BEA (MPF) VALUE SCHEMEthis MPF Scheme Brochure, the Bank will pay interest on such amounts at a rate...

Sponsor : The Bank of East Asia, LimitedTrustee : Bank of East Asia (Trustees) LimitedVersion date : March 2020BEA (MPF) Hotline : (+852) 2211 1777 (operated by Bank of East Asia (Trustees) Limited)Fax : (+852) 3608 6003Email : [email protected] address : http://www.hkbea.com

BEA (MPF) VALUE SCHEME

MPF SCHEME BROCHURE

Mandatory Provident Fund

IMPORTANT:

• Important — If you are in doubt about the meaning or effect of the contents of this MPF Scheme Brochure, you should seek independent professional advice.

• TheMaster Trust offers different Constituent Funds (i) investing in one ormoreAPIFsand/orapproved ITCISswhich invest inequitiesorbonds;or (ii)makingdirectinvestments.EachConstituentFundhasadifferentriskprofile.

• The BEAMPF Conservative Fund does not provide any guarantee of therepaymentofcapital.

• Investment involves risks.You shouldconsideryourownrisk tolerance leveland financial circumstances beforemaking any investment choices. In yourselectionof Constituent Funds, if you are in doubt as towhether a certainConstituentFund is suitable foryou (includingwhether it is consistentwithyour investment objectives), you should seek financial and/or professionaladviceandchoosetheConstituentFund(s)mostsuitableforyoutakingintoaccountyourcircumstances.

• YoushouldconsideryourownrisktolerancelevelandfinancialcircumstancesbeforeinvestingintheDIS.YoushouldnotethattheBEACoreAccumulationFundandtheBEAAge65PlusFundmaynotbesuitableforyou,andtheremay be a riskmismatch between the BEA CoreAccumulation Fund andtheBEAAge65Plus Fundandyour riskprofile (the resultingportfolio riskmay be greater than your risk preference). You should seek financial and/orprofessional advice if youare indoubt as towhether theDIS is suitableforyou,andmaketheinvestmentdecisionmostsuitableforyoutakingintoaccountyourcircumstances.

• You should note that the implementation of theDISmay have an impactonyourMPFinvestmentsandaccruedbenefits.YoushouldconsultwiththeTrusteeifyouhavedoubtsonhowyouarebeingaffected.

TABLE OF CONTENTS

Heading Page Number

1. INTRODUCTION ...................................................................................................... 1

1.1 AbouttheBEA(MPF)ValueScheme...............................................................................1

1.2 Investmentofcontributions............................................................................................1

2. DIRECTORY OF APPROVED TRUSTEE AND OTHER SERVICE PROVIDERS ................ 2

2.1 Sponsor............................................................................................................................2

2.2 Trustee.............................................................................................................................2

2.3 InvestmentManager.......................................................................................................2

3. FUND OPTIONS, INVESTMENT OBJECTIVES AND POLICIES .................................... 3

3.1 Schemestructure.............................................................................................................3

3.2 TableforConstituentFunds............................................................................................4

3.3 Investmentobjectivesandpolicies..................................................................................6

3.4 Currencyexposure.........................................................................................................20

3.5 Investmentandborrowingrestrictions.........................................................................20

3.6 Consequencesofexceedingtheinvestmentlimit.........................................................21

3.7 Establishment,termination,mergeranddivisionofConstituentFunds......................21

4. RISKS .................................................................................................................... 22

4.1 Riskcategories...............................................................................................................22

4.2 Riskfactors....................................................................................................................22

5. FEES AND CHARGES ............................................................................................. 40

5.1 Feetable........................................................................................................................40

5.2 Definitions.....................................................................................................................46

5.3 Noswitchingfee............................................................................................................49

5.4 ChangeinMandatefee.................................................................................................49

5.5 Feesandout-of-pocketexpensesrelatedtotheBEAMPFConservativeFund.............49

5.6 Otherchargesandexpenses..........................................................................................49

5.7 Feesandout-of-pocketexpensesoftheDIS.................................................................50

5.8 Cashrebatesandsoftcommissions...............................................................................50

5.9 Explanatorynotes..........................................................................................................51

6. ADMINISTRATIVE PROCEDURES ........................................................................... 53

6.1 Howtojoin....................................................................................................................53

6.2 Contributions.................................................................................................................54

6.3 InvestmentinConstituentFunds...................................................................................56

6.4 Entitlementtoaccruedbenefits....................................................................................65

6.5 RealisationofUnits.......................................................................................................67

6.6 Paymentofaccruedbenefits.........................................................................................67

6.7 Otherpointstonote.....................................................................................................68

6.8 Transfers........................................................................................................................69

7. OTHER INFORMATION ......................................................................................... 73

7.1 Calculation.....................................................................................................................73

7.2 Taxation.........................................................................................................................74

7.3 Accounts,reportsandstatements.................................................................................76

7.4 TrustDeed.....................................................................................................................76

7.5 ModificationofTrustDeedandparticipationagreements..........................................76

7.6 Termination,mergerordivisionofMasterTrust..........................................................77

7.7 Documentsavailable.....................................................................................................77

7.8 Automaticexchangeoffinancialaccountinformation................................................77

8. GLOSSARY ........................................................................................................... 79

APPENDIX Further Information on the Indexes ....................................................... 84

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1. INTRODUCTION

The Trustee and the Sponsor each accepts responsibility for the information contained in thisMPF Scheme Brochure as being accurate at the date of publication. However, neither thedeliveryofthisMPFSchemeBrochurenortheofferoforagreementtoparticipateintheMasterTrust shallunderanycircumstancesconstitutea representationthat the informationcontainedinthisMPFSchemeBrochureiscorrectasofanytimesubsequenttosuchdate.ThisMPFSchemeBrochuremayfromtimetotimebeupdated. Intendingparticipants in theMasterTrust shouldasktheTrusteeortheSponsorifanysupplementstothisMPFSchemeBrochureoranylaterMPFSchemeBrochurehavebeenissued.

TheMasterTrusthasbeenauthorisedby theSFCandapprovedby theMPFA inHongKong. Ingrantingsuchauthorisationandapproval,neithertheSFCnortheMPFAtakesanyresponsibilityfor the financial soundness of theMaster Trust or for the accuracy of any of the statementsmadeoropinionsexpressedinthisMPFSchemeBrochure.Suchauthorisationandapprovaldoesnot imply that participation in theMaster Trust is recommendedby the SFCor theMPFA. SFCauthorisationisnotarecommendationorendorsementofanMPFschemeorpooledinvestmentfundnordoesitguaranteethecommercialmeritsofanMPFschemeorpooledinvestmentfundor its performance. It does notmean theMPF scheme or pooled investment fund is suitablefor all scheme participants or fund holders nor is it an endorsement of its suitability for anyparticularschemeparticipantorfundholder.

No action has been taken to permit an offering of participation in theMaster Trust or thedistributionofthisMPFSchemeBrochureinanyjurisdictionwhereactionwouldberequiredforsuchpurposeotherthanHongKong.Accordingly,thisMPFSchemeBrochuremaynotbeusedinanyjurisdictionwhereitsdistributionisnotauthorised.

1.1 About the BEA (MPF) Value Scheme

TheBEA(MPF)ValueSchemeisamastertrustestablishedbyatrustdeeddatedasof17thAugust,2012(asamendedfromtimetotime)betweenTheBankofEastAsia,LimitedasSponsor and Bank of East Asia (Trustees) Limited as Trustee. It is established under andgovernedbythelawsofHongKong.

1.2 Investment of contributions

Contributions are invested in one ormore of the Constituent Funds established undertheMaster Trust, in accordancewith instructions given from time to time byMembers.For details, please refer to the “6.2. CONTRIBUTIONS” sub-section under the “6.ADMINISTRATIVEPROCEDURES”sectionofthisMPFSchemeBrochure.

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2. DIRECTORY OF APPROVED TRUSTEE AND OTHER SERVICE PROVIDERS

Sponsor TheBankofEastAsia,Limited 10DesVoeuxRoadCentral,HongKong

Trustee, Custodian and Administrator

BankofEastAsia(Trustees)Limited 32nd Floor, BEA Tower,MillenniumCity5, 418Kwun TongRoad, Kwun Tong,Kowloon,HongKong

Investment Manager

BEAUnion InvestmentManagementLimited

5th Floor, 10Des Voeux Road Central,HongKong

Legal Advisers Baker&McKenzie 14thFloor,OneTaikooPlace,979King’sRoad,QuarryBay,HongKong

Auditors KPMG 8th Floor, Prince’s Building, 10 ChaterRoad,Central,HongKong

2.1 Sponsor

TheBankofEastAsia,Limited(the“Bank”)wasincorporatedinHongKongin1918andis the sponsor of theMaster Trust. The Bank is dedicated to providing comprehensiveretail banking, commercial banking,wealthmanagement, and investment services to itscustomersinHongKong,MainlandChina,andothermajormarketsaroundtheworld.TheBank is the largest independent localbank inHongKong,withtotalconsolidatedassetsof HKD839.5 billion (USD107.2 billion) as of 31st December, 2018. The Bank is listed onTheStockExchangeofHongKong.TheSponsorisresponsibleforbusinessdevelopment,marketing, and product development, aswell as ancillary and support services to theTrusteeasmaybeagreedbetweenthemfromtimetotime.

WherecontributionsandaccruedbenefitsderivingfromcontributionstotheMasterTrustandotheramountsareheldinaninterestbearingaccountwiththeBankasdescribedinthisMPFSchemeBrochure,theBankwillpayinterestonsuchamountsataratenolowerthantheprevailingcommercialratefordepositsofasimilarsizeandduration.

2.2 Trustee

Bank of East Asia (Trustees) Limitedwas incorporated inHongKong in 1975 and is thetrusteeoftheMasterTrust.TheTrusteeisregisteredasatrustcompanyinHongKongandhasbeenapprovedbytheMPFAasanapprovedtrusteeforMPFpurposes1.TheTrusteeisalsoawhollyownedsubsidiaryoftheBank.

UndertheTrustDeed,theTrusteeisresponsiblefortheadministrationoftheMasterTrustandthesafekeepingoftheassetsoftheMasterTrust.TheTrusteealsoactsascustodianoftheassetsoftheMasterTrust.

2.3 Investment Manager

BEAUnion InvestmentManagement Limitedwas incorporated in Hong Kong in 1988and is the investmentmanagerof theMasterTrust. PreviouslyknownasEastAsiaAssetManagementCompanyLimited,theInvestmentManagerisjointlyownedbytheBankandUnionAssetManagementHoldingAG.

1SuchapprovaldoesnotimplyrecommendationbytheMPFA

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3. FUND OPTIONS, INVESTMENT OBJECTIVES AND POLICIES

3.1 Scheme structure

BEA (MPF) VALUE SCHEME - CONSTITUENT FUNDS

ConstituentFunds

BEAGrowthFund

BEABalancedFund

BEAStableFund

BEAAsianEquityFund

BEAGlobalEquityFund

BEAGreaterChinaEquityFund

BEAGreaterChinaTrackerFund

BEAHongKongTrackerFund

BEAGlobalBondFund

BEAMPFConservativeFund

BEACoreAccumulationFund

BEAAge65PlusFund

TwoormoreAPIFsBEAUnionInvestmentGlobalEquityFund

BEAUnionInvestmentGreaterChinaGrowthFund

SPDR®FTSE®GreaterChinaETF

TrackerFundofHongKong

BEAUnionInvestmentGlobalBondFund

DirectInvestments

BEAUnionInvestmentCoreAccumulationFund

BEAUnionInvestmentAge65PlusFund

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3.2 Table for Constituent Funds

Under the Trust Deed, the Trustee is required to establish andmaintain separateConstituent Funds inwhich contributions and accrued benefitsmay be invested. TheConstituent Funds are notional funds establishedwithin theMaster Trust and are onlyavailableforinvestmentbyMembers.

TheMasterTrustcurrentlyoffersthefollowingConstituentFundsforinvestment:

No. NameofConstituentFund

InvestmentManager

Fundstructure Funddescriptor

Investmentfocus

1. BEAGrowthFund

BEAUnionInvestmentManagementLimited

Portfoliomanagementfund

MixedAssetsFund–Global–Maximum90%inequities

60%to90%inequities,10%to40%incash,debtsecuritiesand/ormoneymarketinstruments

2. BEABalancedFund





3. BEAStableFund BEAUnionInvestmentManagementLimited




4. BEAGlobalEquityFund


Feederfund EquityFund–Global

Notlessthan70%inequitieswiththeremainderheldinmoneymarketinstruments,cashorcashequivalents

5. BEAAsianEquityFund



EquityFund–Asiaex-Japan

Atleast70%inequities,upto30%incash,debtsecuritiesand/ormoneymarketinstruments

6. BEAGreaterChinaEquityFund


Feederfund EquityFund–GreaterChina

Notlessthan70%inequities,upto10%inothersecurities(aspermittedundertheGeneralRegulation)withtheremainderheldincashorcashequivalents

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No. NameofConstituentFund

InvestmentManager

Fundstructure Funddescriptor

Investmentfocus

7. BEAGreaterChinaTrackerFund


Feederfund EquityFund–GreaterChina

100%inequities

8. BEAHongKongTrackerFund


Feederfund EquityFund–HongKong

100%inequities

9. BEAGlobalBondFund


Feederfund BondFund–Global

20%to100%inshorttolongtermgovernmentbonds,0%to80%inshorttolongtermcorporatebonds

10. BEAMPFConservativeFund


Directinvestment

MoneyMarketFund–HongKong

100%inshort-termdepositsanddebtsecurities

11. BEACoreAccumulationFund


Feederfund MixedAssetsFund–Global–Maximum65%inHigherRiskAssets

55%to65%inHigherRiskAssetswiththeremainderinvestedinLowerRiskAssets

12. BEAAge65PlusFund


Feederfund MixedAssetsFund–Global–Maximum25%inHigherRiskAssets

15%to25%inHigherRiskAssetswiththeremainderinvestedinLowerRiskAssets

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3.3 Investment objectives and policies

EachConstituentFundhasaseparateanddistinctinvestmentobjectiveandpolicy,asdescribedinmoredetailbelow.

Investors should note that the statements of expected return for each Constituent Fund set out below represent the Investment Manager's expectations based on the Investment Manager's past experience. However, there is no guarantee that such returns will be achieved. In addition, the return of a Constituent Fund over the short term may be greater than or less than the return of a Constituent Fund over the long term, due to market fluctuations and other factors. The information in section (e) below is provided for reference only.

3.3.1 BEA Growth Fund

(a) Objective

To achieve long-term capital appreciationwithin a controlled risk/return frameworkthrough investingmainly in global equitieswith some exposure in global debtsecurities/moneymarketinstruments.

(b) Balance of investments

The BEAGrowth Fundwill invest primarily in global equity and bondmarkets. TheBEAGrowthFundwillinvestinarangeofAPIFsmanagedbytheInvestmentManagerto obtain exposure to suchmarkets, selected by the InvestmentManager havingregard to the investment objective and investment policy. The underlying assets oftheBEAGrowthFundareexpectednormally tobe invested60%to90% inequitiesand10%to40%incash,debtsecuritiesand/ormoneymarketinstruments.

(c) Security lending and repurchase agreements

The BEAGrowth Fundwill not engage in security lending andwill not enter intorepurchase agreements. The underlyingAPIFsmay, however, engage in securitylending.

(d) Futures and options

BoththeBEAGrowthFundandtheunderlyingAPIFswillenterintofinancialfuturesandoptionscontractsforhedgingpurposesonly.

(e) Risks

The BEAGrowth Fund is suitable for investorswho arewilling to assume a higherlevelofrisktoachievepotentiallyhigherlong-termreturns.TheInvestmentManagerexpectsthereturnoftheBEAGrowthFundoverthelongtermtoreflectmovementsintheglobalequitymarkets.

Theperformanceof theBEAGrowthFund is subject toanumberof risks, includingthefollowing:

• Chinamarketrisk• concentrationrisk• currencyrisk• emergingmarketrisk• counterpartyrisk• political,economicandsocialrisk• valuationandaccountingrisk• hedgingrisk

• equity investment risk and volatilityrisk

• creditriskandcreditratingrisk• interestratesrisk• market/liquidityrisk• Eurozonerisk• earlyterminationrisk• risksinrelationtofuturesandoptions

contracts• riskofinvestmentinEurope

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Please refer to the “4. RISKS” section for a detaileddescriptionof eachof the riskslistedabove.

3.3.2 BEA Balanced Fund

(a) Objective

To achieve a stable rate of returnwith an opportunity for capital appreciationthroughabalancedweightingofinvestmentsinglobalequitiesanddebtsecurities.


The BEA Balanced Fundwill invest primarily in global equity and bondmarkets.The BEA Balanced Fundwill invest in a range of APIFsmanaged by the InvestmentManager to obtain exposure to suchmarkets, selected by the InvestmentManagerhaving regard to the investment objective and investment policy. The underlyingassetsoftheBEABalancedFundareexpectednormallytobeinvested40%to60%inequitiesand40%to60%incash,debtsecuritiesand/ormoneymarketinstruments.


The BEA Balanced Fundwill not engage in security lending andwill not enter intorepurchase agreements. The underlyingAPIFsmay, however, engage in securitylending.


BoththeBEABalancedFundandtheunderlyingAPIFswillenterintofinancialfuturesandoptionscontractsforhedgingpurposesonly.

(e) Risks

The BEA Balanced Fund is suitable for investorswho arewilling to assume somedegreeofrisk.TheInvestmentManagerexpectsthereturnoftheBEABalancedFundoverthelongtermtoreflectarateofreturnbetweenthereturnsoftheBEAGrowthFund(reflectingmovementsoftheglobalequitymarkets)andtheBEAStableFund(areturnexpectedtoexceedtheHongKonginflationrate).

TheperformanceoftheBEABalancedFundissubjecttoanumberofrisks,includingthefollowing:






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3.3.3 BEA Stable Fund

(a) Objective

Tominimise short-term capital riskwithmodest capital growth over the long termthroughahigherweightingofinvestmentsinglobaldebtsecuritiestoprovidesteadyincome and a lower exposure to global equities to providemodest potential forcapitalappreciation.


TheBEAStableFundwillinvestprimarilyintheglobalequityandbondmarkets.TheBEAStableFundwill investinarangeofAPIFsmanagedbytheInvestmentManagerto obtain exposure to suchmarkets, selected by the InvestmentManager havingregard to the investment objective and investment policy. The underlying assets oftheBEAStableFundareexpectednormallytobeinvested10%to40%inequitiesand60%to90%incash,debtsecuritiesand/ormoneymarketinstruments.


The BEA Stable Fundwill not engage in security lending andwill not enter intorepurchase agreements. The underlyingAPIFsmay, however, engage in securitylending.


Both theBEA Stable Fundand theunderlyingAPIFswill enter into financial futuresandoptionscontractsforhedgingpurposesonly.

(e) Risks

TheBEAStableFundissuitablefor investorswhowantastablereturnwithreducedrisk throughdiversification. The InvestmentManager expects the return of the BEAStableFundoverthelongtermtoexceedtheHongKonginflationrate.

TheperformanceoftheBEAStableFundissubjecttoanumberofrisks,includingthefollowing:






3.3.4 BEA Global Equity Fund

(a) Objective

Toprovideinvestorswithlong-termcapitalgrowththroughinvestinginadiversifiedglobalportfolio.

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TheBEAGlobalEquityFundwillinvestdirectlyinasingleAPIF,namelytheBEAUnionInvestment Global Equity Fund (a sub-fund of the BEAUnion Investment CapitalGrowthFund),toobtainexposuretotheglobalequitymarkets.TheunderlyingAPIF'sportfoliowill primarily consist of global equity securities, including but not limitedto common stocks, preferred stocks, AmericanDepositary Receipts (“ADRs”), GlobalDepositary Receipts (“GDRs”), International Depositary Receipts (“IDRs”), approvedexchangetradedfunds(“ETFs”),warrants,ordebtsecuritiesconvertibleintocommonorpreferredstocks,orADRs,GDRsorIDRs,totheextentpermittedunderSchedule1totheGeneralRegulation.

Inmanaging the asset allocation of the underlyingAPIF's portfolio, themanagerof the underlyingAPIFwill from time to timemake reference to the geographicallocation by one ormore global stockmarket indexes. As an indication, thegeographicallocationoftheunderlyingAPIFisexpectedtobe:

UnitedStates – 0%-65%Europe – 0%-40%Others – 0%-50%

Please note that the above figures are for indicative purposes only. The actualallocationoftheunderlyingAPIF'sportfoliobetweencountriesandregionsmayvaryfromtimeto timeandmaybedifferent fromthatas shownaboveaccording to theperception of the underlyingAPIF'smanager of prevailing and anticipated globalmarketconditionsandwillbedecidedonthebasisofthemacro-economicanalysisoftheunderlyingAPIF'smanageroftheglobalmarketsandeconomicgrowth,inflationandinterestratetrends.

Normally not less than 70% of the underlying APIF's assetswill be invested inequities.Anyremainingassetsmaybeheldinmoneymarketinstruments,cashorcashequivalents. In times of extreme volatility of themarkets or during severe adversemarket conditions, the underlyingAPIFmay hold a substantial portion of its assetsinmoneymarket instruments, cashor cash equivalents to safeguard the investmentportfoliooftheAPIF.Upto10%oftheassetsoftheunderlyingAPIFmaybeinvestedinothersecurities(aspermittedunderSchedule1totheGeneralRegulation).

TheBEAGlobalEquityFundmayholdcashandbankdepositsforancillarypurposes,suchasformeetingredemptionrequestsordefrayingoperatingexpenses.

InvestmentManager,BEAUnionInvestmentManagementLimited,isalsothemanageroftheunderlyingAPIF.


The BEAGlobal Equity Fundwill not engage in security lending andwill not enterinto repurchase agreements. The underlyingAPIFmay, however, engage in securitylending.


TheBEAGlobalEquityFundwillnotenterintofinancialfuturesandoptionscontractsfor any purposes. Subject to the restrictions imposed by theMPFOrdinance, theunderlyingAPIFmay,however,enterintocurrencyforwardcontracts,financialfuturesand options contracts for hedging purposes to reduce risk and protect asset value,consistentwiththeinvestmentobjectiveoftheunderlyingAPIF.

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(e) Risks

The BEAGlobal Equity Fund is suitable for investorswho arewilling to assume ahigher level of risk to achieve potentially higher long-term returns. The InvestmentManager expects the return of the BEAGlobal Equity Fund over the long term toreflectmovementsintheglobalequitymarkets.

The performance of the BEAGlobal Equity Fund is subject to a number of risks,includingthefollowing:






3.3.5 BEA Asian Equity Fund

(a) Objective

To achieve long-term capital appreciationwithin a controlled risk/return frameworkthroughinvestingmainlyinAsian(ex-Japan)equities.


TheBEAAsianEquityFundwillinvestinarangeofAPIFsmanagedbytheInvestmentManager to obtain exposure to theAsian (ex-Japan) equitymarkets, selected bythe InvestmentManager having regard to the investment objective and investmentpolicy.Theunderlyingassetsof theBEAAsianEquityFundareexpectednormally tobe investedat least70% inequitiesof companies listed in theAsianequitymarkets(includingbutnotlimitedtoSingapore,Malaysia,Korea,Taiwan,Thailand,Indonesia,the Philippines, India, China andHong Kong, but excluding Japan) and up to 30%in cash, debt securities and/ormoneymarket instruments for cashmanagementpurposes.

TheBEAAsianEquity Fundmayhold cashandbankdeposits for ancillarypurposes,suchasformeetingredemptionrequestsordefrayingoperatingexpenses.


The BEAAsian Equity Fundwill not engage in security lending andwill not enterinto repurchase agreements. TheunderlyingAPIFsmay, however, engage in securitylending.


TheBEAAsianEquityFundandtheunderlyingAPIFswillenter intofinancialfuturesandoptionscontractsforhedgingpurposesonly.

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(e) Risks

TheBEAAsianEquityFundissuitableforinvestorswhoarewillingtoassumeahigherlevelofrisktoachievepotentiallyhigherlong-termreturns.TheInvestmentManagerexpects the return of the BEAAsian Equity Fund over the long term to reflectmovementsintheAsian(ex-Japan)equitymarkets.

The performance of the BEAAsian Equity Fund is subject to a number of risks,includingthefollowing:

• Chinamarketrisk• concentrationrisk• currencyrisk• emergingmarketrisk• counterpartyrisk• earlyterminationrisk• risksinrelationtofuturesand

optionscontracts

• equityinvestmentriskandvolatilityrisk

• creditriskandcreditratingrisk• interestratesrisk• market/liquidityrisk• political,economicandsocialrisk• valuationandaccountingrisk• hedgingrisk


3.3.6 BEA Greater China Equity Fund

(a) Objective

Toprovide investorswith long-termcapitalgrowththroughexposuretotheGreaterChinaequitymarkets.


The BEAGreater China Equity Fundwill invest directly in a single APIF, namely theBEAUnion Investment Greater ChinaGrowth Fund (a sub fund of the BEAUnionInvestment Capital Growth Fund) to obtain exposure to theGreater China equitymarkets.TheunderlyingAPIFwillinvestinadiversifiedportfolioprimarilyconsistingofsecuritiesthatareeither(a)listedinGreaterChinaor(b)issuedbycompaniesthatare incorporatedinGreaterChinaorcompanieswhichhavesignificantoperations inorderiveasignificantportionofrevenueorprofitsfromGreaterChina.Normallynotlessthan70%oftheassetsoftheunderlyingAPIFwillbeinvesteddirectlyinequities.Up to 10%of the assets of the underlyingAPIFmay be invested in other securities(aspermittedunderSchedule1totheGeneralRegulation),includingothercollectiveinvestmentschemes,ChinaA-sharesandChinaB-shares.Anyremainingassetsmaybeheld in cash or cash equivalents. In times of extreme volatility of themarkets orduringsevereadversemarketconditions,theunderlyingAPIFmayholdasubstantialportionofitsassetincashorcashequivalents,orinvestinshort-termmoneymarketinstrumentstosafeguardtheinvestmentportfoliooftheunderlyingAPIF.

The BEAGreater China Equity Fundmay hold cash and bank deposits for ancillarypurposes,suchasformeetingredemptionrequestsordefrayingoperatingexpenses.

The InvestmentManager, BEAUnion InvestmentMangagement Limited, is also themanageroftheunderlyingAPIF.


TheBEAGreaterChinaEquityFundwillnotengage in security lendingandwillnotenter into repurchase agreements. The underlyingAPIFmay, however, engage insecuritylending.

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TheBEAGreaterChinaEquityFundwillnotenter into financial futuresandoptionscontracts for any purposes. The underlyingAPIFmay, however, enter into financialfuturesandoptionscontractsforhedgingpurposes.

(e) Risks

TheBEAGreaterChinaEquityFundissuitableforinvestorswhoarewillingtoassumeahigherlevelofrisktoachievepotentiallyhigherlong-termreturns.TheInvestmentManagerexpectsthereturnoftheBEAGreaterChinaEquityFundoverthelongtermtoreflectmovementsintheGreaterChinaequitymarkets.

TheperformanceoftheBEAGreaterChinaEquityFundissubjecttoanumberofrisks,includingthefollowing:

• Chinamarketrisk• concentrationrisk• currencyrisk• emergingmarketrisk• counterpartyrisk• earlyterminationrisk• risksinrelationtofuturesand

optionscontracts


• creditriskandcreditratingrisk• interestratesrisk• market/liquidityrisk• political,economicandsocialrisk• valuationandaccountingrisk• hedgingrisk


3.3.7 BEA Greater China Tracker Fund

(a) Objective

Toprovide investment returns, before fees andexpenses, that closely correspond totheperformanceoftheFTSE®GreaterChinaHKDIndex.

(b) Balance of investment

The BEAGreater China Tracker Fundwill invest directly in a single approved ITCIS,namely the SPDR® FTSE® Greater China ETF (a sub-fund of the SPDR® ETFs). Theunderlying approved ITCIS aims to provide investment returns, before fees andexpenses, that closely correspond to the performance of the FTSE® Greater ChinaHKD Index. The FTSE® Greater ChinaHKD Index comprises of stocks listed in HongKong,Taiwan,Shanghai(ChinaB-sharesandwitheffectfrom23rdMarch,2020,ChinaA-shares), Shenzhen (China B-shares andwith effect from 23rdMarch, 2020, ChinaA-shares) and Singapore,where the Singapore listed stocks are classified as HongKongnationalityinaccordancewithFTSEnationalityrules.

The underlying approved ITCISmay receive other derivatives, such aswarrants oroptions,asaresultofcorporateactionfromunderlyinginvestments.

The BEAGreater China Tracker Fundmay hold cash and bank deposits for ancillarypurposes,suchasformeetingredemptionrequestsordefrayingoperatingexpenses.

Whilst the investment objective of the BEAGreater China Tracker Fund and theunderlyingapproved ITCIS is to track the FTSE®GreaterChinaHKD Index, there canbenoassurancethattheperformanceoftheBEAGreaterChinaTrackerFundandtheunderlyingapproved ITCISwillatany timebe identical to thatof theFTSE®GreaterChinaHKDIndex.Further informationontheFTSE®GreaterChinaHKDIndexcanbefoundintheAppendixtothisMPFSchemeBrochure.

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None of State Street Global Advisors Asia Limited (themanager of the underlyingapproved ITCIS) and State Street Trust (HK) Limited (the trustee of the underlyingapprovedITCIS)arerelatedtotheMasterTrustortheBEAGreaterChinaTrackerFundandnoneoftheseentitieswillhaveanyliabilityinconnectionwiththeMasterTrustortheBEAGreaterChinaTrackerFund.


The BEAGreater China Tracker Fund and the underlying approved ITCISwill notengageinsecuritylendingandwillnotenterintorepurchaseagreements.


TheBEAGreaterChinaTrackerFundwillnotenterintofinancialfuturesandoptionscontracts foranypurposes.However, theunderlyingapproved ITCISmayuse futurescontractslistedonfuturesexchangesinHongKong,TaiwanandSingapore.

(e) Risks

The BEAGreater China Tracker Fund is suitable for investorswho arewilling toassumeahigher levelof risk toachievepotentiallyhigher returnsover the short tomediumterm.The InvestmentManagerexpectsthereturnoftheBEAGreaterChinaTrackerFundtoreflectmovementsintheGreaterChinaequitymarketsovertheshorttomediumterm.

The performance of the BEAGreater China Tracker Fund is subject to a number ofrisks,includingthefollowing:

• Chinamarketrisk• concentrationrisk• emergingmarketrisk• counterpartyrisk• earlyterminationrisk• risksinrelationtofuturesand

optionscontracts• risksinrelationtoinvestmentsin

index-trackingfunds


• currencyrisk• market/liquidityrisk• political,economicandsocialrisk• valuationandaccountingrisk• hedgingrisk• risksassociatedwiththeBEAGreater

ChinaTrackerFund


3.3.8 BEA Hong Kong Tracker Fund

(a) Objective

ToprovideinvestmentreturnsthatcloselycorrespondtotheperformanceoftheHangSengIndex.


The BEAHong Kong Tracker Fundwill invest directly in a single approved ITCIS,namely the Tracker Fund of Hong Kong. The underlying approved ITCIS aims toprovide investment results that closely correspond to the performance of theHangSeng Index. There can, however, be no assurance that the performance of the BEAHong Kong Tracker Fund and the underlying approved ITCISwill at any time beidenticaltothatoftheHangSengIndex.FurtherinformationontheHangSengIndexcanbefoundintheAppendixtothisMPFSchemeBrochure.

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The BEAHong Kong Tracker Fundmay hold cash and bank deposits for ancillarypurposes,suchasformeetingredemptionrequestsordefrayingoperatingexpenses.

None of State Street Global Advisors Asia Limited (themanager of the underlyingapprovedITCIS),StateStreetBankandTrustCompany(thetrusteeoftheTrackerFundofHongKong),or thegovernmentofHongKongarerelatedtotheMasterTrustortheBEAHongKongTrackerFundandnoneoftheseentitieswillhaveanyliabilityinconnectionwiththeMasterTrustortheBEAHongKongTrackerFund.


TheBEAHongKongTrackerFundandtheunderlyingapprovedITCISwillnotengageinsecuritylendingandwillnotenterintorepurchaseagreements.


The BEAHong Kong Tracker Fundwill not enter into financial futures and optionscontracts foranypurposes.However, theunderlyingapproved ITCISmayuse futurescontractsandoptionsforhedgingpurposesortoachieveitsinvestmentobjective.

(e) Risks

TheBEAHongKongTrackerFundissuitablefor investorswhoarewillingtoassumeahigher levelofrisktoachievepotentiallyhigherreturnsovertheshorttomediumterm. The InvestmentManager expects the return of the BEAHong Kong TrackerFundtoreflectmovementsintheHongKongequitymarketovertheshorttomediumterm.

TheperformanceoftheBEAHongKongTrackerFundissubjecttoanumberofrisks,includingthefollowing:

• Equityinvestmentriskandvolatilityrisk

• currencyrisk• counterpartyrisk• earlyterminationrisk• risksinrelationtofuturesand

optionscontracts• risksinrelationtoinvestmentsin

index-trackingfunds

• concentrationrisk• market/liquidityrisk• political,economicandsocialrisk• valuationandaccountingrisk• hedgingrisk• risksassociatedwiththeBEAHong

KongTrackerFund


3.3.9 BEA Global Bond Fund

(a) Objective

To provide investorswith total investment return over themedium to long termthroughinvestingintoadiversifiedrangeofglobalbonds.


TheBEAGlobalBondFundwillinvestdirectlyinasingleAPIF,namelytheBEAUnionInvestment Global Bond Fund (a sub-fund of the BEAUnion Investment CapitalGrowth Fund) to obtain exposure to global bondmarkets. The underlyingAPIFwillinvestinadiversifiedrangeofglobalbondsdenominatedinvariousmajorcurrencies(including but not limited to, US dollars, Euro, Pounds Sterling, Japanese Yen andHK dollars). The underlyingAPIF’s assetswill normally be invested between 20% to

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100%inshorttolongtermgovernmentbondsand0%to80%inshorttolongtermcorporatebonds.Such investmentswillbemademainly intheUnitedStates,EuropeandAsia,butmayincludeothermarkets.

TheBEAGlobal Bond Fundmayhold cash andbankdeposits for ancillarypurposes,suchasformeetingredemptionrequestsordefrayingoperatingexpenses.

The InvestmentManager, BEAUnion InvestmentManagement Limited, is also themanageroftheunderlyingAPIF.


The BEAGlobal Bond Fundwill not engage in security lending andwill not enterinto repurchase agreements. The underlyingAPIF, however,may engage in securitylending.


TheBEAGlobalBondFundwillnotenterintofinancialfuturesandoptionscontractsfor any purposes. The underlyingAPIF, however,may enter into financial futurescontractsforhedgingpurposes.

(e) Risks

TheBEAGlobalBondFundissuitableforinvestorswhoarewillingtoassumealowerlevelof risk toachievepotentially stable returnover themediumto long term.TheInvestmentManagerexpects the returnof theBEAGlobalBondFundover the longtermtoreflectmovementsintheglobalbondmarkets.

The performance of the BEAGlobal Bond Fund is subject to a number of risks,includingthefollowing:

• Chinamarketrisk• creditriskandcreditratingrisk• interestratesrisk• market/liquidityrisk• Eurozonerisk• earlyterminationrisk• risksinrelationtofuturesand

optionscontracts• riskofinvestmentinEurope

• concentrationrisk• currencyrisk• emergingmarketrisk• counterpartyrisk• political,economicandsocialrisk• valuationandaccountingrisk• hedgingrisk


3.3.10 BEA MPF Conservative Fund

(a) Objective

To achieve aminimum rate of returnwhilemaintaining stability of the principalamountinvested.


The BEAMPF Conservative Fundwill solely invest in HK dollar-denominatedinstruments, namely, short-term deposits and debt securities issued by banks,corporationsandgovernmentsandsuchinstrumentswillsatisfytherequirementssetoutinsection37oftheGeneralRegulation.

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Note:FeesandchargesofanMPFconservativefundcanbedeductedfromeither (i)theassetsof such fundor (ii)Member’s accountbywayofunitdeduction. TheBEAMPF Conservative Fund usesmethod (ii) and, therefore, unit prices, NAV and fundperformancequoted(exceptforthefundperformancefiguresquoted inafundfactsheet)donotreflecttheimpactoffeesandcharges.


TheBEAMPFConservativeFundwillnotengageinsecuritylendingandwillnotenterintorepurchaseagreements.


The BEAMPF Conservative Fundwill not enter into financial futures and optionscontractsforanypurposes.

(e) Risks

Investment in the BEAMPF Conservative Fund is not equivalent to placing fundson deposit. AMember’s rights to accrued benefits in respect of anyUnits held forthe account of theMember in the BEAMPF Conservative Fund are limited to therealisationpriceof suchUnitsat the relevant time,whichmaybemoreor less thanthe price atwhich suchUnitswere issued. The BEAMPF Conservative Fund is notsubjecttothesupervisionoftheHongKongMonetaryAuthority.

TheBEAMPFConservativeFund isdesignedforconservative investorswithvery lowcapitalrisk.TheInvestmentManagerexpectsthereturnoftheBEAMPFConservativeFundoverthelongtermtobeinlinewiththeinterestratepayablefromtimetotimebymajorbanksinHongKongonHKdollarsavingsaccounts.

Theperformanceof theBEAMPFConservative Fund is subject toanumberof risks,includingthefollowing:

• Chinamarketrisk • concentrationrisk• creditriskandcreditratingrisk • interestratesrisk• emergingmarketrisk • market/liquidityrisk• counterpartyrisk • Eurozonerisk• political,economicandsocialrisk • earlyterminationrisk• valuationandaccountingrisk • riskofinvestmentinEurope


3.3.11 BEA Core Accumulation Fund

(a) Objective

Toprovidecapitalgrowthbyinvestinginagloballydiversifiedmanner.


TheBEACoreAccumulationFundwill invest ina singleAPIF,namely theBEAUnionInvestmentCoreAccumulationFundundertheBEAUnionInvestmentCapitalGrowthFund,which in turn invests in twoAPIFs as allowed under theGeneral Regulation.The investmentmanagerof theBEAUnion InvestmentCoreAccumulationFundwillfrom time to time rebalance the allocation between the twoAPIFs. Please refer tothefollowingproductstructuralchartillustratingthefundstructureoftheBEACoreAccumulationFund:

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Constituent fund level

Feeder fund

BEA Union Investment Core

Accumulation Fund

BEA Core Accumulation Fund

Underlying Investment Fund Level

BEA Union Investment Capital Growth Fund

APIF1 Level

APIF2 Level

Investment manager: BEA Union Investment Management Limited

Approved PooledInvestment Fund




Subject to the discretion of the investmentmanager of the BEAUnion InvestmentCoreAccumulationFundandthroughanactiveassetallocationstrategy investing inthe twoAPIFs (which in turn adopt relevant active investment strategy in selectingparticularglobalequitiesorglobalbonds),theBEACoreAccumulationFundwillholdaround60%of itsNAV inHigherRiskAssets,withtheremainder investing inLowerRisk Assets. The asset allocation toHigher Risk Assetsmay vary between 55% and65%due to differing pricemovements of various equity and bondmarkets. Thereis no prescribed allocation for investments in any specific countries or currencies.ThroughtheBEACoreAccumulationFund’s investmentintheBEAUnionInvestmentCoreAccumulation Fund, at least 30%of the assets of the BEA CoreAccumulationFundwillbeheldinHKdollarcurrencyinvestmentsasmeasuredbyeffectivecurrencyexposure(determinedinaccordancewithSchedule1totheGeneralRegulation).

The BEA CoreAccumulation Fund adopts an active investment strategy.With thisstrategy, the investmentmanager of the BEAUnion Investment CoreAccumulationFundmayallocatetheassetsamongthetwounderlyingAPIF(s)atitsdiscretion.



The BEA CoreAccumulation Fundwill not engage in security lending andwill notenter into repurchase agreements. The BEAUnion Investment CoreAccumulationFundwillnotinvestinanystructureddepositsorproducts,andwillnotenterintoanysecuritylending,repurchasetransactionsorothersimilartransactions.


The BEA CoreAccumulation Fundwill not enter into currency forward contracts,financial futures and options contracts for any purposes. However, the BEAUnionInvestment CoreAccumulation Fundmay enter into currency forward contracts,financial futures and options contracts for hedging purposes to reduce risk andprotect asset value, consistentwith the investment objective of the BEAUnionInvestmentCoreAccumulationFund.

(e) Risks

Investors should regard the BEA CoreAccumulation Fund as amedium-to-high-riskinvestment. The Sponsor and the Trustee,with the opinion from the InvestmentManagerdeterminestheriskprofileoftheBEACoreAccumulationFund,whichisforyour reference only. The risk profile is basedon relative exposure to equities/bondsandwill be reviewed semi-annually. The InvestmentManager expects the return oftheBEACoreAccumulationFundover the long termto reflectmovementsbetweenthe global equitymarket and global bondmarket,with an emphasis on the assetallocation applicable to the BEA CoreAccumulation Fund, targeting to outperform

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the Reference Portfolio (as defined in the “6.3.3MPFDefault Investment Strategy”sub-sectionunderthe“6.ADMINISTRATIVEPROCEDURES”section).

TheperformanceoftheBEACoreAccumulationFundissubjecttoanumberofrisks,includingthefollowing:

• Chinamarketrisk• concentrationrisk• currencyrisk• emergingmarketrisk• counterpartyrisk• political,economicandsocialrisk• valuationandaccountingrisk• hedgingrisk• riskofinvestmentinEurope



contracts• principalrisksofinvestingintheDIS


3.3.12 BEA Age 65 Plus Fund

(a) Objective

Toprovidestablegrowthbyinvestinginagloballydiversifiedmanner.


The BEA Age 65 Plus Fundwill invest in a single APIF, namely the BEA UnionInvestmentAge65PlusFundundertheBEAUnion InvestmentCapitalGrowthFund,which in turn invests in twoAPIFs as allowed under theGeneral Regulation. TheinvestmentmanageroftheBEAUnionInvestmentAge65PlusFundwillfromtimetotime rebalance the allocation between the twoAPIFs. Please refer to the followingproductstructuralchartillustratingthefundstructureoftheBEAAge65PlusFund:

Constituent fund level

Feeder fund

BEA Union Investment Age 65 Plus Fund

BEA Age 65 Plus Fund

Underlying Investment Fund Level

BEA Union Investment Capital Growth Fund

APIF1 Level

APIF2 Level






Subject to the discretion of the investmentmanager of the BEAUnion InvestmentAge65PlusFundandthroughanactiveassetallocationstrategyinvestinginthetwoAPIFs (which inturnadoptrelevantactive investmentstrategy inselectingparticularglobal equities or global bonds), the BEAAge 65 Plus Fundwill hold around 20%of itsNAV inHigher RiskAssets,with the remainder investing in Lower RiskAssets.The asset allocation toHigher Risk Assetsmay vary between 15% and 25%due todifferingpricemovementsofvariousequityandbondmarkets.Thereisnoprescribedallocation for investments in any specific countries or currencies. Through the BEAAge 65 Plus Fund’s investment in the BEAUnion Investment Age 65 Plus Fund, atleast30%oftheassetsoftheBEAAge65PlusFundwillbeheldinHKdollarcurrencyinvestments asmeasured by effective currency exposure (determined in accordancewithSchedule1totheGeneralRegulation).

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The BEAAge 65 Plus Fund adopts an active investment strategy.With this strategy,theinvestmentmanageroftheBEAUnionInvestmentAge65PlusFundmayallocatetheassetsamongthetwounderlyingAPIF(s)atitsdiscretion.



TheBEAAge65PlusFundwillnotengageinsecuritylendingandwillnotenterintorepurchaseagreements. TheBEAUnion InvestmentAge65Plus Fundwillnot investin any structureddeposits or products, andwill not enter into any security lending,repurchasetransactionsorothersimilartransactions.


The BEAAge 65 Plus Fundwill not enter into currency forward contracts, financialfuturesandoptions contracts foranypurposes.However, theBEAUnion InvestmentAge 65 Plus Fundmay enter into currency forward contracts, financial futures andoptions contracts for hedging purposes to reduce risk and protect asset value,consistentwith the investment objective of the BEAUnion Investment Age 65 PlusFund.

(e) Risks

Dueto its investmentsmainly inLowerRiskAssets (suchasglobalbondsandmoneymarket instruments), investors should regard theBEAAge65Plus Fundasa low-to-medium-risk investment. The Sponsor and the Trustee,with the opinion from theInvestmentManager,determine the riskprofileof theBEAAge65Plus Fund,whichis for your reference only. The risk profile is based on relative exposure to equitiesand/or bonds andwill be reviewed semi-annually. The InvestmentManager expectsthe return of the BEAAge 65 Plus Fund over the long term to reflectmovementsbetweentheglobalequitymarketandglobalbondmarket,withanemphasisontheassetallocationapplicabletotheBEAAge65PlusFund,targetingtooutperformtheReferencePortfolio(asdefinedinthe“6.3.3MPFDefault InvestmentStrategy”sub-sectionunderthe“6.ADMINISTRATIVEPROCEDURES”section).

The performance of the BEAAge 65 Plus Fund is subject to a number of risks,includingthefollowing:

• Chinamarketrisk• concentrationrisk• currencyrisk• emergingmarketrisk• counterpartyrisk• political,economicandsocialrisk• valuationandaccountingrisk• hedgingrisk• riskofinvestmentinEurope



contracts• principalrisksofinvestingintheDIS


Note:UnlessotherwiseagreedwiththeSFCandtheMPFA,theTrusteewillgivenot lessthanonemonth’swrittennoticeofanychange inthe investmentobjectivesandpoliciesofaConstituentFundtoMembersandtoparticipatingemployers.

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3.4 Currency exposure

Each Constituent Fund is unitised and denominated in HK dollars. The BEAMPFConservative Fundwillmaintain an effective currency exposure to HK dollars of 100%.TheotherConstituentFundswillmaintainaneffectivecurrencyexposuretoHKdollarsofnotlessthan30%.

3.5 Investment and borrowing restrictions

EachConstituentFundissubjecttotheinvestmentandborrowingrestrictionsintheMPFOrdinance(assetout inSchedule1totheGeneralRegulation), theMPFGuidelines,andtheMPFA's Code onMPF Investment Funds. The investment and borrowing restrictionsapplicabletoeachConstituentFundaredescribedbelow:

3.5.1 BEA MPF Conservative Fund

TheBEAMPFConservativeFundissubjecttotheinvestmentrestrictionsapplicabletoMPFconservativefundspursuanttotheMPFOrdinance(assetoutinsection37andSchedule1totheGeneralRegulation),theMPFGuidelinesandtheMPFA'sCodeonMPFInvestmentFunds.

3.5.2 BEA Greater China Tracker Fund and BEA Hong Kong Tracker Fund

Each of the BEAGreater China Tracker Fund and the BEAHongKong Tracker Fund is afeederfundwhichinvestsinasingleapprovedITCIS(asreferredtointhe“3.3Investmentobjectives and policies” sub-section above). Each underlying approved ITCIS has beenapproved by theMPFApursuant to theMPFOrdinance (as set out in Schedule 1 to theGeneralRegulation),theMPFGuidelinesandtheMPFA'sCodeonMPFInvestmentFunds.

3.5.3 Portfolio management funds

Eachof the Constituent Funds in the formof portfoliomanagement funds is subject tothefollowinginvestmentrestrictions:

(a) therelevantConstituentFundmayonlyinvestinAPIFsandapprovedITCISs;

(b) therelevantConstituentFundmustinvestinnotlessthantwoAPIFsand/orapprovedITCISs;

(c) no investmentmay bemade for the account of the relevant Constituent Fund if asa result the valueof thatConstituent Fund’sholdingof interests inanyoneAPIForapprovedITCISwouldexceed90%oftheNAVofthatConstituentFund;and

(d) theInvestmentManagermayenterintocurrencyforwardcontracts,futurescontractsandoptions contracts for the account of the relevant Constituent Fund for hedgingpurposesonly.

Each APIF inwhich the Constituent Funds invest is subject to the investment andborrowing restrictions applicable toAPIFs as set out in theMPFOrdinance, theGeneralRegulation,theMPFGuidelines,andtheMPFA’sCodeonMPFInvestmentFunds.

3.5.4 Investment restrictions

The InvestmentManager currently does not intend to enter into any repurchaseagreements in respect of any Constituent Fund. Please refer to the “3.3 Investmentobjectivesandpolicies”sub-sectionabove.

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3.5.5 Borrowing restrictions

TheTrusteemayborrowfor theaccountofeachConstituentFundfor liquiditypurposestomeetaccruedbenefitpaymentsandforother limitedpurposesaspermittedpursuantto theMPFOrdinance (as set out in Schedule 1 to theGeneral Regulation), theMPFGuidelines and theMPFA's Code onMPF Investment Funds. The assets of the relevantConstituentFundmaybechargedorpledgedassecurityforanysuchborrowings.

3.6 Consequences of exceeding the investment limit

TheInvestmentManagerisnotimmediatelyrequiredtosellapplicableinvestmentsifanyof the investment limit is exceededas a result of changes in the valueof a ConstituentFund’s investments, reconstructions or amalgamations, payments out of the assets ofthe Constituent Fund or realisations of Units. For so long as such limits are exceeded,the InvestmentManagerwillnotacquireanyfurther investmentssubjecttotherelevantrestrictionandwillasapriorityobjectivetakeallreasonablestepstorestorethepositionso that the limits areno longer exceeded, at all timeshaving regard to the interestsofMembers.

3.7 Establishment, termination, merger and division of Constituent Funds

TheTrusteemay,with the consentof theSponsor,establishnewConstituentFunds.TheTrusteewillnotifyparticipatingemployersandMemberswhereanewConstituentFundisestablished.

AConstituentFundwhichisafeederfundshallterminateontheterminationoftheAPIFor the approved ITCIS inwhich such Constituent Fund invests unless the TrusteewiththeconsentoftheSponsorand(ifrequired)theapprovaloftheMPFAandtheSFCshalldeterminethatsuchConstituentFundshallinvestinsomeotherAPIForapprovedITCIS.

The Trusteemay,with the consent of the Sponsor, terminate a Constituent Fund ongivingnotlessthanonemonth’snoticetoeachMemberandeachparticipatingemployer(or such other period of notice as theMPFA or the SFCmay require). If a ConstituentFund is terminated,contributionswillceasetobe invested insuchConstituentFundandaccruedbenefitsinsuchConstituentFundmustbeswitched(freeofcharge)intoanotherConstituent Fund chosenby the relevantMember. If the relevantMember fails tomakea choicewhen requested to do so, theMember’s accrued benefits in the terminatingConstituentFundwillbeswitchedintotheDISandfuturecontributionsbyoronbehalfoftheMemberwhichwouldotherwisebeinvestedintheterminatingConstituentFundwillbeinvestedintheDIS.

Subject to the prior approval of theMPFA and the SFC, the Trusteemaywith the priorapproval of the Sponsor, from time to timemerge or subdivide any Constituent Fundby giving not less than onemonth’swritten notice (or such other period of notice astheMPFA and the SFCmay agree or require) to each participating employer and eachMember.

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4. RISKS

4.1 Risk categories

The Constituent Funds arenot guaranteed and accordingly are subject tomarketfluctuations and to the risks inherent in all investments. Investment involves risks. ThepriceofUnitsofanyConstituentFundandtheincomefromthemmaygodownaswellasup.AllmajorrisksassociatedwithinvestingintheConstituentFundsarediscussedbelow.

Information about the latest risk class of each Constituent Fund under the Master Trust is available in the latest fund fact sheet of the Master Trust and the following website: http://www.hkbea.com.

4.2 Risk factors

4.2.1 China market risk

A Constituent Fund or its underlying fund(s)may invest in securities of companies thataredomiciledorconducta significantportionof theirbusinessactivities in,orderiveorareexpectedtoderiveasignificantportionoftheir revenuesfrom,China.TotheextentthatsuchConstituentFundoritsunderlyingfund(s)hasexposuretosuchcompanies,thevalue of the assets of such Constituent Fund or its underlying fund(s)may be affectedby political, legal, economic and fiscal uncertaintieswithin China. Existing laws andregulationsmaynotbeconsistentlyapplied.

Since 1978, theChinesegovernmenthas implementedeconomic reformmeasureswhichemphasise decentralisation on and the utilisation ofmarket forces in the developmentof theChineseeconomy.Suchreformshave resulted in significanteconomicgrowthandsocialprogress.Manyofthereformsareunprecedentedorexperimentalandareexpectedto be refined or changed.Other political, economic and social factors could also leadto further readjustments to the reformmeasures. The operations and financial resultsof the companies that a Constituent Fund or its underlying fund(s) invests in could beadversely affected by adjustments in Chinese state plans, political, economic and socialconditions,changesinthepoliciesoftheChinesegovernmentsuchaschangesinlawsandregulations(ortheinterpretationthereof),measureswhichmaybeintroducedtocontrolinflation,changesintherateormethodoftaxation,impositionofadditionalrestrictionson currency conversion and the imposition of additional import restrictions. ThismayadverselyaffecttheperformanceoftherelevantConstituentFund.

Thetransformationfromacentrallyplanned,socialisteconomytoamoremarket-orientedeconomyhasresultedinmanyeconomicandsocialdisruptionsanddistortions.Moreover,therecanbenoassurancethattheeconomicandpoliticalinitiativesnecessarytoachieveand sustain such a transformationwill continue or, if such initiatives continue and aresustained, that theywill be successful. In the past the Chinese government has appliednationalisation, expropriation, confiscatory levels of taxation and currency blockage.AnychangesinthesepoliciesandregulationsmayadverselyimpactonthecompaniesorsecuritiesinwhichtherelevantConstituentFundoritsunderlyingfund(s)investsin.

Accounting,auditingandfinancialreportingstandardsinChinamaynotbeequivalenttostandardsapplicableinHongKongorinotherdevelopedcountries.Asaresult,thelowerlevelsofdisclosureand transparencyof certainmaterial informationmay impacton thevalue of investmentsmade by the relevant Constituent Fund or its underlying fund(s).This,ifcombinedwithaweakregulatoryenvironment,couldresultinlowerstandardsofcorporategovernanceandlessprotectionofminorityshareholderrightsofthecompaniesinwhichtherelevantConstituentFundoritsunderlyingfund(s)invest.

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4.2.2 Equity investment risk and volatility risk

AConstituent Fundor its underlying fund(s)may invest directly or indirectly in equitiesandarethussubjecttotherisksgenerallyassociatedwithequityinvestment,namely,themarketvalueofthestocksmaygodownaswellasup.Factorsaffectingthestockvaluesare numerous, including but not limited to changes in investment sentiment, politicalenvironment, economic environment, issuer-specific factors such as issuers’ financialsoundnessandissuers’financialstatementsaswellasthebusinessandsocialconditionsinlocalandglobalmarketplace.

Securities exchanges typically have the right to suspend or limit trading in any securitytraded on the relevant exchange; a suspensionwill render it impossible to liquidatepositionsandcantherebyexposetheConstituentFundsoritsunderlyingfund(s)tolosses.

The fundamental risk associatedwith any equity portfolio is the risk that the value oftheinvestmentsitholdsmightunexpectedlyandsharplydecreaseinvalue.Whereequitymarkets are extremely volatile, theNAV of a Constituent Fund and/or its underlyingfund(s)mayfluctuatesubstantiallyandMembersmaysuffersubstantialloss.

4.2.3 Concentration risk

Some of the Constituent Funds or their underlying fund(s)may invest only in a specificcountry or region. Their portfoliosmay not bewell diversified in terms of the numberof holdings. Investors should be aware that such Constituent Funds or their underlyingfund(s)arelikelytobemorevolatilethanabroad-basedfund,suchasaglobalorregionalequity fund,as theyaremore susceptible to fluctuations in value resulting from limitednumberofholdingsoradverseconditionsintheirrespectivecountries.

4.2.4 Credit risk and credit rating risk

ThevalueofaConstituentFundmaybeaffected ifanyofthefinancial institutionswithwhich the cashof theConstituent Fund is investedordeposited,or a counterpartyof aConstituentFundoritsunderlyingfund(s),suffersinsolvencyorotherfinancialdifficulties.This risk isminimised to the extent that the exposure to any one institution is limitedunderSchedule1totheGeneralRegulation.

A Constituent Fund or its underlying fund(s)may invest directly or indirectly in bonds,fixed interest securities or other debt securities and therefore are subject to credit risk(i.e.theriskthatanissuerofsecuritieswillbeunabletopayprincipalandinterestwhendue,or that the valueof a securitywill fall because themarketbelieves that the issueris less able to pay). If the issuer defaults, the performance of a Constituent Fund or itsunderlying fund(s) can be adversely affected as the Constituent Fund or its underlyingfund(s)maybeunabletorecoveranyamountduefromtheissuer.

ThisisbroadlygaugedbythecreditratingsofthesecuritiesinwhichaConstituentFundor its underlying fund(s) invest. The credit ratings of fixed income securities by creditrating agencies are a generally accepted barometer of credit risk. Credit ratings arehowever subject to certain limitations andmay not always be an accurate or reliablemeasure of the creditworthiness of the debt securities being invested in. For example,theratingofanissuerisheavilyweightedbypastdevelopmentsanddoesnotnecessarilyreflect probable future conditions. There is often a time lag in updating the creditratingsinresponsetorecentcreditevents.Wheresuchcreditratingsproveinaccurateorunreliable,lossesmaybeincurredbytheConstituentFundoritsunderlyingfund(s).

Further, thecredit ratingof thedebtsecuritydirectlyor indirectlyheldbyaConstituentFund or its underlying fund(s)may be downgraded. In the event of downgradingin the credit ratings of a security or an issuer relating to a security, the value of therelevant debt securitymay decline rapidlywhichmay surpass those caused by generalmarket fluctuations. A lowering of the credit rating of a debt securitymay also

24

adversely affect the debt security’s liquidity,making itmore difficult to sell. Thus, thevalue of a Constituent Fund or its underlying fund(s)may be adversely affected. TheInvestmentManager and/or themanager(s) of the underlying fund(s)may be requiredtodisposeof the securities beingdowngradedat anundesirableprice inorder tomeetthe requirements under Schedule 1 to theGeneral Regulation and/or the investmentobjectives of the relevant Constituent Fund(s) or underlying fund(s),whichmay reducethevalueoftherelevantConstituentFund.

4.2.5 Currency risk

A Constituent Fund or its underlying fund(s) that invests in securities denominatedin currencies other than the Constituent Fund’s base currency (i.e. HK dollars)maybe exposed to currency exchange risk. Fluctuations in exchange rates between thesecurrencies and the base currencymay cause the value of such securities in terms of thebasecurrencytodiminishorincrease.IfthecurrencyinwhichaConstituentFund’soritsunderlyingfund(s)portfoliosecurityisdenominateddepreciatesagainstthebasecurrencyof theConstituent Fund’sor itsunderlying fund(s), the valueof the security in termsofthe base currencywill decrease and theNAV of the Constituent Fund or its underlyingfund(s)willbeaffectedunfavourably.

4.2.6 Interest rates risk

Thepricesofdebt securities tend tovary inverselywithmarket interest rates.Thevalueof such securities is likely to decline in times of rising interest rates. Conversely,whenratesfall,thevalueoftheseinvestmentsislikelytorise.Thelongerthetimetomaturitythe greater such variations. To the extent a Constituent Fund or its underlying fund(s)hold long-termdebt securities, its respectiveNAVwillbe subject toagreaterdegreeoffluctuationthanifithelddebtsecuritiesofashorterduration.

4.2.7 Emerging market risk

VariouscountriesinwhichcertainConstituentFundsortheirunderlyingfundswillinvestare considered as emergingmarkets. As emergingmarkets tend to bemore volatilethandevelopedmarkets,anyholdings inemergingmarketsareexposedtohigher levelsofmarket risk. The securitiesmarkets of some of the emerging countries are not yetfully developedwhichmay, in some circumstances, lead to a potential lack of liquidity.Accounting,auditingandfinancialreportingstandardsinsomeoftheemergingmarketsmaybelessvigorousthaninternationalstandards.Asaresult,certainmaterialdisclosuresmaynotbemadeby somecompanies. Inmanycases,governmentsofemergingmarketsretain a high degree of direct control over the economy andmay take actions havingsudden andwidespread effects such as suspension of trade andmoratoriumwhichmayaffectvaluationofassets. Investments inproductsofemergingmarketmayalsobecomeilliquidwhichmayconstraintheInvestmentManager’sabilitytorealisesomeoralloftheportfolioandthusaffecttherepatriationofcapital.

Further, allmarkets are subject to volatility based on prevailing economic conditions.Securities in “emerging” or “developing”marketsmay involve a higher degree of riskduetothesmallcurrentsizeofthemarketsforsecuritiesof“emerging”or“developing”market issuers and the currently low or non-existent volume of trading,which couldresultinpricevolatility.Certaineconomicandpoliticaleventsinemergingordevelopingeconomies,includingchangesinforeignexchangepoliciesandcurrentaccountpositions,couldalsocausegreatervolatilityinexchangerates.

Market practices in certain emergingmarkets in relation to the settlement of securitiestransactions and custody of assetsmay increase the risk of settlement default. Theclearing, settlement and registration systems available to effect trades on emergingmarketsmay be significantly less developed than those inmorematureworldmarketswhich can result in delays and othermaterial difficulties in settling trades and inregistering transfers of securities. Such delays could result in substantial losses for a

25

Constituent Fund or its underlying fund(s) if investment opportunities aremissed or ifthey are unable to acquire or dispose of securities as a result. Therefore, problems ofsettlementinthesemarketsmayaffectthevalueofaConstituentFundoritsunderlyingfund(s).

4.2.8 Market/liquidity risk

Weak financial and credit conditionsmay have a negative impact on the equitiesmarkets resulting in increased volatility. Investors should note that a Constituent Fundor its underlying fund(s) that invests in equitieswill be subject tomarket/liquidity risk.Investment expectationsmay therefore fail to be realised in such instances. This risk isminimisedtotheextentthat investment inequitiesandothersecurities issubjecttothediversification requirements of Schedule 1 to theGeneral Regulation, underwhich theinvestmentofaConstituentFund is limited to10%of sharesofaparticular class issuedbyany issuerandany investment representingnotmore than10%of totalNAVof suchConstituentFundissuedbyanyoneissuer.

Further, a Constituent Fund or its underlying fund(s)may encounter difficulties indisposingofassetsattheirfairpriceduetoadversemarketconditionsleadingtolimitedliquidity.

4.2.9 Counterparty risk

Counterparty risk involves the risk that a counterparty or third partywill not fulfil itsobligations to a Constituent Fund or its underlying fund(s). A Constituent Fundmaybe exposed to the risk of a counterparty through investments such as bonds, deposits,financial futures and options contracts. To the extent that a counterparty defaults onits obligations and a Constituent Fund or its underlying fund(s) is delayed in exercisingor prevented from exercising their respective rightswith respect to the investment intheir respective portfolio, theNAV of a Constituent Fund or its underlying fund(s)maybe adversely affected due to a decline in the value of the security, loss of income andincurringcostsassociatedwiththeirrespectiverightsattachedtothesecurity.

4.2.10 Eurozone risk

TheperformanceofaConstituentFundor itsunderlyingfund(s) that invest(s) inEuropewill be affected by the economic, political, regulatory, geopolitical,market, currencyor other conditions in the region. In particular, for the exit of EUmembers fromthe Eurozone such as Brexit and the ongoing concerns on the sovereign debt risk ofcertain countrieswithin the Eurozone, the investments in the regionmay be subject tohigher volatility, liquidity, currency and default risks. Any adverse event, such as creditdowngradeofa sovereign,mayhaveanegative impacton thevalueof theConstituentFundoritsunderlyingfund(s).

4.2.11 Political, economic and social risk

The performance of a Constituent Fund or its underlying fund(s) and its ability topay redemption proceedsmay be affected by changes in economic conditions anduncertainties such as change in political conditions including strikes and curfew andgovernment policies, terrorist activities, the imposition of restrictions on the transferof capital and changes in laws or regulatory requirements. For example, in respect ofthe investments in securities issuedorguaranteedbygovernments, inadverse situation,the sovereign issuersmay not be able orwilling to repay the principal and/or interestwhen due ormay request the Constituent Fund or its underlying fund(s) to participatein restructuring such debts. The Constituent Fund or its underlying fund(s)may suffersignificantlosseswhenthereisadefaultofsovereigndebtissuers.

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4.2.12 Early termination risk

TheTrusteemay,withtheconsentoftheSponsor,terminateaConstituentFundongivingnotlessthanonemonth’swrittennoticetoeachMemberandeachparticipatingemployer(orsuchotherperiodofnoticeastheMPFAortheSFCmayrequire).

If a Constituent Fund is terminated, contributionswill cease to be invested in suchConstituent Fund and accrued benefits in such Constituent Fundmust be transferred(freeofcharge)intoanotherConstituentFundchosenbytherelevantMember.Membersshouldnote that suchamount tobe transferred from the terminatingConstituent Fundmaybelessthantheamountcontributedbythem.

Further, theMaster Trustmay bewound up by the court in accordancewith theMPFOrdinanceonapplicationby theMPFA to the court.TheTrustee shallgivenot less thanonemonth’swritten notice (or such other period as theMPFA or the SFCmay agreeor require) to participating employers andMembers of the termination of theMasterTrust and arrangementswill bemade for the transfer ofMembers’ accrued benefits intheMaster Trust to another registered scheme.Members should note that the accruedbenefits to be transferred to another registered schememay be less than the amountcontributedbythem.

For further details, please refer to the “3.7 Establishment, termination,merger anddivision of Constituent Funds” sub-section under the “3. FUNDOPTIONS, INVESTMENTOBJECTIVESANDPOLICIES”sectionaboveandthe“7.6Termination,mergerordivisionofMasterTrust”sub-sectionunderthe“7.OTHERINFORMATION”sectionbelow.

4.2.13 Valuation and accounting risk

Each Constituent Fund or its underlying fund(s) intend to adopt Hong Kong FinancialReporting Standard (“HKFRS”) in drawing up its annual accounts. However,Membersshouldnote thateachConstituentFundor itsunderlying fund(s) intend toamortise thepreliminaryexpensesandcostsoftheConstituentFundoritsunderlyingfund(s)overthefirstfivefinancialperiodsofthefundcommencingonthecloseoftheinitialofferperiodoroversuchotherperiodas theTrusteeshallconsiderfair.Thispolicyofamortisation isnotinaccordancewithHKFRSandmayaccordinglyresultineitheradifferentNAVbeingreflectedintheannualauditedaccountsortheauditorsqualifyingtheConstituentFund’saccounts. However, the Trustee believes that the policy of capitalising and amortisingpreliminarycostsisfairerandmoreequitabletotheinitialMembers.

Valuation of the Constituent Fund’s or its underlying fund(s)’ investmentmay involveuncertainties and judgmental determinations. For example, securities held by theConstituentFundoritsunderlyingfund(s)maysubsequentlybecomeilliquidduetoeventsrelating to the issuer of the securities,market and economic conditions and regulatorysanctions. Themarket value of such securitiesmay becomemore difficult or impossibletoascertain.Underthiscircumstance, the InvestmentManagermay, inconsultationwiththe Trustee, apply valuationmethods to ascertain the fair value of such securities inaccordancewiththeTrustDeed.Ifsuchvaluationturnsouttobeincorrect,thismayaffecttheNAVcalculationoftheConstituentFundoritsunderlyingfund(s).

4.2.14 Risk in relation to futures and options contracts

Some of the Constituent Fundsmay use futures and options contracts for hedgingpurposes.Thevalueorreturnofthesetypesof instruments isbasedontheperformanceof an underlying asset. These instrumentsmay be volatile and involve various risks,includingmarketrisk, theriskof lackofcorrelationor leverageeffect, liquidityrisk, theriskofnon-performancebythecounterparty.

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4.2.15 Hedging risk

The InvestmentManagermay acquire financial futures contracts and financial optionscontracts for hedging purposes. The InvestmentManager is permitted, but not obliged,to use hedging techniques to attempt to offset currency andmarket risks. There is noguarantee that hedging techniqueswill achieve their desired result. If the techniquesandinstrumentsemployedbytheInvestmentManagerareincorrect,orthecounterpartyforsuchinstrumentsdefault,therelevantConstituentFundoritsunderlyingfund(s)maysufferasubstantialloss.

4.2.16 Risk in relation to investments in index-tracking funds

InvestorsshouldnotethatcertainConstituentFundsthatinvestinapprovedITCISswouldbesubjecttothefollowingrisks:

(a) Market risk of the sector or market tracked by the relevant index

Each relevant Constituent Fund tracks an underlying index by investing in anapproved ITCIS. As a result, such Constituent Funds are subject to the fluctuationsand adverse conditions in the sector ormarketwhich the relevant index seeks totrack. The InvestmentManagerdoesnothavediscretion to takedefensivepositionswherethemarket(s)representedbytherelevantindexdecline.Hence,anyfallintheunderlying indexwill result in corresponding fall in thevalueof theapproved ITCISandhencetheConstituentFund.Furthermore,sinceanunderlyingindexmayfocusonaparticulargeographicalregionorindustry,investmentsofanapprovedITCISmaybeconcentratedinthesecuritiesofasingleissuerorseveral issuerswhentheapprovedITCISendeavours tomatchas closelyaspracticable itsholdingsof constituent stocksoftheindex.Therefore,theConstituentFundsmaybesubjecttotheadditionalrisksofconcentrationinthesemarketsorregions.

Further, there is no guarantee that the information used in connectionwith thecomputation of the relevant index is free from inaccuracies, omissions,mistakes,errors or incompleteness. The underlying indexmay not be able to achieve itsintendedobjectiveintrackingtheperformanceofaparticulargeographicalregionorindustry.

An approved ITCISmay invest in financial derivatives instruments to gain exposureto the constituent stocks of the underlying index. As such, the approved ITCISwillbe subject to insolvency or default risk of the issuers or counterparties of theseinstruments.Anydefaultorfailuretoperformitsobligationsbysuchissuersmayleadto substantial loss to the approved ITCIS,whichmay in turn affect the value of therelevantConstituentFund.

(b) Failure to fully replicate the performance of the index

While the approved ITCIS inwhich aConstituent Fund investswill seek to track theperformanceof theunderlying index, changes in theNAVof suchConstituent Fundmaynotreplicateexactlychanges intherelevant index.This isdueto,amongotherfactors, the fees and expenses payable by the Constituent Fund and transactionfees and stamp duty incurred in adjusting the composition of the investmentportfolioaccordingtochangesintherelevantindex,anddividendsreceived,butnotdistributed,bytherelevantapprovedITCIS.

In addition, as a result of the unavailability of constituent stocks of an underlyingindex, the transaction costs inmaking an adjustment outweighing the anticipatedbenefits of such adjustment or for certain other reasons, theremay be timingdifferences between changes in the underlying index and the correspondingadjustmenttotheshareswhichcomprisetheapprovedITCIS’sportfolio.

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During timeswhen the constituent stocks of an underlying index are unavailableorwhen the investmentmanager of the approved ITCIS determines it is in thebestinterest of the approved ITCIS to do so, the approved ITCISmaymaintain a cashposition or invest in other contracts or investments as permitted by the applicablelaws and regulations until the constituent stocks become available. Such costs,expenses, cash balances or timing differences could cause the approved ITCIS’s NAVto be lower or higher than the relative level of the index it tracks. Themagnitudeof tracking error of an approved ITCISwould depend on the cashflow, size of theportfolioandtheextentofuseoffinancial instrumentsandmaybehigheror lowerthanotherindextrackingfunds.

(c) The index composition may change over time which may affect performance

The index compositionmay change from time to time and the InvestmentManagerhas no control over the selectionof the constituent stocks comprisingof the index.Generally, an underlying approved ITCIS’s holding of constituent stockmay notexceed the constituent stock’sweighting in the relevant index, exceptwhere theweightingisexceededasaresultofchangesinthecompositionoftherelevantindexwhere the excess is only transitional and temporary in nature,where such excess isduetopurchaseofboard lotsorwheresuchexcess isdueto the implementationofa documented sampling or optimisation technique the purpose ofwhich is for theunderlyingapprovedITCIStoachieveitsobjectiveoftrackingtherelevantindex.

(d) An approved ITCIS may be traded at a market price, which may be different from its NAV and may fluctuate

Themarket price of the units in an approved ITCISmay sometimes trade above orbelowitsNAV.Thereisarisk,therefore,thattherelevantConstituentFundmaynotbeabletobuyorsellatapriceclosetotheNAVoftheapprovedITCIS.ThedeviationfromNAVisdependentonanumberoffactors,butwillbeaccentuatedwhenthereis a large imbalance betweenmarket supply anddemand for the constituent stocksof the index. The “bid/ask” spread (being the difference between the prices beingbidbypotentialpurchasersandthepricesbeingaskedbypotentialsellers)isanothersourceofdeviationfromNAV.Thebid/askspreadcanwidenduringperiodsofmarketvolatilityormarketuncertainty,therebyincreasingthedeviationfromNAV.

(e) An approved ITCIS or an underlying index may be terminated

Any licensegrantedtotheserviceprovideroftheunderlyingapproved ITCISfortheuseof,andreferenceto,therespectiveunderlyingindex,maybeterminated,ortheunderlying indexmay cease tobeoperatedor available.As a result, theunderlyingapproved ITCISmay be terminated. In such circumstances, the InvestmentManagermay,subjecttothepriorapprovaloftheMPFAandtheSFC,seekareplacementoftheapprovedITCIS.TherelevantConstituentFundmayalsobeterminatedifnosuitablereplacementunderlyingfundisfound.

4.2.17 Risks associated with the BEA Greater China Tracker Fund

The BEAGreater China Tracker Fund tracks the FTSE® Greater ChinaHKD Index, andinvestsdirectly in the SPDR® FTSE®GreaterChinaETFwhichaims toproduce investmentreturns, before fees and expenses, that closely correspond to the performance of theFTSE®GreaterChinaHKDIndex.

(a) Tracking of the FTSE® Greater China HKD Index at the SPDR® FTSE® Greater China ETF level

Themanager of the SPDR® FTSE® Greater China ETF reviews the securities held inthe SPDR® FTSE® Greater China ETF’s portfolio on eachBusinessDay, checking thosesecurities against the securities constituting the FTSE®GreaterChinaHKD Indexand

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comparing theweighting of each security in the SPDR® FTSE® Greater China ETF’sportfolio to theweighting of the corresponding constituent security in the FTSE®GreaterChinaHKDIndex.

Members should be aware thatwhile the BEAGreater China Tracker Fund throughits investment in the SPDR® FTSE® Greater China ETF (which, in turn, invests all, orsubstantiallyall,of itsassets in theconstituentsecuritiesof theFTSE®GreaterChinaHKDIndexinthesame,orsubstantiallythesameweightingsastheyappeartherein)aims to provide investment returns that closely correspond to the performance ofthe FTSE® Greater ChinaHKD Index, there is no guarantee or assurance of exact oridenticalreplicationatanytimeoftheperformanceoftheFTSE®GreaterChinaHKDIndex.

IntheeventthatthereisanydeviationbetweentheSPDR®FTSE®GreaterChinaETF’sportfolioand thecompositionandweightingof theFTSE®GreaterChinaHKD Indexthereby giving rise to a tracking errorwhich is considered by themanager of theSPDR® FTSE®GreaterChinaETF tobe significant taking into account the investmentobjective, themanagerwould effect adjustments of the SPDR® FTSE® Greater ChinaETF’sportfoliowhich it considersappropriateas soonas it is reasonablypracticable,after considering transaction costs and the impact, if any, on themarket. However,it will not always be efficient to replicate or attempt to replicate identicallythe constituent securities of the FTSE® Greater ChinaHKD Index if, for example,transaction costs incurred by the SPDR® FTSE® Greater China ETF in performing anynecessary adjustmentswould outweigh the anticipated reduction in tracking errorthatwouldresultfromthefailuretoreflectminorchangesintheFTSE®GreaterChinaHKDIndex.Therefore,minormisweightingsare likelytooccur.Further,themanagerof the SPDR® FTSE® Greater China ETFmay be restricted from effecting certainadjustments ormay be required to perform certain adjustments by applicable lawsandregulations.

(b) Tracking of the FTSE® Greater China HKD Index at the BEA Greater China Tracker Fund level

Due to the delay in actually subscribing for units in the SPDR® FTSE® Greater ChinaETFarisingfromthetimerequiredtoprocessinstructionstoinvestintheBEAGreaterChinaTrackerFundintheinitialperiod,thetrackingerrorandtheperformanceoftheBEAGreaterChinaTrackerFundmay respectivelybebiggerandpoorer immediatelyafterlaunchalthoughsuchaphenomenonwoulddiminishovertimeasthefundsizeoftheBEAGreaterChinaTrackerFundgrows.Otherthantheabove,duetothefactthat the BEAGreater China Tracker Fundwill hold idle cash tomeet redemption/switching requests and the calculation of performance of the BEAGreater ChinaTrackerFund isonanafter-feebasis, trackingerror resulted fromsuch cashholdingandfeedeductionfromtheBEAGreaterChinaTrackerFundwouldbeunavoidable.

(c) The PRC Tax Risk

By investing inChinaA-shares through the StockConnect aswell asChinaB-shares,the SPDR® FTSE® Greater China ETFmay be subject to enterprise income tax (“EIT”)andothertaxesimposedbytaxauthoritiesinthePRC.TheSPDR®FTSE®GreaterChinaETFwillinvestlessthan10%ofitsinvestmentsinChinaA-sharesandChinaB-shares.

Fortheavoidanceofdoubt,disclosurerelatedtoChinaA-sharesinthisparagraph(c)shallbeeffectivefrom23rdMarch,2020.

(i) EIT

Accordingtoprevailingtaxregulation,anon-Chinesetaxresidententerprisewhich:

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• has no business establishment or place under the applicable EIT regulations(“Establishment”) or permanent establishment under an applicable doubletaxtreatyorarrangement(“PE”)inthePRC;or

• has an Establishment or PE in the PRC but the income derived is noteffectivelyconnectedwithsuchanEstablishmentorPE,

is generally subject to 10% EIT on PRC-sourced dividends and capital gains on awithholdingbasis,unlessreducedorexemptunderspecificChinesetaxregulationsoranapplicabledoubletaxtreatyorarrangement.

InvestmentinChinaA-shares

Pursuant to Cai Shui [2014] No. 81 (“Circular 81”),whichwas effective from 17thNovember, 2014 and Cai Shui [2016] No. 127 (“Circular 127”),whichwas effectivefrom5thDecember, 2016,dividendsderivedby corporateand individual investorsoftheHongKongstockmarket(“HK Investors”)fromtheirinvestmentinChinaA-sharesvia the Stock Connectwill be subject to EIT at 10% and the ChinaA-share listedenterprisesdistributingthedividendswillhaveanobligationtowithholdsuchEIT. Iftherecipientofthedividendsisentitledtoalowerrateasspecifiedbytheapplicabledoubletaxtreatyorarrangement,itcanapplyforataxrefundbygoingthroughtherelevantprocessforclaimingtreatybenefits.

Pursuant to the Arrangement between theMainland of China and the HongKong Special Administrative Region for the Avoidance of Double Taxation andthe Prevention of Fiscal Evasionwith respect to Taxes on Income (“China-HK Tax Arrangement”), dividends received by a HongKong tax resident from shares issuedby a Chinese tax resident enterprisemay be eligible for a reduced EIT rate of 5%providedthat:(i)theHongKongtaxresidentisthebeneficialownerofthedividends;and(ii)theHongKongtaxresident isacompanyholdingat least25%oftheequityoftheChinesetaxresidententerprise. If theSPDR®FTSE®GreaterChinaETFwillnotholdat least25%equityoftheChineseissuer, itwillnotbeeligibleforthereducedEIT rate of 5%under the China-HK TaxArrangement and therefore the EIT rate of10%shallapply.

Circular 81 and Circular 127 also provide that HK Investors are temporarily exemptfromincometaxoncapitalgainsderivedfromtradingofChinaA-shareslistedontheSSEand the SZSE through the StockConnect. There is a risk thePRC tax authoritiesmaywithdraw the temporary capital gains tax exemption in the future and seek tocollect capital gains tax realised on the sale of ChinaA-shares to the SPDR® FTSE®Greater China ETFwithout giving any prior notice. Under such circumstances, theSPDR® FTSE® Greater China ETFmay apply for an exemption under the SecondProtocol of the China-HKTaxArrangement, if the SPDR® FTSE® Greater China ETF isaHongKong tax residentwhichhas a participationof less than 25% capital of thetransferred Chinese tax resident enterprise directly or indirectly at any timewithinthe 12months before the sale of the shares. Alternatively, an exemptionmay alsoapplyundertheFourthProtocoloftheChina-HKTaxArrangementiftheSPDR®FTSE®GreaterChinaETFisaHongKongtaxresidentoraqualifiedinvestmentfundinHongKongandthecapitalgainsderivedfrompurchasingandsellingofsharesofChinesetaxresidententerprisesonthesamerecognisedstockexchange.

Ifthetemporarycapitalgainstaxexemption iswithdrawnandtheexemptionunderthe China-HK TaxArrangement is not applicable, any capital gains tax arising fromortotheChinaA-sharesoftheSPDR®FTSE®GreaterChinaETFmaybedirectlyborneby or indirectly passed on to the SPDR® FTSE® Greater China ETF andmay resultin a substantial impact to its NAV. Aswith anyNAV adjustment, investorsmay beadvantagedordisadvantageddependingonwhentheinvestorspurchased/subscribedand/orsold/redeemedtheunitsoftheSPDR®FTSE®GreaterChinaETF.

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InvestmentinChinaB-shares

Pursuant to Guo Shui Han [2009] No. 394, a Chinese tax resident enterprise thatpublicly issues and lists China B-shares shallwithhold and pay a 10% EITwhenit distributes dividends attributable to the year 2008 or any subsequent years tonon-Chinese tax resident enterprises. If the non-Chinese tax resident enterprisesare entitled to a lower rate as specified by an applicable double tax treaty orarrangement, they shall go through the relevant process in accordancewith therelevantimplementationrulesofthetaxtreatyorarrangement.Similartoinvestmentin ChinaA-shares as set out above, the 10% EIT ratemay be reduced to 5%undertheChina-HKTaxArrangement, but the SPDR® FTSE®Greater China ETFmaynot beeligible for the reduced EIT rate if it holds less than 25%equity of the Chinese taxresidententerprisesthatdistributedividends,andthereforetheEITrateof10%maystillapply.

With respect to capital gains derived by non-Chinese tax resident enterprises fromtrading of China B-shares, in the absence of an explicit exemption under domestictax rules, such gainsmay be subject to a 10% EIT rate in the PRC, unless they areexemptundertheSecondandFourthProtocolsoftheChina-HKTaxArrangement,asmentionedabove.

(ii) Value-added tax (“VAT”) and local surcharges

Pursuant to Cai Shui [2016] No.36 (“Circular 36”), from 1stMay 2016, a transfer offinancial products, including transfer of the ownership ofmarketable securities,shallbesubjecttoVATatarateof6%onthetaxableturnover(whichisthebalanceof the salespriceupondeductionof thepurchaseprice), for ageneral or a foreignVAT taxpayer. Also, a VAT taxpayer shall also be subject to urbanmaintenance andconstructiontaxat7%,5%or1%(dependingonthelocality),educationsurchargeat3%andlocaleducationsurchargeat2%(collectively,“Local Surcharges”)ontheVATpayment,ifany,whichmayresultinacombinedeffectiverateof6.72%forbothVATandLocalSurcharges.

Nevertheless, according to Circular 36 and Circular 127, VAT is exempted on thegainsderivedbyHK InvestorsfromthetransferofChinaA-sharesthroughtheStockConnect. As such, the SPDR® FTSE® Greater China ETF is exempt fromVAT on thetradingofChinaA-sharesviatheStockConnect,butmaystillbesubjecttoVATandLocal Surcharges on trading of China B-shares in the absence of explicit exemptionunderPRCtaxrules.

(iii) Stamp duty

WithrespecttothecontractsfortradingofChinaA-sharesandChinaB-sharesonthePRCstockexchanges,stampdutyisleviedatarateof0.1%andonsellersonly.

Circular81andCircular127furtherclarifythatHKInvestorsarerequiredtopaystampduty in accordancewith the above rules upon the sale, succession and donation ofChinaA-sharesthroughtheStockConnect.

(d) Stock Connect, China A-shares and other PRC related risks

ChinaA-sharemarket suspension and volatility risk (with effect from 23rdMarch,2020)

ChinaA-sharesmayonlybebought from,or sold to, theSPDR® FTSE®GreaterChinaETF from time to timewhere the relevantChinaA-sharesmaybe soldorpurchasedon the SSE or the SZSE, as appropriate. Given that the ChinaA-sharemarket isconsideredvolatileandunstable (with the riskof suspensionand/or limit tradingofaparticularstockorgovernmentintervention),thecreationandredemptionofunits

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mayalsobedisrupted.Suchvolatilityandsuspensions/limitationscouldcontributetotrackingerroroftheSPDR®FTSE®GreaterChinaETFandmaycauseunitstotradeata premium or discount to the SPDR® FTSE® Greater China ETF’s NAV. AnAuthorisedParticipant (within themeaningof theProspectusof theSPDR® FTSE®GreaterChinaETF) is unlikely to redeem or create units if it considers that ChinaA-sharesmaynot be available. Highmarket volatility and potential settlement difficulties in theChinaA-sharesmarketmayalso result in significant fluctuations in thepricesof thesecuritiestradedontheChinaA-sharesmarketandtherebymayadverselyaffectthevalueoftheSPDR®FTSE®GreaterChinaETF.

RisksassociatedwiththeStockConnect(witheffectfrom23rdMarch,2020)

The Stock Connect is a securities trading and clearing linked programmedevelopedby theHongKongExchangesandClearingLimited, theSSE, theSZSEand theChinaSecuritiesDepositoryandClearingCo.,Ltd(“CSDCC”),withanaimtoachievemutualstockmarket access between the PRC andHong Kong. It comprises the Shanghai-HongKongStockConnectandtheShenzhen-HongKongStockConnect.StateStreetGlobalAdvisorsAsiaLimited(themanageroftheunderlyingapprovedITCIS)intendstoutilisesuchchannelstoinvestinChinaA-shares.

FurtherinformationabouttheStockConnectisavailableatthewebsite:http://www.hkex.com.hk/mutual-market/stock-connect?sc_lang=en.

The StockConnect comprises aNorthboundTrading Linkanda SouthboundTradingLink.UndertheNorthboundTradingLink,HongKongandoverseasinvestors(includingtheSPDR®FTSE®GreaterChinaETF),throughtheirHongKongbrokersandsecuritiestradingservicecompaniesestablishedbytheSEHKandHongKongSecuritiesClearingCompanyLimited(the“HKSCC”),areabletotradeeligibleshareslistedontheSSE(the“SSE Securities”)or theSZSE (the“SZSE Securities”)by routingorders to theSSEortheSZSE(asthecasemaybe).

TheSSESecuritiesincludealltheconstituentstocksfromtimetotimeoftheSSE180IndexandSSE380 Index,andall theSSE-listedChinaA-shares thatarenot includedasconstituentstocksof therelevant indexesbutwhichhavecorrespondingHshareslistedontheSEHK,exceptthefollowing:

(a) SSE-listedshareswhicharenottradedinRMB;and(b) SSE-listedshareswhichareincludedinthe“riskalertboard”.

The SZSE Securities include all the constituent stocks of the SZSE Component Indexand the SZSE Small/Mid Cap Innovation Indexwhich have amarket capitalisationof not less than RMB 6 billion, and all the SZSE-listed ChinaA-shareswhich havecorrespondingHshareslistedonSEHK,exceptthefollowing:

(a) SZSE-listedshareswhicharenottradedinRMB;and(b) SZSE-listedshareswhichareincludedinthe“riskalertboard”.

ChinaA-shares traded through the Stock Connect are issued in scripless form, soinvestors of the SPDR® FTSE® Greater China ETFwill not hold any physical ChinaA-shares.HongKongandoverseasinvestorswhohaveacquiredSSESecuritiesorSZSESecurities throughNorthbound Trading shouldmaintain the SSE Securities or SZSESecuritieswith theirbrokers'or custodians' stockaccountswith theCentralClearingand Settlement System (“CCASS”) for the clearing securities listed or traded on thestockexchange.

TherelevantrulesandregulationsontheStockConnectaresubjecttochangewhichmayhavepotential retrospectiveeffect.Wherea suspension in the trading throughthe programme is effected, the SPDR® FTSE® Greater China ETF’s ability to invest inChinaA-shares or access the PRCmarket through the programmewill be adversely

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affected. In such event, the SPDR® FTSE® Greater China ETF’s ability to achieve itsinvestmentobjectivecouldbenegativelyaffected. InadditiontotherisksassociatedwiththePRCmarketandrisksrelatingtoRMB,theSPDR®FTSE®GreaterChinaETFisalsosubjecttothefollowingadditionalrisksassociatedwiththeStockConnect:

(i) DailyQuota limitations: Trading through the StockConnect is subject to a dailyquota limitation for each of the Shanghai-Hong Kong Stock Connect and theShenzhen-Hong Kong Stock Connect (“Daily Quota”). TheDailyQuota imposesa limit on themaximumnet value of all cross-boundary purchases of ChinaA-shares through the Stock Connect on a daily basis. TheDailyQuota is notappliedspecificallytotheSPDR®FTSE®GreaterChinaETFandisutilisedonafirst-come-first-serve basis. For Northbound buy orders, once the remaining balanceof theNorthboundDailyQuotadrops tozeroor theNorthboundDailyQuota isexceededduringtheopeningcallsession,suchnewbuyordersforChinaA-shareswill be rejected (though the SPDR® FTSE® Greater China ETFwill be allowedto sell its ChinaA-shares via the Stock Connect regardless of theNorthboundquotabalance). If the SPDR® FTSE®GreaterChinaETF’s ability to invest inChinaA-sharesthroughtheStockConnectisrestrictedbytheDailyQuotatomakenewbuyorders on aDealingDay, the SPDR® FTSE®GreaterChina ETFmaydecide torejectcreationordersfromtheAuthorisedParticipant(withinthemeaningoftheProspectusoftheSPDR®FTSE®GreaterChinaETF)onsuchDealingDay.

(ii) Front-endmonitoring risk: PRC regulations require that in order for an investortosellanyChinaA-sharesonacertaintradingday,theremustbesufficientChinaA-shares in the investor’saccountbeforemarketopenson thatday. If thereareinsufficientChinaA-sharesintheinvestor’saccount,thesellorderwillberejectedbytheSSEortheSZSE.TheSEHKcarriesoutpre-tradecheckingonSSESecuritiesandSZSESecuritiessellordersofitsparticipants(i.e.stockbrokers)toensurethatthisrequirementissatisfied.ThismeansthatinvestorsmusttransferSSESecuritiesand SZSE Securities to the accounts of its brokers before themarket opens onthedayofselling.Ifaninvestorfailstomeetthisdeadline,itwillnotbeabletosell SSESecuritiesor SZSESecuritieson the relevant tradingday.Becauseof thisrequirement, investorsmay not be able to dispose of holdings of SSE SecuritiesorSZSESecuritiesinatimelymanner.Thisalsoraisesconcernsastocounterpartyrisksassecuritiesmayneedtobekeptbybrokersovernight.

To enable investorswhose SSE Securities or SZSE Securities aremaintainedwith custodians to sell their SSE Securities or SZSE Securitieswithout having topre-deliver the SSE Securities or SZSE Securities from their custodians to theirexecutingbrokers,theSEHKintroducedanenhancedpre-tradecheckingmodelinMarch2015,underwhichaninvestormayrequestitscustodiantoopenaSpecialSegregatedAccount (“SPSA”) inCCASS tomaintain itsholdings inSSESecuritiesand SZSE Securities. Such investors only need to transfer SSE Securities or SZSESecurities from its SPSA to its designated broker’s account after execution andnotbeforeplacingthesellorder.Thisenhancedmodelisnovelandinitialmarketreactionhasbeenvaried.IftheSPDR®FTSE®GreaterChinaETFisunabletoutilisethismodel, itwould have to deliver SSE Securities or SZSE Securities to brokersbeforethetradingdayandtheaboverisksmaystillapply.

(iii)Suspension risk: It is contemplated that eachof the SEHK, the SSEand the SZSEwould reserve the right to suspendNorthbound and/or Southbound trading ifnecessary for ensuring an orderly and fairmarket and that risks aremanagedprudently. Consent from the relevant regulatorwould be sought before asuspension is triggered.Where a suspension in the Northbound trading iseffected, the SPDR® FTSE® Greater China ETF’s ability to access the PRCmarketthroughtheStockConnectwillbeadverselyaffected.

(iv)Differences in tradingday: As the SSEand the SZSEmaybeopenwhenunits inthe SPDR® FTSE®GreaterChinaETFarenotpriced, the valueof the securities in

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theSPDR®FTSE®GreaterChinaETF’sportfoliomaychangeondayswheninvestorswill not be able to purchase or sell the SPDR® FTSE® Greater China ETF’s units.Differences in trading hours between the SSE or the SZSE and the SEHKmayalsoincreasethelevelofpremiumordiscountoftheunitpricetoitsNAV.ChinaA-sharesarealso subject to tradingbandswhich restrict increasesanddecreasesin the tradingpricewhilstunits listedon theSEHKarenot. ThisdifferencemayalsoincreasethelevelofpremiumordiscountoftheunitpricetoitsNAV.

(v) Operational risk: The StockConnectprovidesa channel for investors fromHongKong and overseas to access the PRC stockmarket directly.Market participantsareabletoparticipateinthisprogrammesubjecttomeetingcertaininformationtechnology capability, riskmanagement and other requirements asmay bespecified by the relevant exchange and/or clearing house.Market participantsmay need to address issues arising from the differences on an on-going basis.ThemanageroftheSPDR®FTSE®GreaterChinaETFwillworkwithrelevantthirdpartiestoensurethattheinformationtechnologysystemsarecompliantwiththerequirementsasmaybespecifiedbytherelevantexchangeand/orclearinghousesoastominimisedisruptionintradingonthePRCmarkets.

Further,the“connectivity”intheStockConnectrequiresroutingofordersacrosstheborder.Thisrequiresthedevelopmentofnewinformationtechnologysystemson the part of the SEHK and exchange participants. There is no assurance thatthe systems of the SEHK andmarket participantswill function properly orwillcontinue to be adapted to changes and developments in bothmarkets. In theeventthattherelevantsystemsfailtofunctionproperly,tradinginbothmarketsthroughtheprogrammecouldbedisrupted.

(vi)Recallingofeligiblestocks: Ifastockisrecalledfromthescopeofeligiblestocksfor trading via the Stock Connect, the stock can only be sold and cannot bebought.ThismayaffecttheSPDR®FTSE®GreaterChinaETF’strackingoftheFTSE®GreaterChinaHKD Index if, forexample,an IndexSecurityof theFTSE®GreaterChinaHKDIndexisrecalledfromthescopeofeligiblestocks.

(vii)Clearing and settlement risk: TheHKSCC and CSDCC have established clearinglinks and each has become a participant of the other to facilitate clearing andsettlement of cross-boundary trades. For cross-boundary trades initiated in amarket, the clearing house of thatmarketwill on one hand clear and settlewith its own clearing participants, and on the other hand undertake to fulfilthe clearing and settlement obligations of its clearing participantswith thecounterpartyclearinghouse.ShouldtheremoteeventofCSDCCdefaultoccurandthe CSDCC be declared as a defaulter, HKSCC’s liabilities in Northbound tradesunder itsmarket contractswith clearing participantswill be limited to assistingclearing participants in pursuing their claims against the CSDCC. HKSCCwill ingood faith seek recoveryof theoutstanding stocks andmonies from theCSDCCthrough available legal channels or through the CSDCC’s liquidation. In thatevent,theSPDR®FTSE®GreaterChinaETFmaysufferdelayintherecoveryprocessormaynotbeabletofullyrecoveritslossesfromtheCSDCC.

(viii)Regulatory risk: The Stock Connect is subject to regulations promulgated byregulatoryauthoritiesandimplementationrulesmadebythestockexchanges inthePRCandHongKong.Further,newregulationsmaybepromulgatedfromtimeto time by the regulators in connectionwith operations and cross-border legalenforcementinconnectionwithcross-bordertradesundertheStockConnect.Theregulationsareuntestedandthereisnocertaintyastohowtheywillbeapplied,andaresubjecttochange.TherecanbenoassurancethattheStockConnectwillnotbeabolished.

(ix)No Protection by Investor Compensation Fund: The SPDR® FTSE® Greater ChinaETF’s investments through the Stock Connectwill not be covered by Hong

35

Kong’s Investor Compensation Fund. Hong Kong’s Investor Compensation Fundis established to pay compensation to investors of any nationalitywho sufferpecuniary losses as a result of default of a licensed intermediary or authorisedfinancialinstitutioninrelationtoexchange-tradedproductsinHongKong.Sincedefaultmatters in Northbound trading via the Stock Connect do not involveproducts listedor traded in SEHKorHongKongFuturesExchangeLimited, theywillnotbecoveredbytheInvestorCompensationFund.Ontheotherhand,sincethe SPDR® FTSE® Greater China ETFmay be carrying out Northbound tradingthroughsecuritiesbrokersinHongKongbutnotbrokersinthePRC,itmaynotbeprotectedbytheChinaSecuritiesInvestorProtectionFund(中國投資者保護基金)inthePRC.ThereforetheSPDR®FTSE®GreaterChinaETFmaybeexposedtotherisksofdefaultofthebroker(s)itengagesinitstradinginChinaA-sharesthroughtheprogramme.

RMBCurrencyandConversionRisks

The RMB is currently not freely convertible and is subject to exchange controlsand restrictions.Non-RMBbased investors are exposed to foreign exchange riskandthereisnoguaranteethatthevalueofRMBagainstinvestors’basecurrencieswill not depreciate. Any depreciation of RMB could adversely affect the valueof the investor’s investment in the SPDR® FTSE® Greater China ETF. Althoughoffshore RMB (“CNH”) and onshore RMB (“CNY”) are the same currency, theytrade at different rates. Any divergence between CNH and CNYmay adverselyimpact investors.Underexceptional circumstances,paymentof redemptionsanddividends inRMBmaybedelayeddue to theexchange controls and restrictionsapplicabletoRMB.

AccountingandReportingStandardsRisk

Accounting, auditing and financial reporting standards and practices applicableto PRC companiesmay be different to those standards and practices applicableto countries that havemore developed financialmarkets. For example, thereare differences in the valuationmethods of properties and assets and in therequirementsfordisclosureofinformationtoinvestors.

GovernmentInterventionandRestrictionRisk

Governments and regulatorsmay intervene in the financialmarkets, such as bythe imposition of trading restrictions, the suspension of trading and/or shortselling for certain stocks. Thismay affect the operation andmarketmakingactivitiesof the SPDR® FTSE®GreaterChinaETF, andmayhaveanunpredictableimpact on the SPDR® FTSE® Greater China ETF. Furthermore, suchmarketinterventionsmayhaveanegativeimpactonthemarketsentimentwhichmayinturnaffecttheperformanceoftheFTSE®GreaterChinaHKDIndexandasaresulttheperformanceoftheSPDR®FTSE®GreaterChinaETF.

RestrictedMarketsRisk

The SPDR® FTSE® Greater China ETFmay invest in Index Securities in respectofwhich the PRC imposes limitations or restrictions on foreign ownership orholdings. Such legal and regulatory restrictions or limitationsmay have adverseeffectsonthe liquidityandperformanceof theholdings inSPDR® FTSE®GreaterChinaETFascomparedtotheperformanceoftheFTSE®GreaterChinaHKDIndex.Thismay increase the risk of tracking error and, at theworst, the SPDR® FTSE®GreaterChinaETFmaynotbeabletoachieveitsinvestmentobjective.

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(e) United States Resolution Stay Rules risk

Under applicable law or contractual provisions, including if the SPDR® FTSE®Greater China ETF enters into an investment or transactionwith a financialinstitution and such financial institution (or an affil iate of the financialinstitution) experiences financial difficulties, the SPDR® FTSE® Greater ChinaETFmay in certain situations be prevented or delayed from exercising its rightsto terminate the investment or transaction, or to realise on any collateral andmay result in the suspensionofpayment anddeliveryobligationsof thepartiesundersuchinvestmentortransactionsorinanotherinstitutionbeingsubstitutedfor that financial institutionwithout the consent of the SPDR® FTSE® GreaterChinaETF.Further,theSPDR®FTSE®GreaterChinaETFmaybesubjecttoa“bail-in” risk under applicable lawwhereby, if required by the financial institution’sauthority, the financial institution’s liabilities couldbewrittendown,eliminatedor converted into equity or an alternative instrument of ownership. A bail-inof a financial institutionmay result in a reduction in valueof someor all of itssecurities and if the SPDR® FTSE® Greater China ETF holds such securities or hasentered intoatransactionwithsuchafinancialsecuritywhenabail-inoccurs, itmayalsobesimilarlyimpacted.

4.2.18 Risks associated with the BEA Hong Kong Tracker Fund

The BEAHong Kong Tracker Fund tracks theHang Seng Index, and invests directly inthe Tracker Fund of Hong Kongwhich aims to produce investment results that closelycorrespondtotheperformanceoftheHangSengIndex.

(a) Tracking of the Hang Seng Index at the Tracker Fund of Hong Kong level

Themanager of the Tracker Fund of Hong Kong reviews the securities held in theTrackerFundofHongKong’sportfoliooneachBusinessDay,checkingthosesecuritiesagainstthesecuritiesconstitutingtheHangSengIndexandcomparingtheweightingofeachsecurityintheTrackerFundofHongKong'sportfoliototheweightingofthecorrespondingconstituentsecurityintheHangSengIndex.

Members should be aware thatwhile the BEAHong Kong Tracker Fund, throughits investment in the Tracker Fund of Hong Kong (which, in turn, invests all, orsubstantially all, of its assets in the constituent securities of theHang Seng Indexin substantially similar composition andweighting as they appear therein), aimsto achieve a returnwhich follows the trend of the Hang Seng Index, there isno guarantee or assurance of exact or identical replication at any time of theperformanceoftheHangSengIndex.

In the event that there is any deviation between the Tracker Fund of Hong Kong’sportfolioandthecompositionandweightingoftheHangSengIndextherebygivingrise to a tracking errorwhich is considered by themanager of the Tracker Fundof Hong Kong to be significant taking into account the investment objective, themanagerwould effect adjustments of the Tracker Fund of Hong Kong’s portfoliowhichitconsidersappropriateassoonasitisreasonablypracticable,afterconsideringtransaction costs and the impact, if any, on themarket.However, itwill not alwaysbeefficient to replicateor attempt to replicate identically the constituent securitiesof theHang Seng Index. For example, if the transaction costs tobe incurredby theTrackerFundofHongKonginperforminganynecessaryadjustmentswouldoutweighthe anticipated reduction in tracking error thatwould result from the failure toreflectminor changes in theHang Seng Index. Therefore,minormisweightings arelikely to occur. Further, themanager of the Tracker Fund of Hong Kongmay berestricted fromeffecting certainadjustmentsormaybe required toperform certainadjustmentsbyapplicablelawsandregulations.

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(b) Tracking of the Hang Seng Index at the BEA Hong Kong Tracker Fund level

DuetothedelayinactuallysubscribingforsharesintheTrackerFundofHongKongarisingfromthetimerequiredtoprocessinstructionstoinvestintheBEAHongKongTrackerFundintheinitialperiod,thetrackingerrorandtheperformanceoftheBEAHong Kong Tracker Fundmay respectively be bigger and poorer immediately afterlaunch although such a phenomenonwould diminish over time as the fund size oftheBEAHongKongTrackerFundgrows.Otherthantheabove,duetothefactthatthe BEAHong Kong Tracker Fundwill hold idle cash tomeet redemption/switchingrequestsandthecalculationofperformanceoftheBEAHongKongTrackerFundisonanafter-feebasis, trackingerror resulted fromsuch cashholdingand feedeductionfromtheBEAHongKongTrackerFundwouldbeunavoidable.

4.2.19 Principal risks of investing in the DIS

MembersshouldnotethatthereareanumberofattributesofthedesignoftheDISassetoutbelow,whichaffectthetypesofrisksassociatedwiththeDIS.

(a) Limitations on the strategy

(i) Age as the sole factor in determining the asset allocation under the DIS

As set out inmore detail in the “6.3.3MPFDefault Investment Strategy” sub-section under the “6. ADMINISTRATIVE PROCEDURES” section,Members shouldnote that theDIS adopts pre-determined asset allocation and automaticallyadjustsassetallocationbasedonlyuponaMember’sage.TheDISdoesnot takeinto account factors other than age, such asmarket and economic conditions,and does not consider aMember’s personal circumstances including investmentobjectives,financialneeds,risktoleranceorlikelyretirementdate.Memberswhowant theirMPF portfolio to reflect their own personal circumstances canmaketheirownselectionoffundsfromtherangeavailableintheMasterTrust.

(ii) Pre-set asset allocation

TheBEACoreAccumulationFundand theBEAAge65PlusFundhave to followthe prescribed allocation betweenHigher Risk Assets and Lower Risk Assets atalltimessubjecttoatolerancelevelof+/-5%.TheprescribedexposurebetweenHigher Risk Assets and Lower Risk Assets of the BEA CoreAccumulation FundandtheBEAAge65PlusFundwilllimittheabilityoftheInvestmentManageroftheBEACoreAccumulation Fundand theBEAAge65 Plus Fund to adjust assetallocations in response to suddenmarketfluctuations; forexample, through theadoptionofeitheramoredefensiveassetallocationapproach(beinganapproachwhich seeks to reduceHigher Risk Assets exposure), or alternatively amoreaggressiveassetallocationapproach (beinganapproachwhichseeks to increaseHigher Risk Assets exposure) even if, for some reason, the InvestmentManagerthoughtitappropriatetodoso.

(iii) Annual de-risking between the BEA Core Accumulation Fund and the BEA Age 65 Plus Fund

De-riskingforeachrelevantMemberwillgenerallybecarriedoutonaMember’sbirthday, regardless of the prevailingmarket conditions.While the de-riskingprocess aims atmanaging risks of the investments through reducing exposureto Higher Risk Assets, itmay preclude theDIS from fully capturing the upsidein rising equitymarkets during the de-risking process and thereforewouldunderperformascomparedwithfundsnotadoptingthede-riskingprocessunderthesamemarketconditions.

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It is possible that the de-risking process is done at a timewhichmay result inMembers reducing exposure to an asset classwhich outperforms and increasingexposure to an asset classwhich underperforms. The asset allocation changesgradually over a 15-year time period.Members should be aware that the de-risking operates automatically regardless of thewish of aMember to adopt aninvestmentstrategywhichmightcatchmarketupsideoravoidmarketdownside.

Also,thede-riskingprocesscannotinsulateMembersfrom“systemicrisk”,suchasbroad-basedrecessionsandothereconomiccrises,whichwillaffectthepricesofmostassetclassesatthesametime.

(iv) Potential rebalancing within each of the BEA Core Accumulation Fund and the BEA Age 65 Plus Fund

InordertomaintaintheprescribedallocationbetweentheHigherRiskAssetsandLowerRiskAssetswithineachof theBEACoreAccumulation Fundand theBEAAge 65 Plus Fund, the investments of each of the BEACoreAccumulation FundandtheBEAAge65PlusFundmayhavetobecontinuouslyrebalancedregardlessof the prevailingmarket conditions. For example,when theHigher Risk Assetsperformpoorly,theBEACoreAccumulationFund’sortheBEAAge65PlusFund’sassetallocationmayfalloutsidetherespectiveprescribedlimit.Inthiscase,eachof theBEACoreAccumulationFundand theBEAAge65Plus Fundwillhave toliquidatesomeofthebetterperformingLowerRiskAssetsinordertoinvestmoreintheHigherRiskAssets,eveniftheInvestmentManagerisoftheviewthattheHigherRiskAssetsmightcontinuetoperformpoorly.

(v) Additional transaction costs

TheDISmay incur greater transaction costs than an investment strategywithmorestaticallocationduetothefollowingreasons:

• thepotential rebalancingofHigherRiskAssetsandLowerRiskAssets in theprocessofmaintainingtheprescribedallocationwithineachoftheBEACoreAccumulationFundandtheBEAAge65PlusFund;and

• theannualreallocationofaccruedbenefitsforMembersunderthede-riskingprocess.

(b) General investment risk related to the DIS

Although the DIS is a statutory arrangement, it neither guarantees capitalrepayment nor positive investment returns (in particular for thoseMemberswith only a short investment horizon before retirement). The two designatedConstituentFundsfortheDISaremixed-assetfundsinvestinginamixofequitiesandbonds.MembersshouldnotethattheDIS,whichinvestsintheseConstituentFunds, issubjecttothegeneral investmentrisksthatapplytomixed-assetfunds.Forgeneralkeyrisksrelatingto investmentfunds,pleaserefertotheothersub-sectionsunderthis“4.RISKS”section.

(c) Risk on early withdrawal and switching

Since the DIS has been developed having regard to the long-term balancebetweenrisksandreturns,andassumesretirementattheageof65,anycessationoftheDIS(forexamplethroughearlywithdrawalofaccruedbenefitsorswitchingintootherfunds)willaffectthatbalance.

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(d) Impact on Members keeping benefits in the DIS beyond the age of 64

De-riskingprocesswilldiscontinueuponreachingtheageof64.Membersshouldbe aware that all accrued benefits (including accrued benefits transferred fromanotherregisteredscheme)/on-goingcontributions,ifany,willbeinvestedintheBEAAge65PlusFundwhichholdsaround20%ofitsassetsinHigherRiskAssetswiththeremainder invested inLowerRiskAssets,whichmaynotbesuitableforallMembersbeyondtheageof64.

4.2.20 Risk of investment in Europe

CertainConstituentFundsortheirunderlyingfund(s)mayinvestinglobalequitysecuritieswhichmayincludeasubstantialinvestmentinEuropeansecurities.ThecurrenteconomicandfinancialdifficultiesinEuropemaycontinuetogetworseandmayspreadwithinandoutside Europe. It is possible thatmeasures taken by the governments of the Europeancountries, central banks and other authorities to address the economic and financialproblems, such as austeritymeasures and reforms,may notwork and such failuremayresultinadverseconsequences.TheimpactofanyadverseeconomicorfinancialeventsinEuropemaybesignificantandmayadverselyaffectthevalueoftherelevantConstituentFunds'investmentinEuropeansecurities.Inaddition,theConstituentFunds'investmentsinEuropeansecuritiesmaybesubject to increasedrisksofvolatility, liquidity, creditandcurrencyfluctuationsasaresultofconcernsoverthefiscalconditionsandsovereigncreditrisksthatmaybefacedbyoneormoreEuropeancountries.

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5. FEES AND CHARGES

5.1 Fee table

Thefollowingtabledescribesthefees,chargesandexpensesthatparticipatingemployersandMembersmay pay upon and after joining theMaster Trust. Important explanatorynotesanddefinitionsaresetoutatthebottomofthetable.

(A) JOINING FEE & ANNUAL FEE

Type of fees Current amount Payable by

Joiningfee(a) Nil N/A

Annualfee(b) Nil N/A

(B) FEES AND CHARGES PAYABLE ARISING FROM TRANSACTIONS IN INDIVIDUAL MEMBER’S ACCOUNT

Type of fees & charges

Name of Constituent Fund Current level Payable by

Contributioncharge(c)

BEAGrowthFund

Nil N/A

BEABalancedFund

BEAStableFund

BEAGlobalEquityFund

BEAAsianEquityFund




BEAGlobalBondFund

BEAMPFConservativeFund N/A

BEACoreAccumulationFundNil N/A

BEAAge65PlusFund

Offerspread(d) BEAGrowthFund

CurrentlyWaived N/A

BEABalancedFund

BEAStableFund

BEAGlobalEquityFund

BEAAsianEquityFund




BEAGlobalBondFund


BEACoreAccumulationFundCurrentlyWaived N/A

BEAAge65PlusFund

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(B) FEES AND CHARGES PAYABLE ARISING FROM TRANSACTIONS IN INDIVIDUAL MEMBER’S ACCOUNT

Type of fees & charges

Name of Constituent Fund Current level Payable by

Bidspread(e) BEAGrowthFund

CurrentlyWaived N/A

BEABalancedFund

BEAStableFund

BEAGlobalEquityFund

BEAAsianEquityFund




BEAGlobalBondFund


BEACoreAccumulationFundCurrentlyWaived N/A

BEAAge65PlusFundWithdrawalcharge(f)

BEAGrowthFund

Nil N/A

BEABalancedFundBEAStableFundBEAGlobalEquityFundBEAAsianEquityFundBEAGreaterChinaEquityFundBEAGreaterChinaTrackerFundBEAHongKongTrackerFundBEAGlobalBondFundBEAMPFConservativeFund N/ABEACoreAccumulationFund

Nil N/ABEAAge65PlusFund

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(C) FUND OPERATING CHARGES & EXPENSES OF CONSTITUENT FUNDS

Type of charges & expenses

Name of Constituent Fund Current level(Refertoparagraph(g)(i)underthe“5.2Definitions”sub-sectionforfee

breakdown)

Deducted from

Managementfees(g)

BEAGrowthFund 0.90%p.a.ofNAV

RelevantConstituentFund

assets

BEABalancedFund 0.90%p.a.ofNAV

BEAStableFund 0.90%p.a.ofNAV

BEAGlobalEquityFund 0.90%p.a.ofNAV

BEAAsianEquityFund 0.90%p.a.ofNAV

BEAGreaterChinaEquityFund 0.90%p.a.ofNAV

BEAGreaterChinaTrackerFund 0.60%p.a.ofNAV

BEAHongKongTrackerFund 0.60%p.a.ofNAV

BEAGlobalBondFund 0.90%p.a.ofNAV

BEACoreAccumulationFund 0.75%p.a.ofNAV

BEAAge65PlusFund 0.75%p.a.ofNAV

BEAMPFConservativeFund 0.79%p.a.ofNAVRelevantMember’saccountbyUnitdeduction

Otherexpenses

The Constituent Fundswill bear the operating expensesof theMaster Trust (e.g. compensation fund levy (if any),indemnity insurance, auditor’s fees and legal charges)in proportion to their respective NAVs or in such othermannerastheTrusteeshallconsiderfair.Suchexpensesaresummarisedinparagraph(f)ofthe“5.9Explanatorynotes”sub-sectionbelow.

Certain recurrent expenses relating to the BEA CoreAccumulation Fund and the BEA Age 65 Plus Fund aresubject toa statutoryannual limitof0.20%of theNAVofeach of those Constituent Funds andwill not be chargedto or imposed on the Constituent Fund in excess of thatamount. Please refer to the “5.7 Fees and out-of-pocketexpensesoftheDIS”sub-sectionbelowfordetails.

The establishment costs and payments incurred in theestablishment of each of the following Constituent Fundsareestimatedasfollows:

• BEACoreAccumulationFund-HKD73,500• BEAAge65PlusFund-HKD73,500

Such establishment costs and paymentswill be borne bythese Constituent Funds and amortised over a period offive years, commencing from the first anniversary of theformationoftherespectiveConstituentFund.

RelevantConstituentFund

assets(OtherexpensesoftheBEAMPFConservativeFundaredeductedfromrelevantMember’saccountbyUnitdeduction.)

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(D) FEES AND CHARGES PAYABLE OUT OF THE UNDERLYING FUNDS

Type of charges & expenses

Name of Constituent Fund Current level(Refertoparagraph(g)(ii)underthe“5.2Definitions”sub-sectionforfee

breakdown)

Deducted from

Managementfees(g)

BEAGrowthFund Nil

Relevantunderlyingfund

assets

BEABalancedFund Nil

BEAStableFund Nil

BEAGlobalEquityFund Nil

BEAAsianEquityFund Nil

BEAGreaterChinaEquityFund Nil

BEAGreaterChinaTrackerFund 0.31%p.a.ofNAV

BEAHongKongTrackerFundUpto0.10%p.a.of

NAV

BEAGlobalBondFund Nil

BEAMPFConservativeFund Nil

BEACoreAccumulationFund Nil

BEAAge65PlusFund Nil

Otherexpenses

Eachunderlyingfundmaybearitscostsandoperatingexpenses(e.g.establishmentcostoftheunderlyingfund,indemnityinsurance,auditor’sfeesandlegalcharges).Suchexpensesaresummarisedinpoint(g)ofthe“5.9Explanatorynotes”sub-sectionbelow.

Relevantunderlyingfund

assets

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(E) OTHER FEES AND CHARGES FOR PROVIDING ADDITIONAL SERVICESCopying Services for Member Charges Payable By Receivable ByCopyof“TrustDeed” HKD500

(percopy)

Member Trustee

Copyof“participationagreement”(forself-employedpersonandpersonalaccountholderonly)Re-issuanceof“noticeofparticipation”(forself-employedpersonandpersonalaccountholderonly)

HKD50(percopy)

Copyof“Member–membershipapplicationform”Re-issuanceof“noticeofparticipation”/“enrolmentconfirmation”

HKD50(percopy)

Copyofthelatest“specimensignature”“Member–declaration/statementofaccounts(self-employedperson)”form“Member–changeofdetails”form“Member–addition/changeofadditionalvoluntarycontribution”form“Member–changeofMandatetoinvestcontributions/fundswitchinginstruction”form“Member–claim/electionformfortransferofaccruedbenefits”

HKD50(percopy)

Copyofthelatest“benefitpaymentstatement”“unittransferstatement”“annualbenefitstatement”

HKD50(percopy)

Copyof“quarterlybenefitstatement”inthelatestschemeyear

HKD50(perquarterly)

CopyofMPFcontribution“pay-inslip”(forself-employedpersononly)

HKD50(pereachPay-in

Slip)Copyof“contributionreceipt”(forself-employedpersononly)

HKD50(pereach

contributionperiod)

DetailsofMembercontribution HKD50(pereach

financialperiod)TotalamountofMPFaccruedbenefits HKD50

(percopy)Copyofotherform HKD50

(percopy)

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(E) OTHER FEES AND CHARGES FOR PROVIDING ADDITIONAL SERVICESCopying Services for Employer Charges Payable By Receivable ByCopyof“TrustDeed” HKD500

(percopy)

Employer Trustee

Copyof“participationagreement”Re-issuanceof“noticeofparticipation”

HKD50(percopy)

Copyofthelatest“specimensignature”“participatingemployer’srequestforfundtransferform”“employer–supplementofemployervoluntarycontribution(relevantemployee)”

HKD50(percopy)

Copyofthelatest“employer–changeofdetails”form“employer–noticeoftermination(relevantemployee)”(pereachmember)

HKD50(percopy)

Copyof“employer–remittancestatement”(forrelevantemployeecontribution)“contributionreceipt”(forrelevantemployeecontribution)

HKD50(pereach

contributionperiod)

Copyofthelatest“anniversaryreport” HKD50(percopy)

CopyofMPFcontribution“pay-inslip” HKD50(pereachPay-in

Slip)Copyof“Memberpayrecord” HKD50

(pereachMemberineachcontribution

period)DetailsofMembercontribution HKD50

(pereachMemberineachfinancial

period)Copyofotherform HKD50

(percopy)

46

(E) OTHER FEES AND CHARGES FOR PROVIDING ADDITIONAL SERVICESPayment of accrued benefits from mandatory or voluntary contributions (as the case may be) by withdrawal by instalments, if applicable

Charges Payable By Receivable By

First12instalments(orsuchfurthernumberofinstalmentsasdeterminedbytheTrustee)inanycalendaryear

Freeofcharge(otherthananynecessarytransactioncostspayabletoapartyotherthantheTrusteeaspermittedundertheGeneralRegulation)

Member Trustee

Eachadditionalinstalmentafterthefirst12instalments(orsuchfurthernumberoffreeinstalmentsasdeterminedbytheTrustee)inthesamecalendaryear

HKD100perinstalment(inadditiontoanynecessarytransactioncostspayabletoapartyotherthantheTrusteeaspermittedundertheGeneralRegulation)

Note:Suchchargeisnotapplicableto:

• aMemberwhohasallorpartoftheaccruedbenefitsinvestedintheBEACoreAccumulationFundand/ortheBEAAge65PlusFundasatthetimewhentheTrusteereceivesthevalidwithdrawalrequestfromtheMember;

• anywithdrawalofaccruedbenefitsfromaTVCaccount.

5.2 Definitions

Thefollowingarethedefinitionsofthedifferenttypesoffeesandcharges.

(a) “Joining fee”means the one-off fee charged by the Trustee/Sponsor of theMasterTrust and payable by the participating employers and/orMembers upon joining theMasterTrust.

(b) “Annual fee”means the fee charged by the Trustee/Sponsor of theMaster Trust onan annual basis and payable by the participating employers and/orMembers of theMasterTrust.

(c) “Contribution charge”means the fee charged by the Trustee/Sponsor of theMasterTrust against any contributions paid to theMaster Trust. This fee is usually chargedas a percentage of contributions andwill be deducted from the contributions. ThischargedoesnotapplytotheBEAMPFConservativeFund.

(d) “Offer spread” is charged by the Trustee/Sponsor upon subscription of Units ofa Constituent Fund by aMember. Offer spread does not apply to the BEAMPFConservative Fund.Offer spread for a transfer of accrued benefits can only includenecessary transaction costs incurred or reasonably likely to be incurred in selling orpurchasing investments in order to give effect to the transfer and are payable to apartyotherthantheTrustee.

Although the Sponsor has the power to levy an offer spread of up to 5%of theissue price per Unit issued (other than the BEAMPF Conservative Fund, the BEACoreAccumulationFundandtheBEAAge65PlusFund inrespectofwhichnoofferspread is allowed), the Sponsor does not currently intend to levy such charge. The

47

Sponsorwill give not less than threemonths’ notice toMembers of any change insuchintention. Inanyevent,noofferspreadshallbechargedotherthananamountrepresentingthenecessarytransactioncoststhatareincurred,orreasonablylikelytobeincurred,insellingorpurchasinginvestmentsinordertogiveeffecttothetransferofaccruedbenefits:

(i) fromanotherregisteredschemeintotheMasterTrust;

(ii) from an accountwithin theMaster Trust to another accountwithin theMasterTrust;

(iii) inthesameaccountwithintheMasterTrust,fromaConstituentFundtoanotherConstituentFund.

(e) “Bid spread” is charged by the Trustee/Sponsor upon redemption of Units ofa Constituent Fund by aMember. Bid spread does not apply to the BEAMPFConservative Fund. Bid spread for a transfer of accrued benefits, orwithdrawal ofaccruedbenefits ina lumpsum,or thefirst12 instalmentsofwithdrawalofaccruedbenefits in a calendar year can only include necessary transaction costs incurred orreasonably likely tobe incurred in sellingorpurchasing investments inorder togiveeffecttothetransferorwithdrawalandarepayabletoapartyotherthantheTrustee.

Although the Sponsor has the power to levy a bid spread of up to 0.5%of therealisation price of eachUnit realised (other than the BEAMPF Conservative Fund,theBEACoreAccumulationFundandtheBEAAge65PlusFund in respectofwhichnobidspreadisallowed),theSponsordoesnotcurrentlyintendtolevysuchcharge.TheSponsorwillgivenot less than threemonths’notice toMembersofany changeinsuchintention.Inanyevent,nobidspreadshallbechargedotherthananamountrepresentingthenecessarytransactioncoststhatareincurred,orreasonablylikelytobeincurred,insellingorpurchasinginvestmentsinordertogiveeffectto:

(i) thetransferofaccruedbenefits:

(A) fromtheMasterTrusttoanotherregisteredscheme;

(B) from an accountwithin theMaster Trust to another accountwithin theMasterTrust;

(C) in the same accountwithin theMaster Trust, from a Constituent Fund toanotherConstituentFund;and

(ii) thepaymentofaccruedbenefits.

(f) “Withdrawal charge”means the fee charged by the Trustee/Sponsor of theMasterTrustuponwithdrawalof accruedbenefits from theMaster Trust. This fee is usuallycharged as a percentage of thewithdrawal amount andwill be deducted from thewithdrawal amount. This chargedoes not apply to the BEAMPFConservative Fund.Awithdrawal charge forwithdrawal of accruedbenefits in a lump sum, or the first12 instalmentsofwithdrawalofaccruedbenefits inacalendaryearcanonly includenecessary transaction costs incurred or reasonably likely to be incurred in selling orpurchasing investments inordertogiveeffect tothetransferorwithdrawalandarepayabletoapartyotherthantheTrustee.

(g) “Management fees” include fees paid to the Trustee, Custodian, Administrator,InvestmentManager(includingfeesbasedonfundperformance, ifany)andSponsoroftheMasterTrustforprovidingtheirservicestotherelevantConstituentFund.TheyareusuallychargedasapercentageoftheNAVofaConstituentFund.InthecaseofeachoftheBEACoreAccumulationFundandtheBEAAge65PlusFundmanagementfees payable to the parties named above, or their delegates, can only (subject to

48

certainexceptions in theMPFOrdinance)be chargedasapercentageof theNAVofthefund.Thesemanagementfeesarealsosubjecttoastatutorydailylimitequivalentto0.75%p.a.oftheNAVoftherelevantConstituentFundwhichappliesacrossboththeConstituent Fund andunderlying funds. The fees payable to the Trustee are forits trustee and administrative functions,while the fees payable to the InvestmentManagerareforitsinvestmentmanagementfunctions.AsfortheSponsor,itsfeesarefor itsservicesrelatedtoproductsupport,disseminationofMPFmarketingmaterialsandproductdevelopmentactivities.

(i) Thebreakdownof themanagement feespayableoutof theConstituent Funds is asfollows:

Fees payable at the Constituent Fund level

Name of Constituent Fund Sponsor(p.a. of NAV)

Trustee/Administrator/Custodian(p.a. of NAV)

Investment Manager (p.a. of NAV)

BEAGrowthFund 0.30% 0.30% 0.30%

BEABalancedFund 0.30% 0.30% 0.30%

BEAStableFund 0.30% 0.30% 0.30%

BEAGlobalEquityFund 0.30% 0.30% 0.30%

BEAAsianEquityFund 0.30% 0.30% 0.30%

BEAGreaterChinaEquityFund 0.30% 0.30% 0.30%

BEAGreaterChinaTrackerFund 0.20% 0.20% 0.20%

BEAHongKongTrackerFund 0.20% 0.20% 0.20%

BEAGlobalBondFund 0.30% 0.30% 0.30%

BEAMPFConservativeFund 0.264% 0.263% 0.263%

BEACoreAccumulationFund 0.295% 0.295% 0.16%

BEAAge65PlusFund 0.295% 0.295% 0.16%

(ii) The breakdown of themanagement fees payable out of the underlying funds is asfollows:

Fees payable at the underlying fund level

Name of Constituent Fund


Administrator (p.a. of NAV)

Trustee(p.a. of NAV)

Custodian (p.a. of NAV)

BEAGrowthFund Nil Nil Nil Nil

BEABalancedFund Nil Nil Nil Nil

BEAStableFund Nil Nil Nil Nil

BEAGlobalEquityFund Nil Nil Nil Nil

BEAAsianEquityFund Nil Nil Nil Nil


Nil Nil Nil Nil


0.20% Nil 0.11% Nil


Upto0.05% Nil Upto0.05% Nil

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Fees payable at the underlying fund level

Name of Constituent Fund


Administrator (p.a. of NAV)

Trustee(p.a. of NAV)

Custodian (p.a. of NAV)

BEAGlobalBondFund Nil Nil Nil Nil

BEAMPFConservativeFund

Nil Nil Nil Nil

BEACoreAccumulationFund

Nil Nil Nil Nil

BEAAge65PlusFund Nil Nil Nil Nil

Adocumentthatillustratestheon–goingcostsoncontributionstotheConstituentFundsin theMaster Trust (except for theBEAMPFConservative Fund)will bedistributedwiththisMPFSchemeBrochureandanillustrativeexamplefortheBEAMPFConservativeFundiscurrentlyavailablefordistributionwiththisMPFSchemeBrochure.Beforemakinganyinvestmentdecisions concerning investments in theMasterTrust, you shouldensure thatyouhavethe latestversionof thesedocuments.CopiescanbeobtainedfromtheofficesoftheTrustee.

5.3 No switching fee

No feesmay be charged, andno financial penaltiesmay be imposedon anyMember inrelation to any Switching Instruction other than an amount representing the necessarytransaction costs that are incurred, or reasonably likely to be incurred by the Trusteein selling or purchasing investments in order to give effect to the Switching Instructionandarepayable to apartyother than theTrustee. Suchnecessary transaction costsmayinclude, but are not limited to, items such as brokerage commissions, fiscal chargesand levies, government charges, bank charges, exchange fees, costs and commissions,registration fees and charges, collection fees and expenses, etc. Furthermore, any suchnecessarytransactioncosts imposedandreceivedshallbeusedtoreimbursetherelevantConstituentFund.

5.4 Change in Mandate fee

Currently,nofeewillbechargedforimplementingachangeinMandate.UndertheTrustDeed, the Trusteemay elect to charge a change inMandate fee of up toHKD200. TheTrusteewillgivethreemonths’noticetoMembersofanyelectiontochargesuchchangeinMandatefee.

5.5 Fees and out-of-pocket expenses related to the BEA MPF Conservative Fund

TheSponsor is entitled to receivea feeequal to0.79%p.a.of theNAVof theBEAMPFConservative Fund. Fees, charges andexpenseswill onlybepayableoutof theBEAMPFConservativeFund to theextentpermittedby theMPFOrdinance.TheSponsorwillbearany charges or expenses attributable to the BEAMPF Conservative Fundwhich are notpermittedtobepayableoutoftheBEAMPFConservativeFund.

5.6 Other charges and expensesSubjectasprovided in the“5.5Feesandout-of-pocketexpenses related to theBEAMPFConservative Fund” sub-section, eachConstituent Fundwill bear the costs setout in theTrust Deedwhich are directly attributable to such Constituent Fund.Where such costsarenotdirectlyattributabletoaConstituentFund,eachConstituentFundwillbearsuchcosts in proportion to its respective NAV or in such othermanner as the Trustee shallconsiderfair.Suchcostsincludebutarenotlimitedtothecostsofinvestingandrealisingthe investments of the Constituent Funds, the fees and expenses of sub-custodians of

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the assets of theMaster Trust, the fees and expenses of the auditors, valuation costs,legalfees,thestatutorycompensationfundlevy(ifany),premiumspayableinrespectofthe Trustee’s indemnity insurance, the costs incurred in connectionwith any regulatoryapproval and the costs incurred in the preparation and printing of anyMPF schemebrochure,reportsandstatements.

NoadvertisingorpromotionalexpenseswillbechargedtotheMasterTrustortheAPIFsinwhichtheMasterTrustinvests.

5.7 Fees and out-of-pocket expenses of the DIS

Inaccordancewithsection34DD(4)andSchedule11totheMPFOrdinance,theaggregateofthepaymentsforservicesspecifiedinsection34DD(2)oftheMPFOrdinanceoftheBEACoreAccumulationFundandtheBEAAge65PlusFundmustnot,inasingleday,exceedadailyrate(being0.75%p.a.oftheNAVofeachofthesetwoConstituentFundsdividedbythenumberofdays in theyear).This statutorydaily limitappliesacross theConstituentFundsandtheunderlyingfunds.

The above aggregate payments for services (i.e. “Management fees” as defined in (g)of “5.2 Definitions” sub-section in this “5. FEESAND CHARGES” section) include, butarenot limitedto,thefeespaidorpayablefortheservicesprovidedbytheTrustee,theAdministrator, the Sponsor and/or the InvestmentManager of theMaster Trust and theunderlyinginvestmentfundsofeachoftheBEACoreAccumulationFundandtheBEAAge65PlusFund,andanyofthedelegatesfromthesepartiesandsuchfeesarecalculatedasapercentageoftheNAVofeachoftheConstituentFundsanditsunderlyinginvestmentfund(s), but does not include any out-of-pocket expenses incurred by each ConstituentFundanditsunderlyinginvestmentfund(s).

In addition, in accordancewith section34DD(4) and Schedule11 to theMPFOrdinance,the total amount of all payments that are charged to or imposed on each of the BEACoreAccumulationFundand theBEAAge65Plus FundorMemberswho invest ineachof the BEA CoreAccumulation Fund and the BEAAge 65 Plus Fund, for out-of-pocketexpenses incurred by the Trustee on a recurrent basis in the discharge of the Trustee’sduties to provide services in relation to each of the BEA CoreAccumulation Fund andtheBEAAge65PlusFund, shallnot ina singleyearexceed0.2%of theNAVofeachofthe BEACoreAccumulation Fund and theBEAAge 65 Plus Fund. For this purpose, out-of-pocket expenses include, for example, annual audit expenses, printing or postageexpenses relating to recurrent activities (such as issuing annual benefit statements),recurrent legal and professional expenses, safe custody chargeswhich are customarilynotcalculatedasapercentageof theNAVandtransactioncosts incurredbyeachof theBEACoreAccumulationFundandtheBEAAge65PlusFundinconnectionwithrecurrentacquisitionofinvestmentsforeachoftheBEACoreAccumulationFundandtheBEAAge65 Plus Fund (including, for example, costs incurred in acquiring underlying funds) andannualstatutoryexpenses(suchascompensationfundlevywhererelevant)ofeachoftheBEACoreAccumulationFundandtheBEAAge65PlusFund.

Members should note that out-of-pocket expenses that are not incurred on a recurrentbasismay still be charged to or imposed on the BEA CoreAccumulation Fund and theBEAAge65PlusFund.Such feesarenot subject to the statutory capsmentioned in theprecedingparagraphs.

For further details, please refer to the fee table “(C) FUNDOPERATING CHARGES&EXPENSESOFCONSTITUENTFUNDS”underthe“5.1Feetable”sub-sectioninthis“5.FEESANDCHARGES”sectionofthisMPFSchemeBrochure.

5.8 Cash rebates and soft commissions

Neither the InvestmentManager nor any of its connected personsmay retain cash orotherrebatesfromabrokerordealerinconsiderationofdirectingtransactionstothem.

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The InvestmentManager and its associates (as defined in Schedule 8 to theMPFOrdinance)maywiththeconsentoftheTrusteedealwithanyConstituentFund,bothasprincipalandagent.

The InvestmentManagerandanyof itsassociatesmayeffect transactionsbyor throughtheagencyofanotherpersonwithwhomtheInvestmentManageroranyofitsassociateshaveanarrangementunderwhichthatpartywillfromtimetotimeprovidetoorprocurefor the InvestmentManager or any of its associates, goods, services or other benefits,such as research and advisory services, computer hardware associatedwith specialisedsoftwareorresearchservicesandperformancemeasuresetc.,thenatureofwhichissuchthat their provision can reasonably be expected to benefit theMaster Trust as awholeandmay contribute to an improvement in theMaster Trust’s performance and thatof the InvestmentManager or any of its associates in providing services to theMasterTrust and forwhich no direct payment ismade but instead the InvestmentManager orany of its associates undertake to place businesswith that party. For the avoidance ofdoubt such goods and services do not include travel, accommodation, entertainment,general administrative goods and services, general office equipment or premises,membershipfees,employeesalariesordirectmoneypayments.DetailsofsoftcommissionarrangementswillbedisclosedintheMasterTrust’saccounts.

5.9 Explanatory notes

(a) Inrespectofanyincreaseinfeesandchargesfromthecurrentlevelasstated,atleastthreemonths’ priorwritten noticemust be given to allMembers and participatingemployers. ImpositionofanyadditionalfeesandchargeswillbesubjecttothepriorapprovaloftheMPFAandtheSFCandatleastthreemonths’priorwrittennotice(orsuchotherperiodofnoticeas theMPFAor theSFCmayrequire)willbegiventoallMembersandparticipatingemployers.

(b) All of the Constituent Funds except the BEAMPF Conservative Fundwill, indirectly,bear the fees, charges and expenses of the underlying fund inwhich they invest.WhereaConstituentFund invests inanunderlyingfundmanagedbythe InvestmentManager andwhere the Trustee acts as trustee, no fee for investmentmanager ortrusteewillbechargedonsuchunderlyingfund.

(c) The rateof themanagement fees (except for themanagement feeof theBEACoreAccumulationFundandtheBEAAge65PlusFund),maybeincreaseduptoortowardsamaximumrateof3%p.a.of theNAVofeachConstituent Fundongivingnot lessthanthreemonths'writtennoticetotheaffectedMembers.

(d) It isthepresentintentionoftheSponsorthatthemanagementfeeschargedtoeachConstituentFund (except theBEACoreAccumulationFundand theBEAAge65PlusFund)willnotexceed0.90%p.a.oftheNAVoftheConstituentFund.

(e) TheSponsor'sfeesareinclusiveofthefeespayabletotheTrusteeandtheInvestmentManagerandtheSponsorwillpaythefeesoftheTrusteeandtheInvestmentManagerout of its own fee. The Sponsormay share any fees it receiveswith distributors oragents procuring subscriptions to theMaster Trust. The fees payable to the TrusteeareinclusiveofadministrationandcustodyfeespayabletotheTrusteeinitscapacityas theAdministratorandCustodian (but,exclusiveof feespayable to sub-custodianswhichwillbepaidfromtheassetsoftheMasterTrust).

(f) A Constituent Fundwill bear its operating expenses and the operating expenses oftheMaster Trust, in the proportionwhich its NAV bears to theNAVs of the otherConstituent Funds, if such expenses are not directly attributable to a ConstituentFund (provided that such operating expenseswill only be paid out of the BEAMPFConservative Fund to the extent permitted by theMPFOrdinance). Such expensesinclude but are not limited to the costs of investing and realising the investmentsof the Constituent Funds, the fees and expenses of custodians and sub-custodians

52

of the assets of theMaster Trust, the fees and expenses of the auditors, valuationcosts, legal fees, the statutory compensation fund levy (ifany),premiumspayable inrespect of the Trustee’s indemnity insurance, the costs incurred in connectionwithany regulatory approval, the costs incurred in the preparation and printing of anyMPF schemebrochure, reports and statements and license fee (if any) (applicable toConstituentFundsthatinvestinasingleapprovedITCIS).

(g) Each underlying fundmay bear its costs and operating expenses to the extentpermittedby theMPFOrdinancewhichmay includebutnot limited to the feesandexpenses (calculatednotby reference toNAVof theunderlying fund)of custodians,sub-custodians, auditors, legal fees, the costs incurred in connectionwithany listingorregulatoryapproval,thecostsincurredinthepreparationandprintingofanyMPFschemebrochureand the license fee (if any) (applicable to theunderlyingapprovedITCISsinwhichtheConstituentFundsinvest).

(h) TheFeeTabledoesnottakeintoaccountanyfeerebatethatmaybeofferedtosomeparticipatingemployers/MembersoftheMasterTrust.

(i) The rateof themanagement fees for theBEACoreAccumulationFundandtheBEAAge65PlusFundwillnotexceedthestatutoryrequirementfortheDIS.

53

6. ADMINISTRATIVE PROCEDURES

6.1 How to join

6.1.1 General

ThefollowingpersonsareeligibletojointheMasterTrust:

(a) anyemployer;

(b) anyself-employedperson;

(c) any employeewhowishes to transfer to theMaster Trust, his/her accrued benefitsattributable to (i) themandatory contributionsmade by him/her in respect of his/hercurrentemployment;or (ii) themandatorycontributionspaidbyor inrespectofsuch employee that are attributable to his/her former employments or former self-employments;or(iii)alloranyoneormoreofhis/herpersonalaccountswithanotherregisteredscheme;

(d) anypersonwhowishestojointheMasterTrustasapersonalaccountholder;

(e) anypersonwhowishes tomake special voluntary contributions to theMaster Trust,as a Special Voluntary ContributionAccountMember (see further in the paragraphsheaded“6.1.2SpecialVoluntaryContributionAccountMember”below);and

(f) anypersonwhoiseligibleandwishestomakeTVCintheMasterTrust(seefurtherintheparagraphsheaded“6.1.3TVCAccountHolder”below).

Every eligible applicant needs to execute a participation agreement to join theMasterTrust. A sample participation agreementmay be obtained from the Sponsor or theTrustee. The completed participation agreementmust be returned to the Trustee inthemanner as set out in the participation agreement, togetherwith such informationand documents asmay be reasonably required or requested by the Trustee. Under theparticipationagreement,eachperson that joins theMasterTrustagrees tobeboundbythetermsoftheTrustDeed.

6.1.2 Special Voluntary Contribution Account Member

Currently,theTrusteewillonlyacceptapersonwhofallsunderanyoneofthefollowingcategoriestojoinasaSpecialVoluntaryContributionAccountMember:

(a) anemployee;

(b) aself-employedperson;and

(c) amemberoraformermemberofaregisteredschemeoranORSOexemptedschemeoranORSOregisteredscheme.

6.1.3 TVC Account Holder

AnypersonwhofallsunderanyoneofthefollowingcategoriesmayopenaTVCaccount:

(a) anemployeememberofaregisteredscheme;

(b) aself-employedpersonmemberofaregisteredscheme;

(c) apersonalaccountholderofaregisteredscheme;or

54

(d) amemberofanMPFexemptedORSOscheme.

EacheligiblepersoncanonlyhaveoneTVCaccountunderaregisteredscheme.

TheTrusteemayrejectanyapplicationtoopenaTVCaccount intheMasterTrust intheeventofanyRelevantCircumstances.

6.2 Contributions

6.2.1 Mandatory contributions

A participating employermustmakemandatory contributions to theMaster Trust inrespect of eachMember employed by it and, except as provided below,must deductmandatory contributions from the relevant incomeofeachMemberemployedby it andpaythosemandatorycontributionstotheMasterTrust.

CalculationofMandatoryContributions

The amount of the participating employer’smandatory contributions and theMember’smandatorycontributionsisasfollows:

Participating employer’smandatorycontributions

5% (or any other percentage as may beprescribed by theMPFOrdinance) of relevantincome*

Member’smandatorycontributions ifmonthly relevant income is less than thestatutoryminimum level of relevant income,nil;otherwise,5%(oranyotherpercentageasmay be prescribed by theMPFOrdinance) ofrelevantincome*

Note: Member’smandatorycontributionsarenotrequiredinrespectof:

(a) where theMember is paidmonthly ormore frequently, anywageperiod thatcommencesonorbeforetheMember’s30thdayofemployment;and

(b) where theMember is paid less frequently thanmonthly, the period fromcommencement of theMember’s employment to the last day in the calendarmonthinwhichtheMember’s30thdayofemploymentfalls.

Participating employer’smandatory contributions are required in respect of theseperiods.

Memberswho are self-employedmust paymandatory contributions to theMaster Trustunlesstheirrelevantincomeis lessthanthestatutoryminimumlevelofrelevantincome.Theamountof suchmandatory contributions is 5% (oranyotherpercentageasmaybeprescribedbytheMPFOrdinance)oftheMember’srelevantincome*.

Memberswho are interested in knowing the current statutoryminimum andmaximumlevelofrelevantincomemaycalltheBEA(MPF)Hotlineon(+852)22111777(operatedbyBankof EastAsia (Trustees) Limited), request viaelectronicmail [email protected]:http://www.hkbea.com.

*providedthatmandatorycontributionsarenotrequiredonrelevantincomeinexcessofthestatutorymaximumlevelofrelevantincome

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6.2.2 Voluntary contributions

Thefollowingpersonsmayelect tomakevoluntarycontributionstotheMasterTrustongivingsuchpriornoticeastheTrusteemayrequireinaformspecifiedbytheTrustee:

(a) participatingemployers;

(b) Memberswhoareemployeesofsuchparticipatingemployers;

(c) Memberswhoareself-employedpersons;and

(d) SpecialVoluntaryContributionAccountMembers.

A participation agreement and/or supplement to the participation agreementmayrequiretherelevantparticipatingemployerand/orMemberstomakecontributionstotheMaster Trust in addition tomandatory contributions (where relevant). Such additionalcontributionsaretreatedasvoluntarycontributionsforthepurposesoftheMasterTrust.

Special Voluntary ContributionAccountMembersmay elect tomake special voluntarycontributions to theMaster Trust on giving not less than onemonth's notice (or suchshorter period of notice as the Trusteemay in its discretion agree to accept) in a formspecified by the Trustee. Such contributions are treated as voluntary contributions forthe purpose of theMaster Trust. Payments of special voluntary contributions into theMasterTrustaresubjecttothefollowingrequirements,unlessotherwiseprovidedintheparticipationagreementand/orsupplementtotheparticipationagreement:

• Minimumcontributionformonthlycontribution:HKD100;and

• Minimumcontributionforlumpsumcontribution:HKD500.

TheTrusteemayrevisetheaboveminimumspecialvoluntarycontributionsongivingnotlessthanonemonth’spriorwrittennoticetoMembers(orsuchotherperiodofnoticeastheMPFAortheSFCmayrequire).

Unlessotherwiseagreedwith theTrustee,voluntarycontributions shouldbepaidat thesametimeandinthesamemannerasmandatorycontributions.

6.2.3 TVC

TVCcanonlybemadeintoaTVCaccount,whichisseparatefromacontributionaccountor a personal account. Any other forms of voluntary contributions that are notmadeintotheTVCaccountarenotTVC(forexample,voluntarycontributionsthataremadebyemployeemembersthroughtheirparticipatingemployerswillnotbeeligibleforclaimingTVCtaxdeduction).

TVCissubjecttothesamevesting,preservationandwithdrawalrequirementsapplicabletomandatorycontributions.Thisalsoapplies tocontributions thatexceedthemaximumtaxdeductibleamountperassessmentyear.

Therelevantparticipationagreementsetsouttheminimumlimitimposedontheamountand/orfrequencyofcontributionmadetotheTVCaccount.TVCwillbefullyvestedintheTVCAccountHolderasaccruedbenefitsonceitispaidintotheMasterTrust.

Forriskmanagementandcompliancepurposes,therecouldbecircumstances(suchastheRelevant Circumstances) that TVCmay be rejected. Any rejected TVC (with no interest)will be refundedwithin 45days of receipt of any such TVCunless for someexceptionalregulatoryreason(s)theTrusteeisunabletoeffectarefundwithinsuchtimeframe.

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TVC paid into a TVC accountwill be eligible for tax deduction in accordancewith theInlandRevenueOrdinance.With effect from1stApril, 2019, theMaster Trust offers TVCaccountstoeligiblepersons.

ThecharacteristicsofTVCareasfollows:

(a) TVC can only bemade directly by eligible persons into TVC account of a registeredscheme inorder to enjoy tax concession, subject to relevant conditions. Please referto theparagraphsheaded“(d) For TVCAccountHolders” in the“7.2 Taxation” sub-sectionunderthe“7.OTHERINFORMATION”sectionfordetails;

(b) involvementofemployersisnotrequired;and

(c) though it is voluntary in nature, TVC is subject to the same vesting, preservationandwithdrawal restrictions applicable tomandatory contributions. Accordingly, anyaccruedbenefitsderivedfromTVC(includinganyTVCmadeinexcessofthemaximumtaxdeduction limit during a tax assessment year)will bepreservedand canonlybewithdrawnupon retirementatage65oronother statutorygroundsunder theMPFlegislation.

Fortheavoidanceofdoubt,theprotectionofaccruedbenefitsundertheMPFOrdinanceisnotapplicabletotheTVCaccount,meaningthataccruedbenefitsderivedfromTVCwillgenerallybevestedinthetrustee-in-bankruptcyorofficialreceiveraspartofthepropertyofabankruptTVCAccountHolder.

Apartfromthewithdrawalofaccruedbenefits,theTrusteemayterminatetheMember’sTVCaccountif:

(a) thebalanceoftheTVCaccountiszero;and

(b) thereisnotransactionactivityinrespectoftheTVCaccountfor365days.

6.2.4 Payment of contributions generally

Contributions to theMaster Trust should only be paid to the Trustee until such time asspecifiedby theMPFOrdinance,or in the caseofvoluntary contribution,as specified intheparticipationagreementand/orsupplementtotheparticipationagreement.

6.2.5 Fractions of a Unit represented by the contributions

Fractions of not less than 1/1,000 of a Unitwill be issued. Contributions representingsmallerfractionsofaUnitwillberetainedbytherelevantConstituentFund.

6.3 Investment in Constituent Funds

6.3.1 Mandate to invest contributions

On becoming aMember of theMaster Trust, theMemberwill be given an opportunitytogiveaninstructioninaformspecifiedbytheTrustee(i.e.aMandate)settingouthowcontributionsmadebyandonbehalfoftheMemberaretobeinvestedintheConstituentFunds. If aMemberelects to invest inaparticularConstituentFund, then theMember’stotalcontributionsmustbeinvestedinthatConstituentFundinamultipleof10%.IntheabsenceofaMandate,theTrusteewillinvesttherelevantcontributionsintheDIS.

AMember can change theMember’sMandatebygivinganewMandate to theTrustee.TheMember’sMandate applies to future contributions and future transfer-in assets,andnot accruedbenefits.AMembermay give differentMandates to different types ofcontributions;toillustrate:

57

(a) aMandatemay be given to aMember’s participating employer’s mandatorycontributions and a differentMandatemay be given to theMember’s participatingemployer’svoluntarycontributions;or

(b) aMandateforparticipatingemployer’smandatoryandvoluntarycontributionsandadifferentMandateforemployee’smandatoryandvoluntarycontributions.

ThenewMandatewillapplywitheffectnolaterthanthelatestof:

(a) theValuationDatefallingonorimmediatelyaftertheeffectivedatespecifiedintheMandate(ifany),

(b) aValuationDatewithinsevenBusinessDaysafterreceiptofthenewMandatebytheTrustee,and

(c) receiptbytheTrusteeofanyfeepayableforchangingtheMandate.

ThenewMandatewillonlyapplyto investmentofcontributionsreceivedbytheTrusteeonoraftertheValuationDateonwhichthenewMandatetakeseffect.

If any change ofMandate given after enrolment does notmeet the requirements for aSpecific Investment Instruction, then such change ofMandatewill be rejected and theexisting investment allocation (in respect of future contributions and future accruedbenefitstransferredfromanotherregisteredscheme)willremainunchanged.

Membersmay give an unlimited number of instructions to changeMandates free ofcharge.

Forms for a change ofMandate are available from the Trustee and the Sponsor.MandatesmaybegiventotheTrusteebywrittennoticeorotherauthenticatedmeansofcommunication.However,theTrusteewillnotberesponsibletoanyMemberforanylossresulting from the non-receipt of aMandate or any amendment to aMandate prior toreceiptbytheTrustee.

TheTrusteewillapplycontributionsmadebyoronbehalfofaMembertoacquireUnitsin theConstituent Funds in accordancewith theMandatesof theMember.Dealings foraConstituentFundwillbeavailableoneveryValuationDate.WheretheTrusteereceivesthe correct amount of contributions in cleared funds and a duly completed remittancestatement, the Trusteewill apply the contributions received to acquire Units on aValuationDatewithin 20 Business Days of receipt. Pending the acquisition of Units intheConstituentFunds,theTrusteewillholdcontributions inan interestbearingaccountwithTheBankofEastAsia,Limited. InterestearnedwillbeusedbytheTrusteetomeetgeneraloperatingexpensesoftheMasterTrust.

6.3.2 Switching Instructions to change investment

Members have the right (subject to any suspension in the determination of theNAVof any relevant Constituent Fund) to switch all or part (subject as provided below) oftheUnits relating toaConstituent Fund credited to their account intoUnits relating tootherConstituent Fundbygiving a Switching Instruction.AMembermaygivedifferentSwitching Instructions to different types of accrued benefits; to illustrate, a SwitchingInstruction in respect of the accrued benefits attributable to aMember’smandatorycontributionscanbedifferentfromaSwitchingInstructiongiveninrespectoftheaccruedbenefits attributable to theMember’s voluntary contributions. A Switching Instructiononly applies to accrued benefits already in the relevantMember’s account and notfuturecontributions. IfaSwitching Instructiongivenafterenrolmentdoesnotmeet therequirements for a Specific Investment Instruction, then such Switching Instructionwillberejected,andtheexistinginvestment(inrespectoftheexistingaccruedbenefits)willremainunchanged.

58

MembersmaygiveanunlimitednumberofSwitchingInstructionsfreeofcharge.

FormsforSwitchingInstructionsareavailablefromtheTrusteeandtheSponsor.SwitchingInstructionsmaybegiventotheTrusteebywrittennoticeorotherauthenticatedmeansof communication.However, theTrusteewill notbe responsible toanyMember for anyloss resulting from the non-receipt of a Switching Instruction or any amendment to aSwitchingInstructionpriortoreceiptbytheTrustee.

Thecut-offtimeforSwitchingInstructionis4p.m.onaBusinessDay.

In respectofaSwitching Instruction,Units relating toaConstituentFund (the“Existing Units”)will be realised on a ValuationDatewithin seven Business Days of receipt ofthe Switching Instruction by the Trustee or, if later, the ValuationDate falling on orimmediatelyaftertheeffectivedatespecifiedintheSwitchingInstruction(ifany)ortheValuationDate falling on or immediately after the day onwhich the Trustee receivesany feepayable in respectof theSwitching Instruction.ThedayonwhichUnits relatingto theConstituentFund intowhichpartorallof theholdingare tobe switchedwillbeissued(the“New Units”)shallbeonaValuationDatefallingno laterthanfiveBusinessDays after the ValuationDate onwhich the ExistingUnitswere realised. The ExistingUnitswillberealisedandtheNewUnitswillbeissuedatratesdeterminedbyreferencetotheirrespectiveUnitpricesontherespectiveValuationDates.Pendinginvestment intheConstituentFundrelatingtotheNewUnits,theTrusteewillholdtherealisationproceedsof theExistingUnits inan interestbearingaccountwithTheBankofEastAsia,Limited.InterestearnedwillbecreditedtotheConstituentFundrelatingtotheExistingUnits.

Currently, no offer spread or bid spreadwill be charged for implementing a SwitchingInstruction.UndertheTrustDeednofeesmaybecharged,andnofinancialpenaltiesmaybeimposedonanyMemberinrelationtoanySwitchingInstructionotherthananamountrepresenting the necessary transaction costs that are incurred, or reasonably likely tobe incurredbytheTrustee insellingorpurchasinginvestments inordertogiveeffecttothe Switching Instruction and are payable to a party other than the Trustee. Any suchnecessarytransactioncosts imposedandreceivedshallbeusedtoreimbursetherelevantConstituentFund.Pleasereferto“5.3Noswitchingfee”sub-sectioninthe“5.FEESANDCHARGES”sectionforfurtherdetails.

Any fraction smaller than 1/1,000 of a NewUnit arising as the result of a switchwillbe ignored andmoneys representing any such fractionwill be retained as part of theConstituentFundtowhichtheNewUnitsrelate.

6.3.3 MPF Default Investment Strategy

TheDISisaready-madeinvestmentarrangementmainlydesignedforthoseMemberswhoarenotinterestedordonotwishtomakeaninvestmentchoice,andisalsoavailableasaninvestmentchoiceitselfforMemberswhofinditsuitablefortheirowncircumstances.ForthoseMemberswhodonotmakean investment choice, their contributionsandaccruedbenefits transferred from another registered schemewill be invested in accordancewith theDIS.TheDIS is requiredby lawtobeoffered inevery registered schemeand isdesignedtobesubstantiallysimilarinallregisteredschemes.

(a) Asset allocation

TheDISaimstobalancethelong-termeffectsofriskandreturnthroughinvestingintwoConstituentFunds,namelytheBEACoreAccumulationFundandtheBEAAge65PlusFund,accordingtothepre-setallocationpercentagesatdifferentages.TheBEACoreAccumulation Fundwill invest around 60% inHigher Risk Assets (Higher RiskAssetsgenerallymeanequitiesor similar investments)and40% inLowerRiskAssets(LowerRiskAssetsgenerallymeanbondsor similar investments)of itsNAVwhereasthe BEAAge 65 Plus Fundwill invest around 20% inHigher Risk Assets and 80%in Lower Risk Assets. Both Constituent Funds adopt globally diversified investment

59

principlesandusedifferentclassesofassets, includingglobalequities,fixed income,moneymarket,cash,andothertypesofassetsallowedundertheMPFlegislation.

(b) De-risking of the DIS

Accrued benefits invested through theDISwill be invested in away that adjustsrisk depending on aMember’s age. TheDISwillmanage investment risk exposureby automatically reducing the exposure to Higher Risk Assets and correspondinglyincreasing the exposure to Lower Risk Assets as theMember gets older. Such de-riskingistobeachievedbywayofreducingtheholdingintheBEACoreAccumulationFund and increasing the holding in the BEAAge 65 Plus Fund throughout theprescribedtimespanasdetailedbelow.Diagram1belowshowsthetargetproportionof investment inriskierassetsovertime.Theassetallocationstaysthesameupuntil50yearsofage,thenreducessteadilyuntilage64,afterwhichitstayssteadyagain.

Diagram 1: Asset Allocation between Constituent Funds in the DIS

Note: The exact proportion of the portfolio in Higher Risk Assets /Lower Risk Assets at any point in time may deviate from the target glide path due to market fluctuations.

Lower risk assets (mainly global bonds)

Higher risk assets (mainly global equities)

Perc

enta

ge o

f to

tal a

sset

s

BEA Core Accumulation Fund BEA Age 65 Plus Fund

Under 50 50 - 64 65+ Age

40%

60%

20%

80%

The above de-risking is to be achieved by annual adjustments of asset allocationgraduallyfromtheBEACoreAccumulationFundtotheBEAAge65PlusFundundertheDIS. Save for the circumstances set out in these paragraphs headed “(b) De-risking of theDIS”, switching of the existing accrued benefits among the BEA CoreAccumulation Fundand theBEAAge65 Plus Fundwill be automatically carriedouteach year on aMember’s birthday and according to the allocation percentages asshown in theDIS De-risking Table as shown in Diagram 2 below. If theMember’sbirthday is not on a Business Day, then the investmentswill bemoved on the nextavailable Business Day. Alternatively, if theMember’s birthday falls on the 29thof February and in a yearwhich is not a leap year, then the investmentswill bemovedon1stofMarchorthenextavailableBusinessDay. If there isanyexceptionalcircumstance, e.g. market closure or suspension of dealing, on theMember’sbirthdaywhichmakesitimpossiblefortheinvestmentstobemovedonthatday,theinvestmentswillbemovedonthenextavailableBusinessDay.

If the relevantMember notifies the Trustee of his/her updated birthday, then theTrusteewill,assoonaspracticable,andinanycasewithintwoweeks,afterbeingsonotified,adjusttheallocationbetweentheBEACoreAccumulationFundandtheBEAAge65PlusFundaccordingtohis/herupdatedbirthday,andeffect thede-risking inthefutureyearsaccordingtotheDISDe-riskingTableinDiagram2belowandhis/herupdatedbirthday.Whenoneormoreofthespecifiedinstructions(includingbutnotlimited to subscription, redemption, switchingorwithdrawal instructions) arebeingreceivedpriortoorontheannualdateofde-riskingforarelevantMemberandbeingprocessed on that date, the annual de-riskingmay be deferred andwill only takeplace after completionof these specified instructions. The smallest amount ofUnitsofeachoftheBEAAge65PlusFundand/ortheBEACoreAccumulationFundthatcanbe issued in theannualde-riskingunder theDIS shallbea fractionofnot less than1/1,000ofaUnit.

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Please refer to this “6.ADMINISTRATIVEPROCEDURES” section fordetails regardingthehandlingproceduresforsubscription,redemptionandswitching,respectively.

Membersshouldbeawarethattheabovede-riskingwillnotapplywheretheMemberchoosestheBEACoreAccumulationFundandtheBEAAge65PlusFundasindividualfundchoices(ratherthanaspartoftheDIS).

Insummary,undertheDIS:

(i) when aMember is below the age of 50, all existing accrued benefits and allcontributions and accrued benefits transferred from another registered schemewillbeinvestedintheBEACoreAccumulationFund;

(ii) whenaMember isbetween theagesof50and64, all existingaccruedbenefitsand all contributions and accrued benefits transferred from another registeredschemewillbeinvestedaccordingtotheallocationpercentagesbetweentheBEACoreAccumulationFundandtheBEAAge65PlusFundas shown in theDISDe-riskingTableasshowninDiagram2below.Thede-riskingontheexistingaccruedbenefitswillbeautomaticallycarriedoutasdescribedabove;

(iii)when aMember reaches the age of 64, all existing accrued benefits and allcontributions and accrued benefits transferred from another registered schemewillbeinvestedintheBEAAge65PlusFund;

(iv) iftherelevantMemberhasreached60yearsofagebefore1stApril,2017,unlesstheMember has given a Specific Investment Instruction, theMember’s accruedbenefits (including new contributions and accrued benefits transferred fromanotherregisteredscheme)willbeinvestedinthesamemannerasat31stMarch,2017;

(v) foradeceasedMember,de-riskingwillceaseoncetheTrusteehasreceivedproofofthedeathoftheMembertotheTrustee’ssatisfaction.Ifde-riskinghasalreadybeen takenplacebetween thedeathof theMemberand the timeatwhich theTrusteereceivedthesatisfactoryproofof suchdeath, suchde-riskingwillnotbeundone,althoughnofurtherde-riskingwilltakeplaceinrespectofthedeceasedMember.

IftheTrusteedoesnothavethefulldateofbirthoftherelevantMember:

(i) if only the year andmonth of birth is available, the annual de-riskingwill usethe last calendardayof thebirthmonth,or if it isnotaBusinessDay, thenextavailableBusinessDay;

(ii) if only the year of birth is available, the annual de-riskingwill use the lastcalendardayoftheyear,orifitisnotaBusinessDay,thenextavailableBusinessDay;

(iii) if no informationat all on thedateofbirth,Member’s accruedbenefitswill befullyinvestedintheBEAAge65PlusFundwithnode-riskingapplied.

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Diagram2:DISDe-riskingTable

Age BEACoreAccumulationFund BEAAge65PlusFundBelow50 100.0% 0.0%

50 93.3% 6.7%51 86.7% 13.3%52 80.0% 20.0%53 73.3% 26.7%54 66.7% 33.3%55 60.0% 40.0%56 53.3% 46.7%57 46.7% 53.3%58 40.0% 60.0%59 33.3% 66.7%60 26.7% 73.3%61 20.0% 80.0%62 13.3% 86.7%63 6.7% 93.3%

64andabove 0.0% 100.0%

Note: The above allocation between BEA CoreAccumulation Fund and BEAAge 65PlusFundismadeatthepointofannualde-riskingandtheproportionofBEACoreAccumulation Fund and BEAAge 65 Plus Fund in theDIS portfoliomayvaryduringtheyearduetomarketfluctuations.

The investment al location of each relevant Member between the BEA CoreAccumulationFundandtheBEAAge65PlusFundwillberoundedofftoonedecimalplace.

TheTrusteewill, to theextentpracticable, issueanotice to the relevantMemberatleast 60daysprior tohis/her50thbirthday informinghim/herof the commencementofthede-riskingprocess.Also,aconfirmationstatementwillbesenttotherelevantMember no later than five Business Days after the de-risking process has beencompleted.

Please refer to the “3. FUNDOPTIONS, INVESTMENTOBJECTIVESAND POLICIES”section for the investment policies and objectives and the other pages of this“6.3.3MPFDefault Investment Strategy” sub-section of the “6. ADMINISTRATIVEPROCEDURES” section for the specific operational arrangements of the ConstituentFundswhichareundertheDIS.

(c) Switching in and out of the DIS

Members can switch into or out of theDIS at any time, subject to the rules of theMasterTrust.Membersshould,however,bearinmindthattheDIShasbeendesignedas a long-term investment arrangement.Where the relevantMember’s existinginvestment is under theDIS, he/shemay only switch out of theDIS if he/she electsto have both the accrued benefits and new contributions and accrued benefitstransferred fromanother registered schemeunder all sub-accounts invested outsideoftheDIS.Conversely,wheretherelevantMemberwishestotransferintotheDIS,he/shecanelecttohaveeither:

(i) theaccruedbenefits,or

(ii) new contributions and accrued benefits transferred from another registeredschemeinvestedintheDIS.

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IfaMemberonlyelectstoswitchtheexistingaccruedbenefitsoutoftheDISwithoutprovidinganewMandate,new contributionsandaccruedbenefits transferred fromanotherregisteredschemewillstillbeinvestedintheDIS.Also,MembersmaychangetheirinvestmentinstructionstoinvestintheDISatanytime.

(d) Circumstances for accrued benefits to be invested in the DIS

(i) New accounts set up on or after 1st April, 2017

• WhenaMember(includingaMemberwhoisaSpecialVoluntaryContributionAccountMemberoraTVCAccountHolder)joinstheMasterTrustorsetsupanewaccountintheMasterTrust,theyhavetheopportunitytogiveaMandatefortheirfuturecontributionsandaccruedbenefitstransferredfromanotherregisteredscheme.Theymaychooseto invest their futurecontributionsandaccruedbenefitstransferredfromanotherregisteredschemeinto:

o theDIS;or

o oneormoreConstituentFundsof theirownchoice from the listunderthe“3.FUNDOPTIONS,INVESTMENTOBJECTIVESANDPOLICIES”section(including the BEA CoreAccumulation Fund and the BEAAge 65 PlusFund) and according to their assigned allocation percentage(s) torelevantfund(s)oftheirchoice;

• TVCAccountHolders canmake theirownfund selectionor choose to investin theDIS under theMaster Trust according to their circumstance and riskappetite. If a TVCAccount Holder fails to submit to the Trustee a validMandateordoesnotmakeanyinvestmentchoiceatthetimeofTVCaccountopening,his/herTVCwillbeinvestedintheDIS.

• Members should note that, i f investments /benefits in the BEA CoreAccumulation Fund or the BEA Age 65 Plus Fund aremade under theMember’sSpecific Investment Instructionsfor investment insuchConstituentFund (as a standalone fund choice rather thanaspartof theDISofferedasachoice) (“standalone investments”), those investments/benefitswillnotbesubjecttothede-riskingprocess.IfaMember’saccruedbenefitsareinvestedin any combination of (i) the BEA CoreAccumulation Fund and/or the BEAAge 65 Plus Fund as standalone investments and (ii) theDIS (nomatter bydefault or by a Specific Investment Instruction), accrued benefits investedunder(i)willnotbesubjecttothede-riskingmechanismwhereasforaccruedbenefitsunder(ii)willbesubjecttothede-riskingprocess.Inthisconnection,Members should pay attention to the different on-going administrationarrangements applicable to accrued benefits invested in (i) and (ii). Inparticular,Memberswill,whengivingaSwitchingInstruction,berequiredtospecifytowhichpartofthebenefits(namely,under(i)or(ii))theinstructionrelates;

• IfaMemberoptsforinvestingtheirfuturecontributionsandaccruedbenefitstransferred from another registered scheme into one ormore ConstituentFunds of their own choice and according to their assigned allocationpercentage(s)torelevantConstituentFund(s)oftheirchoice,the investmentinstructionmustmeettherequirementsforaSpecificInvestmentInstruction.The following table sets out the different investment instructions and theconsequences of each investment instruction given upon enrolment beinginvalid:

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Investmentinstruction Consequences

A. The total investment allocationislessthan100%

TheremainingpercentageofcontributionsandaccruedbenefitstransferredfromanotherschemewillbeinvestedintotheDIS.

B. Thetotalexceeds100%

TheentirecontributionsandaccruedbenefitstransferredfromanotherschemewillbeinvestedintotheDIS.

C. The investment allocation is notinamultipleof10%

D. TheinvestmentinstructionisnotlegibleandtheTrusteeisunabletoprocess

E. Noinvestmentallocationisgiven

• IfMembers do not giveMandates, their future contributions and accruedbenefits transferred from another registered schemewill be automaticallyinvestedintheDIS;

• Where aMember hasmultiple capacities under theMaster Trust (e.g. aMember being an employeemember and a personal account holder), theinvestment arrangement applies to the accounts of theMember in eachcapacityindividually.Inotherwords,ifaMemberisanemployeememberandapersonalaccountholderandwishes to switchhis/heraccruedbenefitsandcontributionsundertheaccountsrelatedtohis/heremployeememberstatusinto theDIS, such switchingwill only impact the accounts related tohis/heremployeemember status and not the accounts related to his/her personalaccountholderstatus.

(ii) Existing accounts set up before 1st April, 2017

Therearespecialrulestobeappliedforaccountswhichexistoraresetupbefore1st April, 2017 (“Pre-existing Accounts”) and these rules only apply toMemberswhowereunderorbecoming60yearsofageon1stApril,2017:

• ForaMember’sPre-existingAccountwithallaccruedbenefitsbeinginvestedaccording to the original default investment arrangement which wasgenerallyresultedfromnoinvestmentinstructionbeinggivenontheexistingaccruedbenefits(suchMemberbeinga“DIA Member”):

If,asof1stApril,2017,theaccruedbenefitsinaMember’sPre-existingAccountwere only invested in the original default investment arrangement of theMaster Trust (i.e. the BEA Stable Fund), special rules and arrangementswillbeapplied, induecourse, todeterminewhether theaccruedbenefits in suchaccountwill be transferred to theDIS andwhether the future contributionsand accrued benefits transferred from another registered scheme for suchaccountwill be invested in theDIS. If aMember’s Pre-existingAccount isthe one described above, a notice called theDIS Re-investmentNotice (the“DRN”)may be sent to theDIAMemberwithin sixmonths from 1st April,2017 explaining the impact on such account and giving theDIAMember anopportunity to give a specified investment instruction to the Trustee beforethe accrued benefits, future contributions and accrued benefits transferredfromanotherregisteredschemeareinvestedintotheDIS.IftheTrusteeisnotawareofanycontactdetailsoftheMemberthatenabletheTrusteetogivetheDRN,theTrusteewillproceedtolocatetheMemberinthemanner,andwithinthetimelimit,specifiedintheMPFGuidelines.Membersshouldnotethattheriskinherentinthearrangement,inparticular,theriskoftheoriginaldefaultinvestmentarrangementmaybedifferentfromthatoftheDIS.Theywillalsobe subject tomarket risks during the redemption and reinvestment process.The following table summarises the risk levelsofeachof theoriginaldefaultinvestmentarrangement,theBEACoreAccumulationFundandtheBEAAge65PlusFund:

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NameoftheConstituentFund RisklevelBEAStableFund LowtomediumBEACoreAccumulationFund MediumtohighBEAAge65PlusFund Lowtomedium

Fordetailsofthearrangement,MembersshouldrefertotheDRN.

• ForaMember’sPre-existingAccountwhichaccruedbenefitsarepartlyinvestedinthe original default investment arrangement immediately before 1st April, 2017(asaresultofnovalidinvestmentinstructionbeinggiveninrespectofthatpartof theaccruedbenefits),unless theTrusteehas receivedanySpecific InvestmentInstructions, accrued benefits of aMember (including future contributions andaccruedbenefitstransferredfromanotherregisteredscheme)willbe invested inthesamemannerasimmediatelybefore1stApril,2017;

• ForaMember’sPre-existingAccountwhich,asof31stMarch,2017,hasalloftheaccruedbenefitsinitinvestedinConstituentFundsotherthantheoriginaldefaultinvestment arrangement forwhatever reasons (e.g. as a result of SwitchingInstructions or accrued benefits from another accountwithin theMaster TrustbeingtransferredtothePre-existingAccount)andnoinvestmentinstructionhaseverbeengivenforthePre-existingAccountinrespectofnewcontributionsandaccruedbenefits transferred fromanother registered scheme,unless theTrusteehas receivedanySpecific Investment Instructions, theMember’saccruedbenefitswillbeinvestedinthesamemannerastheywereinvestedimmediatelybefore1stApril, 2017,while the new contributions and accrued benefits transferred fromanotherregisteredschemepaidtotheMember’sPre-existingAccountonorafter1stApril,2017willbeinvestedintheDIS.

6.3.4 Treatment of benefits transferred from a contribution account to a personal account

WhereaMemberceasesemploymentwithaparticipatingemployerand:

(a) in the absence of his/her election to transfer such accrued benefits as describedin the paragraphs headed “6.8.1 Transfers to other registered schemes or otheraccount(s)within theMaster Trust” in the “6.8 Transfers” sub-sectionunder this “6.ADMINISTRATIVE PROCEDURES” section, and his/her accrued benefits in respect ofsuch employment are automatically transferred to a personal account under theMasterTrustupontheexpiryofthethreemonths’periodaftertheTrusteehasbeennotifiedoftheterminationofhis/heremployment;or

(b) theMember has given instruction to transfer the accrued benefits from suchemployment to a personal account and his/her accrued benefits are thereforetransferredtothepersonalaccount,

theaccruedbenefitstransferredfromtheMember’scontributionaccounttotheMember’spersonal accountwill be invested in the samemanner immediately before the transfer,and,unless theTrustee receivesa Specific Investment Instruction fromtheMemberwithregardtotheMember’spersonalaccount,anyfuturecontributionsandaccruedbenefitsfromanotherregisteredschememaybeinvestedintheDIS.

6.3.5 Information on Performance of the BEA Core Accumulation Fund and the BEA Age 65 Plus Fund

The fund performance (including the definition and actual figures of the fund expenseratio)andReferencePortfoliosof theBEACoreAccumulationFundandtheBEAAge65Plus Fundwill be published in the fund fact sheets (and one ofwhichwill be attachedto annual benefit statement).Members can visit http://www.hkbea.com or call thecustomerservicehotlineforinformation.MembersmayalsoobtainthefundperformanceinformationatthewebsiteoftheMPFA(www.mpfa.org.hk).

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The Reference Portfolio is adopted for the purpose of theDIS. The fund performancewillbereportedagainsttheReferencePortfoliopublishedbytheHongKongInvestmentFunds Association. Please visitwww.hkifa.org.hk for further information regarding theperformanceoftheReferencePortfolio.

The fundperformance is calculated inHKdollaronNAV-to-NAVbasis.Pastperformanceis not indicative of future performance. There is no assurance that investment returnsandmembers’accruedbenefitsmaynotsuffersignificantloss.Membersshouldregularlyreview the performance of the BEA Core Accumulation Fund and the BEA Age 65Plus Fund and considerwhether the investments still suit their personal needs andcircumstances.

6.4 Entitlement to accrued benefits

The accrued benefits payable to aMember on retirement or in other allowablecircumstances are dependent on the contributions paid during theMember’s periodofmembership in theMaster Trust and the investment return on the accrued benefitsderivingfromthosecontributionsduringtheperiod.

6.4.1 Mandatory contribution/TVC

Accruedbenefits inrespectofmandatorycontributionsand/orTVC(asapplicable)totheMaster Trust are payable in the circumstances set out in theMPFOrdinance. Currently,thesecircumstancesincludewheretheMember:

(a) reachestheageof65;

(b) permanentlyceasesemploymentorself-employmentafterreachingtheageof60;

(c) ceasesemploymentorself-employmentasaresultoftotalincapacity;

(d) hasaterminalillness;

(e) permanentlydepartsfromHongKong;

(f) dies;or

(g) hastherighttoclaimasmallbalancepursuanttotheMPFOrdinance.

6.4.2 Voluntary contribution

(a) Member's entitlement to accrued benefits

Accrued benefits in respect of voluntary contributions to theMaster Trust arepayableinthecircumstancessetoutintheTrustDeedandtherelevantparticipationagreementand/orsupplementtotheparticipationagreement,subjecttothevestingconditionsasdescribedbelow:

(i) onretirementonoraftertheMember’s60thbirthday;

(ii) onthetotalincapacityoftheMember;

(iii)ontheMember’sdeath;

(iv) except on dismissal for cause as described below, on cessation of employmentfor any other reason, his/her entitlement to the accrued benefits due to theparticipatingemployer'svoluntarycontributionisdeterminedbyreferencetotheperiod of theMember’s employmentwith the participating employer (andwithanyotheremployernominatedbytherelevantparticipatingemployer)(“Service”)inaccordancewiththefollowingtable:

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YearsofService VestedPercentage

lessthan3 Nil3ormorebutlessthan4 30%4ormorebutlessthan5 40%5ormorebutlessthan6 50%6ormorebutlessthan7 60%7ormorebutlessthan8 70%8ormorebutlessthan9 80%9ormorebutlessthan10 90%10ormore 100%

(b) Member's dismissal from employment

IfaMemberisdismissedfromemploymentonanyofthefollowinggrounds:

(i) wilfullydisobeyingalawfulandreasonableorder;

(ii) misconduct, suchconductbeing inconsistentwiththedueandfaithfuldischargeoftheMember’sduties;

(iii)beingguiltyoffraudordishonesty;

(iv) beinghabituallyneglectfulintheMember’sduties;or

(v) uponanyothergroundonwhichtheMember’sparticipatingemployerwouldbeentitled to terminate theMember’s contract of employmentwithout notice atcommonlaw,

and theTrustee is satisfied thatdismissalwasmadeuponanyof theabovegroundsthenallaccruedbenefitsderivedfromvoluntarycontributionsmadebytheMember’sparticipatingemployerinrespectofthatMemberareforfeited.

(c) Self-employed person's/Special Voluntary Contribution Account Member's voluntary contribution

Subject as provided in the participation agreement and/or supplement to theparticipationagreement:

(i) aMemberwho is a self-employed personmay request the Trustee to pay theMember all (but not part only) of the amounts attributable to theMember’svoluntarycontributionsatanytime;and

(ii) a Special Voluntary ContributionAccountMember is entitled to request theTrustee to pay theMember all or part only of the amounts attributable to theMember’s specialvoluntarycontributionsatanytime.Unlessotherwiseprovidedintheparticipationagreementand/orsupplementtotheparticipationagreement,eachrequestforwithdrawalofonlypartoftheamountsattributabletoaSpecialVoluntary ContributionAccountMember’s special voluntary contributions issubject toaminimumwithdrawalamountofHKD5,000.There isno limitonthenumber ofwithdrawals of special voluntary contributions that can bemade inanyonecalendaryear.

(d) Member's additional voluntary contributions

WhereaMemberwhoisanemployeeofaparticipatingemployerhasmadevoluntarycontributionsinadditiontothoserequiredbythetermsoftherelevantparticipationagreementand/orsupplementtotheparticipationagreement(“Additional Voluntary

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Contributions”), theMember is entitled to request the Trustee to pay theMemberamounts attributable to theMember’s Additional Voluntary Contributions. Thefollowingwillapply,unlesstheTrusteeagreesotherwise:

(i) therequestmustbeinaformspecifiedbytheTrustee;

(ii) the requestmust relate to all amounts attributable to theMember’sAdditionalVoluntaryContributions;and

(iii)notmore than two requestsmay bemade in any one financial period of theMasterTrust.

(e) Unclaimed accrued benefits

UnclaimedaccruedbenefitswillcontinuetobeheldandinvestedintheMasterTrust,subjecttotheprovisionsoftheMPFOrdinance.

6.5 Realisation of Units

WhereaMemberbecomesentitledtoaccruedbenefitsandaclaimissubmittedforsuchaccruedbenefits,theTrusteewillrealisetheUnitscreditedtotheaccountoftheMembertomeet such claim for accrued benefits. Subject as noted below, Unitswill be realisedonaValuationDate,within20BusinessDaysofthe laterof (i) thedatetheentitlementarisesand(ii)thedatetheTrusteereceivessatisfactorynoticeofsuchentitlement(togetherwithappropriatesupportingdocumentation).

Units realised on aValuationDatewill be realised at a price calculatedby reference totheNAV per Unit of the relevant Constituent Fund as at the close of business on thatValuationDate(forfurtherdetails,pleaserefertothe“7.OTHERINFORMATION”section).

RealisationofUnitswill be suspendedandpaymentof accruedbenefitswill bedelayedwhere the determination of theNAV of the relevant Constituent Fund is suspended(Pleaserefertotheparagraphsheaded“(d)SuspensionofCalculationofNAV”inthe“7.1Calculation”sub-sectionunderthe“7.OTHERINFORMATION”section).

Inaddition,withaviewtoprotectingtheinterestsofMembers,theTrusteeisentitledtolimitthenumberofUnitsrelatingtoanyConstituentFundrealisedonanyValuationDateto10%ofthetotalnumberofUnitsrelatingtothatConstituentFundinissue(disregardinganyUnitsthataretobe issuedonsuchValuationDate). Inthisevent,the limitationwillapplyproratatoallMembersinrespectofwhomUnitsrelatingtothatConstituentFundaretoberealisedonthatValuationDatesothattheproportionofsuchUnitsrealisedinrespectofeachMemberisthesame.Unitsnotrealised(butwhichwouldotherwisehavebeen realised)will be carried forward for realisation, subject to the same limitation,onthenextValuationDate.Ifrealisationsaresocarriedforward,theTrusteewillinformtheMembersconcerned.

6.6 Payment of accrued benefits

6.6.1 Lump sum payment

Subject as noted below, lump sum accrued benefits (including amounts attributable tovoluntary contributions)willbepaidas soonas reasonablypracticableand inanyeventnotlaterthan(i)30daysafterthedateonwhichtheclaimislodged;and(ii)30daysafterthecontributiondayinrespectofthelastcontributionperiodthatendsbeforetheclaimislodged.

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6.6.2 Withdrawal by instalments

AMember who becomes entit led to accrued benefits in respect of mandatorycontributions, voluntary contributions and/or TVC, as applicable, upon (i) reaching theageof65or(ii)permanentlyceasingemploymentorself-employmentafterreachingtheageof 60 (“Eligible Member”),may elect to havehis/her accruedbenefits derived frommandatory contributions, voluntary contributions and/or TVC, as applicable (together“Eligible Benefits”),paid ina lump sumorby instalments (i.e.partialwithdrawal). Suchelection is not available in other circumstanceswhen aMember becomes entitled toaccrued benefits in respect ofmandatory contributions, voluntary contributions and/orTVC,asapplicable,andtheaccruedbenefitswillbepaidinalumpsumonly.

If an EligibleMember elects to have his/her Eligible Benefits paid by instalments, foreach instalment, he/she is required to give instructions to the Trustee by submitting aseparateclaimform(available fromtheTrusteeandtheSponsor) specifyingtheamountofwithdrawal.

Suchwithdrawalinstructionswillapplytoaccruedbenefitsbothinrespectofmandatorycontributions and,where applicable, voluntary contributions, on a pro-rata basis. Forexample, if an EligibleMember is entitled to accrued benefits of HKD80,000which arederivedfrommandatorycontributions(“Mandatory Benefits”)andHKD20,000whicharederived from voluntary contributions (“Voluntary Benefits”), and the EligibleMemberwishes towithdrawHKD5,000, thenHKD4,000will bewithdrawn from theMandatoryBenefits,andHKD1,000willbewithdrawnfromtheVoluntaryBenefits, inproportiontotheaccruedbenefitsattributabletomandatorycontributionsandvoluntarycontributions,respectively.

Unless otherwise agreed between the Trustee and the EligibleMember, and subject asnotedbelow,theTrusteewillpayeachwithdrawaltosuchEligibleMembernolaterthan30 days after the date onwhich the EligibleMember instructs the Trustee to pay thatwithdrawal.

Inrespectofwithdrawalby instalments,thefirst12 instalments(orsuchfurthernumberof instalments as determined by the Trustee) in any calendar yearwill be paid freeof charge (other than any necessary transaction costs permitted under theGeneralRegulation). Thereafter, each additionalwithdrawal by instalment in the same calendaryear is subjecttoafeeofHKD100,whichshallbepaidtoabankaccountdesignatedbythe Trustee as specified in the claim form. Please note that bank chargesmay apply toMembers'bankingaccountsifMemberschoosetobepaidthewithdrawalamountdirectlyto their bank account. For further details, please refer to the table headed “(E)OTHERFEESANDCHARGES FORPROVIDINGADDITIONAL SERVICES” in the“5.1 Fee table” sub-sectionunderthe“5.FEESANDCHARGES”section.

Tomeet eachwithdrawal request, the Eligible Benefits in all of the Constituent FundsheldbytheEligibleMemberwillberealised,sofaraspracticable,onapro-ratabasis.

Members shouldnotethat in thecaseofwithdrawalofaccruedbenefitsby instalments,anybalanceremaininginaMember’saccountwillcontinuetobeinvestedintherelevantConstituentFund(s)andthereforesubjecttoinvestmentrisks.

6.7 Other points to note

AccruedbenefitswillbepaidinHKdollarstotherelevantrecipientattherecipient’sriskbychequeunlessotherwiseagreedbetweentheTrusteeandtherelevantrecipient.

Save as disclosed above, no fees or financial penalties shall be charged or imposed forpaymentofaccruedbenefits(inalumpsumorbyinstalmentsforthefirst12instalmentsinacalendaryear)otherthananamountrepresentingthenecessarytransactioncoststhatare incurred,or reasonably likely tobe incurred,by the Trustee in sellingorpurchasing

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investmentsinordertogiveeffecttothepaymentandarepayabletoapartyotherthantheTrustee.Suchnecessarytransactioncostswouldinclude,butarenotlimitedto, itemssuch as brokerage commissions, fiscal charges and levies, government charges, bankcharges, exchange fees, costs and commissions, registration fees and charges, collectionfeesandexpenses,etc.AnyamountofsuchfeesandchargesimposedandreceivedmustbeusedtoreimbursetherelevantConstituentFund.

Paymentmay be delayed in certain circumstances pursuant to theMPFOrdinance,includingwheretheMasterTrustisbeingauditedorinvestigatedattheinstigationoftheMPFA.Pendingthepaymentofaccruedbenefits,theTrusteewillholdrealisationproceedsof Units in an interest bearing accountwith The Bank of East Asia, Limited. Interestearnedwillbecredited to theConstituentFund(s) inwhich suchamountswere investedimmediatelypriortorealisationofUnits.

6.8 Transfers

6.8.1 Transfers to other registered schemes or other account(s) within the Master Trust

A participating employermay elect by notice inwriting to the trustee of anotherregistered scheme to transfer amounts held to the credit ofMembers employed by therelevantparticipatingemployerunder theMasterTrustand that relate to theMembers’employmentwith the participating employer to that other registered scheme inwhichtheparticipatingemployerwillparticipateon themerger,divisionorwindingupof theMasterTrust inaccordancewiththeMPFOrdinanceorwheretheparticipatingemployergives notice, personally or through the trustee of another registered scheme, of itsintentiontoceaseparticipationintheMasterTrustinrespectofsuchMembers.

Where aMemberwho is an employee of a participating employer ceases to be soemployed,theMembermayelectbynoticeinwritingtotheTrusteeorthetrusteeofthetransfereeregisteredscheme,as thecasemaybe, tohaveamountsheld to thecreditoftheMemberundertheMasterTrusttransferredto:

• anotheraccountintheMasterTrust;or

• anaccountinanothermastertrustschemenominatedbytheMember;or

• anexistingaccountoftheMemberinanindustryscheme;or

• acontributionaccountinaregisteredschemeinwhichtheMember’snewemployerisparticipatinginrelationtothatMember.

AMemberwhoisanemployeemayatanytimeelecttohave:

(a) all the amounts held to the credit of the relevantMember under theMaster Trustattributable to the relevantMember’s accrued benefits deriving frommandatorycontributionsinrespectoftherelevantMember’scurrentemployment,transferredto(i)apersonalaccountintheMasterTrustnominatedbytherelevantMemberbynoticeinwritingtotheTrustee;or(ii)apersonalaccountinanotherregisteredschemewhichisamastertrustschemeoranindustryschemenominatedbytherelevantMemberbynotice inwritingtothetrusteeofthetransfereeregisteredscheme.Suchelectiontotransfermayonlybemadeonceineverycalendaryear;and

(b) all the amounts held to the credit of the relevantMember under theMaster Trustattributable to all accrued benefits deriving frommandatory contributions paid byor in respect of the relevantMember that are attributable to theMember’s formeremployments or former self-employments, transferred to (i) a personal account orcontributionaccountintheMasterTrustnominatedbytherelevantMemberbynoticeinwriting to the Trustee; or (ii) a contribution accountwithin another registeredschemeorapersonalaccountwithinanotherregisteredschemewhichisamastertrust

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schemeoranindustryscheme,ineachcaseasnominatedbytherelevantMemberbynoticeinwritingtothetrusteeofthetransfereeregisteredscheme.

AMemberwhohasaccruedbenefitsheldinoneormorethanonepersonalaccountintheMasterTrustmayatanytimeelecttohavealltheamountsheldinoneormoreofthepersonalaccountsoftherelevantMember,transferredto:

(i) apersonalaccountorcontributionaccountintheMasterTrustnominatedbytherelevantMemberbynoticeinwritingtotheTrustee;or

(ii) a contribution accountwithin another registered scheme or a personal accountwithin another registered schemewhich is amaster trust schemeor an industryscheme, ineachcaseasnominatedby the relevantMemberbynotice inwritingtothetrusteeofthetransfereeregisteredscheme.

AMemberwho isa self-employedpersonmayatanytimeelectbynotice inwritingtothetrusteeofthetransfereeregisteredschemetohaveamountsheldtothecreditoftheMemberundertheMasterTrusttransferredto:

(a) anaccountinanothermastertrustschemenominatedbytheMember;or

(b) anexistingaccountoftheMemberinanindustryscheme;or

(c) anaccountinanindustryschemetowhichtheMemberiseligibletobelong;or

(d) where theMember subsequently becomes employed, a contribution account intheregisteredschemeinwhichtheMember’semployerisparticipatinginrelationtotheMember.

Nofeesshallbechargedandnofinancialpenaltiesshallbeimposedfortransferringaccruedbenefits:

• fromaregisteredschemetoanotherregisteredscheme;

• from an accountwithin theMaster Trust to another accountwithin theMasterTrust;

• inthesameaccountwithintheMasterTrust,fromaConstituentFundtoanotherConstituentFund,

otherthananamountrepresentingthenecessarytransactioncoststhatareincurred,orreasonablylikelytobeincurred,bytheTrusteeinsellingorpurchasinginvestmentsin order to give effect to the transfer and are payable to a party other than theTrustee. Such necessary transaction costswould include, but are not limited tobrokeragecommissions,fiscalchargesandlevies,governmentcharges,bankcharges,exchange fees, costs and commissions, registration fees and charges, collection feesandexpenses.Anyamountof suchnecessary transactioncosts imposedandreceivedshallbeusedtoreimbursetherelevantConstituentFund.

Theredemptionpriceof theAPIF(s) inwhichtherelevantConstituentFund(s) investmay be adjusted to take account of realisation expenses including (but not limitedto) brokerage, stamp duty, transaction fees, any bid/offer spread of underlyinginvestment, registration and transfer fees, bank charges, conversion charges; andanyothertransactioncosts.Inthenormalcourse,suchadjustmentisnotexpectedtoexceed1%oftheredemptionprice.

AnelectiontotransfermustbemadeintheformspecifiedbytheMPFAandavailablefrom registered scheme trustees. The Trustee on receipt from another trustee ofnotificationofanelection to transfer (for transfer toother registered schemes)and

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receiptofnotificationofanelectiontotransfer(fortransferwithintheMasterTrust)will effect a transferwithin 30 days of such notification or if an election ismadeby aMemberwho is an employee of a participating employerwho ceases to be soemployed,within30daysafterthelastcontributiondayinrespectoftheemploymentthathasceased,whichever is the later.TransfersmaybedelayedwherevaluationoftheConstituentFundsare suspended (please refer to the“7.OTHER INFORMATION”sectionbelow)andincertaincircumstancesspecifiedpursuanttotheMPFOrdinance,including in respect of a transfermade under section 150 or section 150A of theGeneralRegulationtherearecontributionsorcontributionsurchargesorbothwhichareoutstandingat the timeofnotificationof such transfer. Pending the transferofaccrued benefits, the Trusteewill hold the realised proceeds of Units in an interestbearingaccountwithTheBankofEastAsia,Limited.InterestearnedwillbecreditedtotheConstituentFund(s)inwhichsuchamountswereinvestedimmediatelypriortotherealisationofUnits.

For detailswith regard to transfer of accrued benefits from a TVC account fromtheMaster Trust to another scheme, please refer to the paragraphs headed “6.8.3PortabilityofTVC”below.

6.8.2 Transfers from other schemes

The Trustee has power to accept transfers fromother schemes into theMaster Trust. Inparticular:

(a) aMemberwhoisanemployeemembermaytransferallofhis/her:

(i) accrued benefits derived frommandatory contributionsmade by him/her inrespectofhis/hercurrentemployment;

(ii) accrued benefits derived frommandatory contributions attributable to his/her

formeremploymentsorformerself-employment;or

(iii)accruedbenefitsinhis/herpersonalaccount(s)withinanotherregisteredscheme,

intoapersonalaccount(foralloftheabovecases)oracontributionaccount(for(ii)and(iii)above)oftheMemberwithintheMasterTrustinaccordancewiththeGeneralRegulation;

(b) any other eligible personsmay transfer all of his/her accrued benefits held in his/her personal account(s)within another registered scheme into a personal accountor a contribution accountwithin theMaster Trust in accordancewith theGeneralRegulation.

The Trusteewill apply amounts received from other schemes to acquire Units in theConstituentFundsinaccordancewiththeinstructionsoftheMemberonaValuationDate,within 20 Business Days of receipt of such amounts in cleared funds, togetherwith allrelevantdocumentationfromtheMemberandthetrusteeoftheotherscheme.Currently,no offer spreadwill be levied on the issue of suchUnits. Pending the acquisition ofUnitsintheConstituentFunds,theTrusteewillholdsuchamountsinaninterestbearingaccountwithTheBankofEastAsia,Limited.InterestearnedwillbeusedbytheTrusteetomeetgeneraloperatingexpensesoftheMasterTrust.

For detailswith regard to transfer of accrued benefits from a TVC account in anotherscheme to theMaster Trust, please refer to theparagraphsheaded “6.8.3 Portability ofTVC”below.

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6.8.3 Portability of TVC

TVCisportableandTVCAccountHoldersshouldnotethat:

(a) ATVCAccountHoldermayatanytimechoosetotransfertheaccruedbenefitsderivedfromTVCtoanotherregisteredschemethatoffersTVC;

(b) Thetransfermustbeinalumpsum(fullaccountbalance);

(c) The TVC account in the original registered scheme fromwhich the accrued benefitsaretransferred(resultinginzerobalance)maybeterminateduponsuchtransfer;

(d) Fortheavoidanceofdoubt,transferofaccruedbenefitsderivedfromaTVCaccountto another TVC account of theMember in another registered scheme cannot beclaimedasdeductionsfortaxationpurpose;and

(e) Transferof TVCaccruedbenefits to another TVCaccountof theMember in anotherregistered schemewill also be subject to the same preservation andwithdrawalrestrictionsapplicabletomandatorycontributionsintheMPFregulations.

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7. OTHER INFORMATION

7.1 Calculation

(a) Calculation of NAV

TheTrusteewill valueeachConstituent Fundand calculate the issueand realisationpricesofUnitsinaccordancewiththeTrustDeedasatthecloseofbusinessinthelastrelevantmarkettocloseoneachValuationDate.TheTrustDeedprovidesthat:

(i) the value of any interest in a collective investment scheme (which, for theavoidanceofdoubt,doesnot includeinterests in listedapprovedITCISs)shallbecalculatedbyreferencetothepriceofsuch interestquotedattherelevanttimebythemanageroftherelevantcollectiveinvestmentscheme(orifmorethanonepriceisquoted,thebidprice);

(ii) thevalueofany investmentnot included inparagraph (i) abovewhich is listed,quotedordealtinonanapprovedstockexchangeorapprovedfuturesexchange(which,fortheavoidanceofdoubt,includesinvestmentsinapprovedITCISs)shallbecalculatedbyreferencetothelasttradedpriceofsuchinvestment;

(iii) thevalueofcash,depositsandsimilarinvestmentsnotincludedinparagraphs(i)or (ii) above shall be calculated by reference to their face value (togetherwithaccruedinterest)unless, intheopinionoftheTrustee,anyadjustmentshouldbemadetoreflectthevaluethereof;

(iv) the valueofanyother investment (or in the caseofany investment included inparagraphs(i),(ii)or(iii)abovetheprevailingpriceofwhichisnotconsideredtobefairbytheTrustee)shallbedeterminedbyanyperson(includingtheSponsor)approvedbytheTrusteeasqualifiedtovaluetherelevantinvestment;

(v) notwithstanding the foregoing, the Trusteemaymake such adjustments as itthinksappropriatetotakeaccountofanyotherassetsorliabilitiesattributabletotherelevantConstituentFundnototherwisereflectedinavaluationortoprovideafairerattributionofassetsandliabilitiesasbetweentheConstituentFunds;and

(vi) amounts expressed in currencies other thanHK dollars shall be converted intoHK dollars at such prevailing rates of exchange as the Trustee shall considerappropriate.

(b) Calculation of issue and realisation prices

The issue price of aUnit in a Constituent Fundon aValuationDate is theNAVperUnitofsuchclassasatthecloseofbusinessonthatValuationDateroundedtofourdecimalplaces (withfractionsofHKD0.00005roundedup)providedthattheTrusteemay add an allowance (for the accrued benefit of the relevant Constituent Fund)for fiscal and purchase chargeswhichmight be payable to buy investments for theaccountoftherelevantConstituentFund.

TherealisationpriceofaUnit inaConstituentFundonaValuationDate is theNAVperUnitof suchclass rounded to fourdecimalplaces (with fractionsofHKD0.00005rounded up) provided that the Trusteemay deduct an allowance (for the accruedbenefitof therelevantConstituentFund) for fiscalandsalechargeswhichmightbepayabletosellinvestmentsfortheaccountoftherelevantConstituentFund.

TheNAV per Unit in a Constituent Fund is calculated by valuing the assets of thatConstituent Fund, deducting the liabilities attributable to the relevant ConstituentFundanddividing the resultant sumby thenumberofUnitsof the relevant class inissue.

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Subject to the prior approval of theMPFA and the SFC, not less than onemonth’spriorwritten notice (or such other period of notice as theMPFA or the SFCmayrequire)will be given toMembers in respect of any changes to the valuation orcalculationmethodsasdescribedabove.

(c) Publication of prices

The issueand realisationpricesperUnitof eachConstituent Fundwill bepublisheddailyintheSouthChinaMorningPostandHongKongEconomicTimes.

(d) Suspension of calculation of NAV

Unless otherwise prohibited by theMPFOrdinance, the Trusteemay declare asuspensionofthedeterminationoftheNAVofanyConstituentFund:

• duringanyperiodwhenanystockexchangeorothermarketonwhichanyoftheinvestmentsforthetimebeingheldfortheaccountofsuchConstituentFundarequotedisclosedotherwisethanforordinaryholidays;or

• duringanyperiodwhenanydealingsonanysuchstockexchangeorothermarketarerestrictedorsuspended;or

• during the existence of any state of affairs as a result ofwhich disposal ofinvestmentsforthetimebeingcomprisedinsuchConstituentFundcannotintheopinionoftheTrusteebeeffectednormally;or

• during any breakdown in themeans of communication normally employed indeterminingthevalueofsuchConstituentFundorpartthereofortheissuepriceor realisation price of Units relating to such Constituent Fund orwhen for anyother reason the value of any investment for the time being comprised in suchConstituentFundandrepresentingasignificantpartofthevaluethereofcannotbepromptlyandaccuratelyascertained;or

• during any periodwhen the realisation of any investments for the time beingcomprised in such Constituent Fund or the transfer of funds involved in suchrealisation cannot in theopinionof the Trusteebe effected at normal prices ornormalratesofexchangerespectively;or

• during any suspension of payment of accrued benefits from theMaster TrustpursuanttotheMPFOrdinance.

NoUnitsofaConstituentFundwillbeissuedwherethedeterminationoftheNAVofthatConstituentFundissuspended.

Whenever the Trustee declares such a suspension it shall, as soon as may bepracticable after any such declaration and at least once amonth during the periodofsuchsuspension,publishanoticeintheSouthChinaMorningPostandHongKongEconomicTimesstatingthatsuchdeclarationhasbeenmade.

7.2 Taxation

ThefollowingstatementsregardingtaxationarebasedonadvicereceivedbytheSponsorregardingthelawandpracticeinforceinHongKongatthedateofthisdocument.

EmployersandprospectiveMembersshouldappreciatethatasaresultofchanginglaworpractice,thetaxationconsequencesofparticipatingintheMasterTrustmaybeotherwisethanasstatedbelow.Thissummaryisnotintendedtobecomprehensiveandshouldnotberelieduponasasubstitutefordetailedandspecificadvice.EmployersandprospectiveMembersshouldseekprofessionaladviceregardingtheirparticulartaxcircumstances.

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(a) For participating employers

Initial and special lump sum contributions are allowable for profits tax purposes infiveequalinstalmentsoverfiveyears.

Annualcontributionsmadebytheemployerinrespectofanemployeeofupto15%ofthetotalemolumentsofsuchemployeeareallowableasadeductionforprofitstaxpurposes.Excesscontributionsarenotdeductible.

Refundsofvoluntarycontributionstotheemployerwillbetreatedastaxablereceiptsinthehandsoftheemployerforprofitstaxpurposes.

(b) For employees

Accruedbenefitsonretirementorearlierinthecaseofincapacity,terminalillnessordeatharegenerallynotsubjecttosalariestax inthehandsoftheemployee.Fortaxpurposes,“retirement”isdefinedasmeaning:

• retirementfromtheserviceoftheemployerataspecifiedageofnotlessthan45years;

• retirementafteraperiodofservicewiththeemployerofnot lessthan10years;or

• attainmentofaspecifiedageofretirementor60years,whicheverislater(whetherornottheemployeehasinfactretiredfromhis/heremploymentatsuchage).

If an employee leaves service otherwise than on retirement, death or incapacity, aproportionoftheemployee’saccruedbenefitpaidderivingfromemployer’svoluntarycontributionsmaybesubjecttosalariestax.

Salaries tax isnotpayableontheportionofanypaymentthat representseither theemployee’scontributionsortheinvestmentearningsoftheMasterTrust.

The employer’s contributions are not taxable on the employee. For salaries taxpurposes, a deduction from salary is allowed for the amount of the employee’smandatory contributions to theMaster Trust. However, employees’ voluntarycontributionstotheMasterTrustarenotdeductibleforsalariestaxpurposes.

(c) For self-employed persons

Self-employedpersonswillbeeligiblefordeductioninrespectoftheamountoftheirmandatorycontributionstotheMasterTrustfromtheirassessableprofits.

Profits tax is not payable on the portion of any payment that represents either theself-employedperson’scontributionsortheinvestmentearningsoftheMasterTrust.

(d) For TVC Account Holders

TVCAccount Holderswill be able to deduct the TVC paid into their TVC account,subject to amaximum deduction per year as specified in the Inland RevenueOrdinance. In the year of assessment 2019/2020, the maximum deduction isHKD60,000.ItshouldbenotedthatsuchtaxconcessionamountisanaggregatelimitforbothTVCandotherqualifyingannuitypremiums rather thanTVConly; andanyclaimfortaxdeductionswillbeappliedtoTVCbeforequalifyingannuitypremiums.

To facilitate the tax return filingbyTVCAccountHolders, theTrusteewillprovideaTVC summary to each TVCAccountHolder if TVC ismadeby him/her to theMasterTrustduringayearofassessment.Such summarywillbemadeavailablearound10th

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Mayaftertheendoftherelevantyearofassessment(i.e.beforetheendofaperiodof40days(unlessthe40thdayisnotaBusinessDay,thenthenextBusinessDay)fromthebeginningofthenexttaxassessmentyearcommencingon1stApril).

(e) For the Master Trust

TheMasterTrustisnotexpectedtobesubjecttoHongKongtaxinrespectofanyofitsauthorisedactivities.

7.3 Accounts, reports and statements

TheMasterTrust’sfinancialyearendis31stMarchineachyear.

Assoonaspracticableaftereachfinancialperiod,theTrusteewillprepareaconsolidatedreport consistingof (i) theauditedaccountsof theMasterTrustprepared inaccordancewith applicable accounting guidelines, (ii) the Trustee’s report on theMaster Trust fortherelevantfinancialperiodand(iii)theInvestmentManager’sinvestmentreportfortherelevantfinancialperiod.ThisconsolidatedreportwillbeopenforinspectionbyMembersfreeofchargeatanytimeduringnormalbusinesshoursonanyday(excludingSaturdays,Sundays and public holidays) at the offices of the Trustee.Membersmay request theTrusteetoprovidethemwithcopiesof theconsolidatedreports for theMasterTrust foranyoftheprecedingsevenfinancialperiods.

The Trusteewill send eachMember an annual accrued benefit statementwithin threemonths of the end of each financial period. The annual accrued benefit statementwillincludedetailsofthecontributionstotheMasterTrust inrespectoftheMemberduringtheyear,theUnitscreditedtotheaccountoftheMember ineachConstituentFundandthe valueof theaccruedbenefits of theMemberunder theMaster Trust as at the startandendoftherelevantfinancialperiod.

7.4 Trust Deed

TheMasterTrustwasestablishedunderHongKonglawbytheTrustDeedmadebetweentheSponsorandtheTrustee.AllMembersandparticipatingemployersareentitledtothebenefit of, are bound by and are deemed to have notice of the provisions of the TrustDeed.

TheTrustDeedcontainsprovisionsfortheindemnificationoftheTrusteeandtheSponsorandtheir relief from liability incertaincircumstances.Members,participatingemployersandintendingapplicantsareadvisedtoconsulttheTrustDeedforfurtherdetailsontherelevantprovisions.

7.5 Modification of Trust Deed and participation agreements

The Trustee and the Sponsormay agree tomodify the Trust Deed by supplementaldeed, either generally so as to apply to allMembers and participating employers or soas to apply specifically to a particularMember orMembers or a particular participatingemployer or participating employers andMembers employed by such participatingemployerorparticipatingemployers.

AnymodificationstotheTrustDeedwillbesubmittedtotheMPFAforpriorapprovalandwillbenotifiedtoMembers.

TheTrustee,theSponsorandtherelevantparticipatingemployer(orMemberinthecaseofaself-employedpersonorothereligibleperson)mayagreetomodifytheparticipationagreement and/or supplement to the participation agreement applicable to thatparticipatingemployer(orself-employedpersonorothereligibleperson).

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7.6 Termination, merger or division of Master Trust

TheMasterTrustmaybewoundupby the court inaccordancewith theMPFOrdinanceonapplicationmadeby theMPFA to the court. TheTrustee shallgivenot less thanonemonth’s notice (or such other period as theMPFA or the SFCmay agree or require) toparticipatingemployersandMembersoftheterminationoftheMasterTrust.

SubjecttothepriorapprovaloftheMPFAandtheSFC,theMasterTrustmaybemergedwith one ormore other registered schemes or sub-divided into two ormore otherregisteredschemesinaccordancewiththeMPFOrdinance.TheTrusteewillgiveMembersand participating employers not less than threemonths’ priorwritten notice of anymergerorsub-divisionoftheMasterTrust(orsuchotherperiodofnoticeastheMPFAortheSFCmayrequire).

7.7 Documents available

The followingdocuments are available for inspection freeof chargeat any timeduringnormalbusinesshoursonanyday (excluding Saturdays, Sundays andpublic holidays) attheofficesoftheTrustee:

(a) copiesoftheTrustDeedandanysupplementaldeeds;

(b) the investmentmanagement agreement between the Trustee and the InvestmentManagerdatedasof21stAugust,2012,asamended,pursuanttowhichtheInvestmentManagerwas appointedas investmentmanagerof theMaster Trust, tomanage theassetsoftheConstituentFunds;

(c) thelatestMPFSchemeBrochure,togetherwithanyaddendum;and

(d) thelatestconsolidatedreportfortheMasterTrust(ifany).

CopiesoftheTrustDeedandthecontractsreferredtoabovecanbepurchasedfromtheTrusteeonpaymentofareasonablefee.

Further,acopyofthelatestMPFSchemeBrochure(togetherwithanyaddendum)canbeobtained free of charge from any BEA Branch or theMPFAdministration Centre, or bycallingtheBEA(MPF)Hotlineon(+852)22111777(operatedbyBankofEastAsia(Trustees)Limited)[email protected],orbydownloadingacopyfromhttp://www.hkbea.com.

7.8 Automatic exchange of financial account information

Financial institutions inHongKongandmanyother jurisdictionsarerequiredto identifyaccount holderswho are reportable foreign tax residents under the laws, regulationsand international agreements for the implementation of automatic exchange offinancial account information (“AEOI”), and report the information of account holdersand controlling persons of certain entity account holders (each, a “controlling person”)(including but not limited to their names, addresses, dates of birth, places of birth/incorporation, jurisdiction(s) of tax residence, tax identification number(s) in therelevant jurisdiction(s)) and account information (including but not limited to theiraccountbalance,certainpaymentstotheaccount,andpaymentstotheaccountholders)(collectively,the“Reportable Information”)tothelocaltaxauthoritywherethefinancialinstitutions operate. The local tax authority, in respect of a reportable foreign taxresident,willprovidetheReportableInformationofthereportableforeigntaxresidenttothetaxauthorityofthecountryoftaxresidenceofthereportableforeigntaxresidentonaregular,annualbasis.IfyouarenotataxresidentinanyjurisdictionoutsideHongKong,yourMPFaccountinformationwillnotbereportedtotheInlandRevenueDepartment(the“IRD”)fortransmissiontoanytaxauthorityoutsideHongKong.

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TheMaster Trust is a Hong Kong financial institution for AEOI purposes. As requiredunderAEOIofHongKong,theTrusteewilluseforthepurposesofAEOItheReportableInformationofanyindividualorentity,whetherinthecapacityasaMember,participatingemployer or beneficiary, that is considered under AEOI to be an account holder orcontrolling person (where applicable). The Reportable Informationmay be transmittedtotheIRDoranyotherrelevantdomesticorforeigntaxauthorityfortransfertothetaxauthorityofanotherjurisdiction.

TheTrusteemay,totheextentnotprohibitedbyapplicablelawincludingAEOI,engage,employ or authorise any individual or entity (including but not limited to third-partyservice providers, the Trustee’s affiliates, subsidiaries, associated entities, and any oftheir branches and offices) (each, for purposes of this section, an “authorised person”)to assist theMaster Trustwith the fulfilment of its obligations under AEOI, and to actontheMasterTrust’sbehalfinrelationtoitsobligationsunderAEOI.TheTrusteeanditsauthorisedpersonsmaysharewitheachotheranyinformationofanyaccountholderandcontrollingperson(whereapplicable)oftheMasterTrust.

TheTrusteeand/oranyof itsauthorisedperson(s)mayrequireanyaccountholderunderAEOItoprovideavalidself-certificationformandsuchother information(includingtheReportable Informationandanydocumentaryevidence)whichtheTrusteeand/oranyofits authorised person(s)may require from time to time for the implementation ofAEOI(collectively, the “Required Information”). In addition,where the account holder is anentity, theTrusteeand/or itsauthorisedperson(s)may require theRequired Informationofitscontrollingperson(s).

WhererequiredbyAEOIandtotheextentnotprohibitedbyapplicable law,theTrusteemaynot accept any applicant to theMaster Trust ormake anypayment to any accountholder (whether in the capacityofaMember,aparticipatingemployerorabeneficiary)before receiving the Required Information. Account holders and controlling personsmustupdatetheTrusteeand/oranyof itsauthorisedperson(s)aboutanychanges intheinformation they have previously provided to the Trustee and/or any of its authorisedperson(s) as soon as possible and ideallywithin 30 days of such changes. If the Trusteeand/oranyofitsauthorisedperson(s)donotreceivetheRequiredInformationinrespectof an account holder or a controlling person, the Trustee and/or any of its authorisedperson(s)mayberequiredtoreportsuchpersonbasedontheinformationtheyhave.

Members, participating employers, and any other account holders and controlling persons should consult their own tax advisers regarding the possible implications of AEOI. The application of the AEOI rules and the information that may be required to be reported and disclosed are subject to change. Please see the IRD website (https://www.ird.gov.hk/eng/tax/dta_aeoi.htm) for more information about AEOI in Hong Kong. Any discussion of tax considerations herein is not intended or written to be tax advice to any person and is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding any domestic or foreign tax penalties that may be imposed on such person.

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8. GLOSSARY

“Administrator” means Bank of East As ia (Trustees) L imited in i ts capacity asadministratoroftheMasterTrust.

“APIF” meansanapprovedpooledinvestmentfund,asdefinedinsection6oftheGeneralRegulation.

“approved ITCIS” means an index-tracking collective investment scheme, as defined insection 1(1) of Schedule 1 to theGeneral Regulation, approved bytheMPFAforthepurposesofsection6AofSchedule1totheGeneralRegulation.

“Business Day” meansaday (other than Saturday)onwhichbanks inHongKongareopen fornormalbankingbusinessprovided thatwhere, as a resultofaNumber8TyphoonSignalorhigherorablackrainstormwarningorother similar event, theperiodduringwhichbanks inHongKongareopenfornormalbankingbusinessonanydayisreduced,suchdayshallnotbeaBusinessDayunlesstheTrusteeotherwisedetermines.

“calendar year” meansaperiodof365or366days, startingon1st Januaryandendingon31stDecember.

“China A-shares” meanstheshareswhicharequotedinRMBandtradedontheShanghaiandShenzhenstockexchanges.

“China B-shares” means the shareswhich are denominated in foreign currency andtradedontheShanghaiandShenzhenstockexchanges.

“Constituent Fund” meansa separatepoolofassetsof theMasterTrust,which is investedandadministeredseparatelyfromotherassetsoftheMasterTrust.

“Custodian” meansBankofEastAsia (Trustees) Limited in its capacityas custodianoftheMasterTrust.

“DIS” meanstheMPFDefaultInvestmentStrategy.

“employee member” aMemberwho isemployedbyaparticipatingemployer intheMasterTrustandhasentered intoaparticipationagreementwiththeTrusteetoparticipateintheMasterTrust.

“feeder fund” meansafundthatinvestsinonlyoneAPIF/approvedITCIS.

“financial period” meanstheperiodfrom1stAprilinayearto31stMarchinthefollowingyear.

“General Regulation” meanstheMandatoryProvidentFundSchemes(General)Regulation.

“Greater China” means(i)thePRC,(ii)theSpecialAdministrativeRegionsofHongKongandMacauand(iii)Taiwan.

“Higher Risk Assets” has themeaning given to it in theMPFOrdinance, includingwithoutlimitationglobalequities.

“HKD” or “HK dollars” meansthecurrencyofHongKong.

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“Hong Kong” means theHongKong SpecialAdministrative Region of the People’sRepublicofChina.

“HSDSL” meansHangSengDataServicesLimited.

“HSIL” meansHangSengIndexesCompanyLimited.

“Investment Manager” means BEAUnion InvestmentManagement Limited in its capacity asinvestmentmanageroftheMasterTrustandtheConstituentFunds.

“Lower Risk Assets” means those assets not beingHigher RiskAssets, includingwithoutlimitationglobalbondsandmoneymarketinstruments.

“Mandate” means in respect of aMember, an instruction in a form specified bythe Trustee setting out how contributionsmade by and on behalf oftheMember are tobe invested. For thepurposesof thisMPF SchemeBrochure,eachreferenceto“Mandate”meansaMandatemeetingtherequirements for a Specific Investment Instruction, unless otherwisespecified.

“Master Trust” meanstheBEA(MPF)ValueScheme.

“maximum level of relevant income”

hasthesamemeaningasintheMPFOrdinance.

“Member” meansamemberoftheMasterTrustbeing:

(a) aself-employedpersonwhoparticipatesintheMasterTrust;or(b) an employee of a participating employerwho applies for and is

grantedmembershipoftheMasterTrust;or(c) anyothereligiblepersonwhoparticipatesintheMasterTrust.

“Member” includesemployeemember,self-employedperson,personalaccount holder, Special Voluntary ContributionAccountMember andTVCAccountHolder.

“minimum level of relevant income”

hasthesamemeaningasintheMPFOrdinance.

“MPFA” means theMandatory Provident Fund SchemesAuthority ofHongKong.

“MPF Ordinance” means theMandatory Provident Fund SchemesOrdinance ofHongKong.

“NAV” meansnetassetvalue.

“ORSO exempted scheme”

has the samemeaning as in theMandatory Provident Fund Schemes(General)Regulation.

“ORSO registered scheme”

has the samemeaning as in theMandatory Provident Fund Schemes(General)Regulation.

“personal account holder”

meansaMemberforwhomapersonalaccountismaintainedundertheMasterTrust.

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“portfolio management fund”

meansafundthatinvestsinmorethanoneAPIF/approvedITCIS.

“PRC” meansthePeople’sRepublicofChina.

“Reference Portfolio” means, inrespectofeachoftheBEACoreAccumulationFundandtheBEAAge65PlusFund,theMPFindustrydevelopedreferenceportfolioadopted for the purpose of theDIS to provide a common referencepoint for the performance and asset allocation of the BEA CoreAccumulationFundandtheBEAAge65PlusFund(asthecasemaybe).

“registered scheme” hasthesamemeaningasintheMPFOrdinance.

“Relevant Circumstances”

meansthefollowingevents:

(a) theTrusteehavingreasontoknowthatinformationanddocumentsprovidedtotheTrusteeareincorrectorincomplete;

(b) failure of applicants to provide information and documents asrequiredbytheTrusteetoensurecompliancewithapplicable lawsandregulationsrelatingtoanti-moneylaunderingortaxreporting;and/or

(c) other circumstanceswhich the Trustee and the Sponsormayconsiderappropriate.

“relevant income” hasthesamemeaningasintheMPFOrdinance.

“RMB” meansRenminbi,thecurrencyofthePRC.

“SEHK” meanstheStockExchangeofHongKongLimited.

“self-employed person”

aMemberwho is self-employed and has entered into a participationagreementwiththeTrusteetoparticipateintheMasterTrust.

“SFC” meanstheSecuritiesandFuturesCommissionofHongKong.

“Special Voluntary Contribution Account Member”

meansaMemberwhohasenteredintoaparticipationagreementwiththe Trustee to participate in theMaster Trust as a Special VoluntaryContributionAccountMember

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“Specific Investment Instruction”

iseitheraMandateoraSwitchingInstructionsettingout:

(a) subjectto(b)below,aninstructionforinvestmentallocationswhichmeetsthefollowingrequirements:

(i) eachinvestmentallocationisinamultipleof10%;and

(ii) theaggregate(orinthecaseofanySwitchingInstruction,theswitch-intotal)ofwhichis100%;or

(b) wheretheinstructionistoinvestintheDIS,aninstructiontoinvest100%of:

(i) existingaccruedbenefits;and/or

(ii) future contributions and accrued benefits transferred fromanotherschemeintheDIS;or

(c) any confirmation (whether through hard copy submission,cyberbanking,mobile apps or IVRS (interactive voice responsesystem))byaMemberwithregardtoanyinvestmentarrangementsof the existing accrued benefits and/or future contributions andaccruedbenefitstransferredfromanotherscheme.

“Sponsor” meansTheBankofEastAsia, Limited in its capacityas sponsorof theMasterTrust.

“Switching Instruction” means in respect of aMember, an instruction to switch existinginvestments of accrued benefits of theMember. For the purposes ofthisMPF SchemeBrochure, each reference to "Switching Instruction"meansaSwitching Instructionmeetingtherequirements foraSpecificInvestmentInstruction,unlessotherwisespecified.

“SSE” meanstheShanghaiStockExchange.

“Stock Connect” means the securities trading and clearing linked programmewith anaim to achievemutual stockmarket access betweenMainland ChinaandHongKong, comprising the Shanghai-HongKong Stock Connectand the Shenzhen-HongKong Stock Connect, and/or any successorprogramme.

“SZSE” meanstheShenzhenStockExchange.

“Trustee” meansBankofEastAsia (Trustees)Limited in its capacityas trusteeoftheMasterTrust.

“Trust Deed” means the trust deed dated as of 17th August 2012 establishing theMasterTrust,asamendedfromtimetotime.

“TVC” means tax deductible voluntary contributions as defined in theMPFOrdinance.

“TVC account” hasthesamemeaningasintheMPFOrdinance.

“TVC Account Holder” meansaMemberwhohasenteredintoaparticipationagreementwiththeTrusteetoparticipateintheMasterTrustasaTVCAccountHolder.

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“Unit” meansoneundividedshare intheConstituentFundtowhichtheclassofUnitsrelates.AfractionofaUnitshallrepresentthecorrespondingfractionofanundividedshareintherelevantConstituentFund.

“USD” or “US dollars” meansthecurrencyoftheUnitedStatesofAmerica.

“Valuation Date” means every BusinessDay or such other day or days as the Trusteemay determine from time to time either generally or in relation to aparticularConstituentFund.

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APPENDIX

FURTHER INFORMATION ON THE INDEXES

FTSE®GreaterChinaHKDIndex

TheFTSE®GreaterChinaHKDIndexistheHKdollarversionoftheFTSE®GreaterChinaIndexandis derived from the FTSE® All-World Index Series. The FTSE® All-World Index Series aggregatesapproximately 3,089 large andmid cap stocks, covering 90% to 95%of the investablemarketcapitalisation.

TheFTSE®GreaterChinaHKDIndexcoverstheGreaterChinaregionandcomprisesstockslistedinHongKong,Taiwan,Shanghai (ChinaB-sharesandwitheffectfrom23rdMarch,2020, ChinaA-shares), Shenzhen (China B-shares andwith effect from 23rdMarch, 2020, ChinaA-shares)and Singapore,where the Singapore listed stocks are classified as Hong Kong nationality inaccordancewith FTSE nationality rules.With effect from 23rdMarch, 2020, the SPDR® FTSE®GreaterChinaETFwillinvestinsecuritiesdesignatedasChinaA-shareslistedontheSSEandtheSZSEthroughtheStockConnect.Asat30thSeptember,2019,theFTSE®GreaterChinaHKDIndexcomprises435largeandmidcapstocks,beingprimarilystocks listedinHongKongandTaiwanandhadanetmarketcapitalisationofapproximatelyHKD18.023trillion.

FTSEInternationalLimited(“FTSE”)istheIndexProvideroftheFTSE®GreaterChinaHKDIndex.TheInvestmentManageranditsconnectedpersonsareindependentofFTSE.

As at 30th September, 2019, the 10 largest constituent stocks of the FTSE® Greater ChinaHKD Index are set out below and they represent approximately 38.99%of the netmarketcapitalisation,basedontotalsharesinissueoftheFTSE®GreaterChinaHKDIndex:

Code-Country StockName Weighting

700-HK TencentHoldingsLtd. 10.45%

2330-TW TaiwanSemiconductorManufacturing 9.15%

1299-HK AIAGroupLtd. 4.97%

939-HK ChinaConstructionBankCorporation 3.10%

2318-HK PingAnInsurance(Group)Co.ofChinaLtd. 2.73%

1398-HK IndustrialandCommercialBankofChinaLtd. 2.28%

941-HK ChinaMobileLtd. 1.90%

388-HK HongKongExchangesandClearingLtd. 1.61%

3690-HK MeituanDianping 1.50%

3988-HK BankofChinaLtd. 1.30%

The index rules and further information in relation to the FTSE®GreaterChinaHKD Index areavailableontheFTSEwebsite,www.ftserussell.com.

FTSE carriesout the semi-annually reviewof the FTSE®GreaterChinaHKD Index inMarchandSeptembereachyear.

IntheeventthattheFTSE®GreaterChinaHKD Index is terminated,ceasestooperateor isnotavailable,theInvestmentManagermay,subjecttotheapprovaloftheMPFAandtheSFC,seeka replacement of the FTSE® Greater ChinaHKD Indexwith another index that the InvestmentManager deems appropriate as suitable benchmark representing stocks of theGreater Chinaregion.Ifnosuitableindexisfound,subjecttotheapprovaloftheSFCandtheMPFA,theBEAGreaterChinaTrackerFundmaybe terminated.Unlessotherwiseagreedwith theSFCand theMPFA, the Trusteewill givenot less thanonemonth's noticeof any change in theunderlyingindex.

85

DisclaimerofFTSEInternationalLimited

TheBEAGreaterChinaTrackerFundisnotinanywaysponsored,endorsed,soldorpromotedbyFTSEortheLondonStockExchangeGroupcompanies(“LSEG”)(togetherthe“LicensorParties”)and none of the Licensor Partiesmake any claim, prediction,warranty or representationwhatsoever,expresslyorimpliedly,eitherasto(i)theresultstobeobtainedfromtheuseoftheFTSE®GreaterChinaHKDIndex(the“Index”)(uponwhichtheBEAGreaterChinaTrackerFundisbased),(ii)thefigureatwhichtheIndexissaidtostandatanyparticulartimeonanyparticulardayorotherwise,or (iii) thesuitabilityofthe Indexforthepurposetowhich it isbeingput inconnectionwiththeBEAGreaterChinaTrackerFund.NoneoftheLicensorPartieshaveprovidedorwill provide any financial or investment adviceor recommendation in relation to the IndextotheTrusteeortoitsclients.TheIndexiscalculatedbyFTSEoritsagent.NoneoftheLicensorParties shall be (a) liable (whether in negligence or otherwise) to any person for any error intheIndexor(b)underanyobligationtoadviseanypersonofanyerrortherein.AllrightsintheIndexvestinFTSE.“FTSE®”isatrademarkofLSEGandisusedbyFTSEunderlicense.

HangSengIndex

TheHangSengIndexisoneoftheearlieststockmarketindexesinHongKong,whichmeasuresthe performance of largest andmost liquid companies listed on theMain Board of the SEHK.ConstituentstocksoftheHangSengIndexareselectedbyarigorousprocessofdetailedanalysis.Only companieswith a primary listing on theMain Board of the SEHK are eligible potentialconstituents.MainlandChinaenterprisesthathaveHsharelistinginHongKongwillbeeligibleforinclusionintheHangSengIndexiftheymeetcertainconditions:

The constituent stocks are grouped under finance, utilities, properties, and commerce andindustrysub-indexes.TheHangSengIndexisreviewedquarterly.

TheHangSeng Indexcurrentlycomprises50constituentstockswhicharerepresentativeoftheHongKongstockmarket.Theaggregatemarketvalueofthesestocksaccountsforabout56.09%ofthetotalmarketcapitalisationofallstockslistedontheMainBoardofSEHK.Asat31stMay,2019,therespectiveweightingsofthetop10largestconstituentstocksoftheHangSengIndexare:

StockCode StockName Weighting5 HSBCHoldingsPlc 10.71%1299 AIAGroupLtd. 9.93%700 TencentHoldingsLtd. 9.71%939 ChinaConstructionBankCorporation-HShares 7.48%2318 PingAnInsurance(Group)Co.ofChina,Ltd.-HShares 5.40%941 ChinaMobileLtd. 4.69%1398 IndustrialandCommercialBankofChinaLtd.-HShares 4.61%388 HongKongExchangesandClearingLtd. 3.31%3988 BankofChinaLtd.-HShares 2.88%883 CNOOCLtd. 2.55%

Real-timeupdateof theHang Seng Index canbeobtained through the SEHKTeletext System,ThomsonReuters,Bloombergand thewebsiteofHSILatwww.hsi.com.hk.The index rulesandfurther information in relation to theHang Seng Index are available atwww.hsi.com.hk. AsforotherimportantnewsoftheHangSengIndex,HSILwillalsomakeannouncementsthroughpressreleasesandatwww.hsi.com.hk.

HSIL is the IndexProviderof theHangSeng Index.The InvestmentManagerand its connectedpersonsareindependentofHSIL.

86

In theevent that theHangSeng Index is terminated,ceases tooperateor isnotavailable, theInvestmentManagermaysubjecttotheapprovaloftheMPFAandtheSFC,seekareplacementof theHang Seng Indexwith another index that it deems appropriate as suitable benchmarkrepresenting the overall performance of theHong Kong stockmarket. If no suitable index isfound,subjecttotheapprovaloftheSFCandtheMPFA,theBEAHongKongTrackerFundmaybe terminated.Unless otherwise agreedwith the SFC and theMPFA, the Trusteewill give notlessthanonemonth'snoticeofanychangeintheunderlyingindex.

87

Disclaimer of HSIL and HSDSL

TheHangSengIndex(the“Index”)ispublishedandcompiledbyHSILpursuanttoalicencefromHSDSL. Themark(s) and name(s) Hang Seng Index are proprietary to HSDSL. HSIL andHSDSLhave agreed to the use of, and reference to, the Index by the Trustee in connectionwith theMaster Trust, BUTNEITHERHSIL NORHSDSLWARRANTSOR REPRESENTSORGUARANTEES TOANY BROKERORHOLDEROF THEMASTER TRUSTORANYOTHER PERSON (i) THEACCURACYOR COMPLETENESSOF THE INDEXAND ITS COMPUTATIONORANY INFORMATION RELATEDTHERETO;OR (ii) THE FITNESSOR SUITABILITY FORANY PURPOSEOF THE INDEXORANYCOMPONENTORDATA COMPRISED IN IT; OR (iii) THE RESULTSWHICHMAY BEOBTAINED BYANY PERSON FROM THEUSEOF THE INDEXORANY COMPONENTORDATA COMPRISED IN ITFORANY PURPOSE, ANDNOWARRANTYOR REPRESENTATIONORGUARANTEEOFANYKINDWHATSOEVER RELATING TO THE INDEX IS GIVENORMAY BE IMPLIED. The process and basisof computation and compilation of the Index and any of the related formula or formulae,constituent stocks and factorsmay at any timebe changedor altered byHSILwithout notice.TOTHEEXTENTPERMITTEDBYAPPLICABLELAW,NORESPONSIBILITYORLIABILITYISACCEPTEDBYHSILORHSDSL (i) IN RESPECTOF THEUSEOFAND/OR REFERENCE TO THE INDEX BY THETRUSTEEINCONNECTIONWITHTHEMASTERTRUST;OR(ii)FORANYINACCURACIES,OMISSIONS,MISTAKES OR ERRORS OF HSIL IN THE COMPUTATION OF THE INDEX; OR (i i i) FOR ANYINACCURACIES, OMISSIONS,MISTAKES, ERRORSOR INCOMPLETENESSOFANY INFORMATIONUSED IN CONNECTIONWITH THE COMPUTATIONOF THE INDEXWHICH IS SUPPLIED BYANYOTHER PERSON;OR (iv) FORANY ECONOMICOROTHER LOSSWHICHMAY BEDIRECTLYORINDIRECTLY SUSTAINED BYANY BROKERORHOLDEROF THEMASTER TRUSTORANYOTHERPERSONDEALINGWITHTHEMASTERTRUSTASARESULTOFANYOFTHEAFORESAID,ANDNOCLAIMS, ACTIONSOR LEGAL PROCEEDINGSMAY BE BROUGHTAGAINSTHSIL AND/ORHSDSLin connectionwith theMasterTrust inanymannerwhatsoeverbyanybroker,holderorotherperson dealingwith theMaster Trust. Any broker, holder or other person dealingwith theMaster Trust does so therefore in full knowledge of this disclaimer and can place no reliancewhatsoeveronHSILandHSDSL.Fortheavoidanceofdoubt,thisdisclaimerdoesnotcreateanycontractual or quasi-contractual relationship between any broker, holder or other person andHSILand/orHSDSLandmustnotbeconstruedtohavecreatedsuchrelationship.

Members invest ing in the BEA Hong Kong Tracker Fund wi l l be regarded as havingacknowledged,understoodandacceptedthedisclaimeraboveandwillbeboundbyit.TheleveloftheHangSengIndexatanytimeforthepurposesoftheBEAHongKongTrackerFundwillbethelevelascalculatedbyHSILinitssolediscretion.

ILLUSTRATIVE EXAMPLE FORBEA MPF CONSERVATIVE FUND OF THE

BEA (MPF) VALUE SCHEME

Date: 25th October, 2012

PURPOSE OF THE EXAMPLEThis example is intended to help you compare the total amounts of annual fees and charges payable under this Scheme with those under other registered schemes.

THIS EXAMPLE ASSUMES THAT:

Your MPF Account Activities(a) your monthly relevant income is HK$8,000(b) you have put all your accrued benefits into the BEA MPF Conservative Fund; you

have not switched your accrued benefits to other constituent funds during the fi nancial period

(c) you have not transferred any accrued benefi ts into or out of this Scheme during the fi nancial period

Your Company Profi le(d) 5 employees (including yourself) of your employer participate in this Scheme(e) the monthly relevant income of each employee is HK$8,000(f) no voluntary contribution is made(g) each of the other 4 employees has the same MPF account activities as yours

Investment Return and Savings Rate(h) the monthly rate of investment return is 0.5% on total assets(i) the prescribed savings rate is 3.25% per annum throughout the fi nancial period.

Based on these assumptions, the total amounts of annual fees you need to pay under this Value Scheme in one fi nancial period would be HK$35

Warnings: This is just an illustrative example. The actual amounts of fees you need to pay may be higher or lower, depending on your choice of investments and activities taken during the fi nancial period.

Fee Deduction Mechanism: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. BEA MPF Conservative Fund uses method (ii) and, therefore, unit prices, net asset value and fund performance quoted (except for the fund performance figures quoted in a fund fact sheet) do not refl ect the impact of fees and charges.

TR 167 (10/2012)

BEA TR167 120920-4.indd 1BEA TR167 120920-4.indd 1 2012-10-10 10:11:14a2012-10-10 10:11:14a

TR 203 (09/2020)

On-Going Cost Illustrations For BEA (MPF) Value Scheme

Issue Date : 30th September, 2020About This IllustrationThis is an illustration of the total effect of fees, expenses and charges on each HK$1,000 contributed in the funds named below. The fees, expenses and charges of a fund are one of the factors that you should consider in making investment decisions across funds. You should however also consider other important information such as the risks of the fund, the nature of the fund, the attributes of relevant parties, the range and quality of services being offered and, most importantly, your own personal circumstances and expectations. The information about fees, expenses and charges set out in this table is intended to help you compare the cost of investing in one constituent fund with the cost of investing in other constituent funds.

The Illustration has been prepared based on some assumptions that are the same for all funds. The Illustration assumes the following:

(a) a gross contribution of HK$1,000 is made in the respective constituent fund now and, being eligible to do so, you withdraw all of your accrued benefits arising from this contribution at the end of each time period indicated;

(b) for the purpose of this illustration only, the contribution has a 5% gross return each year [It is important that you note that the assumed rate of return used in this document is for illustrative and comparative purposes only. The return is neither guaranteed nor based on past performance. The actual return may be different.]; and

(c) the expenses of the funds (expressed as a percentage called the ‘fund expense ratio’ below) remain the same for each fund for all the periods shown in this illustration.

Based on the above assumptions, your costs on each HK$1,000 contributed are illustrated in the following table. Please note that the actual costs will depend on various factors and may be different from the numbers shown below.

Name of constituent fundFund expense ratio for financial period ended March 2020

Cost on each HK$1,000 contributed

After 1 year(HK$)

After 3 years(HK$)

After 5 years(HK$)

BEA Growth Fund 0.96% 10 31 55

BEA Balanced Fund 0.94% 10 31 53

BEA Stable Fund 0.95% 10 31 54

BEA Global Equity Fund 0.97% 10 32 55

BEA Asian Equity Fund 0.97% 10 32 55

BEA Greater China Equity Fund 0.98% 10 32 56

BEA Greater China Tracker Fund 1.08% 11 35 61

BEA Hong Kong Tracker Fund 0.73% 8 24 42

BEA Global Bond Fund 0.95% 10 31 54

BEA Core Accumulation Fund 0.86% 9 28 49

BEA Age 65 Plus Fund 0.84% 9 28 48

Note: The example does not take into account any fee rebates that may be offered to certain members of the scheme.

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