The fund aims to achieve a return in excess of the "prescribed savings rate" (i.e. broadly the average rate of interest on a Hong Kong dollar savings account) published by the MPFA.
Investment Policy
The fund may itself or through an approved pooled investment fund ("APIF") invest in a diversified portfolio of bonds, equities and deposits with heavier weighting in bonds. Normally around 60% to 90% of the assets will be invested in bonds, 10% to 25% in equities and up to 25% in deposits. The fund is currently a feeder fund and invests entirely in a single APIF issued by AXA China Region Insurance Company (Bermuda) Limited ("Sponsor").
This is a non-unitized fund and the account balance of a member in the APIF is the amount in Hong Kong dollars invested in the APIF (net of charges, if any) for that member accrued with the declared crediting rate as determined by the Sponsor. The declared crediting rate is reviewed regularly by the Sponsor having regard to various matters including actual return, value and nature of assets, the level of guarantee, investment and operating expenses, market conditions and taxes.
The Sponsor guarantees, through the APIF, that the amount payable under the APIF for the member shall be the account balance of that member in the APIF in the following events:
death;
retirement; or
total incapacity.
In the following events, the Sponsor guarantees, through the APIF, that the amount payable under the APIF for the member shall be the greater of the amount in Hong Kong dollars invested in the APIF (net of charges, if any) for that member and the account balance of that member in the APIF after applying a reduction, if any, as explained below:
termination of the APIF by the Sponsor;
termination of employment of the member; or
circumstances set out in the MPF Ordinance and Regulation in which accrued benefits derived from mandatory contributions are payable in respect of the member? permanent departure from Hong Kong or small balance account.
No guarantee shall be applied in other events and the amount payable under the APIF for the member shall be the account balance (or the relevant part of the account balance) of that member in the APIF after applying a reduction, if any, as explained below in the events such as:
a member switches all or part of the amount invested in the fund to another constituent fund;
a member elects to have amount held for his account under Double Easy Mandatory Provident Fund ("Plan") transferred to other provident fund scheme; or
the employer terminates its participation in the Plan.
Upon realisation of investments in the APIF, the Sponsor may reduce the proceeds of realisation of such investments by an amount at its absolute discretion having regard to various factors including market conditions, the level of guarantee being provided and market value of the underlying assets. The reduction will not exceed 5% (or such higher percentage as decided by the Sponsor with the approval of the MPFA) of the account balance (or the relevant part of the account balance) of the member in the APIF.
For further details, please refer to the offering document of the Plan.
