FEE COMPARATIVE PLATFORM - PHASE I

A number of factors are important when making decisions about your MPF investments. Factors such as the range of services you are getting, the risk (and likely return) attributes of funds and how they fit with your personal needs are important. Fees and charges are also important.

Fees and expenses paid by MPF funds are measured by the fund expense ratio, i.e. the FER. The FER indicates the total amount of fees and expenses charged to a MPF fund. Gross investment performance is reduced by the amount of fees and expenses.

The table below provides a general picture of the FER for all MPF funds and for the six different types of MPF fund. Only summarized information is presented at this stage as permitted under the existing legislation. On 27 June 2007, the Government introduced into the Legislative Council proposed amendments to the legislation. If the amendments are enacted, Phase II of the Platform will be launched, where the name and specific details of all MPF funds will be disclosed.

In the meantime, you can use the FER contained in the Fund Fact Sheet of your MPF scheme to check whether the FER of your MPF fund is higher or lower than the overall average, or the average for your type of fund.

FER	The Fund Expense Ratio (FER) is a ratio that shows total fund expenses as a percentage of fund size. Fees and charges are generally the predominant component of fund expenses. The latest available FER as at the financial year-end for each MPF constituent fund is shown in the Fund Fact Sheet of each scheme. For details regarding the calculation of the FER, please refer to Chapter E of the Code on Disclosure for MPF Investment Funds.
Average FER	This shows the average FER for all MPF constituent funds weighted by their respective net asset values.
Fund Type	MPF funds and classes of units of funds are classified into six different fund types. The characteristics of each fund type are set out below. The classification of MPF constituent funds by fund type is based on the information provided in the Fund Fact Sheet issued by trustees. Fund Type Characteristics Mixed Assets Fund The fund or a class of units of the fund invests no less than 70% of its assets in bonds and equities, with a specified maximum level of exposure to equity. Bond Fund The fund or a class of units of the fund has no less than 70% of assets invested in bonds. Equity Fund The fund or a class of units of the fund has no less than 70% of assets invested in equities. Guaranteed Fund A guaranteed amount of return of capital of the fund or a class of units of the fund will be paid to holders in future according to the features of the guarantee. Money Market Fund - Capital Preservation Fund (CPF) The fund is essentially a money market fund investing in Hong Kong dollar based assets such as short-term bank deposits and high quality debt securities. The expenses of the fund are deducted based on a mechanism specified in the regulation. Money Market Fund - non CPF The fund invests no less than 70% of its assets in short-term deposits and debt securities. Others Funds that do not fit within any of the description above