Press release

Fidelity International enhances its MPF offerings

Hong Kong, 16 May 2016 – Fidelity International today announced a number of new offerings for its Fidelity MPF scheme members in response to their demands on fund choices, fees and online services. The announcement forms part of Fidelity International’s ongoing commitment to enhance its MPF services and better meet the evolving needs of its scheme members.

 

Hong Kong, 16 May 2016 – Fidelity International today announced a number of new offerings for its Fidelity MPF scheme members in response to their demands on fund choices, fees and online services. The announcement forms part of Fidelity International’s ongoing commitment to enhance its MPF services and better meet the evolving needs of its scheme members.

 

To provide more choices to members, Fidelity MPF has launched three constituent funds, RMB Bond Fund, Fidelity SaveEasy 2045 Fund and Fidelity SaveEasy 2050 Fund on its platform. KP Luk, Head of Hong Kong Defined Contribution Business at Fidelity International said, “With the three newly added products, our MPF platform has a total of 19 constituent funds which offer scheme members a comprehensive range of fund choices to construct MPF portfolio based on their retirement needs and risk appetite.”

 

Offer new RMB Bond Fund to help members’ diversify their MPF portfolios

The RMB Bond Fund has been launched on 16 May 2016. Mr. Luk said: “RMB bond funds are designed for moderately conservative investors with a low risk appetite, or investor seeking a steady return over the medium to long term horizon. However, members should consider their risk tolerance level, investment goals, personal needs and risk of RMB bond fund² before making any investment decisions.”

 

More target-date fund choices

Fidelity MPF has a series of target-date funds with various maturity years on its platform, enabling scheme members to better align their portfolio with their desired retirement year. The constituent funds initially with a greater exposure in equities and thereafter, as the target retirement year approaches, greater exposure to bonds and cash; in order to achieve a combination of income and long term capital growth as the target retirement year approaches whilst managing the volatility of returns in the short term.

 

Mr. Luk commented: “Fidelity MPF was the first provider to introduce target date funds in the MPF market in 2008. After adding two new constituent funds, Fidelity SaveEasy 2045 Fund and Fidelity SaveEasy 2050 Fund, Fidelity MPF now offers a total of 7 target date fund choices on to its scheme members. However, members should also consider risk factors³ such as investment risk and risks associated with underlying assets other than age and review their own investment objectives.”

 

Management fee reduction for two constituent funds

Fidelity MPF has adjusted its management fees for the Hong Kong Bond Fund and MPF Conservative Fund down by 25 and 15 basis points up to 1.2% p.a. and to 0.93% p.a. respectively, with effect from 16 May 2016.

 

Mr. Luk further noted, “We review our MPF management fees on a regular basis to stay competitive in the market. Fees are critical although it’s important for scheme members to also consider other key factors such as performance, services and associated risks when selecting scheme providers and funds.”

 

 

Existing management fee p.a. of NAV

New management fee(effective on 16 May 2016) p.a. of NAV

Hong Kong Bond Fund

up to 1.45%

up to 1.20%

MPF Conservative Fund

1.08%

0.93%

 

In addition to the above management fee, there are other fees and charges to be paid to the service providers or the trustee such as Joining fee & annual fee; Fees and charges payable arising from transactions in individual member’s account; Other fees & charges for providing additional services. For details of fees and charges, please refer to the “Fees, Charges and Expenses” section of the Principal Brochure of Fidelity Retirement Master Trust for further information.

 

Manage MPF online anywhere, anytime via web and mobile

Fidelity MPF is also committed to helping scheme members manage their MPF accounts more conveniently, and has introduced “e-Message service” which notifies scheme members by SMS or email upon receipt of asset switching instruction, completion of MPF contributions, etc. We have also simplified our online activation procedures to encourage more scheme members to use our online services.

 

Mr. Luk concluded: “It’s now easier than ever to review your MPF portfolio and get up-to-date market information to manage the portfolio through mobile devices. Our priority for the next couple of years is to further enhance our digital offerings, in order to help our MPF members manage their account more efficiently.”

 

-END-

Note:

1. 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. This fund uses method (i) and, therefore, its unit prices / NAV / fund performance have incorporated the impact of fees and charges.
2. Funds with exposure to RMB denominated debt securities issued or distributed outside China, will subject to RMB currency risk, RMB exchange risk and risk of limited pool of investments.
3. For details of the risk factors, please refer to the “Risk Factors” section of the Principal Brochure of Fidelity Retirement Master Trust for further information.

 

About Fidelity International

Fidelity International offers world class investment solutions and retirement expertise. As a privately owned, independent company, investment is our only business. Our vision is to deliver innovative client solutions for a better future. We invest USD $273 billion globally on behalf of clients in Asia-Pacific, Europe, the Middle East, and South America. Our clients range from central banks, sovereign wealth funds, pension funds, large corporates, financial institutions, insurers and wealth managers, to private individuals. In addition to asset management, we offer investment administration and guidance for employer benefit schemes, advisers and individuals in several countries. We are responsible for USD $84 billion in assets under administration. (Data as at 31 December 2015)

 

For further information, please contact:

Kate Cheung, Corporate Communications Senior Manager (Tel: +852 2629 2641 / Email: kate.cheung@fil.com)

Megan Aitken, Head of Asia Pacific ex Japan Corporate Communications, (Tel: +65 6511 2212 / Email: megan.aitken@fil.com)