BEA (MPF) INDUSTRY SCHEME · No action has been taken to permit an offering of participation in the Industry Scheme or the distribution of this MPF Scheme Brochure in any jurisdiction

Sponsor : The Bank of East Asia, LimitedTrustee : Bank of East Asia (Trustees) LimitedVersion date : March 2020BEA (MPF) Hotline : (+852) 2211 1777 (operated by Bank of East Asia (Trustees) Limited)Fax : (+852) 3608 6003Email : [email protected] address : http://www.hkbea.com

BEA (MPF) INDUSTRY SCHEME

MPF SCHEME BROCHURE

Mandatory Provident Fund

IMPORTANT:

• Important — If you are in doubt about the meaning or effect of the contents of this MPF Scheme Brochure, you should seek independent professional advice.

• TheIndustrySchemeoffersdifferentConstituentFunds(i)investinginoneormoreAPIFsand/orapproved ITCISswhich invest inequitiesorbonds;or (ii)makingdirectinvestments.EachConstituentFundhasadifferentriskprofile.

• The BEA (Industry Scheme)MPF Conservative Fund does not provide anyguaranteeoftherepaymentofcapital.

• Investment involves risks.You shouldconsideryourownrisk tolerance leveland financial circumstances beforemaking any investment choices. In yourselectionof Constituent Funds, if you are in doubt as towhether a certainConstituentFund is suitable foryou (includingwhether it is consistentwithyour investment objectives), you should seek financial and/or professionaladviceandchoosetheConstituentFund(s)mostsuitableforyoutakingintoaccountyourcircumstances.

• YoushouldconsideryourownrisktolerancelevelandfinancialcircumstancesbeforeinvestingintheDIS.YoushouldnotethattheBEA(IndustryScheme)CoreAccumulation Fund and the BEA (Industry Scheme) Age 65 Plus Fundmay not be suitable for you, and theremay be a riskmismatch betweenthe BEA (Industry Scheme) CoreAccumulation Fund and the BEA (IndustryScheme)Age65Plus Fundandyour riskprofile (the resultingportfolio riskmay be greater than your risk preference). You should seek financial and/orprofessional advice if youare indoubt as towhether theDIS is suitableforyou,andmaketheinvestmentdecisionmostsuitableforyoutakingintoaccountyourcircumstances.

• You should note that the implementation of theDISmay have an impactonyourMPFinvestmentsandaccruedbenefits.YoushouldconsultwiththeTrusteeifyouhavedoubtsonhowyouarebeingaffected.

TABLE OF CONTENTS

Heading Page Number

1. INTRODUCTION ...................................................................................................... 1

1.1 AbouttheBEA(MPF)IndustryScheme...........................................................................1

1.2 Investmentofcontributions............................................................................................1

2. DIRECTORY OF APPROVED TRUSTEE AND OTHER SERVICE PROVIDERS ................ 2

2.1 Sponsor............................................................................................................................2

2.2 Trustee.............................................................................................................................2

2.3 InvestmentManager.......................................................................................................2

3. FUND OPTIONS, INVESTMENT OBJECTIVES AND POLICIES .................................... 3

3.1 Schemestructure.............................................................................................................3

3.2 TableforConstituentFunds............................................................................................4

3.3 Investmentobjectivesandpolicies..................................................................................5

3.4 Currencyexposure.........................................................................................................19

3.5 Investmentandborrowingrestrictions.........................................................................19

3.6 Consequencesofexceedingtheinvestmentlimit.........................................................21

3.7 Establishment,termination,mergeranddivisionofConstituentFunds......................21

4. RISKS .................................................................................................................... 22

4.1 Riskcategories...............................................................................................................22

4.2 Riskfactors....................................................................................................................22

5. FEES AND CHARGES ............................................................................................. 35

5.1 Feetable........................................................................................................................35

5.2 Definitions.....................................................................................................................41

5.3 Noswitchingfee............................................................................................................45

5.4 ChangeinMandatefee.................................................................................................45

5.5 Feesandout-of-pocketexpensesrelatedtotheBEA(IndustryScheme)

MPFConservativeFund.................................................................................................45

5.6 Otherchargesandexpenses..........................................................................................45

5.7 Feesandout-of-pocketexpensesoftheDIS.................................................................46

5.8 Cashrebatesandsoftcommissions...............................................................................46

5.9 Explanatorynotes..........................................................................................................47

6. ADMINISTRATIVE PROCEDURES ........................................................................... 49

6.1 Howtojoin....................................................................................................................49

6.2 Contributions.................................................................................................................50

6.3 InvestmentinConstituentFunds...................................................................................53

6.4 Entitlementtoaccruedbenefits....................................................................................61

6.5 RealisationofUnits.......................................................................................................63

6.6 Paymentofaccruedbenefits.........................................................................................64

6.7 Otherpointstonote.....................................................................................................65

6.8 Transfers........................................................................................................................65

7. OTHER INFORMATION ......................................................................................... 69

7.1 Calculation.....................................................................................................................69

7.2 Taxation.........................................................................................................................70

7.3 Accounts,reportsandstatements.................................................................................72

7.4 TrustDeed.....................................................................................................................72

7.5 ModificationofTrustDeedandparticipationagreements..........................................73

7.6 Termination,mergerordivisionofIndustryScheme....................................................73

7.7 Documentsavailable.....................................................................................................73

7.8 Automaticexchangeoffinancialaccountinformation................................................73

8. GLOSSARY ........................................................................................................... 75

APPENDIX 1 CLASSIFICATION OF CONSTRUCTION AND CATERING INDUSTRIES ....... 80

APPENDIX 2 FURTHER INFORMATION ON THE INDEXES ........................................... 82

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1. INTRODUCTION

The Trustee and the Sponsor each accepts responsibility for the information contained inthisMPF Scheme Brochure as being accurate at the date of publication. However, neitherthe delivery of thisMPF SchemeBrochure nor the offer of or agreement to participate in theIndustrySchemeshallunderanycircumstancesconstitutearepresentationthattheinformationcontained in thisMPFSchemeBrochure is correctasofany time subsequent to suchdate.ThisMPFSchemeBrochuremayfromtimetotimebeupdated.IntendingparticipantsintheIndustrySchemeshouldasktheTrusteeortheSponsor ifanysupplementstothisMPFSchemeBrochureoranylaterMPFSchemeBrochurehavebeenissued.

The Industry Scheme has been authorised by the SFC and approved by theMPFA in HongKong. In granting such authorisation and approval, neither the SFC nor theMPFA takes anyresponsibility for the financial soundnessof the Industry Schemeor for theaccuracyof anyofthe statementsmade or opinions expressed in thisMPF Scheme Brochure. Such authorisationandapprovaldoesnot imply thatparticipation in the IndustryScheme is recommendedby theSFCortheMPFA.SFCauthorisationisnotarecommendationorendorsementofanMPFschemeor pooled investment fund nor does it guarantee the commercialmerits of anMPF schemeor pooled investment fund or its performance. It does notmean theMPF scheme or pooledinvestmentfundissuitableforallschemeparticipantsorfundholdersnorisitanendorsementofitssuitabilityforanyparticularschemeparticipantorfundholder.

Noactionhasbeen taken topermitanofferingofparticipation in the IndustrySchemeor thedistributionofthisMPFSchemeBrochureinanyjurisdictionwhereactionwouldberequiredforsuchpurposeotherthanHongKong.Accordingly,thisMPFSchemeBrochuremaynotbeusedinanyjurisdictionwhereitsdistributionisnotauthorised.

1.1 About the BEA (MPF) Industry Scheme

TheBEA (MPF) Industry Scheme is an industry schemeestablishedbya trustdeeddated12thApril,2000 (asamendedfromtimetotime)betweenTheBankofEastAsia,LimitedasSponsorandBankofEastAsia(Trustees)LimitedasTrustee.ItisestablishedunderandgovernedbythelawsofHongKong.

The Industry Scheme is designed specifically for persons engaged in the catering andconstruction industries in Hong Kong.Whatmakes up the catering and constructionindustriesisdescribedinAppendix1tothisMPFSchemeBrochure.

1.2 Investment of contributions

Contributions are invested in one ormore of the Constituent Funds established underthe Industry Scheme, in accordancewith instructions given from time to time byMembers.Fordetails,pleaserefertothe“6.2.CONTRIBUTIONS”sub-sectionunderthe“6.ADMINISTRATIVEPROCEDURES”sectionofthisMPFSchemeBrochure.

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2. DIRECTORY OF APPROVED TRUSTEE AND OTHER SERVICE PROVIDERS

Sponsor TheBankofEastAsia,Limited 10DesVoeuxRoadCentral,HongKong

Trustee, Custodian and Administrator

BankofEastAsia(Trustees)Limited 32ndFloor,BEATower,MillenniumCity5, 418 Kwun Tong Road, Kwun Tong,Kowloon,HongKong

Investment Manager

BEAUnionInvestmentManagementLimited

5th Floor, 10 Des Voeux Road Central,HongKong

Legal Advisers Baker&McKenzie 14thFloor,OneTaikooPlace,979King’sRoad,QuarryBay,HongKong

Auditors KPMG 8th Floor, Prince’s Building, 10 ChaterRoad,Central,HongKong

2.1 Sponsor

TheBankofEastAsia,Limited(the“Bank”)wasincorporatedinHongKongin1918andisthesponsoroftheIndustryScheme.TheBankisdedicatedtoprovidingcomprehensiveretail banking, commercial banking,wealthmanagement, and investment services to itscustomersinHongKong,MainlandChina,andothermajormarketsaroundtheworld.TheBank is the largest independent localbank inHongKong,withtotalconsolidatedassetsof HKD839.5 billion (USD107.2 billion) as of 31st December, 2018. The Bank is listed onTheStockExchangeofHongKong.TheSponsorisresponsibleforbusinessdevelopment,marketing, and product development, aswell as ancillary and support services to theTrusteeasmaybeagreedbetweenthemfromtimetotime.

Where contributions and accrued benefits deriving from contributions to the IndustryScheme and other amounts are held in an interest bearing accountwith the Bank asdescribed in thisMPF Scheme Brochure, the Bankwill pay interest on such amounts ata rate no lower than the prevailing commercial rate for deposits of a similar size andduration.

2.2 Trustee

Bank of East Asia (Trustees) Limitedwas incorporated inHongKong in 1975 and is thetrusteeoftheIndustryScheme.TheTrusteeisregisteredasatrustcompanyinHongKongand has been approved by theMPFA as an approved trustee forMPF purposes1 . TheTrusteeisalsoawhollyownedsubsidiaryoftheBank.

Under the Trust Deed, the Trustee is responsible for the administration of the IndustrySchemeandthesafekeepingoftheassetsoftheIndustryScheme.TheTrusteealsoactsascustodianoftheassetsoftheIndustryScheme.

2.3 Investment Manager

BEAUnionInvestmentManagementLimitedwasincorporatedinHongKongin1988andis the investmentmanager of the Industry Scheme. Previously known as East AsiaAssetManagementCompanyLimited,theInvestmentManagerisjointlyownedbytheBankandUnionAssetManagementHoldingAG.

1SuchapprovaldoesnotimplyrecommendationbytheMPFA

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3. FUND OPTIONS, INVESTMENT OBJECTIVES AND POLICIES

3.1 Scheme structure

BEA (MPF) INDUSTRY SCHEME - CONSTITUENT FUNDS

ConstituentFunds

BEA(IndustryScheme)GrowthFund

BEA(IndustryScheme)BalancedFund

BEA(IndustryScheme)StableFund

BEA(IndustryScheme)AsianEquityFund

BEA(IndustryScheme)GreaterChinaEquityFund

BEA(IndustryScheme)HongKongEquityFund

BEAChinaTrackerFund

BEAHongKongTrackerFund

BEA(IndustryScheme)RMB&HKDMoneyMarketFund

BEA(IndustryScheme)MPFConservativeFund

BEA(IndustryScheme)CoreAccumulationFund

BEA(IndustryScheme)Age65PlusFund

TwoormoreAPIFsand/orapprovedITCISs

HangSengChina

EnterprisesIndexETF

TrackerFundof

HongKong

Directinvestments

Directinvestments

BEAUnionInvestmentCore

AccumulationFund

BEAUnionInvestmentAge65Plus

Fund

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3.2 Table for Constituent Funds

Under the Trust Deed, the Trustee is required to establish andmaintain separateConstituent Funds inwhich contributions and accrued benefitsmay be invested. TheConstituentFundsarenotionalfundsestablishedwithintheIndustrySchemeandareonlyavailableforinvestmentbyMembers.

TheIndustrySchemecurrentlyoffersthefollowingConstituentFundsforinvestment:–

No. NameofConstituentFund

InvestmentManager

Fundstructure Funddescriptor

Investmentfocus

1. BEA(IndustryScheme)GrowthFund


Portfoliomanagementfund

MixedAssetsFund–Global–Maximum90%inequities

60%to90%inequities,10%to40%incash,debtsecuritiesand/ormoneymarketinstruments

2. BEA(IndustryScheme)BalancedFund





3. BEA(IndustryScheme)StableFund





4. BEA(IndustryScheme)AsianEquityFund



EquityFund–Asiaex-Japan

atleast70%inequities,upto30%incash,debtsecuritiesand/ormoneymarketinstruments

5. BEA(IndustryScheme)GreaterChinaEquityFund



EquityFund–GreaterChina

70%to100%inequities,upto30%incash,debtsecuritiesand/ormoneymarketinstruments

6. BEA(IndustryScheme)HongKongEquityFund



EquityFund–HongKong

70%to100%inequities,upto30%incash,debtsecuritiesand/ormoneymarketinstruments

7. BEAChinaTrackerFund


Feederfund EquityFund–China

100%inequities

8. BEAHongKongTrackerFund


Feederfund EquityFund–HongKong

100%inequities

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No. NameofConstituentFund

InvestmentManager

Fundstructure Funddescriptor

Investmentfocus

9. BEA(IndustryScheme)RMB&HKDMoneyMarketFund


Directinvestment

MoneyMarketFund–ChinaandHongKong

90%to100%inshort-termdeposits,0%to10%indebtsecurities

10. BEA(IndustryScheme)MPFConservativeFund


Directinvestment

MoneyMarketFund–HongKong

100%inshort-termdepositsanddebtsecurities

11. BEA(IndustryScheme)CoreAccumulationFund


Feederfund MixedAssetsFund–Global–Maximum65%inHigherRiskAssets

55%to65%inHigherRiskAssetswiththeremainderinvestedinLowerRiskAssets

12. BEA(IndustryScheme)Age65PlusFund


Feederfund MixedAssetsFund–Global–Maximum25%inHigherRiskAssets

15%to25%inHigherRiskAssetswiththeremainderinvestedinLowerRiskAssets

3.3 Investment objectives and policies

Each Constituent Fund has a separate and distinct investment objective and policy, asdescribedinmoredetailbelow.

Investors should note that the statements of expected return for each Constituent Fund set out below represent the Investment Manager’s expectations based on the Investment Manager’s past experience. However, there is no guarantee that such returns will be achieved. In addition, the return of a Constituent Fund over the short term may be greater than or less than the return of a Constituent Fund over the long term due to market fluctuations and other factors. The information in section (e) below is provided for reference only.

3.3.1 BEA (Industry Scheme) Growth Fund

(a) Objective

To achieve long-term capital appreciationwithin a controlled risk/return frameworkthrough investingmainly in global equitieswith some exposure in global debtsecurities/moneymarketinstruments.

(b) Balance of investments

The BEA (Industry Scheme) Growth Fundwill invest primarily in global equity andbondmarkets.TheBEA(IndustryScheme)GrowthFundwillinvestinarangeofAPIFsand/orapprovedITCISstoobtainexposuretosuchmarkets,selectedbytheInvestmentManager having regard to the investment objective and investment policy. Theunderlying assets of the BEA (Industry Scheme)Growth Fund are expectednormallytobeinvested60%to90%inequitiesand10%to40%incash,debtsecuritiesand/ormoneymarketinstruments.

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(c) Security lending and repurchase agreements

TheBEA(IndustryScheme)GrowthFundwillnotengageinsecurity lendingandwillnotenterintorepurchaseagreements.

(d) Futures and options

TheBEA(IndustryScheme)GrowthFundwillenterintofinancialfuturesandoptionscontractsforhedgingpurposesonly.

(e) Risks

TheBEA (Industry Scheme)Growth Fund is suitable for investorswho arewilling toassume a higher level of risk to achieve potentially higher long-term returns. TheInvestmentManager expects the return of the BEA (Industry Scheme) Growth Fundoverthelongtermtoreflectmovementsintheglobalequitymarkets.

TheperformanceoftheBEA(IndustryScheme)GrowthFundissubjecttoanumberofrisks,includingthefollowing:

• Chinamarketrisk• concentrationrisk• currencyrisk• emergingmarketrisk• counterpartyrisk• political,economicandsocialrisk• valuationandaccountingrisk• hedgingrisk• riskofinvestmentinEurope

• equityinvestmentriskandvolatilityrisk

• creditriskandcreditratingrisk• interestratesrisk• market/liquidityrisk• Eurozonerisk• earlyterminationrisk• risksinrelationtofuturesandoptions

contracts• risksinrelationtoinvestmentsin

index-trackingfunds

Please refer to the “4. RISKS” section for a detaileddescriptionof eachof the riskslistedabove.

3.3.2 BEA (Industry Scheme) Balanced Fund

(a) Objective

To achieve a stable rate of returnwith an opportunity for capital appreciationthroughabalancedweightingofinvestmentsinglobalequitiesanddebtsecurities.


The BEA (Industry Scheme) Balanced Fundwill invest primarily in global equity andbondmarkets. The BEA (Industry Scheme) Balanced Fundwill invest in a range ofAPIFs and/or approved ITCISs to obtain exposure to suchmarkets, selected by theInvestmentManagerhavingregardtotheinvestmentobjectiveandinvestmentpolicy.The underlying assets of the BEA (Industry Scheme) Balanced Fund are expectednormally to be invested 40% to 60% in equities and 40% to 60% in cash, debtsecuritiesand/ormoneymarketinstruments.


TheBEA(IndustryScheme)BalancedFundwillnotengageinsecuritylendingandwillnotenterintorepurchaseagreements.

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TheBEA(IndustryScheme)BalancedFundwillenterintofinancialfuturesandoptionscontractsforhedgingpurposesonly.

(e) Risks

The BEA (Industry Scheme) Balanced Fund is suitable for investorswho arewillingto assume some degree of risk. The InvestmentManager expects the return of theBEA(IndustryScheme)BalancedFundoverthelongtermtobethebalancebetweenthereturnsoftheBEA(IndustryScheme)GrowthFund(reflectingmovementsoftheglobalequitymarkets)andtheBEA(IndustryScheme)StableFund(areturnexpectedtoexceedtheHongKonginflationrate).

TheperformanceoftheBEA(IndustryScheme)BalancedFundissubjecttoanumberofrisks,includingthefollowing:





index-trackingfunds


3.3.3 BEA (Industry Scheme) Stable Fund

(a) Objective

Tominimise short-term capital riskwithmodest capital growth over the long termthroughahigherweightingofinvestmentsinglobaldebtsecuritiestoprovidesteadyincome and a lower exposure to global equities to providemodest potential forcapitalappreciation.


The BEA (Industry Scheme) Stable Fundwill invest primarily in the global equityandbondmarkets. The BEA (Industry Scheme) Stable Fundwill invest in a rangeofAPIFs and/or approved ITCISs to obtain exposure to suchmarkets, selected by theInvestmentManagerhavingregardtotheinvestmentobjectiveandinvestmentpolicy.TheunderlyingassetsoftheBEA(IndustryScheme)StableFundareexpectednormallytobeinvested10%to40%inequitiesand60%to90%incash,debtsecuritiesand/ormoneymarketinstruments.


TheBEA (Industry Scheme) Stable Fundwill not engage in security lending andwillnotenterintorepurchaseagreements.

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TheBEA (Industry Scheme) Stable Fundwill enter into financial futures andoptionscontractsforhedgingpurposesonly.

(e) Risks

The BEA (Industry Scheme) Stable Fund is suitable for investorswhowant a stablereturnwithreducedriskthroughdiversification.TheInvestmentManagerexpectsthereturn of the BEA (Industry Scheme) Stable Fund over the long term to exceed theHongKonginflationrate.

TheperformanceoftheBEA(IndustryScheme)StableFundissubjecttoanumberofrisks,includingthefollowing:





index-trackingfunds


3.3.4 BEA (Industry Scheme) Asian Equity Fund

(a) Objective

To achieve long-term capital appreciationwithin a controlled risk/return frameworkthrough investingmainly in Asian (ex-Japan) equities,with some exposure in debtsecuritiesand/ormoneymarketinstruments.


The BEA (Industry Scheme) Asian Equity Fundwill invest in a range of APIFs and/or approved ITCISs to obtain exposure to the Asian (ex-Japan) equitymarkets,selected by the InvestmentManager having regard to the investment objective andinvestment policy. The underlying assets of the BEA (Industry Scheme) Asian EquityFund are expected normally to be invested at least 70% in equities of companieslisted in theAsianequitymarkets (includingbutnot limited toSingapore,Malaysia,Korea, Taiwan, Thailand, Indonesia, the Philippines, India, China andHong Kong,but excluding Japan) and up to 30% in cash, debt securities and/ormoneymarketinstrumentsforcashmanagementpurposes.


TheBEA(IndustryScheme)AsianEquityFundwillnotengageinsecuritylendingandwillnotenterintorepurchaseagreements.


The BEA (Industry Scheme) Asian Equity Fundwill enter into financial futures andoptionscontractsforhedgingpurposesonly.

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(e) Risks

TheBEA(IndustryScheme)AsianEquityFundissuitableforinvestorswhoarewillingtoassumeahigher levelof risk toachievepotentiallyhigher long-termreturns.TheInvestmentManager expects the return of the BEA (Industry Scheme) Asian EquityFundoverthelongtermtoreflectmovementsintheAsian(ex-Japan)equitymarkets.

The performance of the BEA (Industry Scheme) Asian Equity Fund is subject to anumberofrisks,includingthefollowing:

• Chinamarketrisk• concentrationrisk• currencyrisk• emergingmarketrisk• counterpartyrisk• earlyterminationrisk• risksinrelationtofuturesand

optionscontracts• risksinrelationtoinvestmentsin

index-trackingfunds


• creditriskandcreditratingrisk• interestratesrisk• market/liquidityrisk• political,economicandsocialrisk• valuationandaccountingrisk• hedgingrisk


3.3.5 BEA (Industry Scheme) Greater China Equity Fund

(a) Objective

To provide investorswith long-term capital growthwithin a controlled risk/returnframework through investingmainly in listed securities of companies that derive orare expected to derive a significant portionof their revenues fromgoods producedorsold,investmentsmadeorservicesperformedinGreaterChina(the“Greater China Securities”).


TheBEA(IndustryScheme)GreaterChinaEquityFundwill invest ina rangeofAPIFsand/orapprovedITCISstoobtainexposuretotheGreaterChinaSecurities,selectedbythe InvestmentManager having regard to the investment objective and investmentpolicy. The underlying assets of the BEA (Industry Scheme) Greater China EquityFundareexpectednormally tobe invested70%to100%inGreaterChinaSecuritiesand up to 30% in cash, debt securities and/ormoneymarket instruments for cashmanagementpurposes.


The BEA (Industry Scheme) Greater China Equity Fundwill not engage in securitylendingandwillnotenterintorepurchaseagreements.


TheBEA(IndustryScheme)GreaterChinaEquityFundwillenterintofinancialfuturesandoptionscontractsforhedgingpurposesonly.

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(e) Risks

The BEA (Industry Scheme) Greater China Equity Fund is suitable for investorswhoarewilling to assume a higher level of risk to achieve potentially higher long-termreturns. The InvestmentManager expects the return of the BEA (Industry Scheme)GreaterChinaEquityFundoverthelongtermtoreflecttheeconomicgrowthoftheGreaterChinaregion.

TheperformanceoftheBEA(IndustryScheme)GreaterChinaEquityFundissubjecttoanumberofrisks,includingthefollowing:

• Chinamarketrisk• concentrationrisk• currencyrisk• emergingmarketrisk• counterpartyrisk• earlyterminationrisk• risksinrelationtofuturesand


index-trackingfunds


• creditriskandcreditratingrisk• interestratesrisk• market/liquidityrisk• political,economicandsocialrisk• valuationandaccountingrisk• hedgingrisk


3.3.6 BEA (Industry Scheme) Hong Kong Equity Fund

(a) Objective

To achieve long-term capital appreciationwithin a controlled risk/return frameworkthrough investingmainly in Hong Kong equities, with some exposure in debtsecuritiesand/ormoneymarketinstruments.


TheBEA(IndustryScheme)HongKongEquityFundwillinvestinarangeofAPIFsand/orapproved ITCISs toobtainexposure to theHongKongequitymarket, selectedbythe InvestmentManager having regard to the investment objective and investmentpolicy. The underlying assets of the BEA (Industry Scheme) Hong Kong Equity Fundareexpectednormallytobeinvested70%to100%inequitiesofcompaniesthatarelisted in, or derive or are expected to derive a significant portion of their revenuesfromHong Kong and up to 30% in cash, debt securities and/ormoneymarketinstrumentsforcashmanagementpurposes.


TheBEA(IndustryScheme)HongKongEquityFundwillnotengageinsecuritylendingandwillnotenterintorepurchaseagreements.


The BEA (Industry Scheme)HongKong Equity Fundwill enter into financial futuresandoptionscontractsforhedgingpurposesonly.

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(e) Risks

The BEA (Industry Scheme) Hong Kong Equity Fund is suitable for investorswhoarewilling to assume a higher level of risk to achieve potentially higher long-termreturns. The InvestmentManager expects the return of the BEA (Industry Scheme)HongKongEquityFundover the longtermto reflectmovements in theHongKongequitymarket.

TheperformanceoftheBEA(IndustryScheme)HongKongEquityFundissubjecttoanumberofrisks,includingthefollowing:

• Equityinvestmentriskandvolatilityrisk

• creditriskandcreditratingrisk• interestratesrisk• counterpartyrisk• earlyterminationrisk• risksinrelationtofuturesand


index-trackingfunds

• concentrationrisk• currencyrisk• market/liquidityrisk• political,economicandsocialrisk• valuationandaccountingrisk• hedgingrisk


3.3.7 BEA China Tracker Fund

(a) Objective

Toprovide investment returns thatmatch theperformanceof theHang SengChinaEnterprisesIndexascloselyaspracticable.

(b) Balance of investment

TheBEAChinaTrackerFundwillinvestdirectlyinasingleapprovedITCIS,namelytheHang Seng China Enterprises Index ETF. TheHang Seng China Enterprises Index ETFaims to provide investment returns thatmatch the performance of theHang SengChinaEnterprisesIndexascloselyaspracticable.Therecan,however,benoassurancethat the performance of the BEA China Tracker Fund and the approved ITCISwillat any time be identical to that of theHang Seng China Enterprises Index. FurtherinformationontheHangSengChinaEnterprisesIndexcanbefoundinAppendix2tothisMPFSchemeBrochure.

TheBEAChinaTrackerFundmayholdcashandbankdepositsforancillarypurposes,suchasformeetingredemptionrequestsordefrayingoperatingexpenses.

NoneofHangSengInvestmentManagementLimited(themanageroftheHangSengChinaEnterprises IndexETF)andHSBC InstitutionalTrustServices (Asia)Limited (thetrustee of theHang Seng China Enterprises Index ETF) are related to the IndustryScheme or the BEA China Tracker Fund and none of these entitieswill have anyliabilityinconnectionwiththeIndustrySchemeortheBEAChinaTrackerFund.


TheBEAChinaTrackerFundandtheHangSengChinaEnterprises IndexETFwillnotengageinsecuritylendingandwillnotenterintorepurchaseagreements.

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The BEA China Tracker Fundwill not enter into financial futures and optionscontractsforanypurposes.However,theHangSengChinaEnterprisesIndexETFmayuse futures contracts,warrants and options for hedging purposes or to achieve itsinvestmentobjective.

(e) Risks

The BEA China Tracker Fund is suitable for investorswho arewilling to assume ahigher level of risk to achieve potentially higher returns over the short tomediumterm.The InvestmentManagerexpects the returnof theBEAChinaTrackerFund toreflectmovements in theHongKong listedChineseenterprisesof allH-shares,Red-chips and P-chips listed on theMain Board of the SEHKmarket over the short tomediumterm.

The performance of the BEA China Tracker Fund is subject to a number of risks,includingthefollowing:

• Chinamarketrisk• concentrationrisk• emergingmarketrisk• counterpartyrisk• earlyterminationrisk• risksinrelationtofuturesand


index-trackingfundscontracts


• currencyrisk• market/liquidityrisk• political,economicandsocialrisk• valuationandaccountingrisk• hedgingrisk• riskassociatedwiththeBEAChina

TrackerFund


3.3.8 BEA Hong Kong Tracker Fund

(a) Objective

ToprovideinvestmentreturnsthatmatchtheperformanceoftheHangSengIndexascloselyaspracticable.


The BEAHong Kong Tracker Fundwill invest directly in a single approved ITCIS,namely the Tracker Fund of Hong Kong. The underlying approved ITCIS aims toprovide investment results that closely correspond to the performance of theHangSeng Index. There can, however, be no assurance that the performance of the BEAHong Kong Tracker Fund and the underlying approved ITCISwill at any time beidenticaltothatoftheHangSengIndex.FurtherinformationontheHangSengIndexcanbefoundinAppendix2tothisMPFSchemeBrochure.

The BEAHong Kong Tracker Fundmay hold cash and bank deposits for ancillarypurposes,suchasformeetingredemptionrequestsordefrayingoperatingexpenses.

None of State Street Global Advisors Asia Limited (themanager of the underlyingapprovedITCIS),StateStreetBankandTrustCompany(thetrusteeoftheTrackerFundofHongKong),orthegovernmentofHongKongarerelatedtotheIndustrySchemeortheBEAHongKongTrackerFundandnoneoftheseentitieswillhaveanyliabilityinconnectionwiththeIndustrySchemeortheBEAHongKongTrackerFund.

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TheBEAHongKongTrackerFundandtheunderlyingapprovedITCISwillnotengageinsecuritylendingandwillnotenterintorepurchaseagreements.


The BEAHong Kong Tracker Fundwill not enter into financial futures and optionscontracts foranypurposes.However, theunderlyingapproved ITCISmayuse futurescontractsandoptionsforhedgingpurposesortoachieveitsinvestmentobjective.

(e) Risks

TheBEAHongKongTrackerFundissuitablefor investorswhoarewillingtoassumeahigher levelofrisktoachievepotentiallyhigherreturnsovertheshorttomediumterm. The InvestmentManager expects the return of the BEAHong Kong TrackerFundtoreflectmovementsintheHongKongequitymarketovertheshorttomediumterm.

TheperformanceoftheBEAHongKongTrackerFundissubjecttoanumberofrisks,includingthefollowing:

• Equityinvestmentriskandvolatilityrisk

• currencyrisk• counterpartyrisk• earlyterminationrisk• risksinrelationtofuturesand


index-trackingfunds

• concentrationrisk• market/liquidityrisk• political,economicandsocialrisk• valuationandaccountingrisk• hedgingrisk• risksassociatedwiththeBEAHong

KongTrackerFund


3.3.9 BEA (Industry Scheme) RMB & HKD Money Market Fund

(a) Objective

Toachievea rateof returnover the long term in linewith the interest rateofferedbyauthorisedfinancial institutions inHongKongonHKDandRMBsavingsaccountswhilemaintainingstabilityoftheprincipalamountinvested.


The BEA (Industry Scheme) RMB&HKDMoneyMarket Fundwill primarily investin HKD and RMB denominated instruments, namely short-term deposits (includingcertificatesofdepositsandtermdeposits)placedwithauthorisedfinancialinstitutionsinHongKonganddebtsecurities(includingbonds,fixedandfloatingratesecurities,convertible bonds andnoteswith a remainingmaturity periodof two years or less)issued or distributed outsidemainland China (“offshore RMB debt securities”) bybanks,corporationsandgovernments.TheBEA(IndustryScheme)RMB&HKDMoneyMarket Fundwill not invest in securities issuedwithinmainland China through anyqualified foreign institutional investor quota. The target ranges of asset allocationoftheBEA(IndustryScheme)RMB&HKDMoneyMarketFund(asapercentageofitsNAV)areasfollows:

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Asset Allocation* Min % Max %Short-termdeposits 90% 100%DebtSecurities 0% 10%

*Investors should note that the above ranges of asset allocations are for indicationonlyandlong-termallocationsmayvarywithchangingmarketconditions.

TheBEA (IndustryScheme)RMB&HKDMoneyMarketFund isdenominated inHKDonlyandnotinRMB.However,theBEA(IndustryScheme)RMB&HKDMoneyMarketFundisexpectedundernormalcircumstancestoholdatleast50%ofitsNAVinassetsdenominated and settled in RMB, and up to 50%of its NAV in assets denominatedandsettledinHKD.Inaddition,theBEA(IndustryScheme)RMB&HKDMoneyMarketFundwillatalltimesmaintainaneffectivecurrencyexposuretoHKDofnotlessthan30%byinvestinginHKDdenominatedinstrumentsand/orthroughcurrencyforwardcontracts.

Variations to thismay occur due to the timing of cashflows to and from the BEA(IndustryScheme)RMB&HKDMoneyMarketFund.Further,theInvestmentManagermay, in itsdiscretion,varythepercentageof theBEA(IndustryScheme)RMB&HKDMoneyMarket Fund’s holding in RMB andHKD should the InvestmentManagerdetermine, in its opinion, that variation is warranted due tomarket or otherconditions such as changes in the exchange policy, currency control or a significantdownturnintheeconomy.


The BEA (Industry Scheme) RMB&HKDMoneyMarket Fundwill not engage insecuritylendingandwillnotenterintorepurchaseagreements.


The BEA (Industry Scheme) RMB&HKDMoneyMarket Fundwill not enter intofinancialfuturesandoptionscontractsforanypurposes.

(e) Risks

Investment in the BEA (Industry Scheme) RMB&HKDMoneyMarket Fund is notequivalent to placing funds on deposit. AMember’s rights to accrued benefits inrespectofanyUnitsheldfortheaccountoftheMemberintheBEA(IndustryScheme)RMB&HKDMoneyMarketFundare limitedtotherealisationpriceof suchUnitsattherelevanttime,whichmaybemoreorlessthanthepriceatwhichsuchUnitswereissued.TheBEA(IndustryScheme)RMB&HKDMoneyMarketFund isnot subject tothesupervisionoftheHongKongMonetaryAuthority.

The BEA (Industry Scheme) RMB & HKDMoneyMarket Fund is designed forconservative investorswith very low capital risk. The InvestmentManager expectsthe return of the BEA (Industry Scheme) RMB&HKDMoneyMarket Fund over thelongtermtobeinlinewiththeinterestratepayablefromtimetotimebyauthorisedfinancialinstitutionsinHongKongonHKDandRMBsavingsaccounts.

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The performance of the BEA (Industry Scheme) RMB&HKDMoneyMarket Fund issubjecttoanumberofrisks,includingthefollowing:

• Chinamarketrisk• creditriskandcreditratingrisk• interestratesrisk• market/liquidityrisk• political,economicandsocialrisk• valuationandaccountingrisk

• concentrationrisk• currencyrisk• emergingmarketrisk• counterpartyrisk• earlyterminationrisk• risksassociatedwiththeBEA(Industry

Scheme)RMB&HKDMoneyMarketFund


3.3.10 BEA (Industry Scheme) MPF Conservative Fund

(a) Objective

To achieve aminimum rate of returnwhilemaintaining stability of the principalamountinvested.


The BEA (Industry Scheme)MPF Conservative Fundwill solely invest in HK dollar-denominated instruments, namely, short-termdeposits and debt securities issued bybanks,corporationsandgovernments.

Note:FeesandchargesofanMPFconservativefundcanbedeductedfromeither (i)theassetsof such fundor (ii)Member’s accountbywayofunitdeduction. TheBEA(IndustryScheme)MPFConservativeFundusesmethod(ii)and,therefore,unitprices,NAVandfundperformancequoted(exceptforthefundperformancefiguresquotedinafundfactsheet)donotreflecttheimpactoffeesandcharges.


TheBEA(IndustryScheme)MPFConservativeFundwillnotengageinsecuritylendingandwillnotenterintorepurchaseagreements.


TheBEA(IndustryScheme)MPFConservativeFundwillnotenterintofinancialfuturesandoptionscontractsforanypurposes.

(e) Risks

Investment in the BEA (Industry Scheme)MPF Conservative Fund is not equivalentto placing funds on deposit. AMember’s rights to accrued benefits in respect ofanyUnits held for the account of theMember in the BEA (Industry Scheme)MPFConservative Fund are limited to the realisation price of suchUnits at the relevanttime,whichmaybemoreor lessthanthepriceatwhichsuchUnitswereissued.TheBEA(IndustryScheme)MPFConservativeFundisnotsubjecttothesupervisionoftheHongKongMonetaryAuthority.

The BEA (Industry Scheme)MPF Conservative Fund is designed for conservativeinvestorswith very low capital risk. The InvestmentManager expects the return ofthe BEA (Industry Scheme)MPF Conservative Fund over the long term to be in linewiththeinterestratepayablefromtimetotimebymajorbanksinHongKongonHKdollarsavingsaccounts.

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TheperformanceoftheBEA(IndustryScheme)MPFConservativeFundissubjecttoanumberofrisks,includingthefollowing:

• Chinamarketrisk• creditriskandcreditratingrisk• emergingmarketrisk• counterpartyrisk• political,economicandsocialrisk• valuationandaccountingrisk

• concentrationrisk• interestratesrisk• market/liquidityrisk• Eurozonerisk• earlyterminationrisk• riskofinvestmentinEurope


3.3.11 BEA (Industry Scheme) Core Accumulation Fund

(a) Objective

Toprovidecapitalgrowthbyinvestinginagloballydiversifiedmanner.


TheBEA(IndustryScheme)CoreAccumulationFundwillinvestinasingleAPIF,namelytheBEAUnionInvestmentCoreAccumulationFundundertheBEAUnionInvestmentCapitalGrowthFund,whichinturninvestsintwoAPIFsasallowedundertheGeneralRegulation.TheinvestmentmanageroftheBEAUnionInvestmentCoreAccumulationFundwill fromtime to time rebalance theallocationbetween the twoAPIFs.Pleaserefer to the followingproduct structural chart illustrating the fund structureof theBEA(IndustryScheme)CoreAccumulationFund:

Constituent fund level

Feeder fund

BEA Union Investment Core Accumulation

Fund

BEA (Industry Scheme) Core Accumulation Fund

Underlying Investment Fund Level

BEA Union Investment Capital Growth Fund

APIF1 Level

APIF2 Level

Investment manager: BEA Union Investment Management Limited

Approved PooledInvestment Fund




Subject to the discretion of the investmentmanager of the BEAUnion InvestmentCoreAccumulation Fund and through an active asset allocation strategy investingin the two APIFs (which in turn adopt relevant active investment strategy inselectingparticularglobalequitiesorglobalbonds), theBEA(IndustryScheme)CoreAccumulationFundwill holdaround60%of itsNAV inHigherRiskAssets,with theremainder investing in Lower RiskAssets. The asset allocation toHigher RiskAssetsmayvarybetween55%and65%duetodifferingpricemovementsofvariousequityand bondmarkets. There is no prescribed allocation for investments in any specificcountriesorcurrencies.ThroughtheBEA(IndustryScheme)CoreAccumulationFund’sinvestment in the BEAUnion Investment CoreAccumulation Fund, at least 30%oftheassetsof theBEA (Industry Scheme)CoreAccumulation Fundwill beheld inHKdollar currency investmentsasmeasuredbyeffective currencyexposure (determinedinaccordancewithSchedule1totheGeneralRegulation).

The BEA (Industry Scheme) CoreAccumulation Fund adopts an active investmentstrategy.With this strategy, the investmentmanager of the BEAUnion Investment

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CoreAccumulationFundmayallocatetheassetsamongthetwounderlyingAPIF(s)atitsdiscretion.


The BEA (Industry Scheme) CoreAccumulation Fundwill not engage in securitylending andwill not enter into repurchase agreements. The BEAUnion InvestmentCoreAccumulation Fundwill not invest in any structured deposits or products, andwill not enter into any security lending, repurchase transactions or other similartransactions.


The BEA (Industry Scheme) CoreAccumulation Fundwill not enter into currencyforwardcontracts,financialfuturesandoptionscontractsforanypurposes.However,theBEAUnionInvestmentCoreAccumulationFundmayenter intocurrencyforwardcontracts,financialfuturesandoptionscontractsforhedgingpurposestoreduceriskand protect asset value, consistentwith the investment objective of the BEAUnionInvestmentCoreAccumulationFund.

(e) Risks

Investors should regard the BEA (Industry Scheme) CoreAccumulation Fund as amedium- to-high-risk investment. The Sponsor and the Trustee,with the opinionfrom the InvestmentManager determines the risk profile of the BEA (IndustryScheme) CoreAccumulation Fund,which is for your reference only. The risk profileis based on relative exposure to equities/bonds andwill be reviewed semi-annually.The InvestmentManager expects the return of the BEA (Industry Scheme) CoreAccumulation Fund over the long term to reflectmovements between the globalequitymarket and global bondmarket,with an emphasis on the asset allocationapplicable to the BEA (Industry Scheme) Core Accumulation Fund, targeting tooutperformtheReferencePortfolio(asdefinedinthe“6.3.3MPFDefaultInvestmentStrategy”sub-sectionunderthe“6.ADMINISTRATIVEPROCEDURES”section).

TheperformanceoftheBEA(IndustryScheme)CoreAccumulationFundissubjecttoanumberofrisks,includingthefollowing:




contracts• principalrisksofinvestingintheDIS


3.3.12 BEA (Industry Scheme) Age 65 Plus Fund

(a) Objective

Toprovidestablegrowthbyinvestinginagloballydiversifiedmanner.

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TheBEA (Industry Scheme)Age65Plus Fundwill invest ina singleAPIF,namely theBEAUnion Investment Age 65 Plus Fund under the BEAUnion Investment CapitalGrowth Fund,which in turn invests in twoAPIFs as allowed under the GeneralRegulation.The investmentmanageroftheBEAUnion InvestmentAge65PlusFundwill fromtime to time rebalance theallocationbetween the twoAPIFs.Please referto the following product structural chart illustrating the fund structure of the BEA(IndustryScheme)Age65PlusFund:

Constituent fund level

Feeder fund

BEA Union Investment Age 65 Plus Fund

BEA (Industry Scheme) Age 65 Plus Fund

Underlying Investment Fund Level

BEA Union Investment Capital Growth Fund

APIF1 Level

APIF2 Level






Subject to the discretion of the investmentmanager of the BEAUnion InvestmentAge65PlusFundandthroughanactiveassetallocationstrategyinvestinginthetwoAPIFs (which inturnadoptrelevantactive investmentstrategy inselectingparticularglobalequitiesorglobalbonds),theBEA(IndustryScheme)Age65PlusFundwillholdaround20%of itsNAV inHigherRiskAssets,withtheremainder investing inLowerRiskAssets.TheassetallocationtoHigherRiskAssetsmayvarybetween15%and25%due to differing pricemovements of various equity and bondmarkets. There is noprescribedallocationfor investments inanyspecificcountriesorcurrencies.ThroughtheBEA(IndustryScheme)Age65PlusFund’sinvestmentintheBEAUnionInvestmentAge65PlusFund,atleast30%oftheassetsoftheBEA(IndustryScheme)Age65PlusFundwillbeheldinHKdollarcurrencyinvestmentsasmeasuredbyeffectivecurrencyexposure(determinedinaccordancewithSchedule1totheGeneralRegulation).

The BEA (Industry Scheme) Age 65 Plus Fund adopts an active investment strategy.Withthisstrategy,theinvestmentmanageroftheBEAUnionInvestmentAge65PlusFundmayallocatetheassetsamongthetwounderlyingAPIF(s)atitsdiscretion.


TheBEA(IndustryScheme)Age65PlusFundwillnotengageinsecurity lendingandwill not enter into repurchase agreements. The BEAUnion Investment Age 65 PlusFundwillnotinvestinanystructureddepositsorproducts,andwillnotenterintoanysecuritylending,repurchasetransactionsorothersimilartransactions.


The BEA (Industry Scheme) Age 65 Plus Fundwill not enter into currency forwardcontracts, financial futures and options contracts for any purposes. However, theBEAUnion InvestmentAge65Plus Fundmayenter into currency forward contracts,financial futures and options contracts for hedging purposes to reduce risk andprotect asset value, consistentwith the investment objective of the BEAUnionInvestmentAge65PlusFund.

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(e) Risks

Dueto its investmentsmainly inLowerRiskAssets (suchasglobalbondsandmoneymarket instruments), investors should regard theBEA (IndustryScheme)Age65PlusFund as a lowtomedium-risk investment. The Sponsor and the Trustee,with theopinionfromtheInvestmentManager,determinetheriskprofileoftheBEA(IndustryScheme)Age65PlusFund,which is foryourreferenceonly.Theriskprofile isbasedon relative exposure to equities and/or bonds andwill be reviewed semi-annually.TheInvestmentManagerexpectsthereturnoftheBEA(IndustryScheme)Age65PlusFundoverthelongtermtoreflectmovementsbetweentheglobalequitymarketandglobalbondmarket,withanemphasison theassetallocationapplicable to theBEA(IndustryScheme)Age65PlusFund,targetingtooutperformtheReferencePortfolio(asdefinedinthe“6.3.3MPFDefaultInvestmentStrategy”sub-sectionunderthe“6.ADMINISTRATIVEPROCEDURES”section).

The performance of the BEA (Industry Scheme) Age 65 Plus Fund is subject to anumberofrisks,includingthefollowing:




contracts• principalrisksofinvestingintheDIS


Note:UnlessotherwiseagreedwiththeSFCandtheMPFA,theTrusteewillgivenot lessthan onemonth’s notice of any change in the investment objectives and policies of aConstituentFundtoMembersandtoparticipatingemployers.

3.4 Currency exposure

Each Constituent Fund is denominated in HK dollars. The BEA (Industry Scheme)MPFConservative Fundwillmaintain an effective currency exposure to HK dollars of 100%.TheotherConstituentFundswillmaintainaneffectivecurrencyexposuretoHKdollarsofnotlessthan30%.

3.5 Investment and borrowing restrictions

EachConstituentFundissubjecttotheinvestmentandborrowingrestrictionsintheMPFOrdinance(assetout inSchedule1totheGeneralRegulation), theMPFGuidelines,andtheMPFA's Code onMPF Investment Funds. The investment and borrowing restrictionsapplicabletoeachConstituentFundaredescribedbelow:

3.5.1 BEA (Industry Scheme) MPF Conservative Fund

TheBEA(IndustryScheme)MPFConservativeFundissubjecttotheinvestmentrestrictionsapplicabletoMPFconservativefundspursuanttotheMPFOrdinance(assetoutinsection37andSchedule1 to theGeneralRegulation), theMPFGuidelinesandtheMPFA'sCodeonMPFInvestmentFunds.

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3.5.2 BEA (Industry Scheme) RMB & HKD Money Market Fund

TheBEA(IndustryScheme)RMB&HKDMoneyMarketFundwillmakedirect investmentin a portfolio ofmainly HKD and RMB deposits andHKD and RMB denominated debtinstrumentsand is subject to theapplicable investment restrictionspursuant to theMPFOrdinance (as setout in Schedule1 to theGeneralRegulation), theMPFGuidelinesandtheMPFA'sCodeonMPFInvestmentFunds.

3.5.3 BEA China Tracker Fund and BEA Hong Kong Tracker Fund

EachoftheBEAChinaTrackerFundandtheBEAHongKongTrackerFundisafeederfundwhich invests inasingleapproved ITCIS (as referredto inthe“3.3 Investmentobjectivesand policies” sub-section above). Each underlying approved ITCIS has been approvedby theMPFA pursuant to theMPFOrdinance (as set out in Schedule 1 to theGeneralRegulation),theMPFGuidelinesandtheMPFA'sCodeonMPFInvestmentFunds.

3.5.4 Portfolio management funds

Eachof the Constituent Funds in the formof portfoliomanagement funds is subject tothefollowinginvestmentrestrictions:

(a) therelevantConstituentFundmayonlyinvestinAPIFsandapprovedITCISs;

(b) therelevantConstituentFundmustinvestinnotlessthantwoAPIFsand/orapprovedITCISs;

(c) no investmentmay bemade for the account of the relevant Constituent Fund if asa result the valueof thatConstituent Fund’sholdingof interests inanyoneAPIForapprovedITCISwouldexceed90%oftheNAVofthatConstituentFund;and

(d) theInvestmentManagermayenterintocurrencyforwardcontracts,futurescontractsandoptions contracts for the account of the relevant Constituent Fund for hedgingpurposesonly.

Each APIF inwhich the Constituent Funds invest is subject to the investment andborrowing restrictions applicable toAPIFs as set out in theMPFOrdinance, theGeneralRegulation,theMPFGuidelines,andtheMPFA’sCodeonMPFInvestmentFunds.

3.5.5 Investment restrictions

The InvestmentManager currently does not intend to enter into any repurchaseagreements in respect of any Constituent Fund. Please refer to the “3.3 Investmentobjectivesandpolicies”sub-sectionabove.

3.5.6 Borrowing restrictions

TheTrusteemayborrowfor theaccountofeachConstituentFundfor liquiditypurposestomeetaccruedbenefitpaymentsandforother limitedpurposesaspermittedpursuantto theMPFOrdinance (as set out in Schedule 1 to theGeneral Regulation), theMPFGuidelines and theMPFA's Code onMPF Investment Funds. The assets of the relevantConstituentFundmaybechargedorpledgedassecurityforanysuchborrowings.

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3.6 Consequences of exceeding the investment limit

TheInvestmentManagerisnotimmediatelyrequiredtosellapplicableinvestmentsifanyof the investment limit is exceededas a result of changes in the valueof a ConstituentFund’s investments, reconstructions or amalgamations, payments out of the assets ofthe Constituent Fund or realisations of Units. For so long as such limits are exceeded,the InvestmentManagerwillnotacquireanyfurther investmentssubjecttotherelevantrestrictionandwillasapriorityobjectivetakeallreasonablestepstorestorethepositionso that the limits areno longer exceeded, at all timeshaving regard to the interestsofMembers.

3.7 Establishment, termination, merger and division of Constituent Funds

TheTrusteemay,with the consentof theSponsor,establishnewConstituentFunds.TheTrusteewillnotifyparticipatingemployersandMemberswhereanewConstituentFundisestablished.

The Trusteemay,with the consent of the Sponsor, terminate a Constituent Fund ongivingnotlessthanonemonth’snoticetoeachMemberandeachparticipatingemployer(or such other period of notice as theMPFA or the SFCmay require). If a ConstituentFund is terminated,contributionswillceasetobe invested insuchConstituentFundandaccruedbenefitsinsuchConstituentFundmustbeswitched(freeofcharge)intoanotherConstituent Fund chosenby the relevantMember. If the relevantMember fails tomakea choicewhen requested to do so, theMember’s accrued benefits in the terminatingConstituentFundwillbeswitchedintotheDISandfuturecontributionsbyoronbehalfoftheMemberwhichwouldotherwisebeinvestedintheterminatingConstituentFundwillbeinvestedintheDIS.

Subject to the prior approval of theMPFA and the SFC, the Trusteemaywith the priorapprovalof theSponsor, fromtimetotimemergeor subdivideanyConstituentFundbygivingnot lessthanonemonth’snotice(orsuchotherperiodofnoticeastheMPFAandtheSFCmayagreeorrequire)toeachparticipatingemployerandeachMember.

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4. RISKS

4.1 Risk categories

The Constituent Funds arenot guaranteed and accordingly are subject tomarketfluctuations and to the risks inherent in all investments. Investment involves risks. ThepriceofUnitsofanyConstituentFundandtheincomefromthemmaygodownaswellasup.AllmajorrisksassociatedwithinvestingintheConstituentFundsarediscussedbelow.

Information about the latest risk class of each Constituent Fund under the Industry Scheme is available in the latest fund fact sheet of the Industry Scheme and the following website: http://www.hkbea.com.

4.2 Risk factors

4.2.1 China market risk

A Constituent Fund or its underlying fund(s)may invest in securities of companies thataredomiciledorconducta significantportionof theirbusinessactivities in,orderiveorareexpectedtoderiveasignificantportionoftheir revenuesfrom,China.TotheextentthatsuchConstituentFundoritsunderlyingfund(s)hasexposuretosuchcompanies,thevalue of the assets of such Constituent Fund or its underlying fund(s)may be affectedby political, legal, economic and fiscal uncertaintieswithin China. Existing laws andregulationsmaynotbeconsistentlyapplied.

Since 1978, theChinesegovernmenthas implementedeconomic reformmeasureswhichemphasise decentralisation on and the utilisation ofmarket forces in the developmentof theChineseeconomy.Suchreformshave resulted in significanteconomicgrowthandsocialprogress.Manyofthereformsareunprecedentedorexperimentalandareexpectedto be refined or changed.Other political, economic and social factors could also leadto further readjustments to the reformmeasures. The operations and financial resultsof the companies that a Constituent Fund or its underlying fund(s) invests in could beadversely affected by adjustments in Chinese state plans, political, economic and socialconditions,changesinthepoliciesoftheChinesegovernmentsuchaschangesinlawsandregulations(ortheinterpretationthereof),measureswhichmaybeintroducedtocontrolinflation,changesintherateormethodoftaxation,impositionofadditionalrestrictionson currency conversion and the imposition of additional import restrictions. ThismayadverselyaffecttheperformanceoftherelevantConstituentFund.

Thetransformationfromacentrallyplanned,socialisteconomytoamoremarket-orientedeconomyhasresultedinmanyeconomicandsocialdisruptionsanddistortions.Moreover,therecanbenoassurancethattheeconomicandpoliticalinitiativesnecessarytoachieveand sustain such a transformationwill continue or, if such initiatives continue and aresustained, that theywill be successful. In the past the Chinese government has appliednationalisation, expropriation, confiscatory levels of taxation and currency blockage.AnychangesinthesepoliciesandregulationsmayadverselyimpactonthecompaniesorsecuritiesinwhichtherelevantConstituentFundoritsunderlyingfund(s)investsin.

Accounting,auditingandfinancialreportingstandardsinChinamaynotbeequivalenttostandardsapplicableinHongKongorinotherdevelopedcountries.Asaresult,thelowerlevelsofdisclosureand transparencyof certainmaterial informationmay impacton thevalue of investmentsmade by the relevant Constituent Fund or its underlying fund(s).This,ifcombinedwithaweakregulatoryenvironment,couldresultinlowerstandardsofcorporategovernanceandlessprotectionofminorityshareholderrightsofthecompaniesinwhichtherelevantConstituentFundoritsunderlyingfund(s)invest.

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4.2.2 Equity investment risk and volatility risk

AConstituent Fundor its underlying fund(s)may invest directly or indirectly in equitiesandarethussubjecttotherisksgenerallyassociatedwithequityinvestment,namely,themarketvalueofthestocksmaygodownaswellasup.Factorsaffectingthestockvaluesare numerous, including but not limited to changes in investment sentiment, politicalenvironment, economic environment, issuer-specific factors such as issuers’ financialsoundnessandissuers’financialstatementsaswellasthebusinessandsocialconditionsinlocalandglobalmarketplace.

Securities exchanges typically have the right to suspend or limit trading in any securitytraded on the relevant exchange; a suspensionwill render it impossible to liquidatepositionsandcantherebyexposetheConstituentFundsoritsunderlyingfund(s)tolosses.

The fundamental risk associatedwith any equity portfolio is the risk that the value oftheinvestmentsitholdsmightunexpectedlyandsharplydecreaseinvalue.Whereequitymarkets are extremely volatile, theNAV of a Constituent Fund and/or its underlyingfund(s)mayfluctuatesubstantiallyandMembersmaysuffersubstantialloss.

4.2.3 Concentration risk

Some of the Constituent Funds or their underlying fund(s)may invest only in a specificcountry or region. Their portfoliosmay not bewell diversified in terms of the numberof holdings. Investors should be aware that such Constituent Funds or their underlyingfund(s)arelikelytobemorevolatilethanabroad-basedfund,suchasaglobalorregionalequity fund,as theyaremore susceptible to fluctuations in value resulting from limitednumberofholdingsoradverseconditionsintheirrespectivecountries.

4.2.4 Credit risk and credit rating risk

ThevalueofaConstituentFundmaybeaffected ifanyofthefinancial institutionswithwhich the cashof theConstituent Fund is investedordeposited,or a counterpartyof aConstituentFundoritsunderlyingfund(s),suffersinsolvencyorotherfinancialdifficulties.This risk isminimised to the extent that the exposure to any one institution is limitedunderSchedule1totheGeneralRegulation.

A Constituent Fund or its underlying fund(s)may invest directly or indirectly in bonds,fixed interest securities or other debt securities and therefore are subject to credit risk(i.e.theriskthatanissuerofsecuritieswillbeunabletopayprincipalandinterestwhendue,or that the valueof a securitywill fall because themarketbelieves that the issueris less able to pay). If the issuer defaults, the performance of a Constituent Fund or itsunderlying fund(s) can be adversely affected as the Constituent Fund or its underlyingfund(s)maybeunabletorecoveranyamountduefromtheissuer.

ThisisbroadlygaugedbythecreditratingsofthesecuritiesinwhichaConstituentFundor its underlying fund(s) invest. The credit ratings of fixed income securities by creditrating agencies are a generally accepted barometer of credit risk. Credit ratings arehowever subject to certain limitations andmay not always be an accurate or reliablemeasure of the creditworthiness of the debt securities being invested in. For example,theratingofanissuerisheavilyweightedbypastdevelopmentsanddoesnotnecessarilyreflect probable future conditions. There is often a time lag in updating the creditratingsinresponsetorecentcreditevents.Wheresuchcreditratingsproveinaccurateorunreliable,lossesmaybeincurredbytheConstituentFundoritsunderlyingfund(s).

Further, thecredit ratingof thedebtsecuritydirectlyor indirectlyheldbyaConstituentFund or its underlying fund(s)may be downgraded. In the event of downgradingin the credit ratings of a security or an issuer relating to a security, the value of the

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relevant debt securitymay decline rapidlywhichmay surpass those caused by generalmarket fluctuations. A lowering of the credit rating of a debt securitymay alsoadversely affect the debt security’s liquidity,making itmore difficult to sell. Thus, thevalue of a Constituent Fund or its underlying fund(s)may be adversely affected. TheInvestmentManager and/or themanager(s) of the underlying fund(s)may be requiredtodisposeof the securities beingdowngradedat anundesirableprice inorder tomeetthe requirements under Schedule 1 to theGeneral Regulation and/or the investmentobjectives of the relevant Constituent Fund(s) or underlying fund(s),whichmay reducethevalueoftherelevantConstituentFund.

4.2.5 Currency risk

A Constituent Fund or its underlying fund(s) that invests in securities denominatedin currencies other than the Constituent Fund’s base currency (i.e. HK dollars)maybe exposed to currency exchange risk. Fluctuations in exchange rates between thesecurrencies and the base currencymay cause the value of such securities in terms of thebasecurrencytodiminishorincrease.IfthecurrencyinwhichaConstituentFund’soritsunderlyingfund(s)portfoliosecurityisdenominateddepreciatesagainstthebasecurrencyof theConstituent Fund’sor itsunderlying fund(s), the valueof the security in termsofthe base currencywill decrease and theNAV of the Constituent Fund or its underlyingfund(s)willbeaffectedunfavourably.

In addition, theBEA (Industry Scheme)RMB&HKDMoneyMarket Fund’s investment inRMB deposits and RMB debt instrumentswill be subject to additional currency risks. Inparticular, RMB is currently not a freely convertible currency and is subject to foreignexchangecontrolsandrepatriationrestrictionsimposedbytheChinesegovernment.ThereisnoassurancethatRMBwillnotbesubjecttodevaluation.AnydevaluationoftheRMBcouldadverselyaffecttheNAVoftheBEA(IndustryScheme)RMB&HKDMoneyMarketFund. Further, the BEA (Industry Scheme) RMB&HKDMoneyMarket Fund is expectedunder normal circumstances to hold at least 50%of itsNAV in assets denominated andsettled inRMB.Thus, theperformanceof theBEA(IndustryScheme)RMB&HKDMoneyMarketFundmaybeadverselyaffectedbychangesintheHKD/RMBexchangerateiftheRMBdepreciatesagainsttheHKD.ThisriskisminimisedtotheextentthattheBEA(IndustryScheme)RMB&HKDMoneyMarketFund’seffectivecurrencyexposuretoHKDwillatalltimesbemaintainedatnotlessthan30%.

4.2.6 Interest rates risk

Thepricesofdebt securities tend tovary inverselywithmarket interest rates.Thevalueof such securities is likely to decline in times of rising interest rates. Conversely,whenratesfall,thevalueoftheseinvestmentsislikelytorise.Thelongerthetimetomaturitythe greater such variations. To the extent a Constituent Fund or its underlying fund(s)hold long-termdebt securities, its respectiveNAVwillbe subject toagreaterdegreeoffluctuationthanifithelddebtsecuritiesofashorterduration.

4.2.7 Emerging market risk

VariouscountriesinwhichcertainConstituentFundsortheirunderlyingfundswillinvestare considered as emergingmarkets. As emergingmarkets tend to bemore volatilethandevelopedmarkets,anyholdings inemergingmarketsareexposedtohigher levelsofmarket risk. The securitiesmarkets of some of the emerging countries are not yetfully developedwhichmay, in some circumstances, lead to a potential lack of liquidity.Accounting,auditingandfinancialreportingstandardsinsomeoftheemergingmarketsmaybelessvigorousthaninternationalstandards.Asaresult,certainmaterialdisclosuresmaynotbemadeby somecompanies. Inmanycases,governmentsofemergingmarketsretain a high degree of direct control over the economy andmay take actions havingsudden andwidespread effects such as suspension of trade andmoratoriumwhichmay

25

affectvaluationofassets. Investments inproductsofemergingmarketmayalsobecomeilliquidwhichmayconstraintheInvestmentManager’sabilitytorealisesomeoralloftheportfolioandthusaffecttherepatriationofcapital.

Further, allmarkets are subject to volatility based on prevailing economic conditions.Securities in “emerging” or “developing”marketsmay involve a higher degree of riskduetothesmallcurrentsizeofthemarketsforsecuritiesof“emerging”or“developing”market issuers and the currently low or non-existent volume of trading,which couldresultinpricevolatility.Certaineconomicandpoliticaleventsinemergingordevelopingeconomies,includingchangesinforeignexchangepoliciesandcurrentaccountpositions,couldalsocausegreatervolatilityinexchangerates.

Market practices in certain emergingmarkets in relation to the settlement of securitiestransactions and custody of assetsmay increase the risk of settlement default. Theclearing, settlement and registration systems available to effect trades on emergingmarketsmay be significantly less developed than those inmorematureworldmarketswhich can result in delays and othermaterial difficulties in settling trades and inregistering transfers of securities. Such delays could result in substantial losses for aConstituent Fund or its underlying fund(s) if investment opportunities aremissed or ifthey are unable to acquire or dispose of securities as a result. Therefore, problems ofsettlementinthesemarketsmayaffectthevalueofaConstituentFundoritsunderlyingfund(s).

4.2.8 Market/liquidity risk

Weak financial and credit conditionsmay have a negative impact on the equitiesmarkets resulting in increased volatility. Investors should note that a Constituent Fundor its underlying fund(s) that invests in equitieswill be subject tomarket/liquidity risk.Investment expectationsmay therefore fail to be realised in such instances. This risk isminimisedtotheextentthat investment inequitiesandothersecurities issubjecttothediversification requirements of Schedule 1 to theGeneral Regulation, underwhich theinvestmentofaConstituentFund is limited to10%of sharesofaparticular class issuedbyany issuerandany investment representingnotmore than10%of totalNAVof suchConstituentFundissuedbyanyoneissuer.

Further, a Constituent Fund or its underlying fund(s)may encounter difficulties indisposingofassetsattheirfairpriceduetoadversemarketconditionsleadingtolimitedliquidity.

4.2.9 Counterparty risk

Counterparty risk involves the risk that a counterparty or third partywill not fulfil itsobligations to a Constituent Fund or its underlying fund(s). A Constituent Fundmaybe exposed to the risk of a counterparty through investments such as bonds, deposits,financial futures and options contracts. To the extent that a counterparty defaults onits obligations and a Constituent Fund or its underlying fund(s) is delayed in exercisingor prevented from exercising their respective rightswith respect to the investment intheir respective portfolio, theNAV of a Constituent Fund or its underlying fund(s)maybe adversely affected due to a decline in the value of the security, loss of income andincurringcostsassociatedwiththeirrespectiverightsattachedtothesecurity.

4.2.10 Eurozone risk

TheperformanceofaConstituentFundor itsunderlyingfund(s) that invest(s) inEuropewill be affected by the economic, political, regulatory, geopolitical,market, currencyor other conditions in the region. In particular, for the exit of EUmembers fromthe Eurozone such as Brexit and the ongoing concerns on the sovereign debt risk ofcertain countrieswithin the Eurozone, the investments in the regionmay be subject to

26

higher volatility, liquidity, currency and default risks. Any adverse event, such as creditdowngradeofa sovereign,mayhaveanegative impacton thevalueof theConstituentFundoritsunderlyingfund(s).

4.2.11 Political, economic and social risk

The performance of a Constituent Fund or its underlying fund(s) and its ability topay redemption proceedsmay be affected by changes in economic conditions anduncertainties such as change in political conditions including strikes and curfew andgovernment policies, terrorist activities, the imposition of restrictions on the transferof capital and changes in laws or regulatory requirements. For example, in respect ofthe investments in securities issuedorguaranteedbygovernments, inadverse situation,the sovereign issuersmay not be able orwilling to repay the principal and/or interestwhen due ormay request the Constituent Fund or its underlying fund(s) to participatein restructuring such debts. The Constituent Fund or its underlying fund(s)may suffersignificantlosseswhenthereisadefaultofsovereigndebtissuers.

4.2.12 Early termination risk

TheTrusteemay,withtheconsentoftheSponsor,terminateaConstituentFundongivingnot less than onemonth’s notice to eachMember and each participating employer (orsuchotherperiodofnoticeastheMPFAortheSFCmayrequire).

If a Constituent Fund is terminated, contributionswill cease to be invested in suchConstituent Fund and accrued benefits in such Constituent Fundmust be transferred(freeofcharge)intoanotherConstituentFundchosenbytherelevantMember.Membersshouldnote that suchamount tobe transferred from the terminatingConstituent Fundmaybelessthantheamountcontributedbythem.

Further,theIndustrySchememaybewoundupbythecourt inaccordancewiththeMPFOrdinanceonapplicationby theMPFA to the court.TheTrustee shallgivenot less thanonemonth’snotice (or suchotherperiodas theMPFAor theSFCmayagreeor require)toparticipatingemployersandMembersof the terminationof the IndustrySchemeandarrangementswillbemadeforthetransferofMembers’accruedbenefitsintheIndustrySchemetoanotherregisteredscheme.Membersshouldnotethattheaccruedbenefitstobetransferredtoanotherregisteredschememaybelessthantheamountcontributedbythem.

For further details, please refer to the “3.7 Establishment, termination,merger anddivision of Constituent Funds” sub-section under the “3. FUNDOPTIONS, INVESTMENTOBJECTIVESANDPOLICIES”sectionaboveandthe“7.6Termination,mergerordivisionofIndustryScheme”sub-sectionunderthe“7.OTHERINFORMATION”sectionbelow.

4.2.13 Valuation and accounting risk

Each Constituent Fund or its underlying fund(s) intend to adopt Hong Kong FinancialReporting Standard (“HKFRS”) in drawing up its annual accounts. However,Membersshouldnote thateachConstituentFundor itsunderlying fund(s) intend toamortise thepreliminaryexpensesandcostsoftheConstituentFundoritsunderlyingfund(s)overthefirstfivefinancialperiodsofthefundcommencingonthecloseoftheinitialofferperiodoroversuchotherperiodas theTrusteeshallconsiderfair.Thispolicyofamortisation isnotinaccordancewithHKFRSandmayaccordinglyresultineitheradifferentNAVbeingreflectedintheannualauditedaccountsortheauditorsqualifyingtheConstituentFund’saccounts. However, the Trustee believes that the policy of capitalising and amortisingpreliminarycostsisfairerandmoreequitabletotheinitialMembers.

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Valuation of the Constituent Fund’s or its underlying fund(s)’ investmentmay involveuncertainties and judgmental determinations. For example, securities held by theConstituentFundoritsunderlyingfund(s)maysubsequentlybecomeilliquidduetoeventsrelating to the issuer of the securities,market and economic conditions and regulatorysanctions. Themarket value of such securitiesmay becomemore difficult or impossibletoascertain.Underthiscircumstance, the InvestmentManagermay, inconsultationwiththe Trustee, apply valuationmethods to ascertain the fair value of such securities inaccordancewiththeTrustDeed.Ifsuchvaluationturnsouttobeincorrect,thismayaffecttheNAVcalculationoftheConstituentFundoritsunderlyingfund(s).

4.2.14 Risk in relation to futures and options contracts

Some of the Constituent Fundsmay use futures and options contracts for hedgingpurposes.Thevalueorreturnofthesetypesof instruments isbasedontheperformanceof an underlying asset. These instrumentsmay be volatile and involve various risks,includingmarketrisk, theriskof lackofcorrelationor leverageeffect, liquidityrisk, theriskofnon-performancebythecounterparty.

4.2.15 Hedging risk

The InvestmentManagermay acquire financial futures contracts and financial optionscontracts for hedging purposes. The InvestmentManager is permitted, but not obliged,to use hedging techniques to attempt to offset currency andmarket risks. There is noguarantee that hedging techniqueswill achieve their desired result. If the techniquesandinstrumentsemployedbytheInvestmentManagerareincorrect,orthecounterpartyforsuchinstrumentsdefault,therelevantConstituentFundoritsunderlyingfund(s)maysufferasubstantialloss.

4.2.16 Risk in relation to investments in index-tracking funds

InvestorsshouldnotethatcertainConstituentFundsthatinvestinapprovedITCISswouldbesubjecttothefollowingrisks:

(a) Market risk of the sector or market tracked by the relevant index

Each relevant Constituent Fund tracks an underlying index by investing in anapproved ITCIS. As a result, such Constituent Funds are subject to the fluctuationsand adverse conditions in the sector ormarketwhich the relevant index seeks totrack. The InvestmentManagerdoesnothavediscretion to takedefensivepositionswherethemarket(s)representedbytherelevantindexdecline.Hence,anyfallintheunderlying indexwill result in corresponding fall in thevalueof theapproved ITCISandhencetheConstituentFund.Furthermore,sinceanunderlyingindexmayfocusonaparticulargeographicalregionorindustry,investmentsofanapprovedITCISmaybeconcentratedinthesecuritiesofasingleissuerorseveral issuerswhentheapprovedITCISendeavours tomatchas closelyaspracticable itsholdingsof constituent stocksoftheindex.Therefore,theConstituentFundsmaybesubjecttotheadditionalrisksofconcentrationinthesemarketsorregions.

Further, there is no guarantee that the information used in connectionwith thecomputation of the relevant index is free from inaccuracies, omissions,mistakes,errors or incompleteness. The underlying indexmay not be able to achieve itsintendedobjectiveintrackingtheperformanceofaparticulargeographicalregionorindustry.

An approved ITCISmay invest in financial derivatives instruments to gain exposureto the constituent stocks of the underlying index. As such, the approved ITCISwillbe subject to insolvency or default risk of the issuers or counterparties of theseinstruments.Anydefaultorfailuretoperformitsobligationsbysuchissuersmaylead

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to substantial loss to the approved ITCIS,whichmay in turn affect the value of therelevantConstituentFund.

(b) Failure to fully replicate the performance of the index

While the approved ITCIS inwhich aConstituent Fund investswill seek to track theperformanceof theunderlying index, changes in theNAVof suchConstituent Fundmaynotreplicateexactlychanges intherelevant index.This isdueto,amongotherfactors, the fees and expenses payable by the Constituent Fund and transactionfees and stamp duty incurred in adjusting the composition of the investmentportfolioaccordingtochangesintherelevantindex,anddividendsreceived,butnotdistributed,bytherelevantapprovedITCIS.

In addition, as a result of the unavailability of constituent stocks of an underlyingindex, the transaction costs inmaking an adjustment outweighing the anticipatedbenefits of such adjustment or for certain other reasons, theremay be timingdifferences between changes in the underlying index and the correspondingadjustmenttotheshareswhichcomprisetheapprovedITCIS’sportfolio.

During timeswhen the constituent stocks of an underlying index are unavailableorwhen the investmentmanager of the approved ITCIS determines it is in thebestinterest of the approved ITCIS to do so, the approved ITCISmaymaintain a cashposition or invest in other contracts or investments as permitted by the applicablelaws and regulations until the constituent stocks become available. Such costs,expenses, cash balances or timing differences could cause the approved ITCIS’s NAVto be lower or higher than the relative level of the index it tracks. Themagnitudeof tracking error of an approved ITCISwould depend on the cashflow, size of theportfolioandtheextentofuseoffinancial instrumentsandmaybehigheror lowerthanotherindextrackingfunds.

(c) The index composition may change over time which may affect performance

The index compositionmay change from time to time and the InvestmentManagerhas no control over the selectionof the constituent stocks comprisingof the index.Generally, an underlying approved ITCIS’s holding of constituent stockmay notexceed the constituent stock’sweighting in the relevant index, exceptwhere theweightingisexceededasaresultofchangesinthecompositionoftherelevantindexwhere the excess is only transitional and temporary in nature,where such excess isduetopurchaseofboard lotsorwheresuchexcess isdueto the implementationofa documented sampling or optimisation technique the purpose ofwhich is for theunderlyingapprovedITCIStoachieveitsobjectiveoftrackingtherelevantindex.

(d) An approved ITCIS may be traded at a market price, which may be different from its NAV and may fluctuate

Themarket price of the units in an approved ITCISmay sometimes trade above orbelowitsNAV.Thereisarisk,therefore,thattherelevantConstituentFundmaynotbeabletobuyorsellatapriceclosetotheNAVoftheapprovedITCIS.ThedeviationfromNAVisdependentonanumberoffactors,butwillbeaccentuatedwhenthereis a large imbalance betweenmarket supply anddemand for the constituent stocksof the index. The “bid/ask” spread (being the difference between the prices beingbidbypotentialpurchasersandthepricesbeingaskedbypotentialsellers)isanothersourceofdeviationfromNAV.Thebid/askspreadcanwidenduringperiodsofmarketvolatilityormarketuncertainty,therebyincreasingthedeviationfromNAV.

(e) An approved ITCIS or an underlying index may be terminated

Any licensegrantedtotheserviceprovideroftheunderlyingapproved ITCISfortheuseof,andreferenceto,therespectiveunderlyingindex,maybeterminated,orthe

29

underlying indexmay cease tobeoperatedor available.As a result, theunderlyingapproved ITCISmay be terminated. In such circumstances, the InvestmentManagermay,subjecttothepriorapprovaloftheMPFAandtheSFC,seekareplacementoftheapprovedITCIS.TherelevantConstituentFundmayalsobeterminatedifnosuitablereplacementunderlyingfundisfound.

4.2.17 Risks associated with the BEA China Tracker Fund

The BEA China Tracker Fund tracks theHang Seng China Enterprises Index, and investsdirectly intheHangSengChinaEnterprises IndexETFwhichaimstoproduce investmentresults that closely correspond to the performance of theHang Seng China EnterprisesIndex.

(a) Concentration and mainland China market risk

TheHangSengChinaEnterprisesIndexETFissubjecttoconcentrationriskasaresultoftrackingtheperformanceofasinglegeographicalregion(i.e.thePeople'sRepublicof China (PRC) includingmainland China andHong Kong). The value of theHangSeng China Enterprises Index ETFmay bemore volatile than that of an investmentfund having amore diverse portfolio of investments. The constituent stocks of theunderlying index of theHang Seng China Enterprises Index ETF are securities ofcompanieswhicharelistedontheStockExchangeofHongKongLimited(the“SEHK”)andhavemajorbusinessexposuretomainlandChina'smarket,anemergingmarket.InvestmentsoftheHangSengChinaEnterprisesIndexETFmayinvolveincreasedrisksandspecialconsiderationsnottypicallyassociatedwithinvestmentinmoredevelopedmarkets, such as liquidity risks, currency risks/control, political and economicuncertainties,legalandtaxationrisks,settlementrisks,custodyriskandthelikelihoodofahighdegreeofvolatility.

(b) China tax risk

Currently,themanageroftheHangSengChinaEnterprisesIndexETF(the“Underlying ITCIS Manager”) does notmake any tax provision on realised gains derived fromtradingofH-sharesbytheHangSengChinaEnterprisesIndexETFanddoesnothaveany intention tomake any tax provision on realised gains derived from trading ofRed-chips and P-chips.However, theUnderlying ITCISManager reserves the right tomakeanyprovision for taxesorwithholdany tax for theaccountof theHangSengChinaEnterprisesIndexETF.

Therearestilluncertaintiesastotheapplicationofthelaws,rulesand/orregulationsonChina'sCorporateIncomeTaxandChina'sValue-AddedTaxandsurtaxes.ItisalsouncertainastowhethertheHangSengChinaEnterprisesIndexETFmaybesubjecttoothertaxesimposedinChina.Itispossiblethatthecurrenttaxlaws,rules,regulationsand practice inmainland China and/or the current interpretation or understandingthereofmay change in the futureand such change(s)mayhave retrospectiveeffect.WherenoprovisionismadebytheUnderlyingITCISManagerinrelationtoallorpartof theactual taxes leviedbytherelevantChinesetaxauthorities infuture, investorsshouldnotethatNAVoftheHangSengChinaEnterprisesIndexETFmaybelowered,as theHang Seng China Enterprises Index ETFwill ultimately have to bear the fullamountoftaxliabilities.Inthiscase,suchamountoftaxliabilitieswillimpactunitsintheHangSengChinaEnterprisesIndexETFattherelevanttime,andthethenexistingunitholdersandsubsequentunitholdersoftheHangSengChinaEnterprisesIndexETFwillbedisadvantaged.

(c) Tracking of the Hang Seng China Enterprises Index at the Hang Seng China Enterprises Index ETF level

Members should be aware thatwhile theHang Seng China Enterprises Index ETFinvestsinsubstantiallyallthesharesofconstituentcompaniesoftheHangSengChina

30

Enterprises Index in substantially the sameweightings (i.e. proportions) as thesestockshaveintheHangSengChinaEnterprisesIndex,noassurancecanbegiventhattheperformanceoftheHangSengChinaEnterprisesIndexETFwillbeidenticaltotheperformanceof theHangSengChinaEnterprises Indexdue tocircumstances suchasthefeesandexpensesoftheHangSengChinaEnterprisesIndexETF,anyadjustmentmade to theNAV per unitwhich is considered to be an appropriate allowance toreflect duties (such as stamp duties) and chargeswhichwould be incurred if theinvestments of theHang Seng China Enterprises Index ETFwere to be acquired orsold in certain circumstances, imperfect correlation between theHang Seng ChinaEnterprisesIndexETF’ssecuritiesandthoseintheHangSengChinaEnterprisesIndex,timing differences associatedwith additions to and deletions from theHang SengChina Enterprises Index, and changes in the number of shares outstanding of theconstituent stocks in theHangSengChinaEnterprises Index.Theassetsof theHangSengChinaEnterprises IndexETFmaynotbe fully invested in theconstituent stocksoftheHangSengChinaEnterprisesIndexattimes.

At theHang Seng China Enterprises Index ETF level,when a stock ceases to be aconstituentstockoftheHangSengChinaEnterprisesIndex,rebalancingoccurswhichinvolves selling the outgoing stock and using the proceeds to acquire the incomingstock.

(d) Tracking of the Hang Seng China Enterprises Index at the BEA China Tracker Fund level

Duetothedelayinactuallysubscribingforunits intheHangSengChinaEnterprisesIndexETFarisingfromthetimerequiredtoprocess instructionsto invest in theBEAChina Tracker Fund in the initial period, the tracking error and the performance oftheBEAChinaTrackerFundmayrespectivelybebiggerandpoorerimmediatelyafterlaunchalthoughsuchaphenomenonwoulddiminishovertimeasthefundsizeoftheBEAChinaTracker Fundgrows.Other than theabove,due to the fact that theBEAChina Tracker Fundwill hold idle cash tomeet redemption/switching requests andthecalculationofperformanceoftheBEAChinaTrackerFundisonanafter-feebasis,trackingerrorresultedfromsuchcashholdingandfeedeductionfromtheBEAChinaTrackerFundwouldbeunavoidable.

4.2.18 Risks associated with the BEA Hong Kong Tracker Fund

The BEAHong Kong Tracker Fund tracks theHang Seng Index, and invests directly inthe Tracker Fund of Hong Kongwhich aims to produce investment results that closelycorrespondtotheperformanceoftheHangSengIndex.

(a) Tracking of the Hang Seng Index at the Tracker Fund of Hong Kong level

Themanager of the Tracker Fund of Hong Kong reviews the securities held in theTrackerFundofHongKong’sportfoliooneachBusinessDay,checkingthosesecuritiesagainstthesecuritiesconstitutingtheHangSengIndexandcomparingtheweightingofeachsecurityintheTrackerFundofHongKong’sportfoliototheweightingofthecorrespondingconstituentsecurityintheHangSengIndex.

Members should be aware thatwhile the BEAHong Kong Tracker Fund, throughits investment in the Tracker Fund of Hong Kong (which, in turn, invests all, orsubstantially all, of its assets in the constituent securities of theHang Seng Indexin substantially similar composition andweighting as they appear therein), aimsto achieve a returnwhich follows the trend of the Hang Seng Index, there isno guarantee or assurance of exact or identical replication at any time of theperformanceoftheHangSengIndex.

In the event that there is any deviation between the Tracker Fund of Hong Kong’sportfolioandthecompositionandweightingoftheHangSengIndextherebygiving

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rise to a tracking errorwhich is considered by themanager of the Tracker Fundof Hong Kong to be significant taking into account the investment objective, themanagerwould effect adjustments of the Tracker Fund of Hong Kong’s portfoliowhichitconsidersappropriateassoonasitisreasonablypracticable,afterconsideringtransaction costs and the impact, if any, on themarket.However, itwill not alwaysbeefficient to replicateor attempt to replicate identically the constituent securitiesof theHang Seng Index. For example, if the transaction costs tobe incurredby theTrackerFundofHongKonginperforminganynecessaryadjustmentswouldoutweighthe anticipated reduction in tracking error thatwould result from the failure toreflectminor changes in theHang Seng Index. Therefore,minormisweightings arelikely to occur. Further, themanager of the Tracker Fund of Hong Kongmay berestricted fromeffecting certainadjustmentsormaybe required toperform certainadjustmentsbyapplicablelawsandregulations.

(b) Tracking of the Hang Seng Index at the BEA Hong Kong Tracker Fund level

DuetothedelayinactuallysubscribingforsharesintheTrackerFundofHongKongarisingfromthetimerequiredtoprocessinstructionstoinvestintheBEAHongKongTrackerFundintheinitialperiod,thetrackingerrorandtheperformanceoftheBEAHong Kong Tracker Fundmay respectively be bigger and poorer immediately afterlaunch although such a phenomenonwould diminish over time as the fund size oftheBEAHongKongTrackerFundgrows.Otherthantheabove,duetothefactthatthe BEAHong Kong Tracker Fundwill hold idle cash tomeet redemption/switchingrequestsandthecalculationofperformanceoftheBEAHongKongTrackerFundisonanafter-feebasis, trackingerror resulted fromsuch cashholdingand feedeductionfromtheBEAHongKongTrackerFundwouldbeunavoidable.

4.2.19 Risks associated with the BEA (Industry Scheme) RMB & HKD Money Market Fund

(a) Lack of RMB denominated debt securities

Although the issuanceofoffshoreRMBdebt securitieshas increased substantially inrecentyears,supplystilllagsthedemandforoffshoreRMBdebtsecurities.Asaresult,new issues of offshore RMB debt securities are usually oversubscribed andmay bepricedhigherthanand/ortradewithaloweryieldthanequivalentonshoreRMBdebtsecurities.IftheonshoreRMBdebtsecuritiesmarketsubsequentlyopensup,thismaylead to the convergenceof the yields in the twomarkets. Thismay result in higheryields for the offshore RMB debt securities and, consequently, decrease the priceof suchoffshoreRMBdebt securities. Thismayadversely affect theNAVof theBEA(IndustryScheme)RMB&HKDMoneyMarketFund.

Currently,mostof theoffshoreRMBdebt securitiesavailable in themarketmaynotmeettherequirementsunderSchedule1totheGeneralRegulationandtherefore,theoffshoreRMBdebts securitiesavailablefor investmentbytheBEA(IndustryScheme)RMB&HKDMoneyMarketFundmaybelimitedwhichmayresultinconcentrationofcreditrisk.

However, this risk isminimised as the BEA (Industry Scheme) RMB&HKDMoneyMarket Fundwill only invest up to 10%of its NAV in RMB debt securities. In anyevent, the exposure to any single issuer is limited to themaximum level of 10%oftheNAVofthisBEA(IndustryScheme)RMB&HKDMoneyMarketFundaspermittedunderSchedule1toGeneralRegulation.

(b) Additional liquidity risk in relation to the BEA (Industry Scheme) RMB & HKD Money Market Fund

TheBEA(IndustryScheme)RMB&HKDMoneyMarketFund’s investment inoffshoreRMBdebtsecuritieswillbesubject toadditional liquidity risks.There is currentlynoactivesecondarymarketforoffshoreRMBdebtsecurities.Intheabsenceofanactive

32

secondarymarket, the BEA (Industry Scheme) RMB&HKDMoneyMarket Fundmayneed to hold investments until theirmaturity date. If sizeable redemption requestsare received, theBEA (Industry Scheme)RMB&HKDMoneyMarket Fundmayneedtoliquidateits investmentsatasubstantialdiscountinordertosatisfysuchrequestsandtheBEA(IndustryScheme)RMB&HKDMoneyMarketFundmaysuffersignificantlossesintradingsuchinvestments.Evenifasecondarymarketisdeveloped,thepricesatwhichtheBEA(IndustryScheme)RMB&HKDMoneyMarketFund’sinvestmentsaretradedmaybehigherorlowerthantheinitialsubscriptionpricesduetomanyfactorsincludingtheprevailinginterestrates.

4.2.20 Principal risks of investing in the DIS

MembersshouldnotethatthereareanumberofattributesofthedesignoftheDISassetoutbelow,whichaffectthetypesofrisksassociatedwiththeDIS.

(a) Limitations on the strategy

(i) Age as the sole factor in determining the asset allocation under the DIS

As set out inmore detail in the “6.3.3MPFDefault Investment Strategy” sub-section under the “6. ADMINISTRATIVE PROCEDURES” section,Members shouldnote that theDIS adopts pre-determined asset allocation and automaticallyadjustsassetallocationbasedonlyuponaMember’sage.TheDISdoesnot takeinto account factors other than age, such asmarket and economic conditions,and does not consider aMember’s personal circumstances including investmentobjectives,financialneeds,risktoleranceorlikelyretirementdate.Memberswhowant theirMPF portfolio to reflect their own personal circumstances canmaketheirownselectionoffundsfromtherangeavailableintheIndustryScheme.

(ii) Pre-set asset allocation

The BEA (Industry Scheme) Core Accumulation Fund and the BEA (IndustryScheme) Age 65 Plus Fund have to follow the prescribed allocation betweenHigherRiskAssetsandLowerRiskAssetsatall timessubject toa tolerance levelof +/- 5%. The prescribed exposure betweenHigher Risk Assets and Lower RiskAssetsoftheBEA(IndustryScheme)CoreAccumulationFundandtheBEA(IndustryScheme)Age65PlusFundwilllimittheabilityoftheInvestmentManageroftheBEA (Industry Scheme) CoreAccumulation Fund and the BEA (Industry Scheme)Age 65 Plus Fund to adjust asset allocations in response to suddenmarketfluctuations;forexample,throughtheadoptionofeitheramoredefensiveassetallocationapproach(beinganapproachwhichseekstoreduceHigherRiskAssetsexposure),oralternativelyamoreaggressiveassetallocationapproach(beinganapproachwhich seeks to increaseHigherRiskAssetsexposure)even if, for somereason,theInvestmentManagerthoughtitappropriatetodoso.

(iii) Annual de-risking between the BEA (Industry Scheme) Core Accumulation Fund and the BEA (Industry Scheme) Age 65 Plus Fund

De-riskingforeachrelevantMemberwillgenerallybecarriedoutonaMember’sbirthday, regardless of the prevailingmarket conditions.While the de-riskingprocess aims atmanaging risks of the investments through reducing exposureto Higher Risk Assets, itmay preclude theDIS from fully capturing the upsidein rising equitymarkets during the de-risking process and thereforewouldunderperformascomparedwithfundsnotadoptingthede-riskingprocessunderthesamemarketconditions.

It is possible that the de-risking process is done at a timewhichmay result inMembers reducing exposure to an asset classwhich outperforms and increasingexposure to an asset classwhich underperforms. The asset allocation changes

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gradually over a 15-year time period.Members should be aware that the de-risking operates automatically regardless of thewish of aMember to adopt aninvestmentstrategywhichmightcatchmarketupsideoravoidmarketdownside.

Also,thede-riskingprocesscannotinsulateMembersfrom“systemicrisk”,suchasbroad-basedrecessionsandothereconomiccrises,whichwillaffectthepricesofmostassetclassesatthesametime.

(iv) Potent ia l rebalanc ing within each of the BEA ( Industry Scheme) Core Accumulation Fund and the BEA (Industry Scheme) Age 65 Plus Fund

InordertomaintaintheprescribedallocationbetweentheHigherRiskAssetsandLower Risk Assetswithin each of the BEA (Industry Scheme) CoreAccumulationFundand theBEA (Industry Scheme)Age65 Plus Fund, the investmentsof eachof the BEA Industry Scheme) CoreAccumulation Fund and the BEA (IndustryScheme) Age 65 Plus Fundmay have to be continuously rebalanced regardlessof the prevailingmarket conditions. For example,when theHigher Risk Assetsperform poorly, the BEA (Industry Scheme) CoreAccumulation Fund’s or theBEA (Industry Scheme) Age 65 Plus Fund’s asset allocationmay fall outside therespective prescribed limit. In this case, eachof theBEA (Industry Scheme) CoreAccumulationFundandtheBEA(IndustryScheme)Age65PlusFundwillhavetoliquidatesomeofthebetterperformingLowerRiskAssetsinordertoinvestmoreintheHigherRiskAssets,eveniftheInvestmentManagerisoftheviewthattheHigherRiskAssetsmightcontinuetoperformpoorly.

(v) Additional transaction costs

TheDISmay incur greater transaction costs than an investment strategywithmorestaticallocationduetothefollowingreasons:

• the potential rebalancing of Higher Risk Assets and Lower Risk Assets intheprocessofmaintaining theprescribedallocationwithineachof theBEA(Industry Scheme) CoreAccumulation Fund and the BEA (Industry Scheme)Age65PlusFund;and

• theannualreallocationofaccruedbenefitsforMembersunderthede-riskingprocess.

(b) General investment risk related to the DIS

AlthoughtheDISisastatutoryarrangement,itneitherguaranteescapitalrepaymentnor positive investment returns (in particular for thoseMemberswith only a shortinvestmenthorizonbeforeretirement).ThetwodesignatedConstituentFundsfortheDISaremixed-asset funds investing inamixofequitiesandbonds.Members shouldnotethattheDIS,whichinvests intheseConstituentFunds, issubjecttothegeneralinvestment risks that apply tomixed-asset funds. For general key risks relating toinvestmentfunds,pleaserefertotheothersub-sectionsunderthis“4.RISKS”section.

(c) Risk on early withdrawal and switching

Since theDIS has been developedhaving regard to the long-termbalance betweenrisksandreturns,andassumesretirementattheageof65,anycessationoftheDIS(forexamplethroughearlywithdrawalofaccruedbenefitsorswitchingintootherfunds)willaffectthatbalance.

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(d) Impact on Members keeping benefits in the DIS beyond the age of 64

De-riskingprocesswilldiscontinueuponreachingtheageof64.Membersshouldbeawarethatallaccruedbenefits (includingaccruedbenefits transferredfromanotherregisteredscheme)/on-goingcontributions,ifany,willbeinvestedintheBEA(IndustryScheme)Age65PlusFundwhichholdsaround20%ofitsassetsinHigherRiskAssetswith the remainder invested in LowerRiskAssets,whichmaynotbe suitable for allMembersbeyondtheageof64.

4.2.21 Risk of investment in Europe

CertainConstituentFundsortheirunderlyingfund(s)mayinvestinglobalequitysecuritieswhichmayincludeasubstantialinvestmentinEuropeansecurities.ThecurrenteconomicandfinancialdifficultiesinEuropemaycontinuetogetworseandmayspreadwithinandoutside Europe. It is possible thatmeasures taken by the governments of the Europeancountries, central banks and other authorities to address the economic and financialproblems, such as austeritymeasures and reforms,may notwork and such failuremayresultinadverseconsequences.TheimpactofanyadverseeconomicorfinancialeventsinEuropemaybesignificantandmayadverselyaffectthevalueoftherelevantConstituentFunds'investmentinEuropeansecurities.Inaddition,theConstituentFunds'investmentsinEuropeansecuritiesmaybesubject to increasedrisksofvolatility, liquidity, creditandcurrencyfluctuationsasaresultofconcernsoverthefiscalconditionsandsovereigncreditrisksthatmaybefacedbyoneormoreEuropeancountries.

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5. FEES AND CHARGES

5.1 Fee table

Thefollowingtabledescribesthefees,chargesandexpensesthatparticipatingemployersandMembersmaypayuponandafterjoiningtheIndustryScheme.Importantexplanatorynotesanddefinitionsaresetoutatthebottomofthetable.

.

(A) JOINING FEE & ANNUAL FEE

Type of fees Current amount Payable by

Joiningfee(a) Nil N/A

Annualfee(b) Nil N/A

(B) FEES AND CHARGES PAYABLE ARISING FROM TRANSACTIONS IN INDIVIDUAL MEMBER’S ACCOUNT

Type of fees & charges

Name of Constituent Fund Current level Payable by

Contributioncharge(c)


Nil N/A

BEA(IndustryScheme)BalancedFundBEA(IndustryScheme)StableFundBEA(IndustryScheme)AsianEquityFundBEA(IndustryScheme)GreaterChinaEquityFundBEA(IndustryScheme)HongKongEquityFundBEAChinaTrackerFundBEAHongKongTrackerFundBEA(IndustryScheme)RMB&HKDMoneyMarketFundBEA(IndustryScheme)MPFConservativeFund N/ABEA(IndustryScheme)CoreAccumulationFund

Nil N/ABEA(IndustryScheme)Age65PlusFund

Offerspread(d) BEA(IndustryScheme)GrowthFund

Currentlywaived N/A


Currentlywaived N/ABEA(IndustryScheme)Age65PlusFund

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(B) FEES AND CHARGES PAYABLE ARISING FROM TRANSACTIONS IN INDIVIDUAL MEMBER’S ACCOUNT

Type of fees & charges

Name of Constituent Fund Current level Payable by

Bidspread(e) BEA(IndustryScheme)GrowthFund

Currentlywaived N/A


Currentlywaived N/ABEA(IndustryScheme)Age65PlusFund

Withdrawalcharge(f)


Nil N/A


Nil N/ABEA(IndustryScheme)Age65PlusFund

(C) FUND OPERATING CHARGES & EXPENSES OF CONSTITUENT FUNDSType of charges & expenses

Name of Constituent Fund Current level(Referto

paragraph(g)(i)underthe“5.2Definitions”sub-sectionforfeebreakdown)

Deducted from

Managementfees(g)


1.20%p.a.ofNAV

RelevantConstituentFundassets

BEA(IndustryScheme)BalancedFundBEA(IndustryScheme)StableFundBEA(IndustryScheme)AsianEquityFundBEA(IndustryScheme)GreaterChinaEquityFundBEA(IndustryScheme)HongKongEquityFundBEAChinaTrackerFund

0.60%p.a.ofNAVBEAHongKongTrackerFundBEA(IndustryScheme)RMB&HKDMoneyMarketFund

0.79%p.a.ofNAV

BEA(IndustryScheme)CoreAccumulationFund0.75%p.a.ofNAV


BEA(IndustryScheme)MPFConservativeFund 0.79%p.a.ofNAVRelevant

Member'saccountbyUnitdeduction

37

(C) FUND OPERATING CHARGES & EXPENSES OF CONSTITUENT FUNDSType of charges & expenses

Name of Constituent Fund Current level(Referto

paragraph(g)(i)underthe“5.2Definitions”sub-sectionforfeebreakdown)

Deducted from

Otherexpenses

The Constituent Fundswill bear the operating expensesof the Industry Scheme (e.g. compensation fund levy (ifany), indemnity insurance, auditor’s fees and legal charges)in proportion to their respective NAVs or in such othermanner as the Trustee shall consider fair. Such expenses aresummarised in paragraph (f) of the “5.9 Explanatory notes”sub-sectionbelow.

Certain recurrent expenses relating to the BEA (IndustryScheme) Core Accumulation Fund and the BEA (IndustryScheme)Age65 Plus Fundare subject to a statutory annuallimitof0.20%oftheNAVofeachofthoseConstituentFundsandwill not be charged to or imposed on the ConstituentFund inexcessof thatamount.Please refer to the“5.7Feesandout-of-pocketexpensesoftheDIS”sub-sectionbelowfordetails.

The establishment costs and payments incurred in theestablishment of each of the following Constituent Fundswereestimatedasfollows:

• BEA(IndustryScheme)CoreAccumulationFund–HKD78,500;and

• BEA(IndustryScheme)Age65PlusFund–HKD78,500.

SuchestablishmentcostsandpaymentswillbebornebytheseConstituentFundsandamortisedoveraperiodoffiveyears,commencing from the first anniversary of the formation oftherespectiveConstituentFund.

RelevantConstituentFund

assets

(OtherexpensesoftheBEA

(IndustryScheme)MPFConservative

Fundarededucted

fromrelevantMember’s

accountbyUnitdeduction.)

38

(D) FEES AND CHARGES PAYABLE OUT OF THE UNDERLYING FUNDS

Type of charges & expenses

Name of Constituent Fund Current level#

(Refertoparagraph(g)(ii)underthe“5.2Definitions”sub-sectionforfeebreakdown)

Deducted from

Managementfees(g)

BEA(IndustryScheme)GrowthFund 0-0.62%p.a.ofNAV*

Relevantunderlyingfund

assets

BEA(IndustryScheme)BalancedFund 0-0.62%p.a.ofNAV*

BEA(IndustryScheme)StableFund 0-0.62%p.a.ofNAV*

BEA(IndustryScheme)AsianEquityFund 0-0.74%p.a.ofNAV*


0-0.74%p.a.ofNAV*

BEA(IndustryScheme)HongKongEquityFund 0-0.1%p.a.ofNAV

BEAChinaTrackerFund Upto0.6%p.a.ofNAV

BEAHongKongTrackerFund Upto0.1%p.a.ofNAV

BEA(IndustryScheme)CoreAccumulationFund Nil

BEA(IndustryScheme)Age65PlusFund Nil

Otherexpenses

Eachunderlyingfundmaybearitscostsandoperatingexpenses(e.g. establishment costof theunderlying fund, indemnityinsurance, auditor’s feesand legal charges). Suchexpensesaresummarised inpoint (g)of the“5.9Explanatorynotes” sub-sectionbelow.

Relevantunderlyingfund

assets

#Theaggregatemanagementfeesdonottake intoaccounttheadministrationfeewhich isnotcalculatedbyreferencetoNAV.

*Thefeecomponentsunderthetableinparagraph(g)(ii)underthe“5.2Definitions”sub-sectionof this “5. FEESAND CHARGES” sectionmay not add up to the aggregatemanagement feesbecause,while an underlying fundof a Constituent Fundmay charge the highest investmentmanagerfee(comparedtotheotherunderlyingfund(s)inwhichtheConstituentFundinvests),itmaynotchargethehighest trusteefee (comparedtotheotherunderlyingfund(s) inwhichthe Constituent Fund invests). In any event, as far as each individual underlying fund isconcerned,thetotal investmentmanagerfeeandtrusteefeechargedtothatunderlyingfundwillbesameorlowerthantheupperbounddisclosedintheabovetable.

39

(E) OTHER FEES AND CHARGES FOR PROVIDING ADDITIONAL SERVICESCopying Services for Member Charges Payable By Receivable ByCopyof“TrustDeed” HKD500

(percopy)

Member Trustee

Copyof“participationagreement”(forself-employedpersonandpersonalaccountholderonly)Re-issuanceof“noticeofparticipation”(forself-employedpersonandpersonalaccountholderonly)

HKD50(percopy)

Copyof“Member–membershipapplicationform”Re-issuanceof“noticeofparticipation”/“enrolmentconfirmation”

HKD50(percopy)

Re-issuanceofCasualEmployeeMember“MembershipCard”

HKD50

Copyofthelatest“specimensignature”“Member–declaration/statementofaccounts(self-employedperson)”Form“Member–changeofdetails”Form“Member–addition/changeofAdditionalVoluntaryContribution”Form“Member–changeofMandatetoinvestcontributions/fundSwitchingInstruction”Form“Member–claim/electionformfortransferofaccruedbenefits”

HKD50(percopy)

Copyofthelatest“benefitpaymentstatement”“unittransferstatement”“annualbenefitstatement”

HKD50(percopy)

Copyof“quarterlybenefitstatement”inthelatestschemeyear

HKD50(perquarterly)

CopyofMPFcontribution“pay-inslip”(forself-employedpersononly)

HKD50(pereachPay-inSlip)

Copyof“contributionreceipt”(forself-employedpersononly)MonthlyStatement(forCasualEmployeeMemberonly)

HKD50(pereach

contributionperiod)

DetailsofMembercontribution HKD50(pereach

financialperiod)TotalamountofMPFaccruedbenefits HKD50

(percopy)Copyofotherform HKD50

(percopy)

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(E) OTHER FEES AND CHARGES FOR PROVIDING ADDITIONAL SERVICESCopying Services for Employer Charges Payable By Receivable ByCopyof“TrustDeed” HKD500

(percopy)

Employer Trustee

Copyof“participationagreement”Re-issuanceof“noticeofparticipation”

HKD50(percopy)

Re-issuanceof“employercard” HKD100Copyofthelatest“specimensignature”“participatingemployer’srequestforfundtransferform”

HKD50(percopy)

Copyofthelatest“employer–supplementofemployervoluntarycontribution(relevantemployee)”“employer–changeofdetails”form“employer–noticeoftermination(relevantemployee)”(pereachmember)

HKD50(percopy)

Copyof“employer–remittancestatement”(forrelevantemployeecontribution)“contributionreceipt”(forrelevantemployeecontribution)“employer–listofcontributions”/“employer–remittancestatement”(forcasualemployeecontribution)“monthlycontributionreceipt”(forcasualemployeecontribution)

HKD50(pereach

contributionperiod)

Copyofthelatest“anniversaryreport” HKD50(percopy)

CopyofMPFcontribution“pay-inslip” HKD50(pereachPay-inSlip)

Copyof“Memberpayrecord” HKD50(pereachMemberineachcontribution

period)DetailsofMembercontribution HKD50

(pereachMemberineachfinancial

period)Copyofotherform HKD50

(percopy)

41

(E) OTHER FEES AND CHARGES FOR PROVIDING ADDITIONAL SERVICESPayment of accrued benefits from mandatory or voluntary contributions (as the case may be) by withdrawal by instalments, if applicable

Charges Payable By Receivable By

First12instalments(orsuchfurthernumberofinstalmentsasdeterminedbytheTrustee)inanycalendaryear

Freeofcharge(otherthananynecessarytransactioncostspayabletoapartyotherthantheTrusteeaspermittedundertheGeneralRegulation)

Member Trustee

Eachadditionalinstalmentafterthefirst12instalments(orsuchfurthernumberoffreeinstalmentsasdeterminedbytheTrustee)inthesamecalendaryear

HKD100perinstalment(inadditiontoanynecessarytransactioncostspayabletoapartyotherthantheTrusteeaspermittedundertheGeneralRegulation)

Note:Suchchargeisnotapplicableto: • aMemberwhohasallorpartoftheaccruedbenefitsinvestedintheBEA(IndustryScheme)CoreAccumulationFundand/ortheBEA(IndustryScheme)Age65PlusFundasatthetimewhentheTrusteereceivesthevalidwithdrawalrequestfromtheMember;

• anywithdrawalofaccruedbenefitsfromaTVCaccount.

5.2 Definitions

Thefollowingarethedefinitionsofthedifferenttypesoffeesandcharges.

(a) “Joining fee”means theone-off fee chargedby theTrustee/Sponsorof the IndustrySchemeandpayablebytheparticipatingemployersand/orMembersuponjoiningtheIndustryScheme.

(b) “Annual fee”means the fee chargedby theTrustee/Sponsorof the Industry Schemeonanannualbasisandpayablebytheparticipatingemployersand/orMembersoftheIndustryScheme.

(c) “Contribution charge”meansthefeechargedbytheTrustee/Sponsorofthe IndustryScheme against any contributions paid to the Industry Scheme. This fee is usuallychargedasapercentageofcontributionsandwillbedeductedfromthecontributions.ThischargedoesnotapplytotheBEA(IndustryScheme)MPFConservativeFund.

(d) “Offer spread” is charged by the Trustee/Sponsor upon subscription of Units of aConstituent Fund by aMember. Offer spread does not apply to the BEA (IndustryScheme)MPFConservative Fund.Offer spread for a transferof accruedbenefits canonly include necessary transaction costs incurred or reasonably likely to be incurredin selling or purchasing investments in order to give effect to the transfer and arepayabletoapartyotherthantheTrustee.

AlthoughtheSponsorhasthepowertolevyanofferspreadofupto5%oftheissuepriceperUnit issued (other than theBEA (IndustryScheme)MPFConservativeFund,the BEA (Industry Scheme) CoreAccumulation Fund and the BEA (Industry Scheme)

42

Age 65 Plus Fund in respect ofwhichnooffer spread is allowed), the Sponsor doesnot currently intend to levy such charge. The Sponsorwill give not less than threemonths’ notice toMembers of any change in such intention. In any event, no offerspreadshallbechargedotherthananamountrepresentingthenecessarytransactioncosts that are incurred, or reasonably likely to be incurred, in selling or purchasinginvestmentsinordertogiveeffecttothetransferofaccruedbenefits:

(i) fromanotherregisteredschemeintotheIndustryScheme;

(ii) from an accountwithin the Industry Scheme to another accountwithin theIndustryScheme;

(iii) in the same accountwithin the Industry Scheme, from a Constituent Fund toanotherConstituentFund.

(e) “Bid spread” is charged by the Trustee/Sponsor upon redemption of Units of aConstituent Fund by aMember. Bid spread does not apply to the BEA (IndustryScheme)MPF Conservative Fund. Bid spread for a transfer of accrued benefits,orwithdrawal of accrued benefits in a lump sum, or the first 12 instalments ofwithdrawal of accrued benefits in a calendar year can only include necessarytransactioncosts incurredorreasonably likelytobe incurred insellingorpurchasinginvestmentsinordertogiveeffecttothetransferorwithdrawalandarepayabletoapartyotherthantheTrustee.

Although the Sponsor has the power to levy a bid spread of up to 0.5%of therealisation price of eachUnit realised (other than the BEA (Industry Scheme)MPFConservativeFund, theBEA (IndustryScheme)CoreAccumulationFundand theBEA(IndustryScheme)Age65PlusFundinrespectofwhichnobidspreadisallowed),theSponsordoesnotcurrentlyintendtolevysuchcharge.TheSponsorwillgivenotlessthanthreemonths’noticetoMembersofanychangeinsuchintention.Inanyevent,no bid spread shall be charged other than an amount representing the necessarytransaction costs that are incurred, or reasonably likely to be incurred, in selling orpurchasinginvestmentsinordertogiveeffectto:

(i) thetransferofaccruedbenefits:

(A) fromtheIndustrySchemetoanotherregisteredscheme;

(B) from an accountwithin the Industry Scheme to another accountwithin theIndustryScheme;

(C) inthesameaccountwithintheIndustryScheme,fromaConstituentFundtoanotherConstituentFund;and

(ii) thepaymentofaccruedbenefits.

(f) “Withdrawal charge”means the fee chargedby the Trustee/Sponsorof the IndustryScheme uponwithdrawal of accrued benefits from the Industry Scheme. This fee isusuallychargedasapercentageofthewithdrawalamountandwillbedeductedfromthewithdrawal amount. This charge does not apply to the BEA (Industry Scheme)MPFConservativeFund.Awithdrawalchargeforwithdrawalofaccruedbenefitsinalumpsum,orthefirst12instalmentsofwithdrawalofaccruedbenefitsinacalendaryear can only include necessary transaction costs incurred or reasonably likely to beincurredinsellingorpurchasinginvestmentsinordertogiveeffecttothetransferorwithdrawalandarepayabletoapartyotherthantheTrustee.

(g) “Management fees” include fees paid to the Trustee, Custodian, Administrator,InvestmentManager(includingfeesbasedonfundperformance, ifany)andSponsorofthe IndustrySchemeforprovidingtheir servicestotherelevantConstituentFund.

43

TheyareusuallychargedasapercentageoftheNAVofaConstituentFund.InthecaseofeachoftheBEA(IndustryScheme)CoreAccumulationFundandtheBEA(IndustryScheme) Age 65 Plus Fund,management fees payable to the parties named above,or their delegates, canonly (subject to certain exceptions in theMPFOrdinance) becharged as a percentage of theNAV of the fund. Thesemanagement fees are alsosubjecttoastatutorydaily limitequivalentto0.75%p.a.oftheNAVoftherelevantConstituent Fundwhich applies across both the Constituent Fund and underlyingfunds.ThefeespayabletotheTrusteeareforitstrusteeandadministrativefunctions,whilethefeespayabletotheInvestmentManagerareforitsinvestmentmanagementfunctions.As for theSponsor, its feesare for its services related toproduct support,disseminationofMPFmarketingmaterialsandproductdevelopmentactivities.

(i) ThebreakdownofthemanagementfeespayableoutoftheConstituentFundsisasfollows:

Fees payable at the Constituent Fund level

Name of Constituent Fund Sponsor (p.a. of NAV)

Trustee/Administrator/Custodian (p.a. of NAV)

Investment Manager (p.a. of NAV)


0.44% 0.45% 0.31%


0.44% 0.45% 0.31%


0.44% 0.45% 0.31%


0.44% 0.45% 0.31%


0.44% 0.45% 0.31%


0.44% 0.45% 0.31%

BEAChinaTrackerFund 0.03% 0.26% 0.31%

BEAHongKongTrackerFund 0.03% 0.26% 0.31%

BEA(IndustryScheme)RMB&HKDMoneyMarketFund

0.03% 0.45% 0.31%


0.295% 0.295% 0.16%


0.295% 0.295% 0.16%

BEA(IndustryScheme)MPFConservativeFund

0.03% 0.45% 0.31%

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(ii) Thebreakdownof themanagement feespayableoutof theunderlying funds isasfollows:

Fees payable at the underlying fund level

Name of Constituent Fund

Investment Manager (p.a. of NAV)

Administrator (p.a. of NAV)

Trustee(p.a. of NAV

Custodian (p.a. of NAV)


0-0.6%^ 0-USD1,000permonthinrespectofthewholeclass**

0-0.1% Nil



0-0.1% Nil



0-0.1% Nil


0-0.74%^~ 0-USD1,000permonthinrespectofthewholeclass**

0-0.05% Nil


0-0.74%^ Nil 0-0.05% Nil


0-0.05% Nil 0-0.05% Nil

BEAChinaTrackerFund

0.55% Nil Upto0.05% Nil

BEAHongKongTrackerFund

Upto0.05% Nil Upto0.05% Nil


Nil Nil Nil Nil


Nil Nil Nil Nil

^ Consisted ofmanagement fees of some of the underlying funds. For theseunderlyingfunds,theychargeasinglemanagementfeeandnotseparateinvestmentmanager,trustee,custodianoradministratorfees.

~ Consisted of single flat rates (i.e. total expense ratio, “TER”) of some of theunderlying funds. The TER covers all operational expenses includingbut not limitedtofeesandexpensesofthedirectors,investmentmanager,depositary,administrator,transferagentandregistrar,regulatoryandauditfeesoftheunderlyingfund(s),butexcludestransactioncostsandextraordinarylegalcosts.

** USD1,000 administration fee is charged by an individual underlying fund and isbornebyallinvestorsinthesameclassofunitsinthatunderlyingfund,onapro-ratabasisinaccordancewiththeinvestmentvalueofinvestors.

45

A document that illustrates the on–going costs on contributions to the ConstituentFundsintheIndustryScheme(exceptfortheBEA(IndustryScheme)MPFConservativeFund)willbedistributedwiththisMPFSchemeBrochureandan illustrativeexamplefor the BEA (Industry Scheme)MPF Conservative Fund is currently available fordistributionwiththisMPFSchemeBrochure.BeforemakinganyinvestmentdecisionsconcerninginvestmentsintheIndustryScheme,youshouldensurethatyouhavethelatest version of these documents. Copies can be obtained from the offices of theTrustee.

5.3 No switching fee

No feesmaybe charged, andno financial penaltiesmaybe imposedonanyMember inrelation to any Switching Instruction other than an amount representing the necessarytransaction costs that are incurred, or reasonably likely to be incurred by the Trusteein selling or purchasing investments in order to give effect to the Switching Instructionandarepayable toapartyother than theTrustee. Suchnecessary transactioncostsmayinclude, but are not limited to, items such as brokerage commissions, fiscal chargesand levies, government charges, bank charges, exchange fees, costs and commissions,registration fees and charges, collection fees and expenses, etc. Furthermore, any suchnecessarytransactioncosts imposedandreceivedshallbeusedtoreimbursetherelevantConstituentFund.

5.4 Change in Mandate fee

Currently,nofeewillbechargedforimplementingachangeinMandate.UndertheTrustDeed, the Trusteemay elect to charge a change inMandate fee of up toHKD200. TheTrusteewillgivethreemonths’noticetoMembersofanyelectiontochargesuchchangeinMandatefee.

5.5 Fees and out-of-pocket expenses related to the BEA (Industry Scheme) MPF Conservative Fund

TheSponsorisentitledtoreceiveafeeequalto0.79%p.a.oftheNAVoftheBEA(IndustryScheme)MPFConservativeFund.Fees, chargesandexpenseswillonlybepayableoutofthe BEA (Industry Scheme)MPF Conservative Fund to the extent permitted by theMPFOrdinance.TheSponsorwillbearanychargesorexpensesattributabletotheBEA(IndustryScheme)MPF Conservative Fundwhich are not permitted to be payable out of the BEA(IndustryScheme)MPFConservativeFund.

5.6 Other charges and expenses

Subject as provided in the “5.5 Fees and out-of-pocket expenses related to the BEA(IndustryScheme)MPFConservativeFund” sub-section,each ConstituentFundwillbearthe costs set out in the Trust Deedwhich are directly attributable to such ConstituentFund.Where such costs are not directly attributable to a Constituent Fund, eachConstituentFundwillbearsuchcostsinproportiontoitsrespectiveNAVorinsuchothermanner as the Trustee shall consider fair. Such costs include but are not limited to thecosts of investing and realising the investments of the Constituent Funds, the fees andexpenses of sub-custodians of the assets of the Industry Scheme, the fees and expensesoftheauditors,valuationcosts,legalfees,thestatutorycompensationfundlevy(ifany),premiums payable in respect of the Trustee’s indemnity insurance, the costs incurred inconnectionwith any regulatory approval and the costs incurred in the preparation andprintingofanyMPFschemebrochure,reportsandstatements.

No advertising or promotional expenseswill be charged to the Industry Scheme or theAPIFsinwhichtheIndustrySchemeinvests.

46

5.7 Fees and out-of-pocket expenses of the DIS

Inaccordancewithsection34DD(4)andSchedule11totheMPFOrdinance,theaggregateofthepaymentsforservicesspecifiedinsection34DD(2)oftheMPFOrdinanceoftheBEA(Industry Scheme) CoreAccumulation Fund and the BEA (Industry Scheme) Age 65 PlusFundmustnot, inasingleday,exceedadailyrate(being0.75%p.a.oftheNAVofeachofthesetwoConstituentFundsdividedbythenumberofdaysintheyear).ThisstatutorydailylimitappliesacrosstheConstituentFundsandtheunderlyingfunds.

The above aggregate payments for services (i.e. “Management fees” as defined in (g)of “5.2 Definitions” sub-section in this “5. FEESAND CHARGES” section) include, butarenot limitedto,thefeespaidorpayablefortheservicesprovidedbytheTrustee,theAdministrator, the Sponsor and/or the InvestmentManager of the Industry Scheme andtheunderlyinginvestmentfundsofeachoftheBEA(IndustryScheme)CoreAccumulationFund and the BEA (Industry Scheme) Age 65 Plus Fund, and any of the delegates fromthese parties and such fees are calculated as a percentage of theNAV of each of theConstituentFundsanditsunderlyinginvestmentfund(s),butdoesnotincludeanyout-of-pocketexpensesincurredbyeachConstituentFundanditsunderlyinginvestmentfund(s).

In addition, in accordancewith section34DD(4) and Schedule11 to theMPFOrdinance,the total amount of all payments that are charged to or imposed on each of the BEA(Industry Scheme) CoreAccumulation Fund and the BEA (Industry Scheme) Age 65 PlusFund orMemberswho invest in each of the BEA (Industry Scheme) CoreAccumulationFund and the BEA (Industry Scheme) Age 65 Plus Fund, for out-of-pocket expensesincurred by the Trustee on a recurrent basis in the discharge of the Trustee’s duties toprovideservicesinrelationtoeachoftheBEA(IndustryScheme)CoreAccumulationFundand theBEA (IndustryScheme)Age65PlusFund, shallnot ina singleyearexceed0.2%of theNAVof eachof theBEA (Industry Scheme)CoreAccumulation Fundand theBEA(Industry Scheme) Age 65 Plus Fund. For this purpose, out-of-pocket expenses include,for example, annual audit expenses, printing or postage expenses relating to recurrentactivities (such as issuing annual benefit statements), recurrent legal and professionalexpenses, safe custody chargeswhich are customarily not calculated as a percentageof theNAV and transaction costs incurred by each of the BEA (Industry Scheme) CoreAccumulation Fund and the BEA (Industry Scheme) Age 65 Plus Fund in connectionwith recurrent acquisition of investments for each of the BEA (Industry Scheme) CoreAccumulation Fund and the BEA (Industry Scheme) Age 65 Plus Fund (including, forexample,costsincurredinacquiringunderlyingfunds)andannualstatutoryexpenses(suchas compensation fund levywhere relevant) of each of the BEA (Industry Scheme) CoreAccumulationFundandtheBEA(IndustryScheme)Age65PlusFund.

Members should note that out-of-pocket expenses that are not incurred on a recurrentbasismaystillbechargedtoorimposedontheBEA(IndustryScheme)CoreAccumulationFundand theBEA (Industry Scheme)Age65Plus Fund. Such feesarenot subject to thestatutorycapsmentionedintheprecedingparagraphs.

For further details, please refer to the fee table “(C) FUNDOPERATING CHARGES&EXPENSESOFCONSTITUENTFUNDS”underthe“5.1Feetable”sub-sectioninthis“5.FEESANDCHARGES”sectionofthisMPFSchemeBrochure.

5.8 Cash rebates and soft commissions

Neither the InvestmentManager nor any of its connected personsmay retain cash orotherrebatesfromabrokerordealerinconsiderationofdirectingtransactionstothem.

The InvestmentManager and its associates (as defined in Schedule 8 to theMPFOrdinance)maywiththeconsentoftheTrusteedealwithanyConstituentFund,bothasprincipalandagent.

47

The InvestmentManagerandanyof itsassociatesmayeffect transactionsbyor throughtheagencyofanotherpersonwithwhomtheInvestmentManageroranyofitsassociateshaveanarrangementunderwhichthatpartywillfromtimetotimeprovidetoorprocurefor the InvestmentManager or any of its associates, goods, services or other benefits,such as research and advisory services, computer hardware associatedwith specialisedsoftwareorresearchservicesandperformancemeasuresetc.,thenatureofwhichissuchthattheirprovisioncanreasonablybeexpectedtobenefittheIndustrySchemeasawholeandmay contribute to an improvement in the Industry Scheme’s performance and thatof the InvestmentManager or any of its associates in providing services to the IndustryScheme and forwhich no direct payment ismade but instead the InvestmentManageror any of its associates undertake to place businesswith that party. For the avoidanceofdoubt suchgoodsand servicesdonot include travel, accommodation,entertainment,general administrative goods and services, general office equipment or premises,membershipfees,employeesalariesordirectmoneypayments.DetailsofsoftcommissionarrangementswillbedisclosedintheIndustryScheme’saccounts.

5.9 Explanatory notes

(a) Inrespectofanyincreaseinfeesandchargesfromthecurrentlevelasstated,atleastthreemonths’priornoticemustbegiventoallMembersandparticipatingemployers.

(b) All of the Constituent Funds except the BEA (Industry Scheme) RMB&HKDMoneyMarket Fund and the BEA (Industry Scheme)MPF Conservative Fundwill, indirectly,bear the fees, charges and expenses of the underlying fund inwhich they invest.WhereaConstituentFund invests inanunderlyingfundmanagedbythe InvestmentManager andwhere the Trustee acts as trustee, no fee for investmentmanager ortrusteewillbechargedonsuchunderlyingfund.

(c) Subject to the prior approval of theMPF Industry Schemes Committee, the rate ofthemanagementfees (exceptforthemanagementfeeoftheBEA(IndustryScheme)CoreAccumulation Fund and the BEA (Industry Scheme) Age 65 Plus Fund),may beincreaseduptoortowardsamaximumrateof3%p.a.oftheNAVofeachConstituentFundongivingnotlessthanthreemonths'noticetotheaffectedMembers.

(d) It isthepresentintentionoftheSponsorthatthemanagementfeeschargedtoeachConstituent Fund (except the BEA (Industry Scheme) CoreAccumulation Fund andBEA(IndustryScheme)Age65PlusFund)willnotexceed1.20%p.a.oftheNAVoftheConstituentFund.

(e) TheSponsor'sfeesareinclusiveofthefeespayabletotheTrusteeandtheInvestmentManagerandtheSponsorwillpaythefeesoftheTrusteeandtheInvestmentManagerout of its own fee. The Sponsormay share any fees it receiveswith distributors oragentsprocuringsubscriptionstotheIndustryScheme.ThefeespayabletotheTrusteeareinclusiveofadministrationandcustodyfeespayabletotheTrusteeinitscapacityas theAdministratorandCustodian (but,exclusiveof feespayable to sub-custodianswhichwillbepaidfromtheassetsoftheIndustryScheme).

(f) A Constituent Fundwill bear its operating expenses and the operating expenses oftheIndustryScheme,intheproportionwhichitsNAVbearstotheNAVsoftheotherConstituentFunds,ifsuchexpensesarenotdirectlyattributabletoaConstituentFund(provided that such operating expenseswill only be paid out of the BEA (IndustryScheme)MPF Conservative Fund to the extent permitted by theMPFOrdinance).Such expenses include but are not limited to the costs of investing and realisingthe investments of the Constituent Funds, the fees and expenses of custodians andsub-custodians of the assets of the Industry Scheme, the fees and expenses of theauditors, valuation costs, legal fees, the statutory compensation fund levy (if any),premiumspayable in respectof theTrustee’s indemnity insurance, the costs incurred

48

inconnectionwithanyregulatoryapproval,thecostsincurredinthepreparationandprintingofanyMPFschemebrochure,reportsandstatementsandlicensefee(ifany)(applicabletoConstituentFundsthatinvestinasingleapprovedITCIS).

(g) Each underlying fundmay bear its costs and operating expenses to the extentpermittedby theMPFOrdinancewhichmay includebutnot limited to the feesandexpenses (calculatednotby reference toNAVof theunderlying fund)of custodians,sub-custodians, auditors, legal fees, the costs incurred in connectionwithany listingorregulatoryapproval,thecostsincurredinthepreparationandprintingofanyMPFschemebrochureand the license fee (if any) (applicable to theunderlyingapprovedITCISsinwhichtheConstituentFundsinvest).

(h) TheFeeTabledoesnottakeintoaccountanyfeerebatethatmaybeofferedtosomeparticipatingemployers/MembersoftheIndustryScheme.

(i) The rateof themanagement fees for theBEA (Industry Scheme)CoreAccumulationFundand theBEA (Industry Scheme)Age65Plus Fundwillnotexceed the statutoryrequirementfortheDIS.

49

6. ADMINISTRATIVE PROCEDURES

6.1 How to join

6.1.1 General

ThefollowingpersonsareeligibletojointheIndustryScheme:

(a) anyemployerwhoisengagedinthecateringindustryortheconstructionindustryinHongKong;

(b) anyself-employedpersonwhoisengagedinthecateringindustryortheconstructionindustryinHongKong;

(c) anycasualemployee;

(d) any employee (whether or not such employee is engaged in the catering industryor the construction industry)whowishes to transfer to the Industry Scheme, his/heraccruedbenefits attributable to (i) themandatory contributionsmadebyhim/her inrespectofhis/hercurrentemployment;or(ii)themandatorycontributionspaidbyorin respect of such employee that are attributable to his/her former employments orformer self-employments;or (iii)alloranyoneormoreofhis/herpersonalaccountswithanotherregisteredscheme;

(e) anypersonwhowishestojointheIndustrySchemeasapersonalaccountholder;and

(f) anypersonwhoiseligibleandwishestomakeTVCintheIndustryScheme(seefurtherintheparagraphsheaded“6.1.2TVCAccountHolder”below).

Every eligible applicant needs to execute a participation agreement or applicationform to join the Industry Scheme. A sample participation agreement and applicationformmay be obtained from the Sponsor or the Trustee. The completed participationagreement or application formmust be returned to the Trustee in themanner as setout in theparticipationagreementor application form, togetherwith such informationand documents asmay be reasonably required or requested by the Trustee. Under theparticipationagreementandapplicationform,eachpersonthatjoinstheIndustrySchemeagreestobeboundbythetermsoftheTrustDeed.

6.1.2 TVC Account Holder

AnypersonwhofallsunderanyoneofthefollowingcategoriesmayopenaTVCaccount:

(a) anemployeememberofaregisteredscheme;

(b) aself-employedpersonmemberofaregisteredscheme;

(c) apersonalaccountholderofaregisteredscheme;or

(d) amemberofanMPFexemptedORSOscheme.

EacheligiblepersoncanonlyhaveoneTVCaccountunderaregisteredscheme.

TheTrusteemayrejectanyapplicationtoopenaTVCaccount in the IndustryScheme intheeventofanyRelevantCircumstances.

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6.2 Contributions

6.2.1 Mandatory contributions

A participating employermustmakemandatory contributions to the Industry Schemein respect of eachMember employed by it and, except as provided below,must deductmandatory contributions from the relevant incomeofeachMemberemployedby it andpaythosemandatorycontributionstotheIndustryScheme.

CalculationofMandatoryContributions

In respect of Casual EmployeeMembers, the amount of the participating employer’smandatory contributions and theMember’smandatory contributions aredetermined inaccordancewiththescalesofamountsofcontributionsissuedbytheMPFAfromtimetotime.

CasualEmployeeMemberswhohaveanyenquiriesonthecalculationoftheparticipatingemployer’smandatory contributions and theMember’smandatory contributionsmaycalltheBEA(MPF)Hotlineon(+852)22111777(operatedbyBankofEastAsia(Trustees)Limited), request via electronicmail to [email protected], or visit the followingwebsite:http://www.hkbea.com.

In respectofMemberswhoareemployees (notbeingcasualemployees)ofparticipatingemployers, theamountof theparticipatingemployer’smandatorycontributionsandtheMember’smandatorycontributionsisasfollows:

Participating employer’smandatorycontributions

5% (or any other percentage as may beprescribed by theMPFOrdinance) of relevantincome*)

Member’smandatorycontributions ifmonthly relevant income is less than thestatutoryminimum level of relevant income,nil;otherwise,5%(oranyotherpercentageasmay be prescribed by theMPFOrdinance) ofrelevantincome*

Note: Member’smandatorycontributionsarenotrequiredinrespectof:

(a) where theMember is paidmonthly ormore frequently, anywageperiod thatcommencesonorbeforetheMember’s30thdayofemployment;and

(b) where theMember is paid less frequently thanmonthly, the period fromcommencement of theMember’s employment to the last day in the calendarmonthinwhichtheMember’s30thdayofemploymentfalls.

Participating employer’smandatory contributions are required in respect of theseperiods .

Memberswho are self-employedmust paymandatory contributions to the IndustrySchemeunlesstheirrelevant incomeis lessthanthestatutoryminimumlevelofrelevantincome.Theamountof suchmandatorycontributions is5%(oranyotherpercentageasmaybeprescribedbytheMPFOrdinance)oftheMember’srelevantincome*

Memberswho are interested in knowing the current statutoryminimum andmaximumlevelofrelevantincomemaycalltheBEA(MPF)Hotlineon(+852)22111777(operatedbyBankof EastAsia (Trustees) Limited), request viaelectronicmail [email protected]:http://www.hkbea.com.

*providedthatmandatorycontributionsarenotrequiredonrelevantincomeinexcessofthestatutorymaximumlevelofrelevantincome

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PaymentofMandatoryContributions

MandatorycontributionsmustbepaidtotheTrusteewithinsuchtimesasarerequiredbytheMPFOrdinance.TheMPFOrdinanceprovidesthatmandatorycontributionsinrespectof aMembermust be paid on or before the contribution day. The contribution day inrespectofaMemberwhoisnotacasualemployeeisthe10thdayafterthelastdayofthecalendarmonth inwhich the relevant contributionperiodends.The contributionday inrespectofaCasualEmployeeMemberiswhicheverofthefollowingdaysisagreedbytherelevant participating employer and the Trustee as the contribution day for that CasualEmployeeMember:-

(a) thenextworkingday(otherthanaSaturday) immediatelysubsequenttothedayonwhich the relevant incomefor the relevantcontributionperiod ispaid to theCasualEmployeeMember;

(b) the10thdayafterthelastdayoftherelevantcontributionperiod.

Ifa contributionday fallsonaday that isapublicholiday,agalewarningdayorblackrain stormwarning day then the contribution daywill be the next following day, notbeingapublicholiday,agalewarningdayorablackrainstormwarningday.

Currently, under theMPFOrdinance, a participating employer is not required to givea remittance statement to the Trustee in respect of a Casual EmployeeMember if theparticipatingemployermakescontributionstotheIndustrySchemeonorbeforethenextworkingday(otherthanaSaturday)immediatelysubsequenttothedaytheparticipatingemployerpaysthewagesofthatCasualEmployeeMember.

6.2.2 Voluntary contributions

ThefollowingpersonsmayelecttomakevoluntarycontributionstotheIndustrySchemeongivingsuchpriornoticeastheTrusteemayrequireinaformspecifiedbytheTrustee:

(a) participatingemployers;

(b) Memberswhoareemployeesofsuchparticipatingemployers;and

(c) Memberswhoareself-employedpersons.

A participation agreement and/or supplement to the participation agreementmayrequiretherelevantparticipatingemployerand/orMemberstomakecontributionstotheIndustry Scheme in addition tomandatory contributions. Such additional contributionsaretreatedasvoluntarycontributionsforthepurposesoftheIndustryScheme.

Unlessotherwiseagreedwith theTrustee,voluntarycontributions shouldbepaidat thesametimeandinthesamemannerasmandatorycontributions.

6.2.3 TVC

TVCcanonlybemadeintoaTVCaccount,whichisseparatefromacontributionaccountor a personal account. Any other forms of voluntary contributions that are notmadeintotheTVCaccountarenotTVC(forexample,voluntarycontributionsthataremadebyemployeemembersthroughtheirparticipatingemployerswillnotbeeligibleforclaimingTVCtaxdeduction).

TVCissubjecttothesamevesting,preservationandwithdrawalrequirementsapplicabletomandatorycontributions.Thisalsoapplies tocontributions thatexceedthemaximumtaxdeductibleamountperassessmentyear.

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Therelevantparticipationagreementsetsouttheminimumlimitimposedontheamountand/orfrequencyofcontributionmadetotheTVCaccount.TVCwillbefullyvestedintheTVCAccountHolderasaccruedbenefitsonceitispaidintotheIndustryScheme.

Forriskmanagementandcompliancepurposes,therecouldbecircumstances(suchastheRelevant Circumstances) that TVCmay be rejected. Any rejected TVC (with no interest)will be refundedwithin 45days of receipt of any such TVCunless for someexceptionalregulatoryreason(s)theTrusteeisunabletoeffectarefundwithinsuchtimeframe.

TVC paid into a TVC accountwill be eligible for tax deduction in accordancewith theInland RevenueOrdinance.With effect from 1st April, 2019, the Industry Scheme offersTVCaccountstoeligiblepersons.

ThecharacteristicsofTVCareasfollows:

(a) TVC can only bemade directly by eligible persons into TVC account of a registeredscheme inorder to enjoy tax concession, subject to relevant conditions. Please referto theparagraphsheaded“(d) For TVCAccountHolders” in the“7.2 Taxation” sub-sectionunderthe“7.OTHERINFORMATION”sectionfordetails;

(b) involvementofemployersisnotrequired;and

(c) though it is voluntary in nature, TVC is subject to the same vesting, preservationandwithdrawal restrictions applicable tomandatory contributions. Accordingly, anyaccruedbenefitsderivedfromTVC(includinganyTVCmadeinexcessofthemaximumtaxdeduction limit during a tax assessment year)will bepreservedand canonlybewithdrawnupon retirementatage65oronother statutorygroundsunder theMPFlegislation.

Fortheavoidanceofdoubt,theprotectionofaccruedbenefitsundertheMPFOrdinanceisnotapplicabletotheTVCaccount,meaningthataccruedbenefitsderivedfromTVCwillgenerallybevestedinthetrustee-in-bankruptcyorofficialreceiveraspartofthepropertyofabankruptTVCAccountHolder.

Apartfromthewithdrawalofaccruedbenefits,theTrusteemayterminatetheMember’sTVCaccountif:

(a) thebalanceoftheTVCaccountiszero;and

(b) thereisnotransactionactivityinrespectoftheTVCaccountfor365days.

6.2.4 Payment of contributions generally

Contributions to the IndustrySchemeshouldonlybepaid to theTrusteeuntil such timeasspecifiedbytheMPFOrdinance,orinthecaseofvoluntarycontribution,asspecifiedintheparticipationagreementand/orsupplementtotheparticipationagreement.

6.2.5 Fractions of a Unit represented by the contributions

Fractions of not less than 1/1,000 of a Unitwill be issued. Contributions representingsmallerfractionsofaUnitwillberetainedbytherelevantConstituentFund.

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6.3 Investment in Constituent Funds

6.3.1 Mandate to invest contributions

OnbecomingaMemberoftheIndustryScheme,theMemberwillbegivenanopportunitytogiveaninstructioninaformspecifiedbytheTrustee(i.e.aMandate)settingouthowcontributionsmadebyandonbehalfoftheMemberaretobeinvestedintheConstituentFunds. If aMemberelects to invest inaparticularConstituentFund, then theMember’stotalcontributionsmustbeinvestedinthatConstituentFundinamultipleof10%.IntheabsenceofaMandate,theTrusteewillinvesttherelevantcontributionsintheDIS.

AMember can change theMember’sMandatebygivinganewMandate to theTrustee.TheMember’sMandate applies to future contributions and future transfer-in assets,andnot accruedbenefits.AMembermay give differentMandates to different types ofcontributions;toillustrate:

(a) aMandatemay be given to aMember’s participating employer’s mandatorycontributions and a differentMandatemay be given to theMember’s participatingemployer’svoluntarycontributions;or

(b) aMandateforparticipatingemployer’smandatoryandvoluntarycontributionsandadifferentMandateforemployee’smandatoryandvoluntarycontributions.

ThenewMandatewillapplywitheffectnolaterthanthelatestof:

(a) theValuationDatefallingonorimmediatelyaftertheeffectivedatespecifiedintheMandate(ifany),

(b) aValuationDatewithinsevenBusinessDaysafterreceiptofthenewMandatebytheTrustee,and

(c) receiptbytheTrusteeofanyfeepayableforchangingtheMandate.

ThenewMandatewillonlyapplyto investmentofcontributionsreceivedbytheTrusteeonoraftertheValuationDateonwhichthenewMandatetakeseffect.

If any change ofMandate given after enrolment does notmeet the requirements for aSpecific Investment Instruction, then such change ofMandatewill be rejected and theexisting investment allocation (in respect of future contributions and future accruedbenefitstransferredfromanotherregisteredscheme)willremainunchanged.

Membersmay give an unlimited number of instructions to changeMandates free ofcharge.

Forms for a change ofMandate are available from the Trustee and the Sponsor.MandatesmaybegiventotheTrusteebywrittennoticeorotherauthenticatedmeansofcommunication.However,theTrusteewillnotberesponsibletoanyMemberforanylossresulting from the non-receipt of aMandate or any amendment to aMandate prior toreceiptbytheTrustee.

TheTrusteewillapplycontributionsmadebyoronbehalfofaMembertoacquireUnitsin the Constituent Funds in accordancewith theMandates of theMember. Dealingsfor a Constituent Fundwill be available on every ValuationDate.Where the Trusteereceives the correct amount of contributions in cleared funds and (where applicable) aduly completed remittance statement, the Trusteewill apply the contributions receivedto acquire Units on a ValuationDatewithin 20 Business Days of receipt. Pending theacquisition of Units in the Constituent Funds, the Trusteewill hold contributions in an

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interestbearingaccountwithTheBankofEastAsia,Limited.InterestearnedwillbeusedbytheTrusteetomeetgeneraloperatingexpensesoftheIndustryScheme.

6.3.2 Switching Instructions to change investment

Members have the right (subject to any suspension in the determination of theNAVof any relevant Constituent Fund) to switch all or part (subject as provided below) oftheUnits relating toaConstituent Fund credited to their account intoUnits relating tootherConstituent Fundbygiving a Switching Instruction.AMembermaygivedifferentSwitching Instructions to different types of accrued benefits; to illustrate, a SwitchingInstruction in respect of the accrued benefits attributable to aMember’smandatorycontributionscanbedifferentfromaSwitchingInstructiongiveninrespectoftheaccruedbenefits attributable to theMember’s voluntary contributions. A Switching Instructiononly applies to accrued benefits already in the relevantMember’s account and notfuturecontributions. IfaSwitching Instructiongivenafterenrolmentdoesnotmeet therequirements for a Specific Investment Instruction, then such Switching Instructionwillberejected,andtheexistinginvestment(inrespectoftheexistingaccruedbenefits)willremainunchanged.

MembersmaygiveanunlimitednumberofSwitchingInstructionsfreeofcharge.

FormsforSwitchingInstructionsareavailablefromtheTrusteeandtheSponsor.SwitchingInstructionsmaybegiventotheTrusteebywrittennoticeorotherauthenticatedmeansof communication.However, theTrusteewill notbe responsible toanyMember for anyloss resulting from the non-receipt of a Switching Instruction or any amendment to aSwitchingInstructionpriortoreceiptbytheTrustee.

Thecut-offtimeforSwitchingInstructionis4p.m.onaBusinessDay.

In respectofaSwitching Instruction,Units relating toaConstituentFund (the“Existing Units”)will be realised on a ValuationDatewithin seven Business Days of receipt ofthe Switching Instruction by the Trustee or, if later, the ValuationDate falling on orimmediatelyaftertheeffectivedatespecifiedintheSwitchingInstruction(ifany)ortheValuationDate falling on or immediately after the day onwhich the Trustee receivesany feepayable in respectof theSwitching Instruction.ThedayonwhichUnits relatingto theConstituentFund intowhichpartorallof theholdingare tobe switchedwillbeissued(the“New Units”)shallbeonaValuationDatefallingno laterthanfiveBusinessDays after the ValuationDate onwhich the ExistingUnitswere realised. The ExistingUnitswillberealisedandtheNewUnitswillbeissuedatratesdeterminedbyreferencetotheirrespectiveUnitpricesontherespectiveValuationDates.Pendinginvestment intheConstituentFundrelatingtotheNewUnits,theTrusteewillholdtherealisationproceedsof theExistingUnits inan interestbearingaccountwithTheBankofEastAsia,Limited.InterestearnedwillbecreditedtotheConstituentFundrelatingtotheExistingUnits.

Currently, no offer spread or bid spreadwill be charged for implementing a SwitchingInstruction.UndertheTrustDeednofeesmaybecharged,andnofinancialpenaltiesmaybeimposedonanyMemberinrelationtoanySwitchingInstructionotherthananamountrepresenting the necessary transaction costs that are incurred, or reasonably likely tobe incurredbytheTrustee insellingorpurchasinginvestments inordertogiveeffecttothe Switching Instruction and are payable to a party other than the Trustee. Any suchnecessarytransactioncosts imposedandreceivedshallbeusedtoreimbursetherelevantConstituentFund.Pleasereferto“5.3Noswitchingfee”sub-sectioninthe“5.FEESANDCHARGES”sectionforfurtherdetails.

Any fraction smaller than 1/1,000 of a NewUnit arising as the result of a switchwillbe ignored andmoneys representing any such fractionwill be retained as part of theConstituentFundtowhichtheNewUnitsrelate.

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6.3.3 MPF Default Investment Strategy

TheDISisaready-madeinvestmentarrangementmainlydesignedforthoseMemberswhoarenotinterestedordonotwishtomakeaninvestmentchoice,andisalsoavailableasaninvestmentchoiceitselfforMemberswhofinditsuitablefortheirowncircumstances.ForthoseMemberswhodonotmakean investment choice, their contributionsandaccruedbenefits transferred from another registered schemewill be invested in accordancewith theDIS.TheDIS is requiredby lawtobeoffered inevery registered schemeand isdesignedtobesubstantiallysimilarinallregisteredschemes.

(a) Asset allocation

TheDISaimstobalancethelong-termeffectsofriskandreturnthroughinvestingintwo Constituent Funds, namely the BEA (Industry Scheme) CoreAccumulation FundandtheBEA(IndustryScheme)Age65PlusFund,accordingtothepre-setallocationpercentagesatdifferentages.TheBEA(IndustryScheme)CoreAccumulationFundwillinvestaround60% inHigherRiskAssets (HigherRiskAssetsgenerallymeanequitiesor similar investments) and 40% in Lower Risk Assets (Lower Risk Assets generallymean bonds or similar investments) of its NAVwhereas the BEA (Industry Scheme)Age65PlusFundwillinvestaround20%inHigherRiskAssetsand80%inLowerRiskAssets. Both Constituent Funds adopt globally diversified investment principles andusedifferentclassesofassets,includingglobalequities,fixedincome,moneymarket,cash,andothertypesofassetsallowedundertheMPFlegislation.

(b) De-risking of the DIS

Accrued benefits invested through theDISwill be invested in away that adjustsrisk depending on aMember’s age. TheDISwillmanage investment risk exposureby automatically reducing the exposure to Higher Risk Assets and correspondinglyincreasing the exposure to Lower Risk Assets as theMember gets older. Such de-riskingistobeachievedbywayofreducingtheholdingintheBEA(IndustryScheme)CoreAccumulation Fund and increasing the holding in the BEA (Industry Scheme)Age65PlusFundthroughouttheprescribedtimespanasdetailedbelow.Diagram1belowshowsthetargetproportionofinvestmentinriskierassetsovertime.Theassetallocationstaysthesameupuntil50yearsofage,thenreducessteadilyuntilage64,afterwhichitstayssteadyagain.

Diagram1:AssetAllocationbetweenConstituentFundsintheDISDiagram 1: Asset Allocation between Constituent Funds in the DIS

Note : The exact proportion of the portfolio in Higher Risk Assets/Lower Risk Assets at any point in time may deviate from the target glide path due to market fluctuations.

Lower Risk Assets (mainly global bonds)

Higher Risk Assets (mainly global equities)

Perc

enta

ge

of

tota

l ass

ets

BEA (Industry Scheme) Core Accumulation Fund BEA (Industry Scheme) Age 65 Plus Fund

Under 50 50 - 64 65+ Age

40%

60%

20%

80%

Theabovede-riskingistobeachievedbyannualadjustmentsofassetallocationgraduallyfromtheBEA(IndustryScheme)CoreAccumulationFundtotheBEAIndustryScheme)Age65PlusFundundertheDIS.Saveforthecircumstancessetoutintheseparagraphsheaded

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“(b) De-risking of theDIS”, switching of the existing accrued benefits among the BEA(Industry Scheme) CoreAccumulation Fund and the BEA (Industry Scheme) Age 65 PlusFundwill beautomatically carriedout each yearonaMember’sbirthdayandaccordingto theallocationpercentagesas shown in theDISDe-riskingTableas shown inDiagram2below. If theMember’sbirthday isnotonaBusinessDay,thenthe investmentswillbemoved on the next available Business Day. Alternatively, if theMember’s birthday fallsonthe29thofFebruaryand inayearwhich isnota leapyear, thenthe investmentswillbemovedon1stofMarchor thenextavailableBusinessDay. If there is anyexceptionalcircumstance, e.g.market closure or suspension of dealing, on theMember’s birthdaywhichmakes it impossiblefortheinvestmentstobemovedonthatday,theinvestmentswillbemovedonthenextavailableBusinessDay.

IftherelevantMembernotifiestheTrusteeofhis/herupdatedbirthday,thentheTrusteewill, as soon as practicable, and in any casewithin twoweeks, after being so notified,adjusttheallocationbetweentheBEA(IndustryScheme)CoreAccumulationFundandtheBEA(IndustryScheme)Age65PlusFundaccordingtohis/herupdatedbirthday,andeffectthede-riskinginthefutureyearsaccordingtotheDISDe-riskingTableinDiagram2belowandhis/herupdatedbirthday.Whenoneormoreof the specified instructions (includingbut not limited to subscription, redemption, switching orwithdrawal instructions) arebeing received prior to or on the annual date of de-risking for a relevantMember andbeingprocessedon thatdate, theannualde-riskingmaybedeferredandwillonly takeplace after completion of these specified instructions. The smallest amount of Units ofeach of the BEA (Industry Scheme) Age 65 Plus Fund and/or the BEA (Industry Scheme)CoreAccumulationFundthatcanbeissuedintheannualde-riskingundertheDISshallbeafractionofnotlessthan1/1,000ofaUnit.

Please refer to this “6.ADMINISTRATIVEPROCEDURES” section fordetails regarding thehandlingproceduresforsubscription,redemptionandswitching,respectively.

Members should be aware that the above de-riskingwill not applywhere theMemberchooses the BEA (Industry Scheme) Core Accumulation Fund and the BEA (IndustryScheme)Age65PlusFundasindividualfundchoices(ratherthanaspartoftheDIS).

Insummary,undertheDIS:

(i) when aMember is below the age of 50, all existing accrued benefits and allcontributionsandaccruedbenefitstransferredfromanotherregisteredschemewillbeinvestedintheBEA(IndustryScheme)CoreAccumulationFund;

(ii) whenaMemberisbetweentheagesof50and64,allexistingaccruedbenefitsandallcontributionsandaccruedbenefitstransferredfromanotherregisteredschemewillbeinvestedaccordingtotheallocationpercentagesbetweentheBEA(IndustryScheme)CoreAccumulationFundandtheBEA(IndustryScheme)Age65PlusFundasshownintheDISDe-riskingTableasshowninDiagram2below.Thede-riskingontheexistingaccruedbenefitswillbeautomaticallycarriedoutasdescribedabove;

(iii)when aMember reaches the age of 64, al l existing accrued benefits and allcontributionsandaccruedbenefitstransferredfromanotherregisteredschemewillbeinvestedintheBEA(IndustryScheme)Age65PlusFund;

(iv)iftherelevantMemberhasreached60yearsofagebefore1stApril,2017,unlesstheMember has given a Specific Investment Instruction, theMember’s accrued benefits(includingnewcontributionsandaccruedbenefitstransferredfromanotherregisteredscheme)willbeinvestedinthesamemannerasat31stMarch,2017;

(v) foradeceasedMember,de-riskingwill ceaseonce theTrusteehas receivedproofof

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thedeathof theMember to theTrustee’s satisfaction. Ifde-riskinghasalreadybeentaken place between the death of theMember and the time atwhich the Trusteereceived the satisfactory proof of such death, such de-riskingwill not be undone,althoughnofurtherde-riskingwilltakeplaceinrespectofthedeceasedMember.

IftheTrusteedoesnothavethefulldateofbirthoftherelevantMember:

(i) if only the year andmonth of birth is available, the annual de-riskingwill use thelastcalendardayofthebirthmonth,or if it isnotaBusinessDay,thenextavailableBusinessDay;

(ii) if only the yearofbirth is available, theannualde-riskingwill use the last calendardayoftheyear,orifitisnotaBusinessDay,thenextavailableBusinessDay;

(iii)ifno informationatallonthedateofbirth,Member’saccruedbenefitswillbefullyinvestedintheBEA(IndustryScheme)Age65PlusFundwithnode-riskingapplied.

Diagram2:DISDe-riskingTable

Age BEA(IndustryScheme)CoreAccumulationFund


Below50 100.0% 0.0%50 93.3% 6.7%51 86.7% 13.3%52 80.0% 20.0%53 73.3% 26.7%54 66.7% 33.3%55 60.0% 40.0%56 53.3% 46.7%57 46.7% 53.3%58 40.0% 60.0%59 33.3% 66.7%60 26.7% 73.3%61 20.0% 80.0%62 13.3% 86.7%63 6.7% 93.3%

64andabove 0.0% 100.0%

Note: The above allocation between BEA (Industry Scheme) CoreAccumulation FundandBEA (IndustryScheme)Age65PlusFund ismadeat thepointofannualde-riskingandtheproportionofBEA(IndustryScheme)CoreAccumulationFundandBEA(IndustryScheme)Age65PlusFundintheDISportfoliomayvaryduringtheyearduetomarketfluctuations.

The investmentallocationofeach relevantMemberbetween theBEA (Industry Scheme)CoreAccumulationFundandtheBEA(IndustryScheme)Age65PlusFundwillberoundedofftoonedecimalplace.

TheTrusteewill,totheextentpracticable,issueanoticetotherelevantMemberatleast60dayspriortohis/her50thbirthdayinforminghim/herofthecommencementofthede-risking process. Also, a confirmation statementwill be sent to the relevantMember nolaterthanfiveBusinessDaysafterthede-riskingprocesshasbeencompleted.

Please refer to the “3. FUNDOPTIONS, INVESTMENTOBJECTIVESAND POLICIES” sectionfortheinvestmentpoliciesandobjectivesandtheotherpagesofthis“6.3.3MPFDefaultInvestment Strategy” sub-section of the “6. ADMINISTRATIVE PROCEDURES” section for

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thespecificoperationalarrangementsoftheConstituentFundswhichareundertheDIS.

(c) Switching in and out of the DIS

MemberscanswitchintooroutoftheDISatanytime,subjecttotherulesoftheIndustryScheme.Members should, however, bear inmind that theDIS has been designed as along-term investment arrangement.Where the relevantMember’s existing investmentisundertheDIS,he/shemayonlyswitchoutoftheDIS ifhe/sheelectstohaveboththeaccrued benefits and new contributions and accrued benefits transferred from anotherregistered schemeunderall sub-accounts investedoutsideof theDIS.Conversely,wheretherelevantMemberwishestotransferintotheDIS,he/shecanelecttohaveeither:

(i) theaccruedbenefits,or

(ii) new contributions and accruedbenefits transferred fromanother registered schemeinvestedintheDIS.

If aMember only elects to switch the existing accrued benefits out of theDISwithoutproviding a newMandate, new contributions and accrued benefits transferred fromanother registered schemewill still be invested in theDIS. Also,Membersmay changetheirinvestmentinstructionstoinvestintheDISatanytime.

(d) Circumstances for accrued benefits to be invested in the DIS

(i) New accounts set up on or after 1st April, 2017

• When aMember (including aMemberwho is a TVCAccount Holder) joins theIndustrySchemeorsetsupanewaccount inthe IndustryScheme,theyhavetheopportunitytogiveaMandatefortheirfuturecontributionsandaccruedbenefitstransferred from another registered scheme. Theymay choose to invest theirfuture contributions and accrued benefits transferred from another registeredschemeinto:

o theDIS;or

o oneormoreConstituentFundsoftheirownchoicefromthelistunderthe“3.FUNDOPTIONS, INVESTMENTOBJECTIVESANDPOLICIES” section (includingthe BEA (Industry Scheme) CoreAccumulation Fund and the BEA (IndustryScheme) Age 65 Plus Fund) and according to their assigned allocationpercentage(s)torelevantfund(s)oftheirchoice;

• TVCAccountHolderscanmaketheirownfundselectionorchoosetoinvestintheDISundertheIndustrySchemeaccordingtotheircircumstanceandriskappetite.IfaTVCAccountHolderfailstosubmittotheTrusteeavalidMandateordoesnotmakeanyinvestmentchoiceatthetimeofTVCaccountopening,his/herTVCwillbeinvestedintheDIS.

• Members shouldnote that, if investments/benefits in theBEA (Industry Scheme)CoreAccumulation Fund or the BEA (Industry Scheme) Age 65 Plus Fund aremade under theMember’s Specific Investment Instructions for investment insuch Constituent Fund (as a standalone fund choice rather than as part of theDIS offered as a choice) (“standalone investments”), those investments/benefitswill notbe subject to thede-riskingprocess. If aMember’s accruedbenefits areinvested inanycombinationof (i) theBEA(IndustryScheme)CoreAccumulationFund and/or the BEA (Industry Scheme) Age 65 Plus Fund as standaloneinvestments and (ii) theDIS (nomatter by default or by a Specific InvestmentInstruction), accrued benefits invested under (i)will not be subject to the de-riskingmechanismwhereas for accrued benefits under (ii)will be subject to

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thede-riskingprocess. In this connection,Members should pay attention to thedifferent on-going administration arrangements applicable to accrued benefitsinvested in (i) and (ii). In particular,Memberswill,when giving a SwitchingInstruction,berequiredtospecifytowhichpartofthebenefits(namely,under(i)or(ii))theinstructionrelates;

• If aMember opts for investing their future contributions and accrued benefitstransferredfromanother registeredscheme intooneormoreConstituentFundsof their own choice and according to their assigned allocation percentage(s) torelevant Constituent Fund(s) of their choice, the investment instructionmustmeettherequirements foraSpecific Investment Instruction.Thefollowingtablesets out the different investment instructions and the consequences of eachinvestmentinstructiongivenuponenrolmentbeinginvalid:

Investmentinstruction Consequences

A. The total investment allocation islessthan100%

TheremainingpercentageofcontributionsandaccruedbenefitstransferredfromanotherschemewillbeinvestedintotheDIS.

B. Thetotalexceeds100%

TheentirecontributionsandaccruedbenefitstransferredfromanotherschemewillbeinvestedintotheDIS.

C. Theinvestmentallocationisnotinamultipleof10%

D. The investment instruction is notlegible and the Trustee is unabletoprocess

E. Noinvestmentallocationisgiven

• IfMembersdonotgiveMandates,theirfuturecontributionsandaccruedbenefitstransferredfromanotherregisteredschemewillbeautomaticallyinvestedintheDIS;

• Where aMember hasmultiple capacities under the Industry Scheme (e.g. aMember being an employeemember and a personal account holder), theinvestmentarrangementappliestotheaccountsoftheMember ineachcapacityindividually.Inotherwords,ifaMemberisanemployeememberandapersonalaccount holder andwishes to switch his/her accrued benefits and contributionsundertheaccountsrelatedtohis/heremployeememberstatusintotheDIS,suchswitchingwill only impact the accounts related to his/her employeememberstatusandnottheaccountsrelatedtohis/herpersonalaccountholderstatus.

(ii) Existingaccountssetupbefore1stApril,2017

There are special rules to be applied for accountswhich exist or are set up before1stApril,2017 (“Pre-existing Accounts”)andthese rulesonlyapply toMemberswhowereunderorbecoming60yearsofageon1stApril,2017:

• For aMember’s Pre-existingAccountwith all accrued benefits being investedaccording to the original default investment arrangementwhichwas generallyresulted from no investment instruction being given on the existing accruedbenefits(suchMemberbeinga“DIA Member”):

If, asof 1stApril, 2017, theaccruedbenefits in aMember’s Pre-existingAccountwere only invested in the original default investment arrangement of theIndustry Scheme (i.e. the BEA (Industry Scheme) Stable Fund), special rules andarrangementswill be applied, indue course, todeterminewhether the accruedbenefits in such accountwill be transferred to theDIS andwhether the futurecontributions and accrued benefits transferred from another registered scheme

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forsuchaccountwillbeinvestedintheDIS.IfaMember’sPre-existingAccountistheonedescribedabove,anoticecalledtheDISRe-investmentNotice(the“DRN”)maybesenttotheDIAMemberwithinsixmonthsfrom1stApril,2017explainingthe impacton such account andgiving theDIAMember anopportunity togivea specified investment instruction to the Trustee before the accrued benefits,future contributions and accrued benefits transferred from another registeredschemeareinvestedintotheDIS.IftheTrusteeisnotawareofanycontactdetailsoftheMemberthatenabletheTrusteetogivetheDRN,theTrusteewillproceedto locate theMember in themanner, andwithin the time limit, specified in theMPFGuidelines.Membersshouldnotethattheriskinherentinthearrangement,in particular, the risk of the original default investment arrangementmay bedifferentfromthatoftheDIS.Theywillalsobesubjecttomarketrisksduringtheredemption and reinvestment process. The following table summarises the risklevelsofeachoftheoriginaldefault investmentarrangement,theBEA(IndustryScheme) CoreAccumulation Fund and the BEA (Industry Scheme) Age 65 PlusFund:

NameoftheConstituentFund RisklevelBEA(IndustryScheme)StableFund LowtomediumBEA(IndustryScheme)CoreAccumulationFund MediumtohighBEA(IndustryScheme)Age65PlusFund Lowtomedium

Fordetailsofthearrangement,MembersshouldrefertotheDRN.

• ForaMember’sPre-existingAccountwhichaccruedbenefitsarepartlyinvestedinthe original default investment arrangement immediately before 1st April, 2017(asaresultofnovalidinvestmentinstructionbeinggiveninrespectofthatpartof theaccruedbenefits),unless theTrusteehas receivedanySpecific InvestmentInstructions, accrued benefits of aMember (including future contributions andaccruedbenefitstransferredfromanotherregisteredscheme)willbe invested inthesamemannerasimmediatelybefore1stApril,2017;

• ForaMember’sPre-existingAccountwhich,asof31stMarch,2017,hasalloftheaccruedbenefitsinitinvestedinConstituentFundsotherthantheoriginaldefaultinvestment arrangement forwhatever reasons (e.g. as a result of SwitchingInstructionsoraccruedbenefitsfromanotheraccountwithintheIndustrySchemebeingtransferredtothePre-existingAccount)andnoinvestmentinstructionhaseverbeengivenforthePre-existingAccountinrespectofnewcontributionsandaccruedbenefits transferred fromanother registered scheme,unless theTrusteehas receivedanySpecific Investment Instructions, theMember’saccruedbenefitswillbeinvestedinthesamemannerastheywereinvestedimmediatelybefore1stApril, 2017,while the new contributions and accrued benefits transferred fromanotherregisteredschemepaidtotheMember’sPre-existingAccountonorafter1stApril,2017willbeinvestedintheDIS.

6.3.4 Treatment of benefits transferred from a contribution account to a personal account

WhereaMemberceasesemploymentwithaparticipatingemployerand:

(a) in the absence of his/her election to transfer such accrued benefits as describedin the paragraphs headed “6.8.1 Transfers to other registered schemes or otheraccount(s)within the Industry Scheme” in the “6.8 Transfers” sub-sectionunder this“6. ADMINISTRATIVE PROCEDURES” section, and his/her accrued benefits in respectof such employment are automatically transferred to a personal account under theIndustry Scheme upon the expiry of the threemonths’ period after the Trustee hasbeennotifiedoftheterminationofhis/heremployment;or

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(b) theMember has given instruction to transfer the accrued benefits from suchemployment to a personal account and his/her accrued benefits are thereforetransferredtothepersonalaccount,

theaccruedbenefitstransferredfromtheMember’scontributionaccounttotheMember’spersonal accountwill be invested in the samemanner immediately before the transfer,and,unless theTrustee receivesa Specific Investment Instruction fromtheMemberwithregardtotheMember’spersonalaccount,anyfuturecontributionsandaccruedbenefitsfromanotherregisteredschememaybeinvestedintheDIS.

6.3.5 Information on Performance of the BEA (Industry Scheme) Core Accumulation Fund and the BEA (Industry Scheme) Age 65 Plus Fund

Thefundperformance(includingthedefinitionandactualfiguresofthefundexpenseratio)andReferencePortfoliosoftheBEA(IndustryScheme)CoreAccumulationFundand the BEA (Industry Scheme) Age 65 Plus Fundwill be published in the fund factsheets (and one of which will be attached to annual benefit statement).Memberscan visit http://www.hkbea.com or call the customer service hotline for information.Membersmay also obtain the fund performance information at the website of theMPFA(www.mpfa.org.hk).

The Reference Portfolio is adopted for the purpose of theDIS. The fund performancewillbereportedagainsttheReferencePortfoliopublishedbytheHongKongInvestmentFunds Association. Please visitwww.hkifa.org.hk for further information regarding theperformanceoftheReferencePortfolio.

The fundperformance is calculated inHKdollaronNAV-to-NAVbasis.Pastperformanceis not indicative of future performance. There is no assurance that investment returnsandmembers’accruedbenefitsmaynotsuffersignificantloss.Membersshouldregularlyreview the performance of the BEA Industry Scheme) CoreAccumulation Fund and theBEA (Industry Scheme)Age65Plus Fundand considerwhether the investments still suittheirpersonalneedsandcircumstances.

6.4 Entitlement to accrued benefits

The accrued benefits payable to aMember on retirement or in other allowablecircumstances are dependent on the contributions paid during theMember’s period ofmembership in the Industry Scheme and the investment return on the accrued benefitsderivingfromthosecontributionsduringtheperiod.

6.4.1 Mandatory contribution / TVC

Accruedbenefits inrespectofmandatorycontributionsand/orTVC(asapplicable)totheIndustrySchemearepayableinthecircumstancessetoutintheMPFOrdinance.Currently,thesecircumstancesincludewheretheMember:

(a) reachestheageof65;

(b) permanentlyceasesemploymentorself-employmentafterreachingtheageof60;

(c) ceasesemploymentorself-employmentasaresultoftotalincapacity;

(d) hasaterminalillness;

(e) permanentlydepartsfromHongKong;

(f) dies;or

(g) hastherighttoclaimasmallbalancepursuanttotheMPFOrdinance.

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6.4.2 Voluntary contribution

(a) Member's entitlement to accrued benefits

Accrued benefits in respect of voluntary contributions to the Industry Scheme arepayableinthecircumstancessetout intheTrustDeedandtherelevantparticipationagreementand/orsupplementtotheparticipationagreement,subjecttothevestingconditionsasdescribedbelow:

(i) onretirementonoraftertheMember’s60thbirthday;

(ii) onthetotalincapacityoftheMember;

(iii)ontheMember’sdeath;

(iv) except on dismissal for cause as described below, on cessation of employmentfor any other reason, his/her entitlement to the accrued benefits due to theparticipatingemployer'svoluntarycontributionisdeterminedbyreferencetotheperiod of theMember’s employmentwith the participating employer (andwithanyotheremployernominatedbytherelevantparticipatingemployer)(“Service”)inaccordancewiththefollowingtable:

YearsofService VestedPercentage

lessthan3 Nil3ormorebutlessthan4 30%4ormorebutlessthan5 40%5ormorebutlessthan6 50%6ormorebutlessthan7 60%7ormorebutlessthan8 70%8ormorebutlessthan9 80%9ormorebutlessthan10 90%10ormore 100%

(b) Member's dismissal from employment

IfaMemberisdismissedfromemploymentonanyofthefollowinggrounds:

(i) wilfullydisobeyingalawfulandreasonableorder;

(ii) misconduct, suchconductbeing inconsistentwiththedueandfaithfuldischargeoftheMember’sduties;

(iii)beingguiltyoffraudordishonesty;

(iv) beinghabituallyneglectfulintheMember’sduties;or

(v) uponanyothergroundonwhichtheMember’sparticipatingemployerwouldbeentitled to terminate theMember’s contract of employmentwithout notice atcommonlaw,

and theTrustee is satisfied thatdismissalwasmadeuponanyof theabovegroundsthenallaccruedbenefitsderivedfromvoluntarycontributionsmadebytheMember’sparticipatingemployerinrespectofthatMemberareforfeited.

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(c) Self-employed person's voluntary contribution

Subject as provided in the participation agreement and/or supplement to theparticipation agreement, aMemberwho is a self-employedpersonmay request theTrusteetopaytheMemberall(butnotpartonly)oftheamountsattributabletotheMember’svoluntarycontributionsatanytime.

(d) Member's additional voluntary contributions

WhereaMemberwhoisanemployeeofaparticipatingemployerhasmadevoluntarycontributionsinadditiontothoserequiredbythetermsoftherelevantparticipationagreementand/orsupplementtotheparticipationagreement(“Additional Voluntary Contributions”), theMember is entitled to request the Trustee to pay theMemberamounts attributable to theMember’s Additional Voluntary Contributions. Thefollowingwillapply,unlesstheTrusteeagreesotherwise:

(i) therequestmustbeinaformspecifiedbytheTrustee;

(ii) the requestmust relate to all amounts attributable to theMember’sAdditionalVoluntaryContributions;and

(iii)notmore than two requestsmay bemade in any one financial period of theIndustryScheme.

(e) Unclaimed accrued benefits

Unclaimed accrued benefitswill continue to be held and invested in the IndustryScheme,subjecttotheprovisionsoftheMPFOrdinance.

6.5 Realisation of Units

WhereaMemberbecomesentitledtoaccruedbenefitsandaclaimissubmittedforsuchaccruedbenefits,theTrusteewillrealisetheUnitscreditedtotheaccountoftheMembertomeet such claim for accrued benefits. Subject as noted below, Unitswill be realisedonaValuationDate,within20BusinessDaysofthe laterof (i) thedatetheentitlementarisesand(ii)thedatetheTrusteereceivessatisfactorynoticeofsuchentitlement(togetherwithappropriatesupportingdocumentation).

Units realised on aValuationDatewill be realised at a price calculatedby reference totheNAV per Unit of the relevant Constituent Fund as at the close of business on thatValuationDate(forfurtherdetails,pleaserefertothe“7.OTHERINFORMATION”section).

RealisationofUnitswill be suspendedandpaymentof accruedbenefitswill bedelayedwhere the determination of theNAV of the relevant Constituent Fund is suspended(Pleaserefertotheparagraphsheaded“(d)SuspensionofCalculationofNAV”inthe“7.1Calculation”sub-sectionunderthe“7.OTHERINFORMATION”section).

Inaddition,withaviewtoprotectingtheinterestsofMembers,theTrusteeisentitledtolimitthenumberofUnitsrelatingtoanyConstituentFundrealisedonanyValuationDateto10%ofthetotalnumberofUnitsrelatingtothatConstituentFundinissue(disregardinganyUnitsthataretobe issuedonsuchValuationDate). Inthisevent,the limitationwillapplyproratatoallMembersinrespectofwhomUnitsrelatingtothatConstituentFundaretoberealisedonthatValuationDatesothattheproportionofsuchUnitsrealisedinrespectofeachMemberisthesame.Unitsnotrealised(butwhichwouldotherwisehavebeen realised)will be carried forward for realisation, subject to the same limitation,onthenextValuationDate.Ifrealisationsaresocarriedforward,theTrusteewillinformtheMembersconcerned.

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6.6 Payment of accrued benefits

6.6.1 Lump sum payment

Subject as noted below, lump sum accrued benefits (including amounts attributable tovoluntary contributions)willbepaidas soonas reasonablypracticableand inanyeventnotlaterthan(i)30daysafterthedateonwhichtheclaimislodged;and(ii)30daysafterthecontributiondayinrespectofthelastcontributionperiodthatendsbeforetheclaimislodged.

6.6.2 Withdrawal by instalments

AMember who becomes entit led to accrued benefits in respect of mandatorycontributions, voluntary contributions and/or TVC, as applicable, upon (i) reaching theageof65or(ii)permanentlyceasingemploymentorself-employmentafterreachingtheageof 60 (“Eligible Member”),may elect to havehis/her accruedbenefits derived frommandatory contributions, voluntary contributions and/or TVC, as applicable (together“Eligible Benefits”),paid ina lump sumorby instalments (i.e.partialwithdrawal). Suchelection is not available in other circumstanceswhen aMember becomes entitled toaccrued benefits in respect ofmandatory contributions, voluntary contributions and/orTVC,asapplicable,andtheaccruedbenefitswillbepaidinalumpsumonly.

If an EligibleMember elects to have his/her Eligible Benefits paid by instalments, foreach instalment, he/she is required to give instructions to the Trustee by submitting aseparateclaimform(available fromtheTrusteeandtheSponsor) specifyingtheamountofwithdrawal.

Suchwithdrawalinstructionswillapplytoaccruedbenefitsbothinrespectofmandatorycontributions and,where applicable, voluntary contributions, on a pro-rata basis. Forexample, if an EligibleMember is entitled to accrued benefits of HKD80,000which arederivedfrommandatorycontributions(“Mandatory Benefits”)andHKD20,000whicharederived from voluntary contributions (“Voluntary Benefits”), and the EligibleMemberwishes towithdrawHKD5,000, thenHKD4,000will bewithdrawn from theMandatoryBenefits,andHKD1,000willbewithdrawnfromtheVoluntaryBenefits, inproportiontotheaccruedbenefitsattributabletomandatorycontributionsandvoluntarycontributions,respectively.

Unless otherwise agreed between the Trustee and the EligibleMember, and subject asnotedbelow,theTrusteewillpayeachwithdrawaltosuchEligibleMembernolaterthan30 days after the date onwhich the EligibleMember instructs the Trustee to pay thatwithdrawal.

Inrespectofwithdrawalby instalments,thefirst12 instalments(orsuchfurthernumberof instalments as determined by the Trustee) in any calendar yearwill be paid freeof charge (other than any necessary transaction costs permitted under theGeneralRegulation). Thereafter, each additionalwithdrawal by instalment in the same calendaryear is subjecttoafeeofHKD100,whichshallbepaidtoabankaccountdesignatedbythe Trustee as specified in the claim form. Please note that bank chargesmay apply toMembers'bankingaccountsifMemberschoosetobepaidthewithdrawalamountdirectlyto their bank account. For further details, please refer to the table headed “(E)OTHERFEESANDCHARGES FORPROVIDINGADDITIONAL SERVICES” in the“5.1 Fee table” sub-sectionunderthe“5.FEESANDCHARGES”section.

Tomeet eachwithdrawal request, the Eligible Benefits in all of the Constituent FundsheldbytheEligibleMemberwillberealised,sofaraspracticable,onapro-ratabasis.

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Members shouldnotethat in thecaseofwithdrawalofaccruedbenefitsby instalments,anybalanceremaininginaMember’saccountwillcontinuetobeinvestedintherelevantConstituentFund(s)andthereforesubjecttoinvestmentrisks.

6.7 Other points to note

AccruedbenefitswillbepaidinHKdollarstotherelevantrecipientattherecipient’sriskbychequeunlessotherwiseagreedbetweentheTrusteeandtherelevantrecipient.

Save as disclosed above, no fees or financial penalties shall be charged or imposed forpaymentofaccruedbenefits(inalumpsumorbyinstalmentsforthefirst12instalmentsinacalendaryear)otherthananamountrepresentingthenecessarytransactioncoststhatare incurred,or reasonably likely tobe incurred,by the Trustee in sellingorpurchasinginvestmentsinordertogiveeffecttothepaymentandarepayabletoapartyotherthantheTrustee.Suchnecessarytransactioncostswouldinclude,butarenotlimitedto, itemssuch as brokerage commissions, fiscal charges and levies, government charges, bankcharges, exchange fees, costs and commissions, registration fees and charges, collectionfeesandexpenses,etc.AnyamountofsuchfeesandchargesimposedandreceivedmustbeusedtoreimbursetherelevantConstituentFund.

Paymentmay be delayed in certain circumstances pursuant to theMPFOrdinance,includingwhere the Industry Scheme is being auditedor investigated at the instigationof theMPFA.Pending thepaymentofaccruedbenefits, theTrusteewillhold realisationproceeds of Units in an interest bearing accountwith The Bank of East Asia, Limited.Interest earnedwill be credited to theConstituent Fund(s) inwhich such amountswereinvestedimmediatelypriortorealisationofUnits.

6.8 Transfers

6.8.1 Transfers to other registered schemes or other account(s) within the Industry Scheme

A participating employermay elect by notice inwriting to the trustee of anotherregistered scheme to transfer amounts held to the credit ofMembers employed bythe relevant participating employer under the Industry Scheme and that relate to theMembers’ employmentwith the participating employer to that other registered schemeinwhichtheparticipatingemployerwillparticipateonthemerger,divisionorwindingupoftheIndustrySchemeinaccordancewiththeMPFOrdinanceorwheretheparticipatingemployergivesnotice,personallyorthroughthetrusteeofanotherregisteredscheme,ofitsintentiontoceaseparticipationintheIndustrySchemeinrespectofsuchMembers.

WhereaMemberwho isanemployee (other thana casualemployee)ofaparticipatingemployer ceases to be so employed, theMembermay elect by notice inwriting to theTrustee or the trustee of the transferee registered scheme, as the casemay be, to haveamountsheldtothecreditoftheMemberundertheIndustrySchemetransferredto:

• anaccountinamastertrustschemenominatedbytheMember;or

• anexistingaccountoftheMemberinanotherindustryscheme;or

• acontributionaccountinaregisteredschemeinwhichtheMember’snewemployerisparticipatinginrelationtothatMember.

AMemberwhoisanemployeemayatanytimeelecttohave:

(a) alltheamountsheldtothecreditoftherelevantMemberundertheIndustrySchemeattributable to the relevantMember’s accrued benefits deriving frommandatorycontributions in respect of the relevantMember’s current employment, transferred

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to (i)apersonalaccount in the IndustrySchemenominatedby the relevantMemberby notice inwriting to the Trustee; or (ii) a personal account in another registeredschemewhich is amaster trust scheme or an industry scheme nominated by therelevantMember by notice inwriting to the trustee of the transferee registeredscheme.Suchelectiontotransfermayonlybemadeonceineverycalendaryear;and

(b) alltheamountsheldtothecreditoftherelevantMemberundertheIndustrySchemeattributable to all accrued benefits deriving frommandatory contributions paid byor in respect of the relevantMember that are attributable to theMember’s formeremployments or former self-employments, transferred to (i) a personal account orcontribution account in the Industry Scheme nominated by the relevantMemberby notice inwriting to the Trustee; or (ii) a contribution accountwithin anotherregisteredschemeorapersonalaccountwithinanotherregisteredschemewhichisamastertrustschemeoranindustryscheme,ineachcaseasnominatedbytherelevantMemberbynoticeinwritingtothetrusteeofthetransfereeregisteredscheme.

AMemberwhohas accruedbenefits held inoneormore thanonepersonal account intheIndustrySchememayatanytimeelecttohavealltheamountsheldinalloranyoneormoreofthepersonalaccountsoftherelevantMember,transferredto:

(i) apersonalaccountorcontributionaccountintheIndustrySchemenominatedbytherelevantMemberbynoticeinwritingtotheTrustee;or

(ii) acontributionaccountwithinanotherregisteredschemeorapersonalaccountwithinanother registered schemewhich is amaster trust schemeor an industry scheme, ineachcaseasnominatedbytherelevantMemberbynoticeinwritingtothetrusteeofthetransfereeregisteredscheme.

Where aMemberwho is a casual employeeof a participating employer ceases tobe soemployed, theMembermay elect by notice inwriting to the trustee of the transfereeregisteredschemetohaveamountsheldtothecreditoftheMemberundertheIndustrySchemetransferredto:

(a) anaccountinamastertrustschemenominatedbytheMember;or

(b) anexistingaccountoftheMemberinanotherindustryscheme;or

(c) a contribution account in the registered scheme (not being the Industry Scheme) inwhichtheMember’snewemployerisparticipatinginrelationtotheMember.

If theMemberdoesnotmakeanelection to transfer, theamountsheld to thecreditoftheMemberwillcontinuetobeheldintheIndustryScheme.

AMemberwho is a self-employedpersonmay at any time elect bynotice inwriting tothetrusteeofthetransfereeregisteredschemetohaveamountsheldtothecreditoftheMemberundertheIndustrySchemetransferredto:

(a) anaccountinamastertrustschemenominatedbytheMember;or

(b) anexistingaccountoftheMemberinanotherindustryscheme;or

(c) anaccountinanotherindustryschemetowhichtheMemberiseligibletobelong;or

(d) where theMember subsequently becomes employed, a contribution account in theregisteredschemeinwhichtheMember’semployer isparticipatinginrelationtotheMember.

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No fees shall be charged and no financial penalties shall be imposed for transferringaccruedbenefits:

• fromaregisteredschemetoanotherregisteredscheme;

• fromanaccountwithin the Industry Scheme toanotheraccountwithin the IndustryScheme;

• inthesameaccountwithintheIndustryScheme,fromaConstituentFundtoanotherConstituentFund,

other thananamount representing thenecessary transaction costs thatare incurred,orreasonably likely to be incurred, by the Trustee in selling or purchasing investments inordertogiveeffecttothetransferandarepayabletoapartyotherthantheTrustee.Suchnecessarytransactioncostswouldinclude,butarenotlimitedtobrokeragecommissions,fiscal charges and levies, government charges, bank charges, exchange fees, costs andcommissions, registration fees and charges, collection fees and expenses. Any amountof suchnecessary transaction costs imposedand received shallbeused to reimburse therelevantConstituentFund.

The redemption price of theAPIF(s) inwhich the relevant Constituent Fund(s) investmay be adjusted to take account of realisation expenses including (but not limited to)brokerage, stamp duty, transaction fees, any bid/offer spread of underlying investment,registration and transfer fees, bank charges, conversion charges; and any othertransactioncosts.Inthenormalcourse,suchadjustmentisnotexpectedtoexceed1%oftheredemptionprice.

An election to transfermust bemade in the form specified by theMPFA and availablefrom registered scheme trustees. The Trustee on receipt from another trustee ofnotification of an election to transfer (for transfer to other registered schemes) andreceipt of notification of an election to transfer (for transferwithin the IndustryScheme)will effect a transferwithin 30 days of such notification or if an election ismadebyaMemberwhoisanemployeeofaparticipatingemployerwhoceasestobesoemployed,within 30 days after the last contribution day in respect of the employmentthathasceased,whichever is the later.TransfersmaybedelayedwherevaluationoftheConstituent Fundsare suspended (please refer to the“7.OTHER INFORMATION” sectionbelow) and in certain circumstances specifiedpursuant to theMPFOrdinance, includinginrespectofatransfermadeundersection150orsection150AoftheGeneralRegulationtherearecontributionsor contribution surchargesorbothwhichareoutstandingat thetimeofnotificationofsuchtransfer.Pendingthetransferofaccruedbenefits,theTrusteewillhold the realisedproceedsofUnits inan interestbearingaccountwithTheBankofEast Asia, Limited. Interest earnedwill be credited to the Constituent Fund(s) inwhichsuchamountswereinvestedimmediatelypriortotherealisationofUnits.

For detailswith regard to transfer of accrued benefits from a TVC account from theIndustry Scheme to another scheme, please refer to the paragraphs headed “6.8.3PortabilityofTVC”below.

6.8.2 Transfers from other schemes

TheTrusteehaspowertoaccepttransfers fromotherschemes intothe IndustryScheme.Inparticular:

(a) aMemberwhoisanemployeemembermaytransferallofhis/her:

(i) accrued benefits derived frommandatory contributionsmade by him/her inrespectofhis/hercurrentemployment;

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(ii) accrued benefits derived frommandatory contributions attributable to his/herformeremploymentsorformerself-employment;or

(iii)accruedbenefitsinhis/herpersonalaccount(s)withinanotherregisteredscheme,

intoapersonalaccount(foralloftheabovecases)oracontributionaccount(for(ii)and (iii) above) of theMemberwithin the Industry Scheme in accordancewith theGeneralRegulation;

(b) any other eligible persons (whether or not such person is engaged in the cateringindustry or the construction industry)may transfer all of his/her accrued benefitsheld inhis/herpersonalaccount(s)withinanother registered scheme intoapersonalaccountoracontributionaccountwithintheIndustrySchemeinaccordancewiththeGeneralRegulation.

The Trusteewill apply amounts received from other schemes to acquire Units in theConstituentFundsinaccordancewiththeinstructionsoftheMemberonaValuationDate,within 20 Business Days of receipt of such amounts in cleared funds, togetherwith allrelevantdocumentationfromtheMemberandthetrusteeoftheotherscheme.Currently,no offer spreadwill be levied on the issue of suchUnits. Pending the acquisition ofUnitsintheConstituentFunds,theTrusteewillholdsuchamountsinaninterestbearingaccountwithTheBankofEastAsia,Limited.InterestearnedwillbeusedbytheTrusteetomeetgeneraloperatingexpensesoftheIndustryScheme.

For detailswith regard to transfer of accrued benefits from a TVC account in anotherschemetothe IndustryScheme,pleaserefer totheparagraphsheaded“6.8.3PortabilityofTVC”below.

6.8.3 Portability of TVC

TVCisportableandTVCAccountHoldersshouldnotethat:

(a) ATVCAccountHoldermayatanytimechoosetotransfertheaccruedbenefitsderivedfromTVCtoanotherregisteredschemethatoffersTVC;

(b) Thetransfermustbeinalumpsum(fullaccountbalance);

(c) The TVC account in the original registered scheme fromwhich the accrued benefitsaretransferred(resultinginzerobalance)maybeterminateduponsuchtransfer;

(d) Fortheavoidanceofdoubt,transferofaccruedbenefitsderivedfromaTVCaccountto another TVC account of theMember in another registered scheme cannot beclaimedasdeductionsfortaxationpurpose;and

(e) Transferof TVCaccruedbenefits to another TVCaccountof theMember in anotherregistered schemewill also be subject to the same preservation andwithdrawalrestrictionsapplicabletomandatorycontributionsintheMPFregulations.

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7. OTHER INFORMATION

7.1 Calculation

(a) Calculation of NAV

TheTrusteewill valueeachConstituent Fundand calculate the issueand realisationpricesofUnitsinaccordancewiththeTrustDeedasatthecloseofbusinessinthelastrelevantmarkettocloseoneachValuationDate.TheTrustDeedprovidesthat:

(i) the value of any interest in a collective investment scheme (which, for theavoidanceofdoubt,doesnot includeinterests in listedapprovedITCISs)shallbecalculatedbyreferencetothepriceofsuch interestquotedattherelevanttimebythemanageroftherelevantcollectiveinvestmentscheme(orifmorethanonepriceisquoted,thebidprice);

(ii) thevalueofany investmentnot included inparagraph (i) abovewhich is listed,quotedordealtinonanapprovedstockexchangeorapprovedfuturesexchange(which,fortheavoidanceofdoubt,includesinvestmentsinapprovedITCISs)shallbecalculatedbyreferencetothelasttradedpriceofsuchinvestment;

(iii) thevalueofcash,depositsandsimilarinvestmentsnotincludedinparagraphs(i)or (ii) above shall be calculated by reference to their face value (togetherwithaccruedinterest)unless, intheopinionoftheTrustee,anyadjustmentshouldbemadetoreflectthevaluethereof;

(iv) the valueofanyother investment (or in the caseofany investment included inparagraphs(i),(ii)or(iii)abovetheprevailingpriceofwhichisnotconsideredtobefairbytheTrustee)shallbedeterminedbyanyperson(includingtheSponsor)approvedbytheTrusteeasqualifiedtovaluetherelevantinvestment;

(v) notwithstanding the foregoing, the Trusteemaymake such adjustments as itthinksappropriatetotakeaccountofanyotherassetsorliabilitiesattributabletotherelevantConstituentFundnototherwisereflectedinavaluationortoprovideafairerattributionofassetsandliabilitiesasbetweentheConstituentFunds;and

(vi) amounts expressed in currencies other thanHK dollars shall be converted intoHK dollars at such prevailing rates of exchange as the Trustee shall considerappropriate.

(b) Calculation of issue and realisation prices

The issue price of aUnit in a Constituent Fundon aValuationDate is theNAVperUnitofsuchclassasatthecloseofbusinessonthatValuationDateroundedtofourdecimalplaces (withfractionsofHKD0.00005roundedup)providedthattheTrusteemay add an allowance (for the accrued benefit of the relevant Constituent Fund)for fiscal and purchase chargeswhichmight be payable to buy investments for theaccountoftherelevantConstituentFund.

TherealisationpriceofaUnit inaConstituentFundonaValuationDate is theNAVperUnitof suchclass rounded to fourdecimalplaces (with fractionsofHKD0.00005rounded up) provided that the Trusteemay deduct an allowance (for the accruedbenefitof therelevantConstituentFund) for fiscalandsalechargeswhichmightbepayabletosellinvestmentsfortheaccountoftherelevantConstituentFund.

TheNAV per Unit in a Constituent Fund is calculated by valuing the assets of thatConstituent Fund, deducting the liabilities attributable to the relevant ConstituentFundanddividing the resultant sumby thenumberofUnitsof the relevant class in

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issue.

(c) Publication of prices

The issueand realisationpricesperUnitof eachConstituent Fundwill bepublisheddailyintheSouthChinaMorningPostandHongKongEconomicTimes.

(d) Suspension of calculation of NAV

Unless otherwise prohibited by theMPFOrdinance, the Trusteemay declare asuspensionofthedeterminationoftheNAVofanyConstituentFund:

• duringanyperiodwhenanystockexchangeorothermarketonwhichanyoftheinvestmentsforthetimebeingheldfortheaccountofsuchConstituentFundarequotedisclosedotherwisethanforordinaryholidays;or

• duringanyperiodwhenanydealingsonanysuchstockexchangeorothermarketarerestrictedorsuspended;or

• during the existence of any state of affairs as a result ofwhich disposal ofinvestmentsforthetimebeingcomprisedinsuchConstituentFundcannotintheopinionoftheTrusteebeeffectednormally;or

• during any breakdown in themeans of communication normally employed indeterminingthevalueofsuchConstituentFundorpartthereofortheissuepriceor realisation price of Units relating to such Constituent Fund orwhen for anyother reason the value of any investment for the time being comprised in suchConstituentFundandrepresentingasignificantpartofthevaluethereofcannotbepromptlyandaccuratelyascertained;or

• during any periodwhen the realisation of any investments for the time beingcomprised in such Constituent Fund or the transfer of funds involved in suchrealisation cannot in theopinionof the Trusteebe effected at normal prices ornormalratesofexchangerespectively;or

• duringanysuspensionofpaymentofaccruedbenefitsfromtheIndustrySchemepursuanttotheMPFOrdinance.

NoUnitsofaConstituentFundwillbeissuedwherethedeterminationoftheNAVofthatConstituentFundissuspended.

Whenever the Trustee declares such a suspension it shall, as soon as may bepracticable after any such declaration and at least once amonth during the periodofsuchsuspension,publishanoticeintheSouthChinaMorningPostandHongKongEconomicTimesstatingthatsuchdeclarationhasbeenmade.

7.2 Taxation

ThefollowingstatementsregardingtaxationarebasedonadvicereceivedbytheSponsorregardingthelawandpracticeinforceinHongKongatthedateofthisdocument.

Employers and prospectiveMembers should appreciate that as a result of changing lawor practice, the taxation consequences of participating in the Industry Schememay beotherwise thanas statedbelow.This summary isnot intended tobe comprehensiveandshould not be relied upon as a substitute for detailed and specific advice. Employersand prospectiveMembers should seek professional advice regarding their particular taxcircumstances.

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(a) For participating employers

Initial and special lump sum contributions are allowable for profits tax purposes infiveequalinstalmentsoverfiveyears.

Annualcontributionsmadebytheemployerinrespectofanemployeeofupto15%ofthetotalemolumentsofsuchemployeeareallowableasadeductionforprofitstaxpurposes.Excesscontributionsarenotdeductible.

Refundsofvoluntarycontributionstotheemployerwillbetreatedastaxablereceiptsinthehandsoftheemployerforprofitstaxpurposes.

(b) For employees

Accruedbenefitsonretirementorearlierinthecaseofincapacity,terminalillnessordeatharegenerallynotsubjecttosalariestax inthehandsoftheemployee.Fortaxpurposes,“retirement”isdefinedasmeaning:

• retirementfromtheserviceoftheemployerataspecifiedageofnotlessthan45years;

• retirementafteraperiodofservicewiththeemployerofnot lessthan10years;or

• attainmentofaspecifiedageofretirementor60years,whicheverislater(whetherornottheemployeehasinfactretiredfromhis/heremploymentatsuchage).

If an employee leaves service otherwise than on retirement, death or incapacity, aproportionoftheemployee’saccruedbenefitpaidderivingfromemployer’svoluntarycontributionsmaybesubjecttosalariestax.

Salaries tax isnotpayableontheportionofanypaymentthat representseither theemployee’scontributionsortheinvestmentearningsoftheIndustrySchemeonthosecontributions.

The employer’s contributions are not taxable on the employee. For salaries taxpurposes, a deduction from salary is allowed for the amount of the employee’smandatory contributions to the Industry Scheme. However, employees’ voluntarycontributionstotheIndustrySchemearenotdeductibleforsalariestaxpurposes.

(c) For self-employed persons

Self-employedpersonswillbeeligiblefordeductioninrespectoftheamountoftheirmandatorycontributionstotheIndustrySchemefromtheirassessableprofits.

Profits tax is not payable on the portion of any payment that represents either theself-employed person’s contributions or the investment earnings of the IndustryScheme.

(d) For TVC Account Holders

TVCAccount Holderswill be able to deduct the TVC paid into their TVC account,subject to amaximum deduction per year as specified in the Inland RevenueOrdinance. In the year of assessment 2019/2020, the maximum deduction isHKD60,000.ItshouldbenotedthatsuchtaxconcessionamountisanaggregatelimitforbothTVCandotherqualifyingannuitypremiums rather thanTVConly; andanyclaimfortaxdeductionswillbeappliedtoTVCbeforequalifyingannuitypremiums.

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To facilitate the tax return filingbyTVCAccountHolders, theTrusteewillprovideaTVCsummarytoeachTVCAccountHolder ifTVC ismadebyhim/hertothe IndustrySchemeduringayearofassessment.Suchsummarywillbemadeavailablearound10thMayaftertheendoftherelevantyearofassessment(i.e.beforetheendofaperiodof40days(unlessthe40thdayisnotaBusinessDay,thenthenextBusinessDay)fromthebeginningofthenexttaxassessmentyearcommencingon1stApril).

(e) For the Industry Scheme

TheIndustrySchemeisnotexpectedtobesubjecttoHongKongtaxinrespectofanyofitsauthorisedactivities.

7.3 Accounts, reports and statements

TheIndustryScheme’sfinancialyearendis31stMarchineachyear.

Assoonaspracticableaftereachfinancialperiod,theTrusteewillprepareaconsolidatedreport consisting of (i) the audited accounts of the Industry Scheme prepared inaccordancewithapplicableaccountingguidelines,(ii)theTrustee’sreportontheIndustryScheme for the relevant financial period and (iii) the InvestmentManager’s investmentreport for the relevant financial period. This consolidated reportwill be open forinspectionbyMembers freeof chargeat any timeduringnormalbusinesshoursonanyday (excluding Saturdays, Sundays and public holidays) at the offices of the Trustee.MembersmayrequesttheTrusteetoprovidethemwithcopiesoftheconsolidatedreportsfortheIndustrySchemeforanyoftheprecedingsevenfinancialperiods.

The Trusteewill send eachMember an annual accrued benefit statementwithin threemonths of the end of each financial period. The annual accrued benefit statementwillinclude details of the contributions to the Industry Scheme in respect of theMemberduring the year, theUnits credited to the account of theMember in each ConstituentFundandthevalueoftheaccruedbenefitsoftheMemberundertheIndustrySchemeasatthestartandendoftherelevantfinancialperiod.

TheTrusteewillalsosendeachMemberaquarterlybenefitstatementor(ifindicatedontheapplicationformcompletedbytherelevantMember)amonthlybenefitstatement.

A Casual EmployeeMemberwill receive amembership card and aMember (not beinga Casual EmployeeMember)will receive a notice of participation indicating theirmembershipof the Industry Scheme.TheTrusteewill sendmembership cards,noticesofparticipation,benefitstatementsandotherrelevantinformationconcerningtheIndustrySchemedirecttotheMembers.

7.4 Trust Deed

The Industry Schemewas established under Hong Kong law by the Trust Deedmadebetween the Sponsor and the Trustee. AllMembers and participating employers areentitledtothebenefitof,areboundbyandaredeemedtohavenoticeoftheprovisionsoftheTrustDeed.

TheTrustDeedcontainsprovisionsfortheindemnificationoftheTrusteeandtheSponsorandtheir relief from liability incertaincircumstances.Members,participatingemployersandintendingapplicantsareadvisedtoconsulttheTrustDeedforfurtherdetailsontherelevantprovisions.

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7.5 Modification of Trust Deed and participation agreements

The Trustee and the Sponsormay agree tomodify the Trust Deed by supplementaldeed, either generally so as to apply to allMembers and participating employers or soas to apply specifically to a particularMember orMembers or a particular participatingemployer or participating employers andMembers employed by such participatingemployerorparticipatingemployers.

AnymodificationstotheTrustDeedwillbesubmittedtotheMPFAforpriorapprovalandwillbenotifiedtoMembers.

TheTrustee,theSponsorandtherelevantparticipatingemployer(orMemberinthecaseofaself-employedpersonorothereligibleperson)mayagreetomodifytheparticipationagreement and/or supplement to the participation agreement applicable to thatparticipatingemployer(orself-employedpersonorothereligibleperson).

7.6 Termination, merger or division of Industry Scheme

The Industry Schememay bewound up by the court in accordancewith theMPFOrdinance on applicationmade by theMPFA to the court. The Trustee shall give notless than onemonth’s notice (or such other period as theMPFA or the SFCmay agreeor require) to participating employers andMembers of the termination of the IndustryScheme.

Subject to the prior approval of theMPFA and the SFC, the Industry Schememay bemergedwithoneormoreotherregisteredschemesorsub-dividedintotwoormoreotherregisteredschemesinaccordancewiththeMPFOrdinance.TheTrusteewillgiveMembersand participating employers not less than onemonth’s notice of anymerger or sub-division of the Industry Scheme (or such other period of notice as theMPFAor the SFCmayrequire).

7.7 Documents available

The followingdocuments are available for inspection freeof chargeat any timeduringnormalbusinesshoursonanyday (excluding Saturdays, Sundays andpublic holidays) attheofficesoftheTrustee:

(a) copiesoftheTrustDeedandanysupplementaldeeds;

(b) thelatestMPFSchemeBrochure,togetherwithanyaddendum;and

(c) thelatestconsolidatedreportfortheIndustryScheme(ifany).

CopiesoftheTrustDeedcanbepurchasedfromtheTrusteeonpaymentofareasonablefee.

Further, a copy of the latestMPF Scheme Brochure (togetherwith any addendum) canbe obtained free of charge from any BEA Branch or theMPFAdministration Centre, orby calling the BEA (MPF) Hotline on (+852) 2211 1777 (operated by Bank of East Asia(Trustees) Limited) or emailing to [email protected] by downloading a copy fromhttp://www.hkbea.com.

7.8 Automatic exchange of financial account information

Financial institutions inHongKongandmanyother jurisdictionsarerequiredto identifyaccount holderswho are reportable foreign tax residents under the laws, regulationsand international agreements for the implementation of automatic exchange of

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financial account information (“AEOI”), and report the information of account holdersand controlling persons of certain entity account holders (each a “controlling person”)(including but not limited to their names, addresses, dates of birth, places of birth/incorporation, jurisdiction(s) of tax residence, tax identification number(s) in therelevant jurisdiction(s)) and account information (including but not limited to theiraccountbalance,certainpaymentstotheaccount,andpaymentstotheaccountholders)(collectively,the“Reportable Information”)tothelocaltaxauthoritywherethefinancialinstitutions operate. The local tax authority, in respect of a reportable foreign taxresident,willprovidetheReportableInformationofthereportableforeigntaxresidenttothetaxauthorityofthecountryoftaxresidenceofthereportableforeigntaxresidentonaregular,annualbasis.IfyouarenotataxresidentinanyjurisdictionoutsideHongKong,yourMPFaccountinformationwillnotbereportedtotheInlandRevenueDepartment(the“IRD”)fortransmissiontoanytaxauthorityoutsideHongKong.

The IndustrySchemeisaHongKongfinancial institutionforAEOIpurposes.AsrequiredunderAEOIofHongKong,theTrusteewilluseforthepurposesofAEOItheReportableInformationofanyindividualorentity,whetherinthecapacityasaMember,participatingemployer or beneficiary, that is considered under AEOI to be an account holder orcontrolling person (where applicable). The Reportable Informationmay be transmittedtotheIRDoranyotherrelevantdomesticorforeigntaxauthorityfortransfertothetaxauthorityofanotherjurisdiction.

TheTrusteemay,totheextentnotprohibitedbyapplicablelawincludingAEOI,engage,employ or authorise any individual or entity (including but not limited to third-partyserviceproviders,theTrustee’saffiliates,subsidiaries,associatedentities,andanyoftheirbranchesandoffices)(each,forpurposesofthissection,an“authorised person”)toassistthe IndustrySchemewiththefulfilmentof itsobligationsunderAEOI,andtoactontheIndustry Scheme’s behalf in relation to its obligations under AEOI. The Trustee and itsauthorisedpersonsmaysharewitheachotheranyinformationofanyaccountholderandcontrollingperson(whereapplicable)oftheIndustryScheme.

TheTrusteeand/oranyof itsauthorisedperson(s)mayrequireanyaccountholderunderAEOItoprovideavalidself-certificationformandsuchother information(includingtheReportable Informationandanydocumentaryevidence)whichtheTrusteeand/oranyofits authorised person(s)may require from time to time for the implementation ofAEOI(collectively, the “Required Information”). In addition,where the account holder is anentity, theTrusteeand/or itsauthorisedperson(s)may require theRequired Informationofitscontrollingperson(s).

WhererequiredbyAEOIandtotheextentnotprohibitedbyapplicable law,theTrusteemaynotacceptanyapplicanttotheIndustrySchemeormakeanypaymenttoanyaccountholder (whether in the capacityofaMember,aparticipatingemployerorabeneficiary)before receiving the Required Information. Account holders and controlling personsmustupdatetheTrusteeand/oranyof itsauthorisedperson(s)aboutanychanges intheinformation they have previously provided to the Trustee and/or any of its authorisedperson(s) as soon as possible and ideallywithin 30 days of such changes. If the Trusteeand/oranyofitsauthorisedperson(s)donotreceivetheRequiredInformationinrespectof an account holder or a controlling person, the Trustee and/or any of its authorisedperson(s)mayberequiredtoreportsuchpersonbasedontheinformationtheyhave.

Members, participating employers, and any other account holders and controlling persons should consult their own tax advisers regarding the possible implications of AEOI. The application of the AEOI rules and the information that may be required to be reported and disclosed are subject to change. Please see the IRD website (https://www.ird.gov.hk/eng/tax/dta_aeoi.htm) for more information about AEOI in Hong Kong. Any discussion of tax considerations herein is not intended or written to be tax advice to any person and is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding any domestic or foreign tax penalties that may be imposed on such person.

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8. GLOSSARY

“Administrator” means Bank of East As ia (Trustees) L imited in i ts capacity asadministratoroftheIndustryScheme.

“APIF” meansanapprovedpooledinvestmentfund,asdefinedinsection6oftheGeneralRegulation.

“approved ITCIS” means an index-tracking collective investment scheme, as defined insection 1(1) of Schedule 1 to theGeneral Regulation, approved bytheMPFAforthepurposesofsection6AofSchedule1totheGeneralRegulation.

“Business Day” meansaday (other than Saturday)onwhichbanks inHongKongareopen fornormalbankingbusinessprovided thatwhere, as a resultofaNumber8TyphoonSignalorhigherorablackrainstormwarningorother similar event, theperiodduringwhichbanks inHongKongareopenfornormalbankingbusinessonanydayisreduced,suchdayshallnotbeaBusinessDayunlesstheTrusteeotherwisedetermines.

“calendar year” meansaperiodof365or366days,startingon1Januaryandendingon31December.

“casual employee” meansapersonemployed in the catering industryor the constructionindustryinHongKongonadaytodaybasisorforafixedperiodoflessthan60days.

“Casual Employee Member”

meansanemployeememberwhoisacasualemployee.

“Constituent Fund” means a separate pool of assets of the Industry Scheme,which isinvestedandadministeredseparatelyfromotherassetsoftheIndustryScheme.

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“contribution period” meansasdefinedintheMPFOrdinance.

(a) in relation to a participating employer of aMemberwho is nota casual employee, each period forwhich the employer pays orshould pay relevant income to theMember, and includes such aperiod occurringwithin, or that coincideswith, the first 60 daysafterthecommencementoftheMember’semployment;and

(b) in relation to aMember (not being a casual employee)whosewageperiod:-

(i) isnotmorethanonemonth,meanseachperiodforwhichtheMember’semployerpaysorshouldpayrelevantincometotheMember,butdoesnot includeanywageperiod commencingon or before the 30th day after the commencement of theMember’semployment;

(ii) ismore than onemonth,means each period forwhich theMember’s employer pays or should pay relevant incometo the Member, but does not include the period fromcommencementof theMember’semploymentandendingonthelastdayofthecalendarmonthinwhichtheMember’s30thdayofemploymentaftersuchcommencementfalls;and

(c) in relation to a participating employer of aMemberwho is acasual employee and thatMember, each period forwhich theparticipatingemployerpaysorshouldpayrelevantincometothecasualemployee.

“Custodian” meansBankofEastAsia (Trustees) Limited in its capacityas custodianoftheIndustryScheme.

“DIS” meanstheMPFDefaultInvestmentStrategy.

“employee member” aMemberwhoisemployedbyaparticipatingemployerintheIndustryScheme and has entered into a participation agreementwith theTrusteetoparticipateintheIndustryScheme.

“feeder fund” meansafundthatinvestsinonlyoneAPIF/approvedITCIS.

“financial period” meanstheperiodfrom1stAprilinayearto31stMarchinthefollowingyear.

“General Regulation” meanstheMandatoryProvidentFundSchemes(General)Regulation.

“Greater China” means(i)thePRC,(ii)theSpecialAdministrativeRegionsofHongKongandMacauand(iii)Taiwan.

“Higher Risk Assets” has themeaning given to it in theMPFOrdinance, includingwithoutlimitationglobalequities.

“HKD” or “HK dollars” meansthecurrencyofHongKong.

“Hong Kong” means theHongKong SpecialAdministrative Region of the People’sRepublicofChina.

“HSIL” meansHangSengIndexesCompanyLimited.

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“Industry Scheme” meanstheBEA(MPF)IndustryScheme.

“Investment Manager” means BEAUnion InvestmentManagement Limited in its capacity asinvestmentmanageroftheIndustryScheme

“Lower Risk Assets” means those assets not beingHigher RiskAssets, includingwithoutlimitationglobalbondsandmoneymarketinstruments.

“Mandate” means in respect of aMember, an instruction in a form specified bythe Trustee setting out how contributionsmade by and on behalf oftheMember are tobe invested. For thepurposesof thisMPF SchemeBrochure,eachreferenceto“Mandate”meansaMandatemeetingtherequirements for a Specific Investment Instruction, unless otherwisespecified.

“MPF Industry Scheme Committee”

means theMPF Industry SchemeCommittee established under section6UoftheMPFOrdinance.

“maximum level of relevant income”

hasthesamemeaningasintheMPFOrdinance.

“Member” meansamemberoftheIndustrySchemebeing:

(a) aself-employedpersonwhoparticipatesintheIndustryScheme;or(b) an employee of a participating employerwho applies for and is

grantedmembershipoftheIndustryScheme;or(c) anyothereligiblepersonwhoparticipatesintheIndustryScheme.

“Member” includesemployeemember,self-employedperson,personalaccountholderandTVCAccountHolder.

“minimum level of relevant income”

hasthesamemeaningasintheMPFOrdinance.

“MPFA” means theMandatory Provident Fund SchemesAuthority ofHongKong.

“MPF Ordinance” means theMandatory Provident Fund SchemesOrdinance ofHongKong.

“NAV” meansnetassetvalue.

“ORSO exempted scheme”

has the samemeaning as in theMandatory Provident Fund Schemes(General)Regulation.

“ORSO registered scheme”

has the samemeaning as in theMandatory Provident Fund Schemes(General)Regulation.

“personal account holder”

meansaMemberforwhomapersonalaccountismaintainedundertheIndustryScheme.

“portfolio management fund”

meansafundthatinvestsinmorethanoneAPIF/approvedITCIS.

“PRC” meansthePeople’sRepublicofChina

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“Reference Portfolio” means, in respect of each of the BEA ( Industry Scheme) CoreAccumulation Fund and the BEA (Industry Scheme) Age 65 PlusFund, theMPF industry developed reference portfolio adopted forthe purpose of theDIS to provide a common reference point for theperformance and asset allocation of the BEA (Industry Scheme) CoreAccumulationFundandtheBEA(IndustryScheme)Age65PlusFund(asthecasemaybe).

“registered scheme” hasthesamemeaningasintheMPFOrdinance.

“Relevant Circumstances”

meansthefollowingevents:

(a) theTrusteehavingreasontoknowthatinformationanddocumentsprovidedtotheTrusteeareincorrectorincomplete;

(b) failure of applicants to provide information and documents asrequiredbytheTrusteetoensurecompliancewithapplicable lawsandregulationsrelatingtoanti-moneylaunderingortaxreporting;and/or

(c) other circumstanceswhich the Trustee and the Sponsormayconsiderappropriate.

“relevant income” hasthesamemeaningasintheMPFOrdinance.

“RMB” meansRenminbi,thecurrencyofthePRC.

“SEHK” meanstheStockExchangeofHongKongLimited.

“self-employed person”

aMemberwho is self-employed and has entered into a participationagreementwiththeTrusteetoparticipateintheIndustryScheme.

“SFC” meanstheSecuritiesandFuturesCommissionofHongKong.

“Specific Investment Instruction”

iseitheraMandateoraSwitchingInstructionsettingout:

(a) subjectto(b)below,aninstructionforinvestmentallocationswhichmeetsthefollowingrequirements:

(i) eachinvestmentallocationisinamultipleof10%;and

(ii) theaggregate(orinthecaseofanySwitchingInstruction,theswitch-intotal)ofwhichis100%;or

(b) wheretheinstructionistoinvestintheDIS,aninstructiontoinvest100%of:

(i) existingaccruedbenefits;and/or

(ii) future contributions and accrued benefits transferred fromanotherschemeintheDIS;or

(c) any confirmation (whether through hard copy submission,cyberbanking,mobile apps or IVRS (interactive voice responsesystem))byaMemberwithregardtoanyinvestmentarrangementsof the existing accrued benefits and/or future contributions andaccruedbenefitstransferredfromanotherscheme.

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“Sponsor” meansTheBankofEastAsia, Limited in its capacityas sponsorof theIndustryScheme.

“Switching Instruction” means in respect of aMember, an instruction to switch existinginvestments of accrued benefits of theMember. For the purposes ofthisMPF SchemeBrochure, each reference to “Switching Instruction”meansaSwitching Instructionmeetingtherequirements foraSpecificInvestmentInstruction,unlessotherwisespecified.

“Trustee” meansBankofEastAsia (Trustees)Limited in its capacityas trusteeoftheIndustryScheme.

“Trust Deed” means the trust deed dated as of 12th April, 2000 establishing theIndustryScheme,asamendedfromtimetotime.

“TVC” means tax deductible voluntary contributions as defined in theMPFOrdinance.

“TVC account” hasthesamemeaningasintheMPFOrdinance.

“TVC Account Holder” meansaMemberwhohasenteredintoaparticipationagreementwiththe Trustee to participate in the Industry Scheme as a TVCAccountHolder.

“Unit” meansoneundividedshare intheConstituentFundtowhichtheclassofUnitsrelates.AfractionofaUnitshallrepresentthecorrespondingfractionofanundividedshareintherelevantConstituentFund.

“USD” or “US dollars” meansthecurrencyoftheUnitedStatesofAmerica.

“Valuation Date” means every BusinessDay or such other day or days as the Trusteemay determine from time to time either generally or in relation to aparticularConstituentFund.

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APPENDIX 1

CLASSIFICATION OF CONSTRUCTION AND CATERING INDUSTRIES

Catering Industry

For the purpose of the Industry Scheme, the catering industry covers holders of foodbusinesslicencesorpermitsundertheFoodBusinessRegulation,canteensatschoolsandworkplaceandcateringestablishmentsinsideclubs.Thefollowingareexamplesofcateringestablishments:

1. Foodfactories,milkfactories,frozenconfectionfactories&bakeries

2. Restaurants

3. Factorycanteens

4. Siumeiorlomeishops

5. Coldstores

6. Freshprovisionshops

7. Cookedfoodstallsoperatinginapublicmarket

8. Cookedfoodstallswhicharegrantedhawkerlicences

9. Chineseherbteashops

Construction Industry

Theconstructionindustrycoversthefollowingeightmajorcategories:

1. Foundationandassociatedworks

2. Civilengineeringandassociatedworks

3. Demolitionandstructuralalterationworks

4. Refurbishmentandmaintenanceworks

5. Generalbuildingconstructionworks

6. Fireservices,mechanical,electricalandassociatedworks

7. Gas,plumbing,drainageandassociatedworks

8. Interiorfittingoutworks

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Examplesofestablishmentsandunitsengagedinconstructionworksare:

RegisteredwiththeBuildingsDepartment:

1. Generalbuildingcontractors

2. Specialistcontractorsintheventilationcategory

RegisteredwiththeElectricalandMechanicalServicesDepartment:

3. Electricalcontractors

4. Liftcontractorsandescalatorscontractors

5. Builders’liftcontractors

6. Gascontractors

Others:

7. FireserviceinstallationscontractorsregisteredwiththeFireServicesDepartment

8. Holdersofaplumber’slicenceissuedbytheWaterSuppliesDepartment

9. PublicworkscontractorswithanapprovalletterbytheWorksBureau

10. Allsub-contractorstowhichprojectsorworksaredelegateddirectlyor indirectlyfromanycontractorsspecifiedin1to9above

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APPENDIX 2

FURTHER INFORMATION ON THE INDICES

HangSengChinaEnterprisesIndex

TheHangSengChinaEnterprisesIndexisthemajorindexthattrackstheperformanceof:

(a) H-shares,whicharesharesinmainlandChinaincorporatedenterprisesthatarelistedontheSEHKandprimarilytradedinHongKong;

(b) Red-chips,whichare securitiesof companies thatare incorporatedoutsideof thePRCthatare listed on the SEHKhavemore than 50%of their sales revenue (or profits or assets, ifmoreappropriate)derivedfrommainlandChinaandaredirectlyor indirectlycontrolledbyorganisationsorenterprises thatareownedby the state,provinceormunicipalitiesof thePRC;and

(c) P-chips,whicharesecuritiesofcompaniesthatareincorporatedoutsideofthePRCthatarelistedon the SEHKandhavemore than50%of their sales revenue (orprofitsor assets, ifmoreappropriate)derivedfrommainlandChinabutarenotH-sharesorRed-chips.

ThelistofconstituentstockswhichcomprisetheHangSengChinaEnterprisesIndexisreviewedbyHSIL on a quarterly basis. The composition of theHang Seng China Enterprises Indexmaychangeand its constituent companiesmaybe substitutedwithother companiesasdeterminedbyHSIL.

The universe of theHang Seng China Enterprises Index includes H-Share, Red-chip and P-chipcompanies that have their primary listing on theMain Board of the SEHK. The total numberof constituents of the Index is fixed at 50. TheHang Seng China Enterprises Index currentlycomprises 50 constituent stocks and the aggregatemarket value of these stocks accounts forabout57%#ofthetotalmarketcapitalisationofallHongKonglistedChineseenterprisesofallH-shareslistedontheMainBoardoftheSEHK,theRed-chipsandtheP-chips.

#Simulatedfiguresbasedon12-monthaveragemarketcapitalisationoftheendofMay2019.

As at 31stMay, 2019, the respectiveweightings of the top 10 largest constituent stocks of theHangSengChinaEnterprisesIndexwereasfollows:

Stockcode Stockname Weighting

2318 PingAnInsurance(Group)Co.ofChina,Ltd.-HShares 10.03%

700 TencentHoldingsLtd. 10.03%

939 ChinaConstructionBankCorporation-HShares 9.68%

941 ChinaMobileLtd. 8.72%

1398 IndustrialandCommercialBankofChinaLtd.-HShares 8.57%

3988 BankofChinaLtd.-HShares 5.36%

883 CNOOCLtd. 4.73%

3968 ChinaMerchantsBankCo.,Ltd.-HShares 3.06%

2628 ChinaLifeInsuranceCo.Ltd.-HShares 2.81%

386 ChinaPetroleum&ChemicalCorporation-HShares 2.76%

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Real-time update of the Index can be obtained through the SEHK Teletext System, ThomsonReuters,BloombergandthewebsiteofHSILatwww.hsi.com.hk.Otherimportantnewsrelatingto theHang Seng China Enterprises Indexwill be available through press releases and at theHSILwebsite,www.hsi.com.hk.

HSIL is the Index Providerof theHang SengChina Enterprises Index. The InvestmentManageranditsconnectedpersonsareindependentofHSIL.

In the event that theHang Seng China Enterprises Index is terminated, ceases to operate oris not available, the InvestmentManagermay, subject to the approval of theMPFA and theSFC, seek a replacement of theHang Seng China Enterprises Indexwith another index thatthe InvestmentManager deems appropriate as suitable benchmark representing stocks ofChina enterprises that are listed inHongKong in the formofH-shares. If no suitable index isfound, subject to the approval of the SFC and theMPFA, the BEAChina Tracker Fundmaybeterminated.Unlessotherwiseagreedwith theSFCandtheMPFA, theTrusteewillgivenot lessthanonemonth'snoticeofanychangeintheunderlyingindex.

HangSengIndex

TheHangSengIndexisoneoftheearlieststockmarketindexesinHongKong,whichmeasuresthe performance of largest andmost liquid companies listed on theMain Board of the SEHK.ConstituentstocksoftheHangSengIndexareselectedbyarigorousprocessofdetailedanalysis.Only companieswith a primary listing on theMain Board of the SEHK are eligible potentialconstituents.MainlandChinaenterprisesthathaveHsharelistinginHongKongwillbeeligibleforinclusionintheHangSengIndexiftheymeetcertainconditions:

The constituent stocks are grouped under finance, utilities, properties, and commerce andindustrysub-indexes.TheHangSengIndexisreviewedquarterly.

TheHangSeng Indexcurrentlycomprises50constituentstockswhicharerepresentativeoftheHongKongstockmarket.Theaggregatemarketvalueofthesestocksaccountsforabout56.09%ofthetotalmarketcapitalisationofallstockslistedontheMainBoardofSEHK.Asat31stMay,2019,therespectiveweightingsofthetop10largestconstituentstocksoftheHangSengIndexare:

Stockcode Stockname Weighting

5 HSBCHoldingsPlc 10.71%

1299 AIAGroupLtd. 9.93%

700 TencentHoldingsLtd. 9.71%

939 ChinaConstructionBankCorporation-HShares 7.48%

2318 PingAnInsurance(Group)Co.ofChina,Ltd.-HShares 5.40%

941 ChinaMobileLtd. 4.69%

1398 IndustrialandCommercialBankofChinaLtd.-HShares 4.61%

388 HongKongExchangesandClearingLtd. 3.31%

3988 BankofChinaLtd.-HShares 2.88%

883 CNOOCLtd. 2.55%

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Real-timeupdateof theHang Seng Index canbeobtained through the SEHKTeletext System,ThomsonReuters,Bloombergand thewebsiteofHSILatwww.hsi.com.hk.The index rulesandfurther information in relation to theHang Seng Index are available atwww.hsi.com.hk. AsforotherimportantnewsoftheHangSengIndex,HSILwillalsomakeannouncementsthroughpressreleasesandatwww.hsi.com.hk.

HSIL is the IndexProviderof theHangSeng Index.The InvestmentManagerand its connectedpersonsareindependentofHSIL.

In theevent that theHangSeng Index is terminated,ceases tooperateor isnotavailable, theInvestmentManagermay,subjecttotheapprovaloftheMPFAandtheSFC,seekareplacementof theHang Seng Indexwith another index that it deems appropriate as suitable benchmarkrepresenting the overall performance of theHong Kong stockmarket. If no suitable index isfound,subjecttotheapprovaloftheSFCandtheMPFA,theBEAHongKongTrackerFundmaybe terminated.Unless otherwise agreedwith the SFC and theMPFA, the Trusteewill give notlessthanonemonth'snoticeofanychangeintheunderlyingindex.

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Disclaimer of Index Provider

TheHangSengChinaEnterprisesIndexandtheHangSengIndex(the“Index(es)”)arepublishedand compiled byHang Seng Indexes Company Limited pursuant to a licence fromHang SengData Services Limited. Themark(s) and name(s) Hang Seng China Enterprises Index and theHang Seng Index are proprietary to Hang SengData Services Limited. Hang Seng IndexesCompanyLimitedandHangSengDataServicesLimitedhaveagreedtotheuseof,andreferenceto, the Index(es) by the Trustee in connectionwith the Industry Scheme,BUT NEITHER HANG SENG INDEXES COMPANY LIMITED NOR HANG SENG DATA SERVICES LIMITED WARRANTS OR REPRESENTS OR GUARANTEES TO ANY BROKER OR HOLDER OF THE INDUSTRY SCHEME OR ANY OTHER PERSON (i) THE ACCURACY OR COMPLETENESS OF ANY OF THE INDEX(ES) AND ITS COMPUTATION OR ANY INFORMATION RELATED THERETO; OR (ii) THE FITNESS OR SUITABILITY FOR ANY PURPOSE OF ANY OF THE INDEX(ES) OR ANY COMPONENT OR DATA COMPRISED IN IT; OR (iii) THE RESULTS WHICH MAY BE OBTAINED BY ANY PERSON FROM THE USE OF ANY OF THE INDEX(ES) OR ANY COMPONENT OR DATA COMPRISED IN IT FOR ANY PURPOSE, AND NO WARRANTY OR REPRESENTATION OR GUARANTEE OF ANY KIND WHATSOEVER RELATING TO ANY OF THE INDEX(ES) IS GIVEN OR MAY BE IMPLIED. The process and basis of computationandcompilationofanyoftheIndex(es)andanyoftherelatedformulaorformulae,constituentstocks and factorsmay at any time be changed or altered byHang Seng Indexes CompanyLimitedwithout notice.TO THE EXTENT PERMITTED BY APPLICABLE LAW, NO RESPONSIBILITY OR LIABILITY IS ACCEPTED BY HANG SENG INDEXES COMPANY LIMITED OR HANG SENG DATA SERVICES LIMITED (i) IN RESPECT OF THE USE OF AND/OR REFERENCE TO ANY OF THE INDEX(ES) BY THE TRUSTEE IN CONNECTION WITH THE INDUSTRY SCHEME; OR (ii) FOR ANY INACCURACIES, OMISSIONS, MISTAKES OR ERRORS OF HANG SENG INDEXES COMPANY LIMITED IN THE COMPUTATION OF ANY OF THE INDEX(ES); OR (iii) FOR ANY INACCURACIES, OMISSIONS, MISTAKES, ERRORS OR INCOMPLETENESS OF ANY INFORMATION USED IN CONNECTION WITH THE COMPUTATION OF ANY OF THE INDEX(ES) WHICH IS SUPPLIED BY ANY OTHER PERSON; OR (iv) FOR ANY ECONOMIC OR OTHER LOSS WHICH MAY BE DIRECTLY OR INDIRECTLY SUSTAINED BY ANY BROKER OR HOLDER OF THE INDUSTRY SCHEME OR ANY OTHER PERSON DEALING WITH THE INDUSTRY SCHEME AS A RESULT OF ANY OF THE AFORESAID, AND NO CLAIMS, ACTIONS OR LEGAL PROCEEDINGS MAY BE BROUGHT AGAINST HANG SENG INDEXES COMPANY LIMITED AND/OR HANG SENG DATA SERVICES LIMITED in connectionwith the Industry Scheme in anymannerwhatsoever by any broker, holder or other person dealingwith the Industry Scheme.Any broker, holder or other person dealingwith the Industry Scheme does so therefore infull knowledgeof this disclaimer and canplaceno reliancewhatsoeveronHang Seng IndexesCompany Limited andHang SengData Services Limited. For the avoidance of doubt, thisdisclaimerdoesnotcreateanycontractualorquasi-contractualrelationshipbetweenanybroker,holderorotherpersonandHangSengIndexesCompanyLimitedand/orHangSengDataServicesLimitedandmustnotbeconstruedtohavecreatedsuchrelationship.

MembersinvestingintheBEAChinaTrackerFundandtheBEAHongKongTrackerFundwillberegarded as having acknowledged, understood and accepted thedisclaimer above andwill beboundbyit.TheleveloftheHangSengChinaEnterprisesIndexatanytimeforthepurposesoftheBEAChinaTrackerFundandtheleveloftheHangSengIndexatanytimeforthepurposesof theBEAHongKongTrackerFund, respectively,willbe the levelas calculatedbyHangSengIndexesCompanyLimitedinitssolediscretion.

TR 145 (09/2020)

On-Going Cost Illustrations For BEA (MPF) Industry Scheme

Issue Date : 30th September, 2020

About This IllustrationThis is an illustration of the total effect of fees, expenses and charges on each HK$1,000 contributed in the funds named below. The fees, expenses and charges of a fund are one of the factors that you should consider in making investment decisions across funds. You should however also consider other important information such as the risks of the fund, the nature of the fund, the attributes of relevant parties, the range and quality of services being offered and, most importantly, your own personal circumstances and expectations. The information about fees, expenses and charges set out in this table is intended to help you compare the cost of investing in one constituent fund with the cost of investing in other constituent funds.

The Illustration has been prepared based on some assumptions that are the same for all funds. The Illustration assumes the following:

(a) a gross contribution of HK$1,000 is made in the respective constituent fund now and, being eligible to do so, you withdraw all of your accrued benefits arising from this contribution at the end of each time period indicated;

(b) for the purpose of this illustration only, the contribution has a 5% gross return each year [It is important that you note that the assumed rate of return used in this document is for illustrative and comparative purposes only. The return is neither guaranteed nor based on past performance. The actual return may be different.]; and

(c) the expenses of the funds (expressed as a percentage called the ‘fund expense ratio’ below) remain the same for each fund for all the periods shown in this illustration.

Based on the above assumptions, your costs on each HK$1,000 contributed are illustrated in the following table. Please note that the actual costs will depend on various factors and may be different from the numbers shown below.

Name of constituent fundFund expense ratio for financial period ended March 2020

Cost on each HK$1,000 contributed

After 1 year(HK$)

After 3 years(HK$)

After 5 years(HK$)

BEA (Industry Scheme) Growth Fund 1.42% 15 46 80

BEA (Industry Scheme) Balanced Fund 1.38% 14 45 78

BEA (Industry Scheme) Stable Fund 1.35% 14 44 76

BEA (Industry Scheme) Asian Equity Fund 1.34% 14 44 76

BEA (Industry Scheme) Greater China Equity Fund 1.34% 14 44 76

BEA (Industry Scheme) Hong Kong Equity Fund 1.33% 14 43 75

BEA China Tracker Fund 1.28% 13 42 72

BEA Hong Kong Tracker Fund 0.73% 8 24 42

BEA (Industry Scheme) RMB & HKD Money Market Fund 0.79% 8 26 45

BEA (Industry Scheme) Core Accumulation Fund 0.82% 9 27 47

BEA (Industry Scheme) Age 65 Plus Fund 0.83% 9 27 47

Note: The example does not take into account any fee rebates that may be offered to certain members of the scheme.