Principal Brochure HSBC Mandatory Provident Fund - ValueChoice
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Principal Brochure HSBC Mandatory Provident Fund – ValueChoice
HSBC MPF
where your future comes first.
Please note that this ‘Principal Brochure’ is comprised of three parts: (1) Product
Information, (2) Fund Structure and (3) Fee Table which should be read in conjunction with
each other. The Hongkong and Shanghai Banking Corporation Limited and HSBC Provident
Fund Trustee (Hong Kong) Limited have prepared and accepted responsibility of the
‘Principal Brochure’. The contents in the ‘Principal Brochure’ are accurate as of
1 November 2018.
L -MPF002B(VC) v12/1118 (1118)
Issued by The Hongkong and Shanghai Banking Corporation Limited and
HSBC Provident Fund Trustee (Hong Kong) LimitedSecond Supplement to the
HSBC Mandatory Provident Fund – ValueChoice
Principal Brochure
24 May 2019
This second Supplement forms part of the ‘Principal Brochure’ and should be read in
conjunction with the ‘Principal Brochure’ dated 1 November 2018 and the first Supplement
dated 1 April 2019. If you are in doubt about the meaning or effect of the contents of this
document, you should seek independent professional advice.
Please note that the ‘Principal Brochure’ of the HSBC Mandatory Provident Fund – ValueChoice
has been amended as follows, with effect from 17 June 2019:
Part II: Fund Structure
Page 26
The Hang Seng China Enterprises Index is the major index that tracks the performance of:
(i) H-shares, which are shares in Mainland incorporated enterprises that are listed on the SEHK
and primarily traded in Hong Kong; (ii) Red-chips, which are securities of companies that are
incorporated outside of the PRC that are listed on the SEHK, have more than 50% of their
sales revenue (or profits or assets, if more appropriate) derived from Mainland and are directly
or indirectly controlled by organisations or enterprises that are owned by the state, province or
municipalities of the PRC; (iii) P-chips, which are securities of companies that are incorporated
outside of the PRC that are listed on the SEHK and have more than 50% of their sales
revenue (or profits or assets, if more appropriate) derived from Mainland but are not H-shares
or Red-chips. The universe of the Index includes H-share, Red-chip and P-chip companies that
have their primary listing on the Main Board of the SEHK. The total number of constituents of
the Index is fixed at 50. It is constructed to reproduce the performance of a hypothetical
portfolio of such stocks, with an interest in each stock proportional to each stock’s market
value. It is calculated on a 2-second basis during trading hours of the SEHK and its closing
value is based on official closing prices of the constituent of the Hang Seng China Enterprises
Index announced by the SEHK.
L-MPF002B (VC) v02/0519 (0519)
1Page 27
The Hang Seng China Enterprises Index currently comprises 50 constituent stocks and the
aggregate market value of these stocks accounts for about 57% # of the total market
capitalisation of all Hong Kong listed Chinese enterprises of all H-shares listed on the Main
Board of the SEHK, the Red-chips and the P-chips.
#
Simulated figures based on 12-month average market capitalisation of the end of September 2018.
As at 25 March 2019, the respective weightings of the top 10 largest constituent stocks of the
Hang Seng China Enterprises Index are:
Stock Code Stock Name Weighting (%)
700 Tencent 10.08
939 CCB 9.85
941 China Mobile 9.60
2318 Ping An 9.06
1398 ICBC 8.25
3988 Bank of China 5.48
883 CNOOC 4.64
386 Sinopec Corp 3.08
2628 China Life 2.92
3968 CM Bank 2.69
Real-time update of the Index can be obtained through the SEHK Teletext System, Thomson
Reuters, Bloomberg and the website of HSIL at www.hsi.com.hk. Other important news
relating to the Hang Seng China Enterprises Index will be available through press releases and
at the HSIL website, www.hsi.com.hk.
The list of constituent stocks which comprise the Hang Seng China Enterprises Index is
reviewed by HSIL on a quarterly basis. The composition of the Hang Seng China Enterprises
Index may change and its constituent companies may be substituted with other companies as
determined by HSIL.
The Hongkong and Shanghai Banking Corporation Limited and HSBC Provident Fund Trustee
(Hong Kong) Limited have prepared and accepted the responsibility for this document. The
contents in this document are accurate as of 24 May 2019.
2First Supplement to the
HSBC Mandatory Provident Fund – ValueChoice
Principal Brochure
1 April 2019
This first Supplement forms part of the ’Principal Brochure’ and should be read in conjunction
with the ’Principal Brochure’ dated 1 November 2018. If you are in doubt about the meaning
or effect of the contents of this document, you should seek independent professional advice.
Please note that the ’Principal Brochure’ of the HSBC Mandatory Provident Fund - ValueChoice
has been amended as follows, with effect from 1 April 2019:
Important notes
• MPF Benefits, AVC Benefits and TVC Benefits payable on a Member’s 65th birthday or early
retirement on or after his/her reaching age 60 can be paid in one lump sum or in
instalments, at the Member’s election (in such form and on such terms as the Trustee
may, to the extent not prohibited by the ’MPF Ordinance’ or General Regulation, prescribe).
Please refer to the ’Payment of MPF Benefits, AVC Benefits and TVC Benefits’ section
under ’Payment of benefits’ in Part I – Product Information of the ’Principal Brochure’ for
full details.
Part I: Product Information
Page 2
Glossary
’TVC’ means tax deductible voluntary contributions.
’TVC account’ has the same meaning as ascribed to it in the MPF Ordinance.
’TVC Account Holder’ means a person with a TVC account held in the HSBC Master Trust.
’TVC Benefits’ means benefits derived from TVC which comprise the value of a Member’s
TVC account as determined in accordance with the relevant application form and the ’Master
Trust Deed’ constituting the HSBC Master Trust.
A Specific Investment Instruction applies to all types of contributions, including without
L-MPF002B(VC) v01/0419 (0419)
limitation, employer’s mandatory and voluntary contributions, employee’s mandatory and
voluntary contributions, Flexi-Contributions and TVC.
1Page 4
HSBC Mandatory Provident Fund
SFC authorization is not a recommendation or endorsement of an MPF scheme or pooled
investment fund nor does it guarantee the commercial merits of an MPF scheme or pooled
investment fund or its performance. It does not mean the MPF scheme or pooled investment
fund is suitable for all scheme participants or fund holders nor is it an endorsement of its
suitability for any particular scheme participant or fund holder.
Page 4
Constituent Funds as feeder funds
SFC authorization is not a recommendation or endorsement of an MPF scheme or pooled
investment fund nor does it guarantee the commercial merits of an MPF scheme or pooled
investment fund or its performance. It does not mean the MPF scheme or pooled investment
fund is suitable for all scheme participants or fund holders nor is it an endorsement of its
suitability for any particular scheme participant or fund holder.
Page 16
Application for participation in the HSBC Master Trust
• any person who is eligible to open a TVC account in accordance with the MPF Ordinance
(for details, please refer to the sub-section headed ’Eligibility for opening a TVC account’
under the section ’Tax deductible voluntary contributions’).
Page 16
Withdrawal from participation in the HSBC Master Trust
Please refer to the sub-section headed ’Withdrawal and Termination of TVC’ under the section
’Tax deductible voluntary contributions’ for details on a TVC Account Holder’s withdrawal from
participation in the HSBC Master Trust.
2Page 16
Benefits transfer from the HSBC Master Trust
Transfer of TVC Benefits
Please refer to the sub-section headed ’Portability of TVC’ under the section ’Tax deductible
voluntary contributions’ for details on how to transfer TVC Benefits from the HSBC Master
Trust.
Requesting a transfer of MPF Benefits, AVC Benefits and TVC Benefits
Requests to transfer MPF Benefits, AVC Benefits (excluding any part of the AVC Benefits
derived from an Employee Member or Deferred Member’s Flexi-Contributions) and TVC
Benefits from the HSBC Master Trust should be made to the Administrator accompanied by a
transfer form completed by all relevant parties. Processing is subject to contributions being
paid to date at the time of the requests, to the extent permitted by the General Regulation and
to other circumstances which can affect the processing time of such requests.
Page 17
Contributions
Tax deductible voluntary contributions
Any person who fulfils the eligibility requirements as mentioned in the sub-section headed
’Eligibility for opening a TVC account’ below can set up a TVC account and pay TVC into such
account. TVC paid into the account will be eligible for tax deduction in accordance with the
Inland Revenue Ordinance. With effect from 1 April 2019, the HSBC Master Trust offers TVC
accounts to eligible persons.
The characteristics of TVC are as follows:
• TVC can only be made directly by eligible persons into a TVC account of a Registered
Scheme in order to enjoy tax concessions, subject to relevant conditions. Please refer to
the sub-sections headed ’Tax concession arrangements for TVC’ and ’Eligibility for opening
a TVC account’ below for details;
• Involvement of employers is not required;
• Though it is voluntary in nature, TVC is subject to the same vesting, preservation and
withdrawal restrictions applicable to mandatory contributions. Accordingly, any accrued
benefits derived from TVC (including any TVC made in excess of the maximum tax
deduction limit during a tax assessment year) will be preserved and can only be
withdrawn upon retirement at age 65 or on other statutory grounds under the MPF
legislation. Please refer to the sub-section headed ’Withdrawal and Termination of TVC’
below for details.
3Tax concession arrangements for TVC
The maximum tax concession amount for TVC in each year of assessment is set out in the
Inland Revenue Ordinance and, in the year of assessment 2019/2020, is HK$60,000. It should
be noted that such tax concession amount is an aggregate limit for both TVC and other
qualifying annuity premiums rather than TVC only, and any claim for tax deductions will be
applied to TVC before other qualifying annuity premiums.
To facilitate the tax return filing by TVC Account Holders, the Trustee will provide a TVC
summary to each TVC Account Holder if TVC is made by the Member to the HSBC Master
Trust during a year of assessment. Such summary will be made available around 10 May after
the end of the relevant year of assessment (i.e. before the end of a period of 40 days (unless
the 40th day is not a Business Day, then the next Business Day) from the beginning of the
next tax assessment year commencing on 1 April).
Eligibility for opening a TVC account
Any person who falls under any one of the following categories may open a TVC account:
• a current employee member of a Registered Scheme;
• a current self-employed member of a Registered Scheme;
• a current personal account holder of a Registered Scheme; or
• a current member of an MPF exempted ORSO scheme.
Each eligible person can only have one TVC account under a Registered Scheme.
The Trustee may reject any application to open a TVC account in the event of (i) having reason
to know that information and documents provided to the Trustee are incorrect or incomplete;
(ii) failure of applicants to provide information and documents as required by the Trustee to
ensure compliance with applicable laws and regulations relating to anti-money laundering/tax
reporting; and/or (iii) other circumstances which the Trustee may consider appropriate.
Contribution of TVC
TVC can only be made into a TVC account, which is separate from a contribution account or
a personal account. Any other forms of voluntary contributions that are not made into the TVC
account are not TVC (for example, voluntary contributions that are made by Employee
Members through their Participating Employer will not be eligible for claiming TVC tax
deduction). For compliance purposes, there could be circumstances (such as (i) to (iii) in the
preceding paragraph) that TVC may be rejected. Any rejected TVC (with no interest) will be
refunded within 45 days of receipt of any such TVC unless for some exceptional regulatory
reasons the Trustee is unable to effect a refund within such a timeframe.
TVC is subject to the same vesting, preservation and withdrawal requirements applicable to
mandatory contributions. This also applies to contributions that exceed the maximum tax
deductible amount per assessment year.
There is no maximum limit imposed on the amount made to the TVC account, unless
otherwise specified in the relevant application form. TVC will be fully vested in the Members
once it is paid into the HSBC Master Trust. TVC Account Holders can make regular TVC by
monthly direct debit from as little as HK$300, or simply by paying a lump sum of HK$1,000 or
more at the time of Member’s choice.
4For the avoidance of doubt, the protection of accrued benefits under the MPF Ordinance is not
applicable to the TVC account, meaning that TVC Benefits will generally be vested in the
trustee-in-bankruptcy or official receiver as part of the property of the bankrupt TVC Account
Holder.
TVC Account Holders can make their own fund selection or choose to invest in DIS under the
HSBC Master Trust according to their risk tolerance level and financial circumstance. If a TVC
Account Holder fails to submit to the Trustee a valid Specific Investment Instruction or does
not make any investment choice at the time of TVC account opening, his/her TVC will be
invested in DIS. Please refer to the sub-section headed ’MPF Default Investment Strategy’
under the section ’Introduction’ of this ’Principal Brochure’ for details of the DIS arrangement.
Portability of TVC
TVC is portable and TVC Account Holders should note that:
• TVC Account Holder, may at any time, choose to transfer the TVC Benefits to another
Registered Scheme that offers TVC;
• The transfer must be in a lump sum (full account balance);
• The TVC account in the original scheme from which the accrued benefits are transferred
(resulting in zero balance) may be terminated upon such transfer;
• For the avoidance of doubt, transfer of accrued benefits derived from a TVC account to
another TVC account of the Member in another Registered Scheme cannot be claimed as
deductions for taxation purpose; and
• Transfer of TVC Benefits to another TVC account of the member in another Registered
Scheme will also be subject to the same preservation and withdrawal restrictions
applicable to mandatory contributions in the MPF regulations.
Withdrawal and Termination of TVC
As with accrued benefits derived from mandatory contributions, the TVC Benefits will be paid
in the following withdrawal conditions only:
• on a Member’s 65th birthday;
• on a Member’s death (in which case the benefits are paid to the Member’s legal personal
representatives);
• on the total incapacity of a Member;
• on the terminal illness of a Member;
• on the early retirement of a Member on or after his/her reaching age 60;
• upon a Member’s permanent departure from the Hong Kong SAR; or
• upon a Member’s claim on small balance under section 162 (1)(c) of the General Regulation.
5In addition, the Trustee must provide instalment options to the following withdrawal
conditions:
• on a Member’s 65th birthday; and
• on the early retirement of a Member on or after his/her reaching age 60.
Apart from the withdrawal of accrued benefits, the Trustee may terminate the Member’s TVC
account if:
1. the balance of the TVC account is zero; and
2. there is no transaction activity in respect of the TVC account for 365 days.
Page 18
Allocation of contributions
Page 18
Changing investment options
Page 19
Payment of benefits
The value of a Member’s (including a Deferred Member’s or a TVC Account Holder’s) benefits
is the total of the MPF Benefits, the AVC Benefits and TVC Benefits as provided in the ’Master
Trust Deed’ of the HSBC Master Trust.
TVC Benefits
Please refer to sub-section headed ’Withdrawal and Termination of TVC’ under the section ’Tax
deductible voluntary contributions’ for details on when TVC Benefits are payable.
6Payment of MPF Benefits, AVC Benefits and TVC Benefits
Requests for payment of MPF Benefits, AVC Benefits and TVC Benefits by a Member
(including a Deferred Member or a TVC Account Holder) should be made to the Administrator
and accompanied by a completed request of payment form. Processing time of such requests
may be affected by whether there are any outstanding contributions/contribution surcharges,
whether properly completed payment form and such documents as may be required by the
General Regulation or the Trustee (to the extent permitted by the General Regulation) have
been received, and any other circumstances which can affect the processing time of such
requests.
MPF Benefits, AVC Benefits and TVC Benefits payable on a Member’s 65th birthday or early
retirement on or after his/her reaching age 60 can be paid in one lump sum or in instalments,
at the Member’s election (in such form and on such terms as the Trustee may, to the extent
not prohibited by the ’MPF Ordinance’ or General Regulation, prescribe).
Page 21
Taxation
(d) TVC Account Holders will be able to deduct the TVC paid into their TVC accounts, subject
to a maximum deduction per tax assessment year as specified in the Inland Revenue
Ordinance. More information can be found under the sub-section headed ’Tax deductible
voluntary contributions’.
Page 21
Reports and accounts
• If TVC is made by a Member to the HSBC Master Trust during a year of assessment, a TVC
summary will be made available to the TVC Account Holder around 10 May after the end
of the relevant year of assessment (i.e. before the end of a period of 40 days (unless the
40th day is not a Business Day, then the next Business Day) from the beginning of the
next tax assessment year commencing on 1 April).
7Part III: Fee Table
Page 31
(C) Fund operating charges and expenses of constituent funds
The Hongkong and Shanghai Banking Corporation Limited and HSBC Provident Fund Trustee
(Hong Kong) Limited have prepared and accepted the responsibility for this document. The
contents in this document are accurate as of 1 April 2019.
8Notice to Participating Employers and Members of the HSBC Mandatory Provident Fund – ValueChoice
(collectively, ‘Scheme Participants’, ‘you’ or ‘yours’)
The Hongkong and Shanghai Banking Corporation Limited and HSBC Provident Fund Trustee (Hong Kong) Limited
have prepared and accepted responsibility of this notice. The contents in this notice are accurate as of the date of
its issuance.
March 2019
Important: This notice is important and requires your immediate attention. If you are in any doubt about
the content of this notice, you should seek independent professional advice.
Restructuring of the HSBC Mandatory Provident Fund – ValueChoice (the ‘HSBC ValueChoice’), and the
HSBC Mandatory Provident Fund – SuperTrust Plus (the ‘HSBC SuperTrust Plus’) (each, a ‘Scheme’ and
collectively, the ‘Schemes’)
This notice is in relation to the restructuring of the Schemes whereby the HSBC ValueChoice is to be
merged with the HSBC SuperTrust Plus (the ‘Merger’) with effect from 1 July 2019 (the ‘Effective
Date’), subject to the relevant regulatory approval.
About the Merger
• With effect from the Effective Date, the Members and the Participating Employers of the HSBC
ValueChoice immediately before the Effective Date will automatically become scheme
participants of the HSBC SuperTrust Plus. As part of the Merger, the assets of each constituent
fund under the HSBC ValueChoice will be transferred to the corresponding constituent fund
under the HSBC SuperTrust Plus. Each corresponding constituent fund under the HSBC
SuperTrust Plus share the same name, investment objectives and policies, fee level and fees and
charges structure with the relevant constituent fund under the HSBC ValueChoice.
• You need not undergo any formality for completing such transfer. However, if you wish to opt out
from the Merger, you must submit a valid transfer instruction through the transferee trustee (i.e.
the trustee of the Registered Scheme which you wish to transfer to) and such instruction must
reach The Hongkong and Shanghai Banking Corporation Limited (‘HSBC Bank’), the Administrator
of the HSBC ValueChoice. Please refer to 2.5(b) of this notice for details.
Benefits of the Merger
• The Merger will enable you to enjoy the economies of scale that will allow fixed costs associated
with the constituent funds to spread over a larger asset base, with an aim that the fund
expense ratio could be lower in the long run.
• A wider and more diversified choice of funds will be offered to you. For details, please refer to
2 of this notice.
• The Merger will be in the interests of the Scheme Participants of the HSBC ValueChoice and there
HSBC_VC_SM_Eng (2019-03)
will be no adverse impact on their accrued benefits. In particular, if you are investing in the
Core Accumulation Fund under the HSBC ValueChoice, although 2.4(d) of this notice refers to the
unit price of this fund differs from that of the Core Accumulation Fund under the HSBC
SuperTrust Plus, the balance held by you in respect of the Core Accumulation Fund will be the
same immediately before and after the Merger. Please refer to 2.4(d) of this notice for details.
• Also, after the Merger, you will be able to continue to enjoy the services they currently enjoy
under the HSBC ValueChoice.
1Quick facts of the Merger
• The board of directors of HPFT (as defined on page 2 of this notice) has endorsed the Merger.
Also, the Merger has met the requirements set out in the ‘Master Trust Deeds’ of each of the
HSBC ValueChoice and the HSBC SuperTrust Plus. In particular, the ‘Master Trust Deed’ of the
HSBC ValueChoice confers on HPFT to undergo the Merger without the need to obtain Members’
consent.
• The costs of the Merger will be borne by HPFT and HSBC Bank (as defined on page 1 of this
notice), as agreed between themselves. No costs of the Merger will be borne by the Scheme
Participants.
• There will be suspension of services due to the Merger. Please refer to 2.5(a) of this notice for
details. Also, please observe the cut-off dates/times for certain instructions, as set out in 2.5(b)
of this notice if you wish to have your relevant valid instructions to be effective under the HSBC
ValueChoice before the Merger.
How to know more about the Merger
• Seminars will be held to brief the Scheme Participants on the Merger. Further details of the
seminars will be available on HSBC MPF website www.hsbc.com.hk/mpf in or around April 2019.
• If you have any questions or concerns about the Merger, please contact the HSBC MPF Member
Hotline (852) 3128 0128 or HSBC MPF Employer Hotline (852) 2583 8033.
We, HSBC Provident Fund Trustee (Hong Kong) Limited (‘HPFT’, ‘we’ or ‘us’), are the trustee of the Schemes. The
information accompanying this notice contains details of the restructuring of the Schemes that is the Merger,
pursuant to clause 21A of the trust deed of the HSBC ValueChoice. The Merger is scheduled to take effect on the
Effective Date, subject to the relevant regulatory approval. Terms not defined in this notice have the same meaning
as in the Principal Brochures of the Schemes.
As your accrued benefits under the HSBC ValueChoice will be automatically transferred to the HSBC SuperTrust Plus
as a result of the Merger, you must read this notice carefully. Any valid request to transfer-out of the HSBC
ValueChoice by a Scheme Participant who does not wish to be transferred to the HSBC SuperTrust Plus
under the Merger must be submitted through the transferee trustee and reach HSBC Bank, the
Administrator of the HSBC ValueChoice, by the Transfer-out Date. Any such transfer-out, as with the usual
transfer-out, will not be subject to any withdrawal conditions, limitations, charges or penalties.
For the purpose of this notice, unless this notice otherwise specifies, a Scheme Participant immediately before the
Merger and whose benefits and membership will be automatically transferred to the HSBC SuperTrust Plus is
referred to as ‘Transferring Participants’.
1. Key operators and financial year
HSBC ValueChoice and HSBC SuperTrust Plus have the same key operators, that is HPFT being the Trustee
and Custodian and HSBC Bank being the Sponsor and Administrator.
Both Schemes have the same financial year end, that is 30 June.
2. Constituent fund(s) (‘CF(s)’)
2.1 Reasons for merging the CFs
HPFT believes that the Merger will enable the Scheme Participants who invest in the CFs under the HSBC
ValueChoice to enjoy the economies of scale that will allow fixed costs to spread over a larger asset base.
Therefore, HPFT expects that there will be no prejudice to the interests of the Scheme Participants of the
HSBC ValueChoice as a result of the Merger. Details of the CFs under the respective HSBC ValueChoice and
HSBC SuperTrust Plus are set out below.
22.2 CFs available under the HSBC ValueChoice and under the HSBC SuperTrust Plus
We set out in the table below:
(a) the CFs available under the HSBC ValueChoice and the HSBC SuperTrust Plus respectively before the Merger;
and
(b) the CFs available under the HSBC SuperTrust Plus after the Merger:
Available under the Available under the
HSBC ValueChoice HSBC SuperTrust
Available under the
(Before Merger) Plus (Before Merger)
Types of Fund Constituent Funds HSBC SuperTrust
Plus (After Merger)
(each, a ‘HSBC (each, a ‘HSBC
ValueChoice CF’) SuperTrust Plus CF’)
Money Market
MPF Conservative Fund* ✓ ✓ ✓
Fund
Bond Fund Global Bond Fund* ✓ ✓ ✓
Guaranteed Fund Guaranteed Fund ✓ ✓
Age 65 Plus Fund* ✓ ✓ ✓
Core Accumulation Fund* ✓ ✓ ✓
Stable Fund ✓ ✓
Mixed Assets Balanced Fund ✓ ✓
Fund
Growth Fund ✓ ✓
✓~
ValueChoice Balanced
✓ (to be launched on
Fund #
the Effective Date)
✓~
Global Equity Fund # ✓ (to be launched on
the Effective Date)
North American Equity
✓ ✓
Fund
European Equity Fund ✓ ✓
Asia Pacific Equity Fund ✓ ✓
Hong Kong and Chinese
✓ ✓
Equity Fund
Chinese Equity Fund ✓ ✓
✓~
ValueChoice US Equity
Equity Fund ✓ (to be launched on
Fund #
the Effective Date)
✓~
ValueChoice European
✓ (to be launched on
Equity Fund #
the Effective Date)
✓~
ValueChoice Asia Pacific
✓ (to be launched on
Equity Fund #
the Effective Date)
Hang Seng Index
✓ ✓ ✓
Tracking Fund*
Hang Seng China ✓~
Enterprises Index Tracking ✓ (to be launched on
Fund # the Effective Date)
* Those under the HSBC ValueChoice are the ‘Matching HSBC ValueChoice CFs’ and those under the HSBC
SuperTrust Plus are the ‘Matching HSBC SuperTrust Plus CFs’, for the purpose of this notice.
#
These CFs under the HSBC ValueChoice are, for the purpose of this notice, ‘Original HSBC ValueChoice CFs’.
~
These CFs to be launched under the HSBC SuperTrust Plus are, for the purpose of this notice, the ‘Replicate HSBC
ValueChoice CFs’.
32.3 Fund mapping
It is proposed that each CF available under the HSBC ValueChoice will be merged into the relevant
corresponding CF available under the HSBC SuperTrust Plus with the same names, investment
objectives and policies, fee levels and fees and charges structure. Please refer to the diagram below:
HSBC ValueChoice HSBC SuperTrust Plus
MPF Conservative Fund MPF Conservative Fund
Global Bond Fund Global Bond Fund
Age 65 Plus Fund Age 65 Plus Fund
Core Accumulation Fund Core Accumulation Fund
ValueChoice Balanced Fund ValueChoice Balanced Fund (to be established)
Global Equity Fund Global Equity Fund (to be established)
ValueChoice US Equity Fund ValueChoice US Equity Fund (to be established)
ValueChoice European Equity Fund ValueChoice European Equity Fund (to be established)
ValueChoice Asia Pacific Equity Fund ValueChoice Asia Pacific Equity Fund (to be established)
Hang Seng Index Tracking Fund Hang Seng Index Tracking Fund
Hang Seng China Enterprises Index Hang Seng China Enterprises Index Tracking Fund
Tracking Fund (to be established)
What fund offering structure do the HSBC ValueChoice and the HSBC SuperTrust Plus have in common?
(a) A Matching HSBC ValueChoice CF shares the same name, investment objective and policy, fee
level and fees and charges structure with the relevant Matching HSBC SuperTrust Plus CF.
There are altogether five Matching HSBC ValueChoice CFs.
(b) Each of the Matching HSBC ValueChoice CFs and the Matching HSBC SuperTrust Plus CFs, other
than the Hang Seng Index Tracking Fund, is a feeder fund investing solely in an underlying
approved pooled investment fund (‘APIF’). Each underlying APIF is established in the form of a
unit trust. Hang Seng Index Tracking Fund is a feeder fund investing in an approved index
tracking collective investment scheme (‘approved ITCIS’) with a similar investment objective.
The underlying APIF and/or (in the case of Hang Seng Index Tracking Fund) approved ITCIS, of
each of the Matching HSBC ValueChoice CFs is identical to that of the relevant Matching
HSBC SuperTrust Plus CF.
What fund offering the HSBC ValueChoice has while the HSBC SuperTrust Plus does not?
(c) Six Replicate HSBC ValueChoice CFs will be launched under the HSBC SuperTrust Plus on the Effective
Date. The six Replicate HSBC ValueChoice CFs have the same names, investment objectives and policies,
underlying APIF/approved ITCIS (as the case may be), fee levels and fees and charges structure as the
corresponding Original HSBC ValueChoice CFs. The issue price of each Replicate HSBC ValueChoice CF
will be the same as the unit price of the corresponding Original HSBC ValueChoice CF immediately before
the Merger.
(d) The establishment of the Replicate HSBC ValueChoice CFs will diversify the CFs offering such that the
number of CFs under the HSBC SuperTrust Plus will be increased from 14 to 20. In particular, three CFs
with preference towards ITCIS, namely, the ValueChoice Balanced Fund, the ValueChoice US Equity Fund
and the ValueChoice European Equity Fund, will be added to the HSBC SuperTrust Plus.
What fund offering will the HSBC SuperTrust Plus have upon the Merger?
(e) The six Replicate HSBC ValueChoice CFs, together with the five Matching HSBC SuperTrust Plus CFs, will
be having the investment objectives and policies, fee levels and fees and charges structure the same as
those for the existing eleven HSBC ValueChoice CFs now.
4(f) The establishment of the Replicate HSBC ValueChoice CFs, together with the Balanced Fund, the North
American Equity Fund and the European Equity Fund, which are actively managed and already included
in the HSBC SuperTrust Plus, will offer the Transferring Participants a set of actively managed funds and
funds with preference towards ITCIS(s) on one platform in the same asset classes. The HSBC SuperTrust
Plus will provide a platform with more comprehensive choices to the Transferring Participants to meet
their own preference and risk profile.
2.4 Merger of the CFs
In order to achieve the merger of each HSBC ValueChoice CF into the relevant Matching HSBC SuperTrust Plus
CF or Replicate HSBC ValueChoice CF (as the case may be), it is proposed that:
(a) Given the investment objective and structure of each HSBC ValueChoice CF are the same as the relevant
Matching HSBC SuperTrust Plus CF or Replicate HSBC ValueChoice CF (as the case may be), each HSBC
ValueChoice CF will be merged into the relevant Matching HSBC SuperTrust Plus CF or Replicate HSBC
ValueChoice CF (as the case may be).
(b) The accrued benefits of each Transferring Participant will be redeemed and utilised to subscribe for units
in the relevant Matching HSBC SuperTrust Plus CF or Replicate HSBC ValueChoice CF (as the case may
be) on the Effective Date, based on the applicable redemption and subscription prices as of the valuation
day immediately before the Effective Date, that is the last dealing day of the HSBC ValueChoice. We
consider that the above arrangement will be able to minimise any potential market risks and fluctuation in
the price of the investments. Further, the redemption will be in specie and not in cash to avoid
out-of-market exposure arising from a cash redemption. The balance held by a Transferring Participant
under the HSBC ValueChoice immediately before the Merger will be the same as that held by the
Transferring Participant under the HSBC SuperTrust Plus immediately after the Merger.
(c) Other than the Core Accumulation Fund, because the unit price of a HSBC ValueChoice CF is the same
as the relevant Matching HSBC SuperTrust Plus CF or Replicate HSBC ValueChoice CF, the total number
of units and the value of those units in a Matching HSBC SuperTrust Plus CF or Replicate
HSBC ValueChoice CF (as the case may be) held by a Transferring Participant immediately after
the Merger would be the same as the total number of units and the value of those units in the
HSBC ValueChoice CF held by the Transferring Participant immediately before the Merger. The
tables below illustrate how the same number of units and unit value is to be transferred from a HSBC
ValueChoice CF to a Matching HSBC SuperTrust Plus CF or Replicate HSBC ValueChoice CF:
Before the Merger – HSBC ValueChoice #
Unit Price (HK$) Account Balance – Employer Account Balance – Member
Fund Code immediately before Mandatory Contribution Mandatory Contribution
the Merger* No. of units HK$ No. of units HK$
HSIF 25.00 10.000 250.00 10.000 250.00
GBF 20.00 20.000 400.00 20.000 400.00
Total: 650.00 Total: 650.00
After the Merger – HSBC SuperTrust Plus #
Unit Price (HK$) Account Balance – Employer Account Balance – Member
Fund Code immediately after Mandatory Contribution Mandatory Contribution
the Merger* No. of units HK$ No. of units HK$
HSIF 25.00 10.000 250.00 10.000 250.00
GBF 20.00 20.000 400.00 20.000 400.00
Total: 650.00 Total: 650.00
HSIF refers to Hang Seng Index Tracking Fund and GBF refers to Global Bond Fund.
Note:
#
The above is hypothetical illustration that applies to all HSBC ValueChoice CFs except the Core Accumulation Fund.
The hypothetical illustration is for reference only.
* The unit price will be calculated using the fund price as at 28 June 2019, the last dealing day immediate before the
Effective Date.
5(d) The unit price of the Core Accumulation Fund under the HSBC ValueChoice is, however, not the same as
that of the Matching HSBC SuperTrust Plus CF. This is because the Core Accumulation Funds under each
of the HSBC ValueChoice and the HSBC SuperTrust Plus were established through converting the
ValueChoice Stable Growth Fund and the Stable Growth Fund under these Schemes respectively, and the
fund prices of the stable growth funds immediately before the conversion were not the same. As such,
the number of units held by the Transferring Participant in the Matching HSBC SuperTrust Plus CF after
the Merger will be lesser (because the unit price per unit in the Matching HSBC SuperTrust Plus CF is
higher), but the balance held by a Transferring Participant under the Core Accumulation Fund
under the HSBC ValueChoice will be the same as the balance held by the Transferring
Participant in the corresponding HSBC SuperTrust Plus CF after the Merger. The unit price
difference will not have any financial impact, whether immediate or ongoing, on the Transferring
Participant. The tables below illustrate how the number of units and unit value is to be transferred from
the Core Accumulation Fund under the HSBC ValueChoice to the Matching HSBC SuperTrust Plus CF:
Before the Merger – HSBC ValueChoice
Unit Price (HK$) Account Balance – Employer Account Balance – Member
Fund Code immediately before Mandatory Contribution Mandatory Contribution
the Merger No. of units HK$ No. of units HK$
CAF 12.00 100.000 1,200.00 100.000 1,200.00
After the Merger – HSBC SuperTrust Plus
Unit Price (HK$) Account Balance – Employer Account Balance – Member
Fund Code immediately after Mandatory Contribution Mandatory Contribution
the Merger No. of units HK$ No. of units HK$
CAF 15.00 80.000 1,200.00 80.000 1,200.00
CAF refers to Core Accumulation Fund
Note:
The above is hypothetical illustration and for reference only.
As of 31 January 2019, CAF unit price under the HSBC SuperTrust Plus and the HSBC ValueChoice is HK$17.76 and
HK$12.09 respectively.
(e) No bid and offer spreads or other transaction costs will be levied in respect of the redemptions and
subscriptions of units of the CFs of the Schemes or underlying APIFs or approved ITCISs to effect the
Merger.
(f) As the overall fees and charges payable by the Transferring Participants under the HSBC
SuperTrust Plus in respect of the Matching HSBC SuperTrust Plus CFs and Replicate HSBC
ValueChoice CFs immediately after the Merger will be the same as the overall fees and
charges payable by them under the HSBC ValueChoice immediately before the Merger, the
Merger will not in itself have any adverse financial impact on the interests of the Transferring
Participants.
(g) The costs of the Merger will be borne by HPFT and HSBC Bank, as agreed between themselves. No costs
of the Merger will be borne by the Scheme Participants.
2.5 Suspension
(a) Suspension of services
To facilitate smooth transition and system migration for the purpose of the Merger, the webpage ‘MPF/
ORSO’ on Personal Internet Banking and interactive voice response system (the ‘IVRS’) will be
suspended from 4 pm, 27 June 2019 to 11.59 pm, 1 July 2019 (both days inclusive). A message
regarding the suspension of services will be posted at HSBC MPF website and recorded in the IVRS.
During the above suspension period, no dealing instruction and enquiry can be made via Personal
Internet Banking (excluding enquiry of ‘Projection on MPF Benefits’ on Personal Internet Banking) or
IVRS.
6For the avoidance of doubt, other than the suspension period specified above, dealing instructions
through Personal Internet Banking or IVRS will be processed in the normal business manner, subject to
the terms already set out on the relevant webpage or IVRS. In particular, dealing instructions through
Personal Internet Banking or IVRS received before the suspension period will be completed
before the Effective Date, subject to the terms already set out on the relevant webpage or
IVRS (as applicable).
Kindly note however that Business Internet Banking and its webpage will not be suspended.
(b) Cut-off dates/times for dealing instructions
Scheme Participants may submit valid dealing instructions to the Administrator by the following
respective cut-off dates/times in order to have their instructions processed under the HSBC ValueChoice
before the Effective Date:
Instruction Received on or before
Participating Employers and Members
Contribution Via Business Internet Banking: 11.59 pm, 20 June 2019
By DDA – 20 June 2019
By Cheque – 21 June 2019
By Direct Credit – 24 June 2019
Via paper form: 17 June 2019
By DDA – 17 June 2019
By Cheque – 18 June 2019
By Direct Credit – 19 June 2019
Members
Portfolio rebalance1/asset switch of Via Personal Internet Banking or IVRS^: 4 pm, 27 June 2019
existing balance /contribution redirection Via paper form: 21 June 2019
2 3
Redemption* (including all types of claim Via paper form: 11 June 2019
reasons, but excluding transfer-out)
Participating Employers and Members
Transfer-out* Any valid transfer instruction# through the transferee trustee
must reach the Administrator by:
• Scheme – 11 June 2019
• Member
o Non ECA (Employee Choice Arrangement) – 11 June 2019
o ECA – 13 June 2019
(each date in this cell is the ‘Transfer-out Date’)
* These instructions cannot be processed via Business Internet Banking, Personal Internet Banking or IVRS.
^
Asset switch of existing balance instruction cannot be processed via IVRS.
#
Any valid request to transfer-out must be accompanied by a transfer form completed by all relevant parties, including
the transferee trustee.
The respective dates in the table above were determined by reference to the time required for the
relevant transactions to be processed in the normal business manner, and the Effective Date of the
Merger.
Valid dealing instructions given by the Scheme Participants after the respective dates in the table above
will also be processed in the normal business manner. However, note that dealing instructions cannot be
given via Personal Internet Banking or IVRS during the period from 4 pm, 27 June 2019 to 11.59 pm,
1 July 2019 (both days inclusive) as described in (a) of this section above.
1
Change the investment allocation of existing investments, new contributions and transfer-in benefits.
2
Change the investment allocation of existing investments only.
3
Change the investment allocation of the new contributions and transfer-in benefits.
7If any instructions (including any transfer-in instructions) cannot be effected under the HSBC ValueChoice
before the Effective Date, they will be carried out under the HSBC SuperTrust Plus as soon as practicable
after the Effective Date as if the instructions were given under the HSBC SuperTrust Plus. In particular,
any valid request to transfer-out of the HSBC ValueChoice by a Scheme Participant who does
not wish to be transferred to the HSBC SuperTrust Plus under the Merger must be submitted
through the transferee trustee and reach the Administrator by the Transfer-out Date.
All other instructions, such as updating members’ records and particulars, will continue to be handled
and processed in the normal business manner.
Where the Scheme Participant also participates in the HSBC SuperTrust Plus, his/her dealing instructions
with respect to the HSBC SuperTrust Plus CF will not be subject to the cut-off dates/times in the table
above.
3. Transfer of membership
3.1 Generally
With effect from the Effective Date, Transferring Participants will become scheme participants of
the HSBC SuperTrust Plus. The HSBC SuperTrust Plus Trustee will maintain accounts in respect of each
Transferring Participant under the HSBC SuperTrust Plus.
3.2 Participation agreements and other instructions under the HSBC ValueChoice
(a) On and with effect from the Effective Date, all participation agreements, application forms, enrolment forms,
investment mandates and any other agreements or instructions including direct debit instructions and any
outstanding instructions (including any amendments thereto) validly executed or given to the HSBC
ValueChoice Trustee by the Transferring Participants will become applicable to the participation of such
Transferring Participants in the HSBC SuperTrust Plus and will take effect as if the same had been
executed or given to the HSBC SuperTrust Plus Trustee under the HSBC SuperTrust Plus. In addition, the
governing rules of the HSBC SuperTrust Plus will apply to the Transferring Participants after the Merger.
(b) On and with effect from the Effective Date, investment mandates for the HSBC ValueChoice CFs shall
become investment mandates for the respective Matching HSBC SuperTrust Plus CFs or Replicate HSBC
ValueChoice CFs (as the case may be). The investment mandates will apply to the future contributions
and transfer-in benefits paid to the HSBC SuperTrust Plus. The investment allocation of the accrued
benefits to be transferred from the HSBC ValueChoice to the HSBC SuperTrust Plus
immediately after the Merger will be the same as the investment allocation applicable to such
accrued benefits immediately before the Merger.
3.3 Dual membership under both the HSBC ValueChoice and the HSBC SuperTrust Plus
Where a Transferring Participant is also a member under the HSBC SuperTrust Plus, the above arrangement in
3.2 only applies to the Transferring Participant under the HSBC ValueChoice and will not affect his/her
participation, including the arrangement of investment mandate and future contributions, in the HSBC
SuperTrust Plus. No action is required of such a Transferring Participant in respect of his/her participation in
the HSBC SuperTrust Plus.
3.4 Payment
On and with effect from the Effective Date, all payments formerly made to the HSBC ValueChoice should be
made payable to ‘HSBC MPF SuperTrust Plus’ or ‘HSBC Provident Fund Trustee (Hong Kong) Limited
A/C HSBC Mandatory Provident Fund – SuperTrust Plus’.
84. Notification regarding the transfer
Transfer and confirmation statements informing each Transferring Participant of the units and corresponding
amounts that are transferred out of each relevant HSBC ValueChoice CF and transferred to the relevant
Matching HSBC SuperTrust Plus CF or Replicate HSBC ValueChoice CF (as the case may be) will be sent by
post to the last known address of each Transferring Participants in or around August 2019. The transfer-out
amounts and transfer-in amounts stated in the transfer and confirmation statements will be in the same
decimal places with exactly the same amounts (that is no deviation will be noted from the amounts including
decimal places). In the interim pending the receipt of the transfer and confirmation statements, from 2 July
2019 onwards, you may check the account balances via Personal Internet Banking, IVRS and ATM and check
the transfer-in and transfer-out amounts from the HSBC MPF Member Hotline or HSBC MPF Employer Hotline
(please refer to 6.3 below for details).
5. Recognition of scheme service years and benefit entitlement
Notwithstanding the Merger, the scheme service years and benefit entitlement for all Transferring
Participants under the HSBC ValueChoice will be recognised under the HSBC SuperTrust Plus after
the Merger.
6. Default investment arrangement
6.1 The default investment arrangement under each of the Schemes is the MPF Default Investment Strategy (as
described on pages 4 to 9 of the ‘Principal Brochure’ of the HSBC ValueChoice). Accordingly, where a
Transferring Participant is currently under the MPF Default Investment Strategy (‘DIS’), the contributions
payable by or in respect of him/her after the Merger will be invested according to the MPF Default Investment
Strategy (as described on pages 4 to 8 of the ‘Principal Brochure’ of the HSBC SuperTrust Plus), the default
investment arrangement under the HSBC SuperTrust Plus.
6.2 To ensure smooth transition and taking into account that both 29 and 30 June 2019 are not dealing days, no
DIS de-risking under the HSBC ValueChoice will take place during the period from 28 June 2019 to 30 June
2019 (both dates inclusive). After the Merger, the first DIS de-risking under the HSBC SuperTrust Plus will take
place on 2 July 2019, the first available dealing day after the Merger.
6.3 If you wish to have more details of the HSBC SuperTrust Plus, please visit HSBC MPF website www.hsbc.com.hk/mpf
or contact the HSBC MPF Member Hotline (852) 3128 0128 or HSBC MPF Employer Hotline (852) 2583 8033.
7. Trust deed and Principal Brochure
The Scheme Participants may wish to inspect copies of the master trust deed of the HSBC SuperTrust Plus by
visiting the Administrator’s offices during normal business hours, free of charge or obtain copies from the
Administrator at a cost of HK$500 each. Should you wish to visit the Administrator’s offices to inspect copies
of the master trust deed, please call HSBC MPF Employer Hotline on (852) 2583 8033 or HSBC MPF Member
Hotline on (852) 3128 0128 to arrange for an appointment.
To preserve the environment by reducing paper usage, the Trustee will not be sending a copy of the ‘Principal
Brochure’ of the HSBC SuperTrust Plus to the Scheme Participants. Scheme Participants may wish to review
the Principal Brochure to understand more about the details of the HSBC SuperTrust Plus. The ‘Principal
Brochure’ of the HSBC SuperTrust Plus is available on HSBC MPF website for download. If you wish to
request a copy of the ‘Principal Brochure’ of the HSBC SuperTrust Plus, please contact the HSBC MPF
Member Hotline (852) 3128 0128 or HSBC MPF Employer Hotline (852) 2583 8033.
8. Seminars
Seminars will be held to brief the Scheme Participants on the Merger. Further details of the
seminars will be available on HSBC MPF website www.hsbc.com.hk/mpf in or around April 2019.
99. Impacts of the Merger on Scheme Participants
As the Trustee of the Schemes, we are committed to ensuring that the interests of our scheme
participants are adequately protected in the Merger and that the Merger would not create any
adverse impact on the accrued benefits of the scheme participants of the Schemes. Also, after the
Merger, the Transferring Participants will be able to continue to enjoy the services they currently
enjoy under the HSBC ValueChoice. The Merger has been structured to ensure that accrued benefits of the
scheme participants of the Schemes are adequately protected. The Merger will be in the interests of the
Scheme Participants of the HSBC ValueChoice and there will be no adverse impact on the accrued benefits
and services currently enjoyed by the Scheme Participants of the HSBC ValueChoice. In this regard, note
that you may continue to access Personal Internet Banking or Business Internet Banking (as the
case may be) after the Merger by your existing username and password.
We will keep you informed in case of any changes in the arrangements in relation to the Merger and will let
you know if any actions need to be taken by you. In this connection, please notify us at your earliest
convenience if there is any change of your correspondence address.
***
Frequently Asked Questions on the Merger have been posted at HSBC MPF website www.hsbc.com.hk/mpf. If you
have any questions or concerns about the Merger, please do not hesitate to contact the HSBC MPF Member
Hotline (852) 3128 0128 or HSBC MPF Employer Hotline (852) 2583 8033.
Issued by The Hongkong and Shanghai Banking Corporation Limited and HSBC Provident Fund Trustee (Hong Kong)
Limited
Note: Investment involves risks. Past performance is not indicative of future performance. The value of financial
instruments, in particular stocks and shares, and any income from such financial instruments, may go down as well
as up. For further details including the product features and risks involved, please refer to the relevant ‘Principal
Brochure’.
10Important notes • The HSBC Mandatory Provident Fund – ValueChoice is a mandatory provident fund scheme. • 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 circumstances. • You should consider your own risk tolerance level and financial circumstances before investing in the MPF Default Investment Strategy. You should note that the DIS constituent funds, namely, the Core Accumulation Fund and the Age 65 Plus Fund, may not be suitable for you, and there may be a risk mismatch between the DIS constituent funds 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. We recommend that you consult with the Trustee if you have doubts on how you are being affected. • MPF Benefits and AVC Benefits payable on a Member’s 65th birthday or early retirement on or after his/her reaching age 60 can be paid in one lump sum or in instalments, at the Member’s election (in such form and on such terms as the Trustee may, to the extent not prohibited by the ‘MPF Ordinance’ or General Regulation, prescribe). Please refer to the ‘Payment of MPF Benefits and AVC Benefits’ section under ‘Payment of benefits’ in Part I – Product Information of the relevant ‘Principal Brochure’ for full details. • Investment involves risks. Past performance is not indicative of future performance. The value of financial instruments, in particular stocks and shares, and any income from such financial instruments, may go down as well as up.
Contents
Part I: Product Information 2
Glossary 2
Introduction 4
HSBC Mandatory Provident Fund 4
Constituent Funds 4
Constituent Funds as feeder funds 4
MPF Default Investment Strategy 4
Investment objectives 9
Investment and borrowing restrictions 9
Investment risks and risk factors 9
Service Providers 15
Application, Withdrawal and Transfer 16
Application for participation in the HSBC Master Trust 16
Withdrawal from participation in the HSBC Master Trust 16
Benefits transfer from the HSBC Master Trust 16
Contributions, Fund Switching and Payment of Benefits 17
Contributions 17
Allocation of contributions 18
Changing investment options 18
Payment of benefits 19
Dealing of Constituent Fund 20
Valuation of funds 20
Fees, Charges and Expenses 20
Changes in fees, charges and expenses 20
Soft dollars and cash rebates 20
General Information 21
Taxation 21
Reports and accounts 21
Constitutive documents 21
Restructuring or termination 21
Personal data 21
Dispute resolution 21
Date of this document 21
Important warning 21
Part II: Fund Structure 22
Part III: Fee Table 31
On-going Cost Illustrations 34
Illustrative example for the MPF Conservative Fund 35
of HSBC Mandatory Provident Fund scheme
November 2018Part I
Product Information
Glossary
‘AVC Benefits’ means benefits derived from voluntary ‘General Regulation’ means the Mandatory Provident
contributions, which comprise the value of a Member’s Fund Schemes (General) Regulation and any subsequent
voluntary balance associated with employment, amendments.
non-employment related voluntary contribution balance
(that is, Flexi-Contributions) and the vested portion of ‘Higher Risk Assets’ has the meaning given to it in
his/her employer’s voluntary balance, as determined in the ‘MPF Ordinance’, and generally means equities or
accordance with the relevant application form and the similar investments.
‘Master Trust Deed’ constituting the HSBC Master Trust.
Flexi-Contributions are formerly known as personal ‘ITCIS’ means index-tracking collective investment
contributions. scheme as defined under the General Regulation.
‘Business Day’ means a day, other than a Saturday or ‘Lower Risk Assets’ means those assets not being
Sunday, on which banks are open for business in the Higher Risk Assets, including without limitation global
Hong Kong Special Administrative Region. bonds and money market instruments.
‘Constituent Fund’ means an investment fund ‘Member’ means a person who has been admitted to
contained within the trust constituting the HSBC Master membership in the HSBC Master Trust.
Trust.
‘MPFA’ means the Mandatory Provident Fund Schemes
‘Deferred Member’ means a Member (a) who Authority established under the ‘MPF Ordinance’.
becomes entitled to an AVC Benefit but not the MPF
Benefits; (b) who makes a transfer to the Scheme but is ‘MPF Benefits’ means benefits derived from mandatory
not an Employee Member or Self-employed Member; contributions, minimum MPF benefits or amount paid
(c) whose Participating Employer ceases participation by the MPFA in accordance with section 18 of the
in the HSBC Master Trust and who has left his/her ‘MPF Ordinance’ (including any benefits derived from
accrued benefits in the HSBC Master Trust; or (d) has mandatory contributions or minimum MPF benefits in
ceased to be an Employee Member or Self-employed respect of a Member’s former employment and where
Member and has left his/her accrued benefits in the applicable, former self-employment or amount paid by
HSBC Master Trust without electing to have the benefits the MPFA in accordance with section 18 of the ‘MPF
transferred to another Registered Scheme in accordance Ordinance’ transferred to the HSBC Master Trust), which
with the General Regulation. For the avoidance of comprise the value of a Member’s MPF account as
doubt, a Member who is an Employee Member or a determined in accordance with the ‘Master Trust Deed’
Self-employed Member may participate in the HSBC constituting the HSBC Master Trust.
Master Trust in a different capacity as a Deferred
Member concurrently. ‘MPF Compensation Levy’ means any levy imposed
by the MPFA in accordance with section 17 of the ‘MPF
‘Employee Member’ means any employee of a Ordinance’.
‘Participating Employer’ who has been admitted as a
Member. ‘MPF Default Investment Strategy’ or ‘DIS’ means
the default investment strategy that complies with Part 2
‘Employee Member Portable Balance’ means, in of Schedule 10 to the ’MPF Ordinance’.
respect of an Employee Member:
‘MPF Ordinance’ means the ‘Mandatory Provident
(a) subject to (b) below, where applicable, any accrued Fund Schemes Ordinance’ (Cap. 485 of the laws of the
benefits derived from the mandatory contributions Hong Kong Special Administrative Region) and any
made by the Employee Member in respect of his/her subsequent amendments.
current employment,
‘Participating Employer’ means an employer
(b) (a) above may be amended, removed, replaced participating in the HSBC Master Trust.
or substituted from time to time, and any other
type(s) of benefits may be included in the definition
of ‘Employee Member Portable Balance’, so as to
comply with any applicable regulatory requirements.
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