Note 1: Management fees include fees paid to the Trustee, Custodian, Administrator, Investment Manager (including fees based on fund performance, if any), Investment Agent and Sponsor of the scheme for providing their services to the relevant Constituent Fund. They are usually charged as a percentage of the net asset value ('NAV') of the relevant Constituent Fund. The management fees of all Constituent Funds are deducted from the asset of the Constituent Fund.
In the case of each of the Core Accumulation Fund and the Age 65 Plus Fund, management fees payable to the parties named above (excluding the Custodian), or their delegates, can only (subject to certain exceptions in the Mandatory Provident Fund Schemes Ordinance) be charged as a percentage of the NAV of the Constituent Fund. These management fees are also subject to a statutory daily limit equivalent to 0.75% per annum of the NAV of the Constituent Fund which applies across both the Constituent Fund and underlying approved pooled investment fund(s) and index-tracking collective investment scheme(s).
Note 2: Preferential rate on the management fee may be applied to certain Members. Such preferential rate will be effected by way of ‘special bonus units’ credited to the Member’s employer and/or member’s contribution related sub-accounts on a monthly basis. The ‘special bonus units’ form part of the account balance and are subject to relevant fees and charges applicable to the Hang Seng Mandatory Provident Fund - SuperTrust Plus. If a Member terminates the Member’s account or transfers all assets out before the ‘special bonus units’ are being credited for a particular month, no ‘special bonus units’ will be granted for that month. The Trustee may offer other rebate/incentive arrangement to certain Participating Employers and/or Members.
Note 3: Fees and charges of an MPF Conservative Fund can be deducted from either: (i) the assets of the MPF Conservative Fund; or (ii) Members’ account by way of unit deduction. The MPF Conservative Fund under the Hang Seng Mandatory Provident Fund – SuperTrust Plus uses method (i) and therefore, its unit prices, NAV and fund performance quoted have reflected the impact of fees and charges.
Under section 37 of the Mandatory Provident Fund Schemes (General) Regulation (Cap. 485A of the laws of Hong Kong) and any subsequent amendments ('General Regulation'), fees and charges of the MPF Conservative Fund may only be deducted in the following circumstances:
(a) if the amount of income derived from the investment of funds of the MPF Conservative Fund in a particular month exceeds the amount of interest that would be earned if those funds had been placed on deposit in a Hong Kong dollar savings account at the prescribed savings rate, an amount not exceeding the excess may be deducted from the MPF Conservative Fund for that month; or
(b) if for a particular month, no amount is deducted under (a) or the amount that is deducted is less than the actual fees and charges for the month, the deficiency may be deducted from the amount of any excess that may remain in any of the following 12 months after deducting the fees and charges applicable to that following month.
Note 4: The percentage does not include the guarantee charge of 0.75% p.a. of NAV.