the constituent fund by the number of units in issue which will include all units to be redeemed but exclude units to be issued on 31 December. If the unit price calculated on 31 December of a current financial year is greater than the unit price on 31 December of the immediate previous financial year increased by the net guaranteed rate of return, the greater unit price will become the unit price of the constituent fund of the next financial year for the purpose of calculating guarantee return.
  • The constituent fund provides capital guarantee to members. The "capital" to be guaranteed shall comprise of the aggregate contributions and return standing to the member’s account at any given time.
  • China Life (Overseas) may deduct from the investment returns of the relevant insurance policy approved pooled investment fund ("Policy APIF") a guarantee charge of up to a maximum of 1.5% per annum on the net asset value of the relevant Policy APIF as cost of the guarantor for providing the guarantee. Currently, guarantee charge is 1% per annum.
  • The guarantor of the relevant Policy APIF is China Life (Overseas). For details of the credit risks, guarantee features, guarantee conditions and guarantee mechanism of this China Life Retire-Easy Guarantee Fund, please refer to Annexure A-5 of MPF Scheme Brochure.

Investment objective:

The constituent fund is established pursuant to section 37 of the Mandatory Provident Fund Schemes (General) Regulation. The investment objective of the constituent fund is to provide capital security with a level of income in Hong Kong dollars.

Asset Allocation
Bank Deposits and Commercial Paper Short-term Notes (Maximum 2 Years)
0-100% 0-12%

Investment Manager :

Taiping Assets Management (HK) Company Limited

Information about the latest risk class of each constituent fund is available in the latest Fund Performance Review.

**Important**

Investment involves risks. Price of units and the income from them may go down as well as up. Past performance figures shown are not indicative of future performance. Please refer to MPF Scheme Brochure for details, risk factors, and fees and charges of the Scheme. 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 independent financial and/or professional advice and choose the constituent fund(s) most suitable for you taking into account your circumstances.

The Default Investment Strategy is made up of two mixed assets constituent funds, namely the China Life Core Accumulation Fund and the China Life Age 65 Plus Fund. Please refer to MPF Scheme Brochure for more details.

Want to know more about the scheme?

Please read MPF Scheme Brochure in Download Centre

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