| Annual fee |
Amount charged by the trustee/sponsor of a MPF scheme
on an annual basis, payable by the employer and/or
scheme members. Details are provided in the
Fee Table of a scheme.
|
| Average Fund Expense Ratio (average FER) |
The average FER of all MPF
Constituent Funds
weighted by their respective net asset values.
|
| Approved Pooled Investment Fund (APIF) |
A type of investment fund that a Constituent Fund invests into. An APIF can be in form of an insurance policy or a unit trust.
|
| Bid Spread |
Amount charged by the trustee/sponsor upon redemption of units of a
Constituent Fund by a scheme member.
Bid spread does not apply to a MPF Conservative Fund. Details are provided in the
Fee Table of a scheme.
|
| Contribution
charge |
Amount charged by the trustee/sponsor of a scheme
against any contributions paid to the scheme.
The charge does not apply to MPF Conservative Fund.
Details are provided in the
Fee Table of a scheme.
|
| Constituent Fund (CF) |
An investment fund that constitutes or forms part of a MPF scheme.
The constituent fund may be comprised of different Fund Classes.
Each Fund Class of a constituent fund
is displayed and, in effect, treated as a separate investment fund on the platform.
|
| Fee Table |
A standardized table showing fees and charges imposed on an
MPF scheme at a glance. The format of the Fee Table is the same
across different trustees to help you make basic comparison of fees
and charges across different schemes and service providers.
The Fee Table is contained in the Offering Document
of a scheme.
|
| Fund Expense Ratio (FER) |
The FER is a ratio that measures the
expenses of your MPF fund as a percentage of fund size.
Whilst you do not directly pay fund expenses,
they do impact directly on the investment returns of your fund.
Fees and charges are generally the main component of fund expenses.
The FER is calculated for each financial period of a
Constituent Fund.
The FER is provided in the Fund Fact Sheet of a scheme.
Note that the FER is calculated based on data from the previous financial period.
The published FER will not reflect any increases or decreases in fees,
charges or expenses in the current financial period. It is not necessary for funds with less than 2 years of history to show a FER.
However, the FER of a fund with less than 2 years of history will be shown on the platform if the
approved trustee has provided that information in the fund fact sheet.
If you are interested, you can refer to Chapter E of the
Code
on Disclosure for MPF Investment Funds for details on the calculation of the FER.
|
| Financial Period End Date
|
The last day of the financial period of the MPF scheme.
|
| Fund Class |
A class of units within a Constituent Fund held by a
particular group or class of scheme members.
|
| Fund Type – Fund Descriptor |
A short description of the characteristics of the fund type to
facilitate comparison with other similar funds. There are six
different types of MPF funds, each with a different fund descriptor.
The fund descriptor is based on the fund type (e.g. equity, bond, or mixed assets),
its investment objectives and policy, the maximum exposure to equity
(for mixed assets funds), and the geographical region where assets are invested.
The fund descriptor is provided in the
Fund Fact Sheet.
|
| Fund Type |
There are six different MPF fund types. The characteristics
of each fund type are set out in the table below.
The fund type and characteristics of a MPF fund are
specified in the fund descriptor in the
Fund Fact Sheet.
| Fund Type |
Characteristics |
| Mixed Assets Fund |
The fund or a class of units of
the fund invests no less than 70% of its assets in bonds and equities,
with a specified maximum level of exposure to equity. |
| Bond Fund |
The fund or a class of units of
the fund has no less than 70% of assets invested in bonds. |
| Equity Fund |
The fund or a class of units of
the fund has no less than 70% of assets invested in equities. |
| Guaranteed Fund |
A guaranteed amount of return of
capital of the fund or a class of units of the fund will be paid
to holders in future according to the features of the guarantee. |
| Money Market Fund - MPF Conservative Fund |
The fund, previously known as the capital preservation fund, is essentially a money market fund investing in Hong Kong dollar based assets such as short-term bank deposits and high quality debt securities. The expenses of the fund are deducted based on a mechanism specified in the regulation. |
| Money Market Fund - non MPF Conservative Fund |
The fund invests no less than 70% of
its assets in short-term deposits and debt securities. |
| Others |
Funds that do not fit within any of
the description above |
|
|
| Fund Fact Sheet |
The Fund Fact Sheet is like the report card of a MPF fund,
reporting on how the fund is doing. It provides key summary information
on a Constituent Fund, such as fund size, investment objectives,
portfolio allocation, main holdings in the portfolio, fund performance,
FER, Fund Risk Indicator
and future outlook for each Constituent Fund
in a scheme. The Fund Fact Sheet is issued on a half-yearly basis.
|
| Fund Risk Indicator
|
The Fund Risk Indicator shows the risk of a MPF fund.
It is provided in your Fund Fact Sheet
and helps you choose the risk you like to take in your MPF investment.
The risk of a fund is important because research suggests that there is
a trade off between risk and investment return. A fund with higher risk tends
to show greater volatility of return than a low risk fund.
It also has the potential to offer higher expected return than a low risk fund.
Its downside potential is increased similarly.
We have prepared a short guide to help you understand
what the Fund Risk Indicator shows you.
The figure is calculated as the annualized standard deviation based on
monthly rates of return of the fund over a 3-year period.
Please refer to Section C of the
Performance
Presentation Standards for MPF Investment Funds for details on
the calculation of the Fund Risk Indicator.
|
| Fund Size |
The Net Asset Value of the
Constituent Fund as at the
reporting date of the Fund Fact Sheet.
|
| Guarantee Charge |
Amount deducted out of the assets of a guaranteed fund for the
purpose of providing the guarantee. Details are provided in the
Fee Table of a scheme.
|
| Launch Date |
The date that a Constituent Fund
was first made available to scheme members for investment purposes.
|
| Joining Fee |
A one-off fee charged by the trustee/sponsor of a scheme,
payable by the employer and/or scheme members. Details are provided in the
Fee Table of a scheme.
|
| Management Fee |
Fees paid to one or more of the trustee, custodian, administrator, investment manager
(including fees based on fund performance, if any) and sponsor of a scheme
for providing their services to the fund. Generally, these fees are paid out of the Constituent Fund (i.e. management fees payable at CF level).
Constituent Funds (CF) that are invested in Approved Pooled Investment Funds (APIF) and other permissible investment funds may be subject to fees and charges of those underlying funds (i.e. management fees payable at APIF level). Depending on the actual fee structure, fees and charges payable at Constituent Fund and/or underlying funds may be combined (i.e. management fees payable at CF & APIF levels) or disclosed separately in the Fee Table of a scheme.
For some MPF Conservative Funds, fees are charged by way of deduction of units in the members' account. Please click here for further details.
|
| Maximum Equity [%] |
Maximum exposure to equity of a Mixed Assets Fund (or such other terms as used in the Offering Document), as specified in the fund descriptor of the Mixed Assets Fund.
|
| Median Risk
Indicator |
The median of the Fund Risk Indicators of the selected basket of Constituent Funds. In other words, half of the selected basket of Constituent Funds are above the median risk indicator and half are below it.
|
| Net Asset Value (NAV) |
The NAV of a Constituent Fund or a class of a Constituent Fund is the total value of asset net of any liabilities of the fund.
|
| Offering Document |
A document inviting participation in a MPF scheme by prospective members.
It should contain the necessary information for you to make informed decisions about the scheme.
It contains important information about the scheme, operators, constituent funds,
contributions and withdrawals, fees and charges, warnings and other important issues.
|
| On-going Cost Illustration (OCI) |
The OCI illustrates the total effect
of fees and charges payable in dollar terms by converting the latest
Fund Expense Ratio (FER) figure into dollars and adding that to
any direct charges that you might pay such as contribution charge or
offer spread. It shows the dollar costs of investing $1,000 in
different funds over periods of one, three and five years.
The OCI is updated each year, based on the FER
from the previous year, and for the purpose of comparison only,
assumes an annual rate of investment return of 5%.
The OCI provides you with an easy basis to compare the likely costs
of different funds and different schemes. In addition, the OCI is not required for MPF Conservative Fund, Guaranteed Funds where the amount accrued is not affected by the performance of the fund, and funds with one year or less of operational history.
It is however important to remember that the OCI is not
promising 5% investment return, nor is it suggesting that the
FER figure will not change over the periods.
Those figures are used so that a cost illustration can be calculated
on a common set of assumptions. These common assumptions provide
a solid basis for comparison across funds and service providers.
|
| Offer Spread |
Amount charged by the trustee/sponsor upon subscription of units of a
Constituent Fund by a scheme member.
Offer spread does not apply to a MPF Conservative Fund. Details are
provided in the Fee Table of a scheme.
|
| Other Expenses |
In addition to joining fees, management fees, guarantee charges, bid spread and/ or offer spread and withdrawal charge, there are a variety of, usually smaller, miscellaneous fees and charges that may be chargeable to a Constituent Fund and scheme.
Examples may include compensation fund levy, establishment cost of the scheme,
indemnity insurance, auditor's fees and legal charges. Details are provided in the
Fee Table of a scheme.
|
| Region |
The geographical region in which the assets of a
Constituent Fund are primarily invested,
for example, Hong Kong, Asia, Europe, North America or Global.
|
| Withdrawal Charge |
Amount charged by the trustee/sponsor of a scheme upon withdrawal
of accrued benefits from the scheme. The charge does not
apply to MPF Conservative Fund. Details are provided in the
Fee Table of a scheme.
|
