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High Investment Transparency with Well-defined Index
HONG KONG, Oct. 8, 2012 /PRNewswire/ --
Important Information
BOCI-Prudential Asset Management (Note 1) (the "Company") is pleased to announce the addition of "Equity Funds - Index Tracking Series" (the "Series") to the existing MPF Scheme, the BOC-Prudential Easy-Choice Mandatory Provident Fund Scheme (the "Scheme"). The new Series includes three constituent funds, namely BOC-Prudential CSI HK 100 Tracker Fund, BOC-Prudential European Index Tracking Fund and BOC-Prudential North America Index Tracking Fund, providing more comprehensive range of investment choices to customers. The distinguishing features of the new Series are as follows:
1. Managed by quantitative investment team
The Series is managed by our professional team - Quantitative Strategy Business Unit (QSBU) using scientific quantitative analytical models. Being insightful and visionary, QSBU is recognized as an innovator (Note A), leading the trend and driving new product initiatives in the market.
| Note A: | W.I.S.E. - CSI 300 China Tracker® (This is a synthetic ETF) managed by QSBU of BOCI-Prudential Asset Management won the "Hong Kong, Most Innovative Product"under Best of the Best Awards 2009 from Asia Asset Management. |
2. Highly transparent in investment policy with clear tracking indices
The underlying tracking indices of the constituent funds in the Series are clearly indicated in the investment policy. Below is a summary of investment policies of the three new constituent funds:
| Constituent Funds | Investment Policy |
| BOC-Prudential CSI HK 100 Tracker Fund | Currently invests exclusively in the approved ITCIS (Note B) - W.I.S.E. - CSI HK 100 Tracker™, an index-tracking exchange traded fund which seeks to track the performance of the CSI Hong Kong 100 Index by adopting a representative sampling strategy. The CSI Hong Kong 100 Index is a diversified index consisting of 100 constituent securities listed on the Stock Exchange of Hong Kong Limited ("SEHK"). |
| BOC-Prudential European Index Tracking Fund | Currently invests exclusively in the approved ITCIS (Note B) - the BOC-Prudential European Index Fund, which invests in a portfolio of securities traded on the stock exchanges in the United Kingdom and in other continental European countries. The approved ITCIS (Note B) seeks to provide investment performance (before fees and expenses) that tracks the performance of the FTSE MPF Europe Index (unhedged) primarily by adopting a representative sampling strategy. |
| BOC-Prudential North America Index Tracking Fund | Currently invests exclusively in the approved ITCIS (Note B) - the BOC-Prudential North America Index Fund, which invests in a portfolio of securities traded on the stock exchanges in North America. The approved ITCIS (Note B) seeks to provide investment performance (before fees and expenses) that tracks the performance of the FTSE MPF North America Index (unhedged) primarily by adopting a representative sampling strategy. |
| Note B: | "Approved ITCIS" means "index-tracking collective investment scheme approved by the MPFA". |
3. Extending investment choices
In addition to the existing fund categories - "Equity Funds"(Note C), "Mixed Assets Funds"(Note C), "Bond Fund"(Note C) and "Money Market Fund"(Note C), the new Series facilitates the availability of both active and passive-managed constituent funds within a single Scheme.
| Note C: | Fund Type defined by the Mandatory Provident Fund Schemes Authority for MPF constituent funds. |
4. Diverse coverage in regions invested
The equity markets of Europe and North America are relatively well-developed. In addition to the existing global equity fund and regional equity funds such as BOC-Prudential Asia Equity Fund, BOC-Prudential European Index Tracking Fund and BOC-Prudential North America Index Tracking Fund will bring more regional equity fund choices to members.
5. Investment options with lower management fee (Note D)
The Series offers more investment options to members with lower management fee (Note D) among the "Equity Funds" (Note C) under the Scheme. For reference, the management fees (Note D) for BOC-Prudential CSI HK 100 Tracker Fund is 0.9% per annum, while the management fees (Note D) for BOC-Prudential European Index Tracking Fund and BOC-Prudential North America Index Tracking Fund are 0.99% per annum.
| Note D: | The management fees will be calculated on the basis of a percentage of the net asset value of the constituent fund and the sub-fund of the approved ITCIS as the case may be. Such fee includes Trustee Fee (on constituent funds level and on Approved ITCIS levels) and Investment Management Fee and is dependent of the funds chosen. This is the current level. In respect of any increase in fees and charges up to the maximum level, at least three months prior notice will be given. For further details of other fees and charges (such as fees and expenses of the custodians or sub-custodians of the assets of the Scheme, tax, stamp duty, registration fee, custody and nominee charges, audit and legal fees), please refer to Section 7 - "Fees and Charges" of the Principal Brochure of the Scheme. |
BOCI-Prudential Asset Management will strive to offer comprehensive and reliable asset management and MPF investment services, and strive for stable and outstanding investment performances. We will continue to develop new products to cater the diversified needs of customers.
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About BOCI-Prudential Asset Management
BOCI-Prudential Asset Management was jointly established by BOCI Asset Management Limited (which is a subsidiary company wholly owned by BOC International Holdings Limited) and Prudential Corporation Holdings Limited in 1999, offering a comprehensive spectrum of investment products, which includes Hong Kong mandatory provident fund scheme, pension funds, retail unit trusts, exchange traded funds, institutional mandates and other investment funds, the Company also manages discretionary investment portfolio and provides charity fund management services to both private individuals and institutional clients. Being one of the major investment managers of MPF schemes, BOCI-Prudential Asset Management manages assets for more than 650,000 clients (Note 2) in Hong Kong. In terms of asset under management on MPF, the Company ranks among top three (Note 3) investment managers in the MPF market with approximately 8% market share (Note 3). The managed Mandatory Provident Fund Scheme is one of the Master Trust Schemes engaged by the Government for the provision of MPF services to its eligible employees.
For details, please visit the official website at www.boci-pru.com.hk.
Media Enquiry
BOCI-Prudential Asset Management Limited
Market Communication
Ms Jazz Ho
Tel: (852) 2280 8971
Email: jazz.ho@boci-pru.com.hk
Note :
Investment involves risks. The performance of the three constituent funds may not be identical to that of the relevant benchmark index. Investment in each constituent fund is essentially subject to the same risks of its underlying index fund. The key risks to which the relevant constituent funds are subject to include: specific risks on tracking the relevant benchmark index, tracking error risk, sector concentration risk, geographical concentration risk, passive management risk, index calculation risk and tax risk, etc. Please refer to the "Risk Factors" section in Principal Brochure of BOC-Prudential Easy-Choice Mandatory Provident Fund Scheme for more details.
The portfolio of the Scheme is subject to market fluctuations and exchange rate fluctuations and to the risks inherent in all investments. The subscription and redemption prices of units of the constituent funds may go down as well as up. Please refer to the Principal Brochure of the BOC-Prudential Easy-Choice Mandatory Provident Fund Scheme for further details.
Issuer: BOCI-Prudential Asset Management Limited
