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Utilizing the Disclosure Tools

Utilizing the Disclosure Tools

The following disclosure tools have been developed to help you make effective MPF investment decisions. Most of them are designed to help you better understand the fees and charges that apply to an MPF fund, as these are key factors in managing your MPF investments and making investment decisions across funds or across different service providers.


Fee Table

The Fee Table provides the following information:
  • joining fee and annual fee;
  • member’s account level fees, expenses and charges -
a) contribution charge;
b) offer spread;
c) bid spread; and
d) withdrawal charge;
  • fees, expenses and charges of constituent funds -
a) management fee;
b) guarantee charge; and
c) other expenses (audit and professional fees, compensation fund levy, indemnity insurance, etc.);
  • fees, expenses and charges of underlying funds (relevant for funds invested through other underlying funds, rather than directly in investments like equities and bonds); and
  • fees, expenses and charges for providing additional services payable if you request extra services, e.g. an additional copy of Annual Benefit Statement or other documents.

It is provided with any application form (e.g. enrolment form) or upon request.

Fund Expense Ratio (“FER”)

The FER shows you, as a single percentage figure, the level of fees and charges of a fund over the last financial period. While the Fee Table tells you in advance what the components of fees and charges will be, the FER figure will show you what they actually were over the last financial period. Because it is a single figure, the FER percentage is a relatively easy way of comparing costs across MPF funds and schemes. The cost of investing in an MPF fund or scheme is one of the key factors that you should consider when making investment decisions.

The latest FER of a constituent fund is provided in the Fund Fact Sheet of a scheme.

On-going Cost Illustration (“OCI”)

The OCI provides the following information:
  • your costs on each $1,000 contributed and invested in a fund over one, three, and five years, expressed in dollar terms; and
  • the FER for the financial period.

It is provided with any application form (e.g. enrolment form) or upon request.

Fund Fact Sheet (“FFS”)

An FFS provides the following information:
  • fund size - the net asset value of the fund as at the reporting date of the FFS;
  • launch date - the date on which the fund was launched;
  • investment objectives of each fund offered in the scheme - a brief description of the investment objectives of the fund, such as whether it is intended to achieve high/medium/stable capital growth or to preserve capital;
  • portfolio allocation - the allocation of the fund’s assets as at the reporting date of the FFS, normally by types of investments and by their geographical location;
  • top 10 portfolio holdings - the 10 largest security holdings of the fund as a percentage of the fund’s net asset value as at the reporting date of the FFS;
  • fund performance information - the periodic rate of return for the fund over periods of one, five and 10 years, and since its launch;
  • performance measurement against any benchmark used – a comparison of the fund’s performance against the benchmark, if any, identified in the relevant MPF Scheme Brochure;
  • Performance measurement against recognized reference portfolio – for each of the DIS Constituent Fund, a comparison of the performance of the fund against the relevant recognized reference portfolio over the periods of 1, 5, 10 years and since launch as a constituent fund of the DIS and a brief description of the reason for any material difference between the return of the fund and the relevant recognized reference portfolio over any of those periods;
  • latest FER - a ratio that measures fund expenses as a percentage of fund size;
  • fund risk indicator - a general indication of the risk level of the fund; in general, the higher the fund risk indicator, the higher the risk level of the fund;
  • fund descriptor - a description of the fund type that facilitates comparison with other similar funds, representing the characteristics of the fund’s underlying investments (such as asset types and geographic region) in accordance with the fund’s investment objectives and policy;
  • risk class - for each constituent fund, the risk class of the fund as at the reporting date and a brief description of the classification methodology; and
  • commentary - a general discussion of the fund performance, market review and outlook.

At least two FFSs should be issued for each financial period of a scheme, one provided together with the ABS (i.e. within three months after the end of the financial period of the scheme) and the other distributed within two months from a date, which is six months after the end of the financial period of the scheme.

Annual Benefit Statement (“ABS”)

An ABS provides three types of information.

Part 1 – Summary Information
  • your personal information - name, name of your trustee and scheme, and your scheme member account number;
  • summary of account movements for the financial period - your contributions, transfers, and account gain or loss made for the financial period;
  • gain or loss in the account since inception - gain or loss in your account from your MPF investments since you joined the scheme;
  • account balance by source of contributions and account type – a breakdown of the mandatory and voluntary contribution balances in your contribution and personal accounts, tax deductible voluntary contributions in your TVC account, and the balance of your vested benefits by source of contributions;
  • total contributions made and fees charged - the total amount of the contributions made to your account in the financial period, and the total amount of the fees deducted from your contributions (contribution charge, offer spread, etc.);
  • transfers made and fees deducted - transfers in or out of the scheme in the financial period (amount transferred, date of the transfer, etc.) and fees deducted for transfers (e.g. bid and offer spread, as applicable to each transaction);
  • total fees charged to your account - the total amount of the fees charged to your account in the financial period (e.g. member account level fees and charges such as contribution charge, offer spread, bid spread and withdrawal charge) in respect of transactions related to contributions, transfers, withdrawals or redemptions; and
  • periods with outstanding contributions and/or surcharges.

Part 2 – Contribution Statement
  • Details of each contribution made for the financial period, including the date of the contribution (e.g. monthly), breakdown of mandatory and voluntary contributions by employer and employee, tax deductible voluntary contributions and any fees deducted from the contributions (e.g. contribution charge).
Part 3 – Fund Transaction Statement
  • Details of each fund transaction made for the financial period, including all fund transactions in your account (e.g. contributions, fund switching and transfers) for each of the funds in which you have invested (e.g. Bond Fund, Mixed Assets Fund or Equity Fund); and the date of the contribution, transfer or fund switching, the amount transacted, the fund price for the transaction, the number of units invested, switched or transferred, and the fee deducted.

The ABS should be provided within three months after the end of the financial period of the scheme.

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