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Read Relevant Information
Read MPF information regularly, in particular the Fund Fact Sheet and Fee Table which contain information directly related to your MPF investment, to enable you to know more about your investment.
Fund Fact Sheet
Approved trustees are required to issue at least two Fund Fact Sheets per year for the reference of scheme members. Fund Fact Sheets should contain the following information:
- Fund size
- Provides the net asset value of the MPF fund at the date indicated in the fund fact sheet.
- Launch date
- This item will tell you when the fund was launched and how long it has been in the market.
- Investment objectives
- Describes in general terms how the fund manager intends to invest the assets of the scheme. This might for example state whether the fund aims to preserve capital or achieve higher returns, so you can decide if it matches with your long-term investment goal.
- Portfolio allocation
- Explains the distribution of a fund's assets such as which regions/markets they are invested in, or the proportion of investment in equities, bonds, cash and others respectively, etc. In general, the higher the proportion of equities, the higher the level of risk of the fund.
- Top 10 portfolio holdings
- Lists the largest 10 security holdings of a fund as a percentage of fund net asset value. This information allows scheme members to learn more about how the fund manager has implemented the fund's investment strategy.
- Fund performance information
- Shows the rate of return of a fund for each year, and the annualized return over the periods of 1, 5, and 10 years and since launch. This will help you get a better understanding of the fund's on-going performance. However, you should note that past performance of a fund is no guide to its future performance.
- Fund risk indicators
- The fund fact sheet shows risk, measured as standard deviation. The standard deviation figure provides a general indication about the risk level of a fund for easy comparison. In general, the higher the standard deviation figure, the larger the fluctuation of the fund prices. Click here for more information on how to use the Fund Risk Indicator.
- Fund descriptor
- Describes the type of a fund, such as whether it is a capital preservation fund or an equity fund to facilitate comparison.
- Commentary
- Gives views on the performance of a fund, market review and market outlook. These will help scheme members better understand the performance of the fund.
- Others
- Some Fund Fact Sheets also provide the latest fund expense ratios, as well as performance measured against any benchmarks used.
Obtaining the Fund Fact Sheet
You can obtain the Fund Fact Sheet from your trustee. You can also ask for other documents relating to your MPF scheme such as offering documents, fee tables, members' guide and promotional leaflet, etc.
Fee Table
As professionally managed investment products, all MPF funds incur charges to cover professional fees and transaction-related expenses, but the policy differs from one MPF scheme to another. Generally speaking, there are five major categories of MPF fees and charges:
- Joining fee and annual fee
- Joining fee is a one-off charge that covers the cost of establishing your account while annual fee is a fee paid annually for maintaining your MPF account. The annual fee may be charged as a flat fee or a percentage of your account balance. If the scheme has a joining fee, this is sometimes paid by your employer.
- Member account transaction fees and charges
- These fees and charges are sometimes charged when you make a contribution or withdrawal to a scheme or change investment funds. They are usually charged as a percentage of the value of the transaction.
- Fund operating charges
- They include the amounts charged by professionals for managing and administering the fund, and other operating expenses such as legal or auditing expenses.
- Fees and charges of underlying funds
- These are fund operating charges of the underlying funds in which your MPF fund has invested.
- Fees and charges for additional services
- These charges could be levied if you request extra services, such as additional annual benefit statements or other documents.
All MPF service providers are now required to present information about fees and charges in the Fee Table, which uses a standard format and easy-to-understand language to facilitate understanding and comparison on MPF fees and charges.
Remember, MPF is a long-term investment, and fees and charges of MPF funds should only be one of your considerations when making investment decisions.
Obtaining the Fee Table
The Fee Table is contained in or attached to the Offering Document of your MPF scheme. If you cannot find the Fee Table, please approach your trustee or MPF intermediary to obtain a copy.
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