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  • BEA (MPF) Value SchemeExplanatory Memorandum

    Mandatory Provident Fund

  • BEA (MPF) VALUE SCHEME

    EXPLANATORY MEMORANDUM

    BEA (MPF) Hotline : 2211 1777Fax : 3608 6003Web site address : http://www.hkbea.com

    December, 2016

  • IMPORTANT:

    TheMaster Trust offers different Constituent Funds (i) investing in one ormoreApprovedPooled InvestmentFundsorApproved Index-TrackingFundswhichinvestinequitiesorbonds;or(ii)makingdirectinvestments,eachwithdifferentriskprofile.

    BEAMPF Conservative Fund does not provide any guarantee of therepaymentofcapital.

    Youshouldconsideryourownrisktolerancelevelandfinancialcircumstancesbeforemaking investment choices.When, in your selection of ConstituentFunds, you are in doubt as to whether a certain Constituent Fund issuitable for you (includingwhether it is consistentwith your investmentobjectives),youshouldseekfinancialand/orprofessionaladviceandchoosethe Constituent Fund(s)most suitable for you taking into account yourcircumstances.

  • IMPORTANT INFORMATION

    The Sponsor accepts responsibil ity for the information contained in this ExplanatoryMemorandum as being accurate at the date of publication. However, neither the delivery ofthisExplanatoryMemorandumnortheofferoforagreementtoparticipateintheMasterTrustshallunderanycircumstancesconstitutearepresentationthattheinformationcontainedinthisExplanatoryMemorandum is correct as of any time subsequent to such date. This ExplanatoryMemorandummay from time to time be updated. Intending participants in theMaster Trustshould ask the Sponsor if any supplements to this ExplanatoryMemorandumor any laterExplanatoryMemorandumhavebeenissued.

    TheMasterTrusthasbeenauthorisedbytheSecuritiesandFuturesCommissionandapprovedbytheMandatoryProvidentFundSchemesAuthorityinHongKong.Ingrantingsuchauthorisationand approval, neither the Securities and Futures Commission nor theMandatory ProvidentFundSchemesAuthoritytakesanyresponsibilityforthefinancialsoundnessoftheMasterTrustor for the accuracy of any of the statementsmade or opinions expressed in this ExplanatoryMemorandum. Such authorisation and approval does not imply official recommendation oftheMaster Trust by the Securities and Futures Commission or theMandatory Provident FundSchemesAuthority.

    No action has been taken to permit an offering of participation in theMaster Trust or thedistributionofthisExplanatoryMemoranduminanyjurisdictionwhereactionwouldberequiredforsuchpurposeotherthanHongKong.Accordingly,thisExplanatoryMemorandummaynotbeusedinanyjurisdictionwhereitsdistributionisnotauthorised.

  • TABLE OF CONTENTS

    Heading Page Number

    DIRECTORY OF PARTIES ............................................................................................... 1

    DEFINITIONS ................................................................................................................ 2

    ABOUT BEA (MPF) VALUE SCHEME ............................................................................. 4

    How to Join ..................................................................................................................................4

    ContributionsandBenefits ..........................................................................................................4

    ContributionsandBenefitsofSpecialVoluntaryContribution

    AccountMembers .....................................................................................................................4

    InvestmentofContributions ........................................................................................................5

    CONSTITUENT FUNDS .................................................................................................. 6

    InvestmentObjectivesandPolicies ..............................................................................................7

    General .......................................................................................................................................15

    Risk Factors ................................................................................................................................15

    InvestmentandBorrowingRestrictions .....................................................................................21

    Establishment,Termination,MergerandDivisionofConstituentFunds ..................................22

    MANAGEMENT AND ADMINISTRATION .................................................................... 23

    Sponsor ......................................................................................................................................23

    InvestmentManager ..................................................................................................................23

    Trustee........................................................................................................................................23

    CONTRIBUTIONS ........................................................................................................ 24

    MandatoryContributions ..........................................................................................................24

    ContractualVoluntaryContributions .........................................................................................24

    PaymentofContributionsGenerally .........................................................................................25

    InvestmentofContributionsinConstituentFunds ....................................................................26

    MandatestoInvestContributions .............................................................................................26

    InstructionstoChangeInvestment ............................................................................................27

    BENEFITS .................................................................................................................... 28

    EntitlementtoBenefits ..............................................................................................................28

    RealisationofUnits ....................................................................................................................28

    PaymentofBenefits ...................................................................................................................29

    TRANSFERS TO AND FROM OTHER SCHEMES ........................................................... 31

    TransferstoOtherSchemesorotheraccount(s)withintheMasterTrust .................................31

    TransfersfromOtherSchemes ...................................................................................................32

  • CALCULATION OF NET ASSET VALUE AND ISSUE AND REALISATION PRICES ........... 33

    CalculationofNetAssetValue ..................................................................................................33

    CalculationofIssueandRealisationPrices ................................................................................33

    PublicationofPrices ...................................................................................................................34

    SuspensionofCalculationofNetAssetValue ...........................................................................34

    CHARGES AND EXPENSES .......................................................................................... 35

    Sponsor's Fees ............................................................................................................................35

    TrusteeandInvestmentManagementFees ...............................................................................35

    No SwitchingFee .......................................................................................................................36

    ChangeinMandateFee .............................................................................................................36

    OtherChargesandExpenses ......................................................................................................36

    CashRebatesandSoftCommissions ..........................................................................................36

    Fee Table ....................................................................................................................................37

    TAXATION .................................................................................................................. 44

    ForEmployers .............................................................................................................................44

    ForEmployees ............................................................................................................................44

    ForSelf-EmployedPersons .........................................................................................................44

    FortheMasterTrust ...................................................................................................................44

    GENERAL INFORMATION ........................................................................................... 45

    Accounts,ReportsandStatements ............................................................................................45

    TrustDeed ..................................................................................................................................45

    ModificationofTrustDeedandParticipationAgreements .......................................................45

    Termination,MergerorDivisionofMasterTrust ......................................................................45

    MaterialContract ........