Press release

Fidelity MPF Launches Index Tracking Fund

Fidelity MPF has recently launched its first index tracking fund named Fidelity Hong Kong Tracker Fund.

For Fidelity Retirement Master Trust ("Fidelity MPF"), please note:

  • You should consider your own risk tolerance level and financial circumstances before making any investment choices. When, in your selection of funds, you are in doubt as to whether a certain fund is suitable for you (including whether it is consistent with your investment objectives), you should seek financial and / or professional advice and choose the fund(s) most suitable for you taking into account your circumstances.
  • You should not invest based on this document alone and should read the Principal Brochure of Fidelity Retirement Master Trust for further information.
  • The MPF Conservative Fund under the Fidelity Retirement Master Trust does not guarantee the repayment of capital.
  • The index tracking fund under the Fidelity Retirement Master Trust is subject to market risk of the sector or market tracked by the relevant index, tracking error risk, passive management risk, early termination risk, etc. Please refer to the “Risk Factors” section in the Principal Brochure of Fidelity Retirement Master Trust for further information.
  • Fidelity SaveEasy Funds are not savings deposits and involve investment risks and this product may not be suitable for everyone. Investors should also consider factors other than age and review their own investment objectives.

 

HONG KONG, 4 August 2013 – Fidelity MPF has recently launched its first index tracking fund named Fidelity Hong Kong Tracker Fund.

Fidelity Hong Kong Tracker Fund
directly invests the fund assets into the Tracker Fund of Hong Kong ("TraHK") which aims to provide investment results that closely correspond to the performance of Hong Kong's Hang Seng Index1. The manager of TraHK (State Street Global Advisors Asia Limited) invests substantially all TraHK's assets in the shares in the constituent companies of the Hang Seng Index in substantially the same weightings as they appear in the Hang Seng Index.

The launch of Fidelity Hong Kong Tracker Fund brings the total number of constituent funds under the Fidelity Retirement Master Trust to 16, including five SaveEasy Funds that adjust the asset allocation subject to targeted retirement years, three equity funds, four lifecycle funds, two bond funds and one MPF conservative fund2.

KP Luk, Head of HK Institutional Business, Fidelity Worldwide Investment, said, "We understand that MPF members have different investment needs, so we have launched our first passively-managed index tracking fund product – Fidelity Hong Kong Tracker Fund to offer more choices to our members. With the launch of this new constituent fund, Fidelity MPF is now offering a series of constituent fund products with different risk levels, management models and assets classes for members' selections. With a client-centric approach, we are committed to developing more MPF products and to enhance investor education in order to assist members in their preparations for retirements."

The features of Fidelity Hong Kong Tracker Fund include:

  1. Offers members an investment option that closely corresponds to the performance of the Hang Seng Index
    Fidelity Hong Kong Tracker Fund directly invests the fund assets into the Tracker Fund of Hong Kong ("TraHK") which is a passively-managed fund product. TraHK aims to provide investment results that closely correspond to the performance of the Hang Seng Index by adjusting the portfolio asset allocation according to the weightings of the constituent stocks in the Hang Seng Index.
  2. Simply structured and highly transparent
    Fidelity Hong Kong Tracker Fund is an index tracking fund with a relatively simple and transparent investment portfolio comparing with most actively-managed constituent funds as it only invests in the 50 constituent stocks of the Hang Seng Index.
  3. Lower management fees
    Fidelity Hong Kong Tracker Fund is a passively-managed index tracking fund and its management fees (up to 0.7% p.a. of its net asset value3) is generally lower than most actively-managed constituent funds.

 

1  The Hang Seng Index measures the performance of largest and most liquid companies listed on the Main Board of the Shock Exchange of Hong Kong Limited and is compiled by adopting free float-adjusted market capitalisation weighted methodology. Details of the index methodology and further information in relation to the Hang Seng Index are available at www.hsi.com.hk. As for other important news of the Hang Seng Index, Hang Seng Indexes Company Limited will also make announcements through press releases and at www.hsi.com.hk.

2  Fees and charges of MPF conservative funds can be deducted from either (i) the assets of the fund or (ii) members' account by way of unit deduction. MPF Conservative Fund under the Fidelity Retirement Master Trust uses method (i) and, therefore, its unit prices / NAV / fund performance have incorporated the impact of fees and charges. The purchase of a Unit in the MPF Conservative Fund is not the same as placing funds on deposit with a bank or deposit-taking company.

3 Please refer to the Principal Brochure of Fidelity Retirement Master Trust for the fees and charges details.

– Ends –

 

About Fidelity Worldwide Investment
Fidelity Worldwide Investment is one of the global leaders in asset management, providing investment products and services to individuals and institutions in the UK, continental Europe, the Middle East and Asia Pacific. Established in 1969, the company has over 6,000 staff in 24 countries and manages or administers client assets of US$305.5 billion. It has over five million customer holdings and manages more than 660 equity, fixed income, property and asset allocation funds. The company’s fund managers receive research from one of the largest proprietary research teams, based in 12 countries around the world. Fidelity Worldwide Investment is an independent asset management company which is privately owned.

Data as at 30 June 2013

Media Contact:

Patricia Chua

Kate Cheung 

Head of Corporate Communications (Hong Kong)

Manager, Corporate Communications

Tel: +852 2629 2468

Tel: +852 2629 2641

Email: patricia.chua@fil.com

Email: kate.cheung@fil.com