Important Notes• Youshouldconsideryourownrisk tolerance levelandfinancialcircumstancesbeforemakingany investmentchoicesor investingaccording to the

DefaultInvestmentStrategy.When,inyourselectionoffundsortheDefaultInvestmentStrategy,youareindoubtastowhetheracertainfundorthe

Default InvestmentStrategy issuitable foryou (includingwhether it isconsistentwithyour investmentobjective),youshouldseekfinancialand/or

professionaladviceandchoosetheinvestmentchoice(s)mostsuitableforyoutakingintoaccountyourcircumstances.

• Intheeventthatyoudonotmakeanyinvestmentchoices,pleaseberemindedthatyourcontributionsmadeand/oraccruedbenefitstransferredinto

thePlanwillbeinvestedinaccordancewiththeDefaultInvestmentStrategy,whichmaynotnecessarilybesuitableforyou.Pleaserefertothesection

headed“DefaultInvestmentStrategy”intheprincipalbrochureofBCT(MPF)ProChoiceandBCT(MPF)IndustryChoiceforfurtherinformation.

• Investmentinvolvesrisks.Pastperformanceisnotindicativeoffutureperformance.

Issue 3 2018 第三期Member News 成員通訊

1BCT Connect 成員通訊

Step Up with BCT to Plan Your Retirement

Ms.KaShiLau,MD&CEOofBCTGroup,andDr.BillyS.C.Makencouragethepublictoplanforretirementfromvariousaspects.

• Retirement Satisfaction Quiz – A simple assessment on one’s readiness to retirement • BCT Next Academy – Promotes self enhancement among the working populations and

retirees• Piggy’s Classroom – Provides educational videos on investment and MPF management• Retirement Calculator – A basic tool that helps estimate the costs of retirement• Other retirement-related information – on topics such as retirement protection,

social security, and lifestyle

Adesired retirement requiresproperplanningandpreparations in

4majoraspects: financialmanagement, self-actualisation, social

supportnetwork,andhealthy lifestyle.Toencourageearlyplanning

foradesiredretirement,BCTlaunched“StepUpwithBCT”,anonline

platformwitha rangeof resourcesand tools thatsupportvarious

aspectsofretirementplanning.

BCT Next Academy – Self Enhancement Lifelong Learning

BCT Next Academy collaborateswith LiKaShing Instituteof

ProfessionalandContinuingEducation,OpenUniversityofHongKong(“OUHK”)andofferstuitionfee

discountsandsubsidiestoeligiblepersonsenrollingintheActiveElderlyLearningProgramme(“AELP”)

offeredbytheElderAcademyofOUHK.At the8thgraduationceremonyofOUHK’sElderAcademy

heldinJuly,atotalof104studentsofAELPreceivedtheirLifelongLearningCertificates,inrecognition

oftheirspiritofseekingknowledge.

Do You Expect a Satisfying Retirement Life?

ThepopulationofHongKongcontinuestoage.TobetterunderstandtheretirementneedsofHong

Kongpeople,BCTcommissioned internationalmarketresearchcompany,GFK,toconductapublic

opinionsurveyonretirementsatisfactioninHongKong,withDr.BillyS.C.Mak,AssociateProfessorof

theDepartmentofFinanceandDecisionSciencesoftheSchoolofBusinessattheHongKongBaptist

University,beingtheconsultantofthesurvey.WesharedthesurveyresultsinJuly,andhopetoconvey

themessagethatachievingadesiredretirement requiresproperplanningandpreparations inself-

actualisation,socialsupportnetwork,andhealthy lifestyleapart fromfinancialmanagement.Survey

results:https://www.bcthk.com/en/what-s-new/latest-news/1600-bct-encouraged-the-public-to-plan-

their-retirement-life-in-multiple-aspects

https://retirement.bcthk.com/enDiversified content

ToenhanceyourexperiencewithBCTe-journey,wehavebeengraduallyimprovingourmemberwebsiteandofferingawiderrangeoftools,tomakeyour

MPFmanagementeasier.The“View/UpdateyourPersonalInformation”partonmemberwebsitehasbeenupdatedto“MyBCT”,withawholerangeof

personalisedoptionsforselection.Thesamefunctionisavailableonourapp,youcanupdateyourpersonalinformationandpreferencesanytime,anywhere.

Personalise My BCT e-Journey

Check Your Semi-annual Statement for MPF Review

3 Main Sections under “My BCT”

Select “My BCT” in Main PageLogin to Member Website

2BCT Connect 成員通訊

The“Semi-annualMemberBenefitStatement”asof30June2018isnowavailable

onourwebsite.Pleaseviewordownloadyourstatement through logging in to

youraccountonBCT’swebsite.

1. Personal Information Maintenance:updatepersonalinformation

andoptionsofreceivingmessage

2. E-services Setting:personalisedoptionsofe-services

-RegisterforMPFAccountBalanceSMSServiceandselectyour

preferredlanguage

-Selecttoreceivetheelectronicversionof“Semi-annualMember

BenefitStatement”

My BCTManageyourpersonalinformation,e-servicesandchangePassword(PIN).

Password (PIN) Management

Personal Information Maintenance

E-services Setting

3. Password (PIN) Management

US Stock Markets Stood Out from Escalating Trade War

3BCT Connect 成員通訊

• Thevalueofconstituentfundsmayfallaswellasrise.Forfurtherinformationabouttherisksinvolved,pleaserefertotheprincipalbrochureofBCT(MPF)ProChoiceandBCT(MPF)IndustryChoice.

• The informationcontained in thisdocument isprovided for informationpurposeonlyanddoesnotconstituteanysolicitationandofferingof investmentproducts.Potentialinvestorsshouldbeawarethatsuchinvestmentsinvolvemarketriskandshouldberegardedaslong-terminvestments.

Positive to US Equities despite Escalation of Trade WarPresident Donald Trump finally decided to implement some of his

protectionist threatswithanew threat to raiseevenmore taxeson

imports fromChina.Weexpect that limited tariffswillbe implemented

withrelativelycontrolledmacro impacts.While talkscontinue,wewould

consider theprobabilityofascenario inwhich tensionswouldescalate

furtherinthecomingmonths.WeremainpositiveonU.S. equitymarkets

mainlyduetotheU.S.growthandthefiscalexpansionpolicy.

The End of ECB’s QE soon amidst Lower Growth Environment The European Central Bank

(“ECB”) announced that net

asset purchases would end

i n D e c e m b e r 2 0 1 8 . O n a

monetarypolicyside, theECB’s

quantitativeeasingshouldendin

amorechallengingenvironment

than for the Federal Reserve

as thegrowth in theEurozone

isdeceleratingand thepeakof

liquidityisbehindus.Weremain

NEUTRALonEuropean equity

marketsmainlyduetoa lossof

momentumin leadingeconomic

indicatorsandlowerGDPgrowth

expectations.

NEGATIVE on Government Bonds due to Higher Yield Prospects

In theU.S.,we think thecurve iscurrently too flat,aswebelieve

thatmore inflationriskpremiashouldbediscounted. InEurope,we

continuetofavorashortdurationviewincorebondsduetoexpensive

valuationsandtheendofQEapproaching.Weexpect the10year

Treasuryyieldtoreach3%to3.5%bytheendof2018,assuminga

2.4%FedFundstargetrate.Oncurrencies, theshort-termdynamic

remainsfavorabletotheU.S.DollaragainsttheEuro,butalargepart

ofthegainsarenowbehindus.Wealsolikebeinglongonabasket

ofAsiancurrencieswithcurrentaccountsurplusesvstheU.S.Dollar,

giventhatthesecurrenciesshouldbemoreresilientduringmonetary

policynormalization.WeremainmostlyNEGATIVEonGovernment

Bondsmainlyduetohigheryieldprospects,andmostlypositiveon

creditmainlyduetoaninterestingcarryvsGovernmentBondsanda

benigndefaultoutlook.

Economic Slowdown Implies Continuation of BoJ’s Stimulus GDPgrowthshouldslow in2018fromtheprevious

year.However,therecentreboundintheU.S.Dollar

easesthepressureonexportprice.Onthemonetary

policyside,wedonotseeany imminentsignsof

changes to thecurrentQuantitativeandQualitative

MonetaryEasingprogram in theshortandmedium

term,as inflation isstillwellbelow target.We turn

NEUTRALontheJapanese equitymarketsmainly

duetoalossofmomentuminGDPgrowth.

PBoC’s Policy Turns Loose amidst US-China Trade WarChinese equi t ies recent ly was

punctuatedbyescalating tensions

with the U.S. and the rise of the

policymiximplementedbyBeijingto

protect themselves fromeconomic

accidents. The People’s Bank of

China (“PBOC”)announcedanother

Required Reserve Ratio (“RRR”)

cutof0.5%forallbanks,torelease

liquidity.OnU.S./Chinanegotiations,

while near-termuncertainty looks

relativelyhigh,weexpectlimitedtariff

tobe implementedonChinawith

relativelymildmacro impactsduring

negotiations.We remainPOSITIVE

onChinese & Hong Kong equities

astheylookattractiveonamedium-

to long-termhorizon. In theshorter

te rm, we are caut ious due to

concernsontradewar.

Negative Market Sentiment Weighed on Asian MarketsTradewarconcernsand increasingforeignoutflowsweighedon

Asiaex-JapanexChina&HongKongequities. Regarding the

latestSino-Americandevelopmentson trade, it isworthnoting

that if the totalmeasurescomes intoeffect, itwouldhavea

significant impact.However,bothpartiesshouldatsomepoint

understandthat theybothmay losefromdepartingtooabruptly

from thecurrentorderofglobalbusiness,andnoise in trade

warrhetoricscouldnegativelyaffectmarketsentiment.Weturn

NEUTRALonAsia ex-Japan equitiesduetoanegativemarket

sentimentthatcallsforacautiousstance.

Someoftheinformationcontainedhereinincludinganyexpressionofopinionorforecasthasbeenobtainedfromorisbasedonsourcesbelievedbyus tobereliable,but isnotguaranteedandwedonotwarrant theadequacy,accuracy, reliabilityorcompletenessofsuch informationobtained fromorbasedonexternalsources. The information isgivenontheunderstandingthat independent investmentadviceshouldbesoughtwhenmakinginvestmentdecisions;thatitwillnotbereliedoninthemakingofinvestmentdecisionandthatanypersonwhoactsuponitorotherwisechangeshisorherposition inreliancethereondoessoentirelyathisorherownrisk. This isnotanoffer tobuyorsellorasolicitationorincitementofoffertobuyorsellanysecuritiesreferredtoherein,saveforBCT(MPF)ProChoiceandBCT(MPF)IndustryChoiceandtheirunderlyingconstituentfunds. Itshouldalsobeappreciatedthatundercertaincircumstancestheredemptionofunits/sharesmaybesuspended. Investment involves, inparticular, risksassociatedwith investment inemergingand lessdevelopedmarkets. Pleaserefer totherelevantprospectusfordetails.Pastperformanceisnotindicativeoffutureperformance.“BCTGroup” —BCTFinancialLimited(PlanSponsor) —BankConsortiumTrustCompanyLimited(Trustee&Administrator)

ThisdocumentisissuedbyBCTFinancialLimited

Member Hotline: 2298 9333

Employer Hotline: 2298 9388www.bcthk.com18/F Cosco Tower, 183

Queen’s Road Central, Hong

Kong

4BCT Connect 成員通訊

08

/20

18

CoverageTheMPFhaswidecoverage.Employeesandself-employedpersonsaged18to64arecoveredbytheMPFSystem.Beforethe introductionof theMPFSystem,onlyone thirdof theworkforceenjoyedretirementprotection.Today84%ofthetotalemployedpopulationiscoveredundertheMPFandother retirementprotectionschemes,which isahighratiocomparedwithotherschemesintheinternationalarena.

SustainabilityTheMPF is financiallysustainable,as itdoesnotplaceaburdenongovernment,employersoremployeesto financeanyshortfallofunder-fundedschemes.TheMPFisalsogrowinginsizerelativetothedomesticeconomy.AsattheendofJune2018,MPFassetsreached$852billion,representingapproximately30%ofHongKong’s2017GrossDomesticProduct.

SecurityMPFsavingsaresafeguardedunderasoundlegalandfinancialsysteminHongKong.MPFschemesaremanagedandmaintainedundertrustbyMPFtrustees,whomustmeetstringentstatutorycriteria.MPFassetsareunderthesafecustodyofqualifiedcustodiansandarekeptseparatefromthoseofemployers,MPFtrusteesorotherserviceproviders.

EfficiencyThe efficiencyof theMPFSystemhasbeen improving,with costsbeing loweredover theyearsdue tovarious initiativesundertakenbytheMandatoryProvidentFundSchemesAuthority (MPFA),suchas theEmployeeChoiceArrangementandtheDefaultInvestmentStrategy(DIS).TheFundExpenseRatio (FER),whichwas2.1%when introduced inDecember2007,hasdroppedtoarecordlowof1.53%inJuly2018.TheMPFAisdevelopingacentralizedelectronicplatform,calledeMPF,withaviewtobringinggreaterefficiencyandcost-efficiencytotheMPFSysteminthelongrun.

Adequacy Bydesign, theMPFalone is inadequate for retirement,as it isonlyonepillar in themulti-pillar retirementprotectionsystem inHongKong. Itisexpected thatwith theabolitionof theoffsettingarrangementandintroductionof taxdeductions forvoluntarycontributions in the future,moreMPFsavingswillbe retained inschememembers’accounts tobettermeettheirretirementneeds.

BCT Wins Best SME’s Partner Award for the 9th Consecutive Year

MPF System is doing well by international standards

Reunite with Your Long-lost MPF Account…

BCT’sbrandingcampaignteamedwithseveral local influencers

andextendeditsreachtotheonlineplatforms.Thevideosparked

off socialbuzzwith freshcollaborationbetweenmillennialTV

hosts “ThreeCyclists”andveteranactressMaryHon,named

as the“mostheartlessmother”bynetizens forabandoningher

children innumerousTVdramas.Wanttoknowhowtheclassic

charactergetsconnectedwithherMPFaccountsinancienttime?

Watchthevideonow!

Scantowatchthevideo

BCThasreceivedtheBestSME'sPartnerAwardforthe9thconsecutiveyearfromTheHong

KongGeneralChamberofSmallandMediumBusiness inacknowledgementofour long-

standingsupportandcontributionstotheSMEsinHongKong.

ServingasakeypillarofHongKong’sretirementprotectionframework,theMandatoryProvidentFund(MPF)Systemaimstohelptheworkforcesaveforretirement.TherearefivekeyoutcomesidentifiedbytheWorldBankforevaluatingaprivatepensionsystem:adequacy,coverage,security,sustainabilityandefficiency.TheMPFSystemhasperformedwell inanumberofrespects.

MandatoryProvidentFundSchemesAuthority

Hotline:29180102

Website:www.mpfa.org.hk