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