Features and Benefits of Principal SVC

View Demo

Important Notes:

1. Principal MPF Scheme Series 800 ("Scheme") is an MPF Scheme.

2. All constituent funds (except for Principal Hong Kong Equity Fund and Principal China Equity Fund) under this Scheme invest solely in insurance policies issued by Principal Insurance Company (Hong Kong) Limited ("Principal”). Your investments in these funds are therefore subject to the credit risk of Principal.

3. Principal, the Guarantor of the Principal Long Term 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 page 9 of the Principal Brochure of the Scheme under the section "Provision of Guarantee" for details of the guarantee conditions.

4. Principal, the Guarantor of the Principal Capital Guaranteed Fund under this Scheme, will provide a guarantee to ensure the unit value of the fund will never decrease. Under the Indirect Charge Option, part of the management fee is asset-based which is deducted from the net asset value of the fund, while the remaining part is payable by deducting units from member's account. As such, capital may not be guaranteed in absolute term for scheme members under the Indirect Charge Option. For details, please refer to pages 7 and 21 of the Principal Brochure of the Scheme under the section "How the guarantee works" and "Fees and Charges" respectively.

5. Investment in Principal HK Dollar Savings Fund or Principal US Dollar Savings Fund is different from placing deposits with a bank or deposit-taking company and is not protected by the Deposit Protection Scheme. Investments in these funds will be subject to investment risks.

6. 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. The Principal MPF Conservative Fund uses method (i) and, therefore, unit prices/net asset value/fund performance quoted have incorporated the impact of fees and charges.

7. 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.

8. 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 Principal HK Dollar Savings Fund, and such fund may not necessarily be a suitable investment for you.

9. You should not invest in reliance on this marketing material alone. You should read the Principal Brochure of the Scheme for further details (including investment policy, risk factors, fee and charges and constituent funds information).

Plan Your Retirement with Principal Special Voluntary Contributions

On top of the mandatory contribution of your MPF Scheme, Principal Special Voluntary Contributions may help prepare you better for retirement. Its potential returns in the long run may assist you progress towards your retirement goals and a well-planned future.

Principal Special Voluntary Contributions offers you:

ü	Diversified investment choices under Principal MPF Scheme Series 800
	Principal MPF Scheme Series 800 offers 14 constituent fund choices with different investment objectives, investment portfolios and risk/return levels to cater to your needs.

ü	Flexible premium payment options
	Regular contributions start at HK$500 monthly, or pay a lump sum of HK$1,000. You have the flexibility to change or withdraw your contributions at any time. (Special Voluntary Contributions Member may withdraw the account balance of not more than four times in each financial year free of charge. Additional withdrawal will be subject to a handling charge of HK$300 for each withdrawal and the said fees will be deducted from the withdrawal value.)

ü	Your own decision
	Any person at or above the age of 18 and below 65 (including employee member, self-employed person and preserved member) is eligible to join Principal Special Voluntary Contributions. Additional contributions and constituent fund selections are made at your own preference. It is independent from your employer, and you can arrange for the service yourself.
ü	Easy application
	Enrolment is easy. Upon completion of the application procedures, you may have the opportunity to benefit according to the “dollar-cost averaging” principle in the long run. (Your money buys more units when the price is lower and fewer units when the price is higher. Over time, the dollar-cost averaging effect averages out the costs of your units and therefore reduces the effects of short-term market fluctuation on your investments.)

Why Principal?

Principal offers you:

l A wide range of constituent fund choices – Principal MPF Scheme Series 800 with 14 constituent funds covering different risk/return levels

l Global investment professionals and experts in managing the constituent funds

l Value-added services, including 24-hour Principal TeleTouch^©, Principal MPF Internet Service, e-newsletters and clients seminars

Product Features
Product	Principal Special Voluntary Contributions
MPF scheme	Principal MPF Scheme Series 800
Minimum contribution amount	Lump sum: HK$1,000 Monthly regular contributions: HK$500
Payment method	Lump sum: Cheque Monthly regular contributions: Direct debit authorisation (DDA)
Constituent fund switching	Unlimited number of times per year Switching charge: Nil
Withdrawal	Free withdrawal up to four times per year (Special Voluntary Contributions Member may withdraw the account balance of not more than four times in each financial year free of charge. Additional withdrawal will be subject to a handling charge of HK$300 for each withdrawal and the said fees will be deducted from the withdrawal value.)

Fees and Charges

The management fees of the constituent funds under the Scheme range from 1.25% to 2.00% per annum of their net asset value (NAV). The mangement fees include fees paid to the trustee, custodian, administrator, investment manager (including fees based on fund performance, if any) and sponsor of a scheme for providing their services to the relevant fund. Such fees are usually charged as a percentage of the NAV of a fund.
A guarantee charge of a up to 1.00% per annum of NAV is applicable for Principal Long Term Guarantee Fund. (For details, please refer to page 21 under the section "Fees and Charges" of the Principal Brochure of the Scheme.)

Build your retirement nest egg early with Principal Special Voluntary Contributions.

Investment involves risks. The value of the funds may go up or down. Please refer to the Principal Brochure of the Scheme for more details, including fees, charges and the risk factors of the constituent funds and the Scheme.

Issuer: Principal Insurance Company (Hong Kong) Limited