Code on Disclosure for MPF Investment Funds 《強積金投資基金披露守則》

Purpose of Disclosure and the Fee Table 披露目的與收費表

The MPFA issued the Code on Disclosure for MPF Investment Funds to guide trustees and other service providers on disclosure. It covers MPF schemes, constituent funds, fees, charges and performance, giving employers and members sufficient information and helping members make informed investment decisions. [MPFA: Disclosure of Information](https://www.mpfa.org.hk/en/mpf-investment/investment-regulations-and-disclosure/disclosure-of-information)

The fee table brings all fees and charges together in a consistent format for comparison. It must explain each charge’s purpose, its current amount and who pays it, and must be included in the scheme’s offering documents. Listing only fee names and amounts leaves the disclosure incomplete.

On-going Cost Illustrations and the Fund Expense Ratio 持續成本列表與基金開支比率

On-going Cost Illustrations (OCI) help members and potential members compare investment costs. They use consistent assumptions to show, in dollar terms, the costs that may arise over defined investment periods. They must form part of, or accompany, the scheme’s offering document and be updated annually using the latest Fund Expense Ratio data.

OCI are not required for MPF Conservative Funds, certain guaranteed funds and newly launched funds. An MPF Conservative Fund must nevertheless have a separate illustrative example; exemption from OCI does not remove all cost illustration requirements.

The Fund Expense Ratio (FER) measures fund expenses as a percentage of fund size. Where a constituent fund invests in one or more approved pooled investment funds (APIFs), expenses must also include fees and charges incurred at APIF level. FER is calculated annually for all constituent funds and APIFs, although funds with less than two years of history need not show it.

FER is disclosed in the fund fact sheet, the OCI for constituent funds, and the annual returns of schemes and APIFs. To distinguish the tools, remember that the fee table identifies current charges, OCI illustrate costs in dollar terms under assumptions, and FER expresses fund expenses as a percentage.

Contents and Timing of the Fund Fact Sheet 基金便覽的內容與發放時間

An approved trustee must prepare a fund fact sheet giving basic information about each constituent fund. This includes its net asset value, launch date, a brief description of its investment objectives, and any changes to its statement of investment policy and objectives since the previous fact sheet.

Portfolio and performance information includes asset allocation, the ten largest asset holdings expressed as percentages of fund net asset value, and periodic rates of return. If a performance benchmark is used, the fund’s performance must be compared with it; the comparison requirement is conditional on a benchmark being used.

The fact sheet must also contain the latest FER, subject to the applicable exemption, a general indication of risk, a description of the fund type, and commentary on fund performance, the market review and market outlook.

At least two fund fact sheets must be issued for each financial year of a scheme. One accompanies the annual benefit statement. The other has a reporting date six months after the scheme’s financial year end and must be provided within two months after that reporting date. The six months determines the reporting date; the two months determines the subsequent distribution deadline.

The Annual Benefit Statement 周年權益報表

The Annual Benefit Statement (ABS) lets a member check membership details, the number and status of accounts, and inflows and outflows such as contributions, transfers and transactions. It also identifies account balances, accrued benefits, their extent of vesting, and gains or losses over the relevant financial period.

The ABS is a historical record of the member’s account at a particular point in time, so it does not promise future balances or returns. Its content requirements appear in Part F of the Disclosure Code. It must be issued within three months after the scheme’s financial period ends, with the accompanying fund fact sheet following that timetable.