FWD Launches New MPF Fund through its Investment in Approved Pooled Investment Funds and/or Approved Index-Tracking Collective Investment Schemes Investing in the United States and Hong Kong Equities Providing Members with More Constituent Fund Choice

FWD Life Insurance Company (Bermuda) Limited ("FWD") announces the launch of US & Hong Kong Equity Portfolio under two FWD MPF schemes respectively


IMPORTANT
  • FWD MPF Master Trust Basic Scheme / FWD MPF Master Trust Comprehensive Scheme (the "Scheme") each is a mandatory provident fund scheme registered with the Mandatory Provident Fund Schemes Authority. Registration does not imply recommendation.
  • You should consider your own risk tolerance level and financial circumstances before making any investment choices.  When, in your selection of constituent funds, you are in doubt as to whether a certain constituent fund is suitable for you (including whether it is consistent with your investment objectives), you should seek financial and/or professional advice and choose the constituent fund(s) most suitable for you taking into account your circumstances.
  • In the event that you do not make any investment choices, please be reminded that your contributions made and/or benefits transferred into the Scheme will be invested into the FWD MPF Basic Scheme Capital Guaranteed Portfolio / FWD MPF Comprehensive Scheme Capital Guaranteed Portfolio which may not necessarily be suitable for you.
  • The FWD MPF Basic Scheme Capital Guaranteed Portfolio / FWD MPF Comprehensive Scheme Capital Guaranteed Portfolio under the above Scheme invests its assets solely in an Approved Pooled Investment Fund in the form of insurance policy provided by FWD Life Insurance Company (Bermuda) Limited (“FWD Life"). The guarantee is also given by FWD Life. Your investments in the FWD MPF Basic Scheme Capital Guaranteed Portfolio / FWD MPF Comprehensive Scheme Capital Guaranteed Portfolio, if any, are therefore subject to the credit risk of FWD Life. The guarantee is subject to qualifying conditions. Please refer to paragraphs 15 through 25 of Part II of the Explanatory Memorandum for details of the credit risk, guarantee features and guarantee conditions.
  • You should not invest based on this document alone. You should read the Explanatory Memorandum for details.
  • For further details including the features of the Scheme and each constituent fund, the investment objectives of each constituent fund and risks involved, please refer to the details in the Explanatory Memorandum of the Scheme (as amended from time to time). If you are in doubt about the meaning or effect of the contents of the Explanatory Memorandum or any addendum thereto, you should seek professional advice.
  • Investment involves risk and not all constituent funds available under the Scheme would be suitable for everyone. There is no assurance on investment returns and your investments/accrued benefits may suffer significant losses. You should read the Explanatory Memorandum for details.

FWD Life Insurance Company (Bermuda) Limited ("FWD") announces the launch of US & Hong Kong Equity Portfolio under two FWD MPF schemes respectively on February 17, 2014. FWD MPF Basic Scheme US & Hong Kong Equity Portfolio and FWD MPF Comprehensive Scheme US & Hong Kong Equity Portfolio (collectively, the "Constituent Funds") are the constituent funds under FWD MPF Master Trust Basic Scheme and FWD MPF Master Trust Comprehensive Scheme respectively. The new constituent funds offer an alternative for FWD's MPF members.

This is a milestone for FWD MPF, as it serves to further diversify constituent fund choice for FWD's MPF members. With the launch of the Constituent Funds, FWD MPF Master Trust Basic Scheme and FWD MPF Master Trust Comprehensive Scheme now offer seven and ten constituent funds respectively. It is intended that, through its investments in approved pooled investment funds and/or approved index-tracking collective investment schemes, the Constituent Funds will invest in securities of companies listed in the US and/or Hong Kong Stock Exchanges which provide FWD's MPF members an opportunity of investing into two economies. The investment objective of the Constituent Funds is to achieve long-term capital appreciation. The Constituent Funds are considered high riskii.

Mr. Wilsome Chow, General Manager of Corporate Benefits, FWD, said, "The purpose of launching the Constituent Funds is to provide FWD's MPF members an alternative with exposure to the US and Hong Kong markets, which Hong Kong people may be more familiar with."

State Street Global Advisors Asia Limited ("SSgA") has been appointed as the investment manager of the Constituent Funds. SSgA is the asset management business of State Street Corporation with a heritage dating back over two centuries. Management fees of the Constituent Funds, which have taken into account any applicable rebates received and represent all fees payable by scheme members, are up to 1.3% of net asset value per annumiii.

Apart from providing new constituent funds, FWD actively monitors the performance of our constituent funds for the benefit of its MPF members. FWD is deeply sensitive to the importance of the MPF accrued benefits for its member's retirement planning. FWD has also built a professional multi-manager investment team to provide a wide array of fund choices for FWD's MPF members.

Additionally, FWD won the "Best in MPF Investor Education" from Asia Asset Management in 2013iv, demonstrating our commitment to MPF investor education for its members. FWD Pension Trust Limited was also awarded the "Best MPF and Pension Service Provider" in the "CAPITAL Best of the Best for Executive 2013"v for the second consecutive year, signifying the quality for FWD MPF.

Risk Disclaimer: Investment involves risk. Prices of units may go down as well as up. Past performance is not indicative of future returns. There is no assurance on investment returns and your investments/accrued benefits may suffer significant losses. For further details including the product features and risks involved, please refer to the Explanatory Memorandum.

Issued by FWD Life Insurance Company (Bermuda) Limited


i The assets of the Constituent Funds are primarily invested in approved pooled investment funds ("APIFs") (which are approved by the Mandatory Provident Fund Schemes Authority ("MPFA") and authorised by the Securities and Futures Commission) and approved index-tracking collective investment schemes ("ITCISs") (which are approved by the MPFA).

ii The constituent funds are classified into three categories in terms of risk level, namely low, medium or high risk. The risk level is an illustration of the amount of risks associated with the relevant constituent fund by reference to the type of investments made by the underlying APIF(s) and the underlying approved ITCISs. The risk level is for reference only and not an indication of the past or future performance of the constituent fund. The risk level is solely assessed by the FWD Pensions Trust Limited on the assumption that equities are riskier than bonds, which in turn are riskier than cash. The risk rating will be reviewed at least annually according to the prevailing market circumstances. The actual risks associated with each constituent fund may differ from the projected risk level.

iii Please refer to the Explanatory Memorandum for detailed fees and charges of the Scheme.

iv The methodology for the selection of the "Best in MPF Investor Education" is based on the assessment of a judging panel comprising of representatives from (1) Asia Asset Management (a journal of investments and pensions), (2) MPF Ratings Limited (a Hong Kong-based subsidiary of Australia’s retirement savings research company, SuperRatings Pty Ltd) and (3) MPF industry respectively.

v The methodology for the selection of the "Best MPF and Pension Service Provider" is based on the assessment on the product's performance in 2012 by a judging panel comprising of businessmen and CAPITAL Editorial Board.


About FWD Hong Kong
FWD Group is the insurance business arm of the private investment group, Pacific Century Group. Swiss Re Group invested in FWD Group in December 2013, with a shareholding of 12.3%. FWD’s business spans Hong Kong, Macau and Thailand, offering life insurance services, as well as general insurance, employee benefits and financial planning services in Hong Kong. In addition, FWD has a brand presence in Indonesia. FWD’s strategic focus is to leverage technology to enhance customer experience, deliver innovative products, and invest in talent to create a leading pan-Asian life insurer.

In Hong Kong, the life insurance operating entity, FWD Life Insurance Company (Bermuda) Limited is assigned strong financial strength ratings of "A-" by Standard & Poor's, "A3" by Moody's and "A" by Fitch.

For more information please visit www.fwd.com.hk.


About Pacific Century Group

Pacific Century Group (“PCG”) was established in 1993 and has interests in property, financial services and other investments in the Asia Pacific region. PCG has a strong track record of holding and developing assets over the long term, and has a network of well-established connections in Asia.

Since its inception, PCG has consistently invested in the financial services sector. In February 2013, PCG successfully acquired ING Groep N.V.’s Hong Kong, Macau and Thailand insurance business. In 2010, PCG acquired the global asset management operations from AIG and renamed it PineBridge Investments. Since PCG’s acquisition, PineBridge Investments has received 13 industry awards. The company has more than US$65 billion in assets under management through its global network.

Media Enquiries

FWD Hong Kong
Liza Wong
liza.wong@fwd.com
+852 2850 3986
Catherine Tse
catherine.nc.tse@fwd.com
+852 2850 2908
Brunswick Group Limited
Monica Wong
mwong@brunswickgroup.com
+852 3512 5081
+852 6323 3681
Elizabeth Liang
eliang@brunswickgroup.com
+852 3512 5058
+852 9015 6858