MPF Schemes

Important Notes

Important: If you are in doubt about the meaning or effect of the contents of this website, you should seek independent professional advice.

Important to note:

  • Investment in the Principal HK 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 the Principal HK Dollar Savings Fund will be subject to investment risks.
  • Fees and charges of a MPF conservative fund can be deducted from either (i) the assets of the Constituent 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.
  • You should consider your own risk tolerance level and financial circumstances before investing in the DIS. You should note that the Principal Core Accumulation Fund and the Principal Age 65 Plus Fund may not be suitable for you, and there may be a risk mismatch between the Principal Core Accumulation Fund and the Principal Age 65 Plus Fund and your risk profile (the resulting portfolio risk may be greater than your risk preference). You should seek financial and/or professional advice if you are in doubt as to whether the DIS is suitable for you, and make the investment decision most suitable for you taking into account your circumstances.
  • You should note that the implementation of the DIS may have an impact on your MPF investments and benefits. You should consult with the Trustee if you have doubts on how you are being affected.
  • You should consider your own risk tolerance level and financial circumstances before making any investment choices. In your selection of Constituent Fund(s), when you are in doubt as to whether a certain Constituent 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 Constituent Fund(s) most suitable for you, taking into account your own circumstances.
  • In the event that you do not make any investment choices, please be reminded that any contributions made and/or benefits transferred into the Scheme will be invested into the DIS.
  • Investment involves risks. The value of the funds may go up or down. The past performance is not indicative of future performance. Your investment may suffer significant loss. There is no assurance on investment returns and you may not get back the amount originally invested.
  • You should not invest in reliance on this website alone. You should read the relevant MPF Scheme Brochure for further details (including investment policy, risk factors, fee and charges of the Constituent Funds).

* "Scheme" means Principal MPF Scheme Series 800.

"Constituent Fund" means the constituent funds covered under the Scheme.

Principal MPF Scheme Series 800

Series 800 consists of 17 constituent funds with different risk/return profiles. It gives your employees more fund choices than other Principal MPF Schemes. This is particularly suitable for large companies as it provides a wide variety of investment choices for each employee.

Members could design your own investment portfolio better meet your retirement needs. Series 800 is suitable for members with a greater investment knowledge and experience.

Default Investment Strategy

The MPF default investment strategy ("DIS") is a ready-made investment arrangement mainly designed for those members who are not interested or do not wish to make an investment choice, and is also available as an investment choice itself for members who find it suitable for their own circumstances. For general information about DIS, please refer to the DIS dedicated webpage.

 

"APIF" refers to an "Approved Pooled Investment Fund" approved by the Authority pursuant to the MPF Ordinance for investment by provident fund schemes registered under the MPF Ordinance.

"ITCIS" refers to "Index-Tracking Collective Investment Schemes" (as defined in Part 1 of Schedule 1 to the Mandatory Provident Fund Schemes (General) Regulation) approved by the MPFA for investment by provident fund schemes registered under the MPFS Ordinance.

#Risk/Return Profile

Low

Moderate

Moderate to High

High

The following classifications of Risk/Return Profile for each constituent fund are provided by Principal Asset Management Company (Asia) Limited and will be reviewed on an annual basis. The classifications of Risk/Return Profile are based on past volatility (i.e. annualized standard deviation of returns), worst and best two months returns, and the relative risk levels among the funds in the Scheme. Besides, reference is also made to the investment objectives of the respective funds. The classifications of the Risk/Return Profile are provided for reference only and they should not be regarded as investment advice.

Principal Age 65 Plus Fund

Investment Objective

To provide stable growth for the retirement savings to members by investing in a globally diversified manner. The fund is denominated in Hong Kong dollars.

Balance of Investments

Invest in a unit trust APIF, Principal Unit Trust Umbrella Fund - Principal Age 65 Plus Fund, which in turn invests in two or more passively or actively managed approved ITCISs and / or unit trust APIFs as allowed under the Mandatory Provident Fund Schemes (General) Regulation.

Asset Allocation

Around 20% in higher risk assets;Around 80% in lower risk assets

Geographic Allocation

No prescribed allocation

Risk / Return Profile #

Low

Moderate

High

Principal Core Accumulation Fund

Investment Objective

To provide capital growth to members by investing in a globally diversified manner.

Balance of Investments

Invest in a unit trust APIF, Principal Unit Trust Umbrella Fund - Principal Core Accumulation Fund, which in turn invests in two or more passively or actively managed approved ITCISs and / or unit trust APIFs as allowed under the Mandatory Provident Fund Schemes (General) Regulation.

Asset Allocation

Around 60% in higher risk assets;Around 40% in lower risk assets

Geographic Allocation

No prescribed allocation

Risk / Return Profile #

Low

Moderate to High

High

Default Investment Strategy ("DIS")

Investment Objective

The MPF default investment strategy ("DIS") is a ready-made investment arrangement mainly designed for those members who are not interested or do not wish to make an investment choice, and is also available as an investment choice itself for members who find it suitable for their own circumstances.

Balance of Investments

The DIS aims to balance the long term effects of risk and return through investing in two Constituent Funds, namely the Principal Core Accumulation Fund and the Principal Age 65 Plus Fund, according to the pre-set allocation percentages at different ages.

Principal MPF Conservative Fund***

Investment Objective

To at least earn a net return equal to the "prescribed savings rate" (which is broadly the average rate of interest on a Hong Kong dollar savings account) determined by the MPFA.

Balance of Investments

Invest in a unit trust Approved Pooled Investment Fund ("Unit Trust APIF") which will consist of a portfolio of bank deposits, short duration securities and high quality money market instruments denominated in Hong Kong dollars.

Asset Allocation

Certificates of Deposit

0 - 95%

Global Debt Securities

0 - 95%

Cash & Short-term Investments (e.g. bills and deposits)

0 - 100%

Geographic Allocation

Hong Kong

100%

Risk / Return Profile #

Low

Low

High

*** Principal MPF Conservative Fund

Principal MPF Conservative Fund under this Scheme is not a guaranteed fund and does not guarantee the repayment of capital. Fees and charges of 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.

Principal HK Dollar Savings Fund

Investment Objective

To earn a competitive short-to-medium term rate of return.

Balance of Investments

Invest in a unit trust APIF. The APIF will invest primarily in a portfolio of high quality short to medium duration debt securities denominated in HKD. The APIF may also hold assets denominated in other currencies.

Asset Allocation

Short-to-medium Duration Debt Securities (e.g. certificates of deposits)

60 - 100%

Cash & Short-term Investments (e.g. bills and deposits)

0 - 40%

Geographic Allocation

Hong Kong

70 - 100%

United States

0 - 30%

Europe

0 - 30%

Others

0 - 20%

Risk / Return Profile #

Low

Low

High

Note: Investment in the Principal HK 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 this Fund will be subject to investment risks.

Principal Hong Kong Bond Fund

Investment Objective

To provide a return consisting of income and capital growth over medium to long term.

Balance of Investments

Invest in a Unit Trust APIF which will primarily invest at least 70% of its assets in Hong Kong debt securities (rated or unrated^), including (but not limited to) sovereign and/or non-sovereign, floating and/or fixed, of varying maturities issued by a government or by multi-lateral agencies or by companies, and denominated in Hong Kong dollars.

Asset Allocation

Debt Securities

70 - 100%

Cash & Short-term Investments(e.g.bills and deposits)

0 - 30%

Geographic Allocation

Hong Kong

70 - 100%

Other

0 - 30%

Risk / Return Profile #

Low

Moderate

High

^ Investment in unrated debt securities is only limited to those issued by the "exempt authority" within the definition of Section 7 of Schedule 1 to the MPF Regulation.

Principal International Bond Fund

Investment Objective

To protect and maximise real asset value in terms of international purchasing power.

Balance of Investments

Invest in a Unit Trust APIF which will in turn invest in another APIF which invests mainly in a portfolio of debt securities, both sovereign and non-sovereign, of varying maturities and denominated in the world's major currencies.

Asset Allocation

Debt Securities

70 - 100%

Cash & Short-term Investments(e.g.bills and deposits)

0 - 30%

Geographic Allocation

Asia (ex-Japan)

0 - 50%

Europe

0 - 50%

Japan

0 - 50%

North America

15 - 85%

Other Countries (each)

0 - 20%

Risk / Return Profile #

Low

Moderate

High

Principal Stable Yield Fund

Investment Objective

To seek long-term growth of capital through investing in a balanced portfolio.

Balance of Investments

Invest in a Unit Trust APIF which will in turn invest in two or more APIFs and/or ITCIS. Through these underlying investments, the fund will invest primarily in equities and debt securities of different countries. The fund will provide an international exposure with relatively more emphasis on debt investments.

Asset Allocation

Equity Securities

0 - 60%

Debt Securities

20 - 90%

Cash & Short-term Investments (e.g. bills and deposits)

0 - 30%

Geographic Allocation

Asia

0 - 75%

Europe

0 - 75%

North America

0 - 80%

South America

0 - 10%

Africa / Middle East

0 - 10%

Others

0 - 20%

Risk / Return Profile #

Low

Moderate

High

Principal Asian Bond Fund

Investment Objective

To provide a return consisting of income and capital growth over medium to long term.

Balance of Investments

Invests in a unit trust APIF. The APIF in turn invests in another APIF which invests a majority of its assets in Asian debt securities, including but not limited to sovereign, quasi-sovereign, agency, corporate bonds, of varying maturities issued by a government, multi-lateral agencies or by companies, and denominated primarily in U.S. dollars and major Asian currencies.

Asset Allocation

Debt Securities

70 - 100%

Cash & Time Deposits

0 - 30%

Geographic Allocation

Asia

70 - 100%

Others

0 - 30%

Risk / Return Profile #

Low

Moderate

High

* The geographical allocation for debt securities of the Principal Asian Bond Fund is classified by country of risk. “Country of risk” is based on a number of criteria, including, in respect of a security, its issuer's country of domicile, the primary stock exchange on which it trades, the location from which the majority of its issuer's revenue comes, and its issuer's reporting currency.

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Principal Long Term Accumulation Fund

Investment Objective

To earn a competitive long-term total rate of return through investing in a balanced portfolio.

Balance of Investments

Invest in a Unit Trust APIF which will in turn invest in two or more APIFs and/or ITCIS.

Asset Allocation

Equity Securities

20 - 80%

Fixed Income Securities

15 - 75%

Cash & Short-term Investments (e.g. bills and deposits)

0 - 20%

Geographic Allocation

United States

15 - 100%

Asia

0 - 85%

Europe

0 - 30%

Others

0 - 20%

Risk / Return Profile #

Low

Moderate to High

High

Principal Global Growth Fund

Investment Objective

To seek long-term growth of capital through investing in a balanced portfolio.

Balance of Investments

Invest in a Unit Trust APIF which will in turn invest in two or more APIFs and/or ITCIS. Through these underlying investments, the fund will invest primarily in equities and debt securities of different countries. The fund will normally target a larger allocation to equity investments than debt securities.

Asset Allocation

Equity Securities

30 - 90%

Debt Securities

10 - 70%

Cash & Short-term Investments (e.g. bills and deposits)

0 - 30%

Geographic Allocation

Asia

0 - 75%

Europe

0 - 75%

North America

0 - 80%

South America

0 - 10%

Africa / Middle East

0 - 10%

Others

0 - 20%

Risk / Return Profile #

Low

Moderate to High

High

Principal US Equity Fund

Investment Objective

To achieve capital growth over the long-term by investing in U.S. equity markets.

Balance of Investments

Invest in a Unit Trust APIF which will in turn invest in another APIF which consists primarily of U.S. equities and can include exposure to cash and short-term investments.

Asset Allocation

Equity Securities

70 - 100%

Cash & Short-term Investments (e.g. bills and deposits)

0 - 30%

Geographic Allocation

United States

70 - 100%

Hong Kong

0 - 30%

Others

0 - 20%

Risk / Return Profile #

Low

High

High

Principal Asian Equity Fund

Investment Objective

To achieve capital growth over the long-term by investing in Asian equity markets.

Balance of Investments

Invest in a Unit Trust APIF which will in turn invest in another APIF which consists primarily of Asian equities and can include exposure to cash and short-term investments.

Asset Allocation

Equity Securities

70 - 100%

Cash & Short-term Investments (e.g. bills and deposits)

0 - 30%

Geographic Allocation

Asia (ex-Japan)

80 - 100%

Others

0 - 20%

Risk / Return Profile #

Low

High

High

Principal China Equity Fund

Investment Objective

To achieve capital growth over the long term by investing mainly in China-related equities.

Balance of Investments

Invest in a unit trust APIF. The APIF in turn invests at least 70% of its assets in equities issued by companies with exposure to different sectors of the economy in the PRC (Mainland China) or in collective investment schemes as permitted under the General Regulation which primarily invest in such equity securities.

Asset Allocation

Equity Securities

70 - 100%

Cash & Short-term Investments (e.g.bills and deposits)

0 - 30%

Geographic Allocation

People's Republic of China (Mainland China)

70 - 100%

Other countries

0 - 30%

Risk / Return Profile #

Low

High

High

Principal Hang Seng Index Tracking Fund

Investment Objective

To provide investment results that closely correspond to the performance of the Hang Seng Index through investing all or substantially all of the fund's assets in units of The Tracker Fund of Hong Kong.

Balance of Investments

Invest in The Tracker Fund of Hong Kong, which will in turn invest all or substantially all of its assets in equity securities listed on the Hong Kong Stock Exchange Limited.

Asset Allocation

90 – 100% in equity securities; 0 – 10% in cash and short term investments

Geographic Allocation

Hong Kong

20 - 80%

China

20 - 80%

Risk / Return Profile #

Low

High

High

Principal Hong Kong Equity Fund

Investment Objective

To achieve capital growth over the long-term by investing mainly in Hong Kong equity markets.

Balance of Investments

Invest in a unit trust APIF. The APIF in turn invests at least 70% of its assets in listed equities issued by companies established in Hong Kong or by companies whose shares are listed (including but not limited to H shares and shares of red-chip companies) on the Hong Kong Stock Exchange. The APIF may also invest in listed equities issued by companies which have business in Hong Kong.

Asset Allocation

Equity Securities

70 - 100%

Cash & Short-term Investments (e.g. bills and deposits)

0 - 30%

Geographic Allocation

Hong Kong / China

70 - 100%

Others

0 - 30%

Risk / Return Profile #

Low

High

High

Principal International Equity Fund

Investment Objective

To seek capital growth over the long-term through investing mainly in equity markets around the world.

Balance of Investments

Invest in a Unit Trust APIF which will in turn invest in another APIF which consists of mainly equity securities selected from investment markets around the world and can include exposure to cash and short-term investments.

Asset Allocation

Equity Securities

70 - 100%

Cash & Short-term Investments (e.g. bills and deposits)

0 - 30%

Geographic Allocation

Europe

0 - 60%

Asia

0 - 50%

South America

0 - 50%

Others

0 - 20%

North America

0 - 65%

Middle East

0 - 20%

Africa

0 - 20%

Risk / Return Profile #

Low

High

High

Principal Aggressive Strategy Fund

Investment Objective

To seek long-term growth of capital through investing entirely in an Approved Pooled Investment Fund ("APIF").

Balance of Investments

Invest in an APIF (in the form of a unit trust), which will in turn invest in two or more APIFs and/or Approved ITCISs. Through these underlying investments, the fund will invest primarily in equities and debt securities of different countries. The fund will provide an international exposure for investors' monies, with relatively more emphasis on equity investments.

Asset Allocation

Equity Securities

60 - 100%

Debt Securities

0 - 40%

Cash & Short-term Investments (e.g. bills and deposits)

0 - 30%

Geographic Allocation

Asia Pacific

0 - 75%

Europe

0 - 75%

North America

0 - 80%

South America

0 - 10%

Africa / Middle East

0 - 10%

Risk / Return Profile #

Low

High

High

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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 debt investments (except for Principal Asian Bond Fund) is classified by their currency denomination.