Important Notes:

1. Principal MPF Scheme Series 500 ("Scheme") is an MPF Scheme.
2. The Guaranteed Fund under this Scheme invests solely in an approved pooled investment fund in the form of an insurance policy issued by Principal Insurance Company (Hong Kong) Limited ("Principal"). The guarantee is also provided by Principal. Your investments in the Guaranteed Fund, if any, are therefore subject to the credit risk of Principal. Please refer to the "Appendix I: Guaranteed Fund" section of the Explanatory Memorandum of the Scheme for details of the credit risk, guarantee features and guarantee conditions.
3. Principal, the Guarantor of the Guaranteed Fund under this Scheme, will only provide a guarantee of capital and a prescribed guarantee rate of return in certain specified circumstances. Please refer to the section "Provision of Guarantee" of the Explanatory Memorandum of the Scheme for details of the guarantee conditions.
4. The MPF Conservative Fund under this scheme is not a guaranteed fund and does not guarantee the repayment of capital. Fees and charges of a MPF conservative fund can be deducted from either (i) the assets of the fund or (ii) members' account by way of unit deduction.  This Fund uses method (i) and, therefore, unit prices/net asset value/fund performance quoted have incorporated the impact of fees and charges.
5. You should consider your own risk tolerance level and financial circumstances before making any investment choices. When, in your selection of funds, you are in doubt as to whether a certain fund is suitable for you (including whether it is consistent with your investment objectives), you should seek financial and/or professional advice and choose the fund(s) most suitable for you, taking into account your own circumstances.
6. In the event that you do not make any investment choices, please be reminded that any contributions made and/or benefits transferred into this Scheme will be invested into the Stable Growth Fund, and such fund may not necessarily be a suitable investment for you.
7. Investment involves risks. The value of the funds may go up or down. You should not invest in reliance on this marketing material alone. You should read the Explanatory Memorandum of the Scheme for further details (including investment policy, risk factors, fee and charges of the constituent funds).

• Daily Fund Prices
• Historical Fund Prices
• Fund Performance Chart
• Principal Investment Channel
• Fees and Charges

• Monthly Fund Fact Sheets
• Latest Notices and Circular 
• Explanatory Memorandum 

Objective	To provide a competitive long-term total rate of return, while also providing a minimum guaranteed average annual return over the career of the member.
Investment Portfolio	Invest in an insurance policy Approved Pooled Investment Fund ("Policy APIF") which in turn will invest in two or more Approved Pooled Investment Funds ("APIFs") and/or Approved Index-Tracking Funds ("AITF"). The underlying investments will consist of fixed income and equity securities which may be denominated in HK dollars, US dollars or other currencies. (Investments in the Policy APIF are subject to the credit risk of Principal)
Asset Allocation	Equity Securities 10 - 55% Fixed Income Securities 25 - 90% Cash & Short-term Investments (e.g. bills and deposits) 0 - 20%
Geographic Allocation	United States and Greater China 40 - 100% Other Asia 0 - 50% Europe 0 - 50% Other Countries 0 - 50%
Risk / Return Profile #	(Guaranteed Fund)

* Guaranteed Fund

Principal, the Guarantor of the Guaranteed Fund under this Scheme, will only provide a guarantee of capital and a prescribed guarantee rate of return in certain specified circumstances. Your investments are subject to the credit risk of Principal.

The guarantee of capital and return will only be offered if the contributions in the fund are withdrawn upon the occurrence of a "qualifying event", which is the receipt by the Trustee of a valid claim of all the accrued benefits of the member upon satisfying any of the following conditions:

(a) Attainment of the normal retirement age or retirement at or after the early retirement age but before the normal retirement age

(b) Total incapacity

(c) Death

(d) Permanent departure from Hong Kong

(e) Claim of "small balance"

The above conditions (a) to (e) apply to employee members, self-employed persons and "preserved account holders".

(f) Termination of the member's employment (regardless of the reason of termination) and the continuous period for which the member has been investing in the fund up to and including the last date of his employment ("qualifying period") is at least 36 complete months. The qualifying period in respect of a member will also be re-set to zero if the member (or his personal representative) effects a redemption, switching out or withdrawal of the units of the fund other than upon the occurrence of a qualifying event. For the avoidance of doubt, condition (f) does not apply to self-employed persons or preserved account holders.

If a redemption, switching out or withdrawal of units of the fund is effected by a member other than upon the occurrence of a qualifying event as stated above, the guarantee will be affected and the members investments in this fund will be subject to market fluctuation and investment risks. Please refer to the section "Provision of Guarantee" of the Explanatory Memorandum of the Scheme for details of the guarantee conditions.

MPF Conservative Fund**
Objective	To preserve capital with minimal risk.
Investment Portfolio	Invest in a unit trust Approved Pooled Investment Fund ("Unit Trust APIF") which will in turn invest in a portfolio of bank deposits, short duration securities and high quality money market instruments denominated in Hong Kong dollars.
Asset Allocation	Certificate of Deposits 0 - 95% Debt Securities 0 - 95% Cash & Short-term Investments (e.g.bills and deposits) 0 - 100%
Geographic Allocation	Hong Kong 100%
Risk / Return Profile #

** MPF Conservative Fund

MPF Conservative Fund under this Scheme is not a guaranteed fund and does not guarantee the repayment of capital. Fees and charges of a MPF conservative fund can be deducted form either (i) the assets of the fund or (ii) members' account by way of unit deduction. This Fund uses method (i) and, therefore, unit prices/net asset value/fund performance quoted have incorporated the impact of fees and charges.

Stable Growth Fund
Objective	To achieve stable, long term capital appreciation through investment in a range of money market instruments, cash deposits, fixed income securities and global equities.
Investment Portfolio	Invest in two or more Unit Trust APIFs. Through the underlying investments, the fund will invest around 30% of its net asset value ("NAV") in global equities and 70% of its NAV in money market instruments, fixed income securities and cash deposits.
Asset Allocation	Global Equities 30% Money Market Instruments, Fixed Income Securities and Cash Deposits 70%
Geographic Allocation	Hong Kong 10% Asia 4% Japan 4% North America 6% Europe 6%
Risk / Return Profile #

NOTE:

Investors should note that (i) the above ranges of asset and geographic allocations are for indication only and long term allocations may vary with changing market conditions; and (ii) the geographic allocation for equity investments is classified by the principal place of business of the issuers and the geographic allocation for fixed income investments is classified by their currency denomination.