Fund announcements

FIDELITY RETIREMENT MASTER TRUST NOTICE TO MEMBERS AND EMPLOYERS

10/11/2015

Dear Members and Employers,

 

We are writing to inform you of certain changes to the Master Trust and that the Principal Brochure and the Trust Deed will be amended, where applicable, to reflect such changes as further described below. Except as specified below, the changes will take immediate effect.

 

1. Withdrawal on the ground of terminal illness and other changes relating to Amendment Ordinance

The following changes take effect from 1 August 2015.

 

(a) Withdrawal on the ground of terminal illness

In accordance with the Mandatory Provident Fund Schemes (Amendment) Ordinance 2015 (the “Amendment Ordinance”), in addition to the existing grounds for claiming MPF Balances (benefits derived from mandatory contributions), Members will be entitled to claim their MPF Balances on the ground of terminal illness. The existing grounds on which Members may claim MPF Balances (namely, Member reaching age 65, on early retirement on or after reaching age 60, on the death or total incapacity of a Member, permanent departure from Hong Kong and small balances) will remain unchanged.

Members who wish to make a claim on the ground of terminal illness are required to submit the specified form(s) that will be available from the Trustee and provide the prescribed supporting documents as specified in the relevant form(s).

For further information relating to payment of SVC and Voluntary Balances, please refer to Section 2 of this Notice below.

 

(b) Timing of payment of benefits Pursuant to the Amendment Ordinance, subject to the MPF Ordinance and the General Regulation, for the payment of MPF Balances and Voluntary Balances, the maximum period between the date of receipt of a request for payment and the date of payment will be the later of (i) 30 days of receipt of a valid request for payment and (ii) 30 days after the contribution day in respect of the last contribution period that ends before the receipt of the request (or such other period as may be prescribed by the MPF Ordinance or the General Regulation).

 

(c) Notice of participation Members and Participating Employers newly enrolled in the Master Trust will no longer receive a membership/participation certificate and a notice of acceptance from the Trustee. A notice of participation will be issued instead.

 

2. Flexible Payment of Voluntary Balances

As mentioned in Section 1 above, in accordance with the Amendment Ordinance, “terminal illness” will be included as one of the grounds for withdrawing MPF Balances with effect from 1 August 2015.

The above changes will not affect the circumstances under which SVC and Voluntary Balances may be paid. Currently, an SVC Member may at any time request payment of all or part only of his SVC Balances by giving notice to the Trustee in the prescribed form. Voluntary Balances for other Members are payable in such circumstances as set out in the Trust Deed or as determined by the Participating Employer and the Trustee.

With immediate effect, a Self-employed Member may claim for the payment of his Voluntary Balances on the ground of terminal illness or in other circumstances, subject to such terms and conditions as the Trustee may in its discretion determine.

With respect to Employee Members and subject to the terms of the Trust Deed, whether Voluntary Balances may be paid generally on the ground of “terminal illness” in respect of the Employees of a Participating Employer will depend on the particular arrangement between the relevant Participating Employer and the Trustee.

 

3. Update to the disclosure on Auditor’s maximum liability to the Master Trust

The disclosure on the Auditor’s maximum liability to the Master Trust is updated to reflect the current engagement terms with the Auditors. Pursuant to the terms of its engagement, the Auditor has limited its liability to the Investment Manager and the Trustee in respect of any claims arising out of or in connection with its engagement to an amount equal to three times the fees paid to it for the services or work product giving rise to the liability, except to the extent finally determined to have resulted from its wilful or intentional misconduct or fraudulent behaviour.

 

4. Launch of new constituent funds

Two new constituent funds under the Master Trust, namely Fidelity SaveEasy 2045 Fund and Fidelity SaveEasy 2050 Fund, will be launched.

 

5. Updated asset allocation rolldown chart for SaveEasy Funds

A new asset allocation rolldown chart showing the indicative asset allocations of the SaveEasy Funds is included in the Principal Brochure.

The Investment Manager believes that the new chart reflects the automatic asset rolldown strategy of the SaveEasy Funds more accurately. The revised chart, by removing the names of the specific SaveEasy Funds, provides a more dynamic presentation of the rolldown mechanism to investors.

Please note that the asset allocation rolldown chart provides a simple method for investors to view the indicative asset allocations and also the shift in their risk/return profile over the duration of the particular SaveEasy Fund. Investors are reminded that this is an indicative rolldown and at any particular point in time actual portfolios may vary considerably from that shown as market, political, structural, economic and other conditions change. Save for the aforesaid, there is no change in the asset rolldown path and asset allocation for each SaveEasy Fund.

 

6. Other changes

In addition to the above changes, the Principal Brochure will be amended as follows with immediate effect:

 

■ Enhancement of risk disclosures and disclosures relating to risk and return profile; and

■ Enhancement of disclosures relating to deduction of amounts to offset long service payment and severance payment.

 

The Trust Deed will be amended to reflect the above changes (where applicable), as well as the following changes with immediate effect (except as specified below):

■ reflecting that establishment of new constituent funds is subject to Mandatory Provident Fund Schemes Ordinance;

■ enhancing the provisions in relation to disclosure of information to regulators and other permitted organisations;

■ enhancing the provisions in relation to the deduction of necessary transactions costs relating to transfer of accrued benefits; and

■ reflecting that notice can be made available by such means and in accordance with such requirements as may be prescribed by the Mandatory Provident Fund Schemes (General) Regulation (effective from 1 August 2015).

 

7. Further information on Hang Seng Index

The weightings of the top 10 largest constituent stocks of the Hang Seng Index in the Principal Brochure will be updated. As at 31 August, 2015, the respective weightings of the top 10 largest constituent stocks of the Hang Seng Index are:

 

Code

Stock Name

Weighting

5

HSBC Holdings plc

11.62%

700

Tencent Holdings Ltd.

10.21%

941

China Mobile Ltd.

7.94%

1299

AIA Group Ltd.

7.11%

939

China Construction Bank Corporation

6.31%

1398

Industrial and Commercial Bank of China Ltd.

4.65%

3988

Bank of China Ltd.

3.87%

1

CK Hutchison Holdings Ltd.

3.84%

388

Hong Kong Exchanges and Clearing Ltd.

2.78%

2628

China Life Insurance Co. Ltd.

2.75%

 

8. Consequences of the changes

The above changes will not result in (i) any increment in the current and maximum investment management fees and trustee fees; or (ii) any change in the investment objectives and policies of the constituent funds.

 

9. Third Addendum to Principal Brochure and Fourth Supplemental Deed to Trust Deed

The Principal Brochure is revised by way of a Third Addendum, and the Trust Deed of the Scheme is revised by way of a Fourth Supplemental Deed, to reflect the changes set out above. The changes described in this Notice are in summary form only. Investors should review the Third Addendum and the Fourth Supplemental Deed for further details on the changes made.

Copies of the Principal Brochure, the First to Third Addendum can be obtained free of charge, and the Trust Deed as amended can be inspected, during normal working hours on any day (excluding Saturdays, Sundays and public holidays) at the offices of the Investment Manager at Level 21, Two Pacific Place, 88 Queensway, Admiralty, Hong Kong.

 

Should you have any questions about the above matters, please feel free to contact the Fidelity Investor Hotline at (852) 2629 2629 (for members) or Fidelity Retirement Hotline (852) 2629 2677 (for employers).

 

For further details, please click and download the attached Investor Notice document.

 

For further details, please click and download the attached Investor Notice document.
 Investor Notice