Important: If you are in doubt about the meaning or effect of the contents of this website, you should seek independent professional advice.

Important to note:

  1. The Principal Long Term Guaranteed Fund invests solely in an insurance policy-based APIF issued by Principal Insurance Company (Hong Kong) Limited (“Principal”). The guarantee is also provided by Principal. Your investments, if any, in the Principal Long Term Guaranteed Fund, are therefore subject to the credit risk of Principal. Please refer to section 3.4.1 (Principal Long Term Guaranteed Fund) of the relevant MPF Scheme Brochure for details of the credit risk, guarantee features and guarantee conditions.

  2. Principal, the guarantor of the insurance policy-based APIF in which the Principal Long Term Guaranteed Fund invests, will only provide a guarantee of capital and a prescribed guarantee rate of return in certain specified circumstances. Please note that you may lose the guarantee entitlement if you have elected to transfer your accrued benefits in the Scheme (i) from an account within the Scheme to another account within the Scheme; (ii) from the Principal Long Term Guaranteed Fund to another Constituent Fund in the Scheme; or (iii) to another registered scheme as described in section 6.7.2 (Transferring accrued benefits from or within the Scheme) of the relevant MPF Scheme Brochure. Please refer to section 3.4.1 (Principal Long Term Guaranteed Fund) the relevant MPF Scheme Brochure for details of the guarantee conditions. Please also note that a partial withdrawal of accrued benefits may affect your guarantee entitlement under the Principal Long Term Guaranteed Fund. For details, please refer to Appendix I (Operation of the guarantee in respect of the Principal Long Term Guaranteed Fund) of the relevant MPF Scheme Brochure.

  3. If you are currently investing in the Principal Long Term Guaranteed Fund, a withdrawal of the accrued benefits on ground of terminal illness may affect your entitlement to the guarantee and you may lose your guarantee. For details please check the relevant MPF Scheme Brochure or consult the trustee before making any such withdrawal.

  4. Investment in the Principal HK Dollar Savings Fund is different from placing deposits with a bank or deposit-taking company and is not protected by the Deposit Protection Scheme. Investment in the Principal HK Dollar Savings Fund will be subject to investment risks.

  5. Fees and charges of a MPF conservative fund can be deducted from either (i) the assets of the Constituent Fund or (ii) members’ account by way of unit deduction. The Principal MPF Conservative Fund uses method (i) and, therefore, unit prices/net asset value/fund performance quoted have incorporated the impact of fees and charges.

  6. You should consider your risk own tolerance level and financial circumstances before investing in DIS. You should note that the Principal Core Accumulation Fund and the Principal Age 65 Plus Fund may not be suitable for you, and there may be a risk mismatch between the Principal Core Accumulation Fund and the Principal Age 65 Plus Fund and your risk profile (the resulting portfolio risk may be greater than your risk preference). You should seek financial and/or professional advice if you are in doubt as to whether the DIS is suitable for you, and make the investment decision most suitable for you taking into account your circumstances.

  7. You should note that the implementation of the DIS may have an impact on your MPF investments and benefits. You should consult with the Trustee if you have doubts on how you are being affected.

  8. You should consider your own risk tolerance level and financial circumstances before making any investment choices. In your selection of Constituent Fund(s), you are in doubt as to whether a certain Constituent Fund(s) 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 own circumstances.

  9. In the event that you do not make any investment choices, please be reminded that any contributions made and/or benefits transferred into this Scheme will be invested into the DIS.

  10. Investment involves risks. The value of the funds may go up or down. The past performance is not indicative of future performance. Your investment may suffer significant loss. There is no assurance on investment returns and you may not get back the amount originally invested.

  11. You should not invest in reliance on this website alone. You should read the relevant MPF Scheme Brochure for further details (including investment policy, risk factors, fee and charges of the Constituent Funds).


Principal MPF Scheme Series 600

Principal MPF Scheme Series 600 consists of eleven constituent funds with different risk/return profiles, offering diversification and flexibility in investment options to your employees.


Risk/Return Spectrum
Low High

 

Low

Moderate

Moderate to High

High

Principal MPF Conservative Fund

Principal HK Dollar Savings Fund

Principal Age 65 Plus Fund

Principal Age 65 Plus Fund(DIS)

Principal Asian Bond Fund

Principal Long Term Guaranteed Fund

Principal Stable Yield Fund

Principal Core Accumulation Fund

Principal Core Accumulation Fund(DIS)

Principal Long Term Accumulation Fund

Principal Global Growth Fund

Principal Aggressive Strategy Fund

Principal Hang Seng Index Tracking Fund

Default Investment Strategy

The MPF default investment strategy ("DIS") is a ready-made investment arrangement mainly designed for those members who are not interested or do not wish to make an investment choice, and is also available as an investment choice itself for members who find it suitable for their own circumstances. For general information about DIS, please refer to the DIS dedicated webpage.

Latest Scheme Information

"APIF" refers to an "Approved Pooled Investment Fund" approved by the Authority pursuant to the MPF Ordinance for investment by provident fund schemes registered under the MPF Ordinance.

"ITCIS" refers to "Index-Tracking Collective Investment Schemes" (as defined in Part 1 of Schedule 1 to the Mandatory Provident Fund Schemes (General) Regulation) approved by the MPFA for investment by provident fund schemes registered under the MPFS Ordinance.

#Risk/Return Profile

Low

Moderate

Moderate to High

High

The following classifications of Risk/Return Profile for each constituent fund are determined by the Investment Manager, Principal Asset Management Company (Asia) Limited, based on past volatility (i.e. annualized standard deviation of returns) and relative risk levels among the constituent funds in the Scheme. The classifications of the Risk/Return Profile will be reviewed by the Investment Manager on an annual basis and are provided for reference only.  

 

Principal Age 65 Plus Fund 
Objective To provide stable growth for the retirement savings to members by investing in a globally diversified manner. The fund is denominated in Hong Kong dollars.
Investment Portfolio

Invest in a unit trust APIF, Principal Unit Trust Umbrella Fund - Principal Age 65 Plus Fund, which in turn invests in two or more passively or actively managed approved ITCISs and / or unit trust APIFs as allowed under the Mandatory Provident Fund Schemes (General) Regulation.

Asset Allocation
Global Equities Securities

15 - 25%

Global Debt Securities

65 - 85%

Cash & Short-term Investments(e.g.bills and deposits)

0 - 10%

Geographic Allocation No prescribed allocation
Risk / Return Profile#





Principal Core Accumulation Fund 
Objective To provide capital growth to members by investing in a globally diversified manner.
Investment Portfolio

Invest in a unit trust APIF, Principal Unit Trust Umbrella Fund - Principal Core Accumulation Fund, which in turn invests in two or more passively or actively managed approved ITCISs and / or unit trust APIFs as allowed under the Mandatory Provident Fund Schemes (General) Regulation.

Asset Allocation
Global Equities Securities

55 - 65%

Global Debt Securities

25 - 45%

Cash & Short-term Investments(e.g.bills and deposits)

0 - 10%

Geographic Allocation No prescribed allocation
Risk / Return Profile#





Default Investment Strategy ("DIS") 
Objective The MPF default investment strategy ("DIS") is a ready-made investment arrangement mainly designed for those members who are not interested or do not wish to make an investment choice, and is also available as an investment choice itself for members who find it suitable for their own circumstances.
Investment Portfolio

The DIS aims to balance the long term effects of risk and return through investing in two Constituent Funds, namely the Principal Core Accumulation Fund and the Principal Age 65 Plus Fund, according to the pre-set allocation percentages at different ages.






Principal Long Term Guaranteed Fund* 
Objective To provide a competitive long-term total rate of return, while providing a minimum guaranteed average annual return over the career of the members.
Investment Portfolio

Invest in an insurance policy Approved Pooled Investment Fund ("Policy APIF") which will in turn invest in two or more Approved Pooled Investment Funds ("APIFs") and/or Approved Index-Tracking Collective Investment Schemes ("ITCIS"). The underlying investments will consist of debt and equity securities which may be denominated in HK dollars, US dollars or other currencies.

 

(Investments in the Policy APIF are subject to the credit risk of Principal)
Asset Allocation
Equity Securities

10 - 55%

Debt Securities

25 - 90%

Cash & Short-term Investments(e.g.bills and deposits)

0 - 20%

Geographic Allocation
United States and Greater China

40- 100%

Other Asia

0 - 50%

Europe

0 - 50%

Other Countries

0 - 50%

Risk / Return Profile#

* Principal Long Term Guaranteed Fund

 

Principal, the Guarantor of the Principal Long Term Guaranteed Fund under this Scheme, will only provide a guarantee of capital and a prescribed guarantee rate of return in certain specified circumstances.  Your investments are subject to the credit risk of Principal. 

 

The guarantee of capital and return will only be offered if the contributions in the fund are withdrawn upon the occurrence of a "qualifying event", which is the receipt by the Trustee of a valid claim of all the accrued benefits of the member upon satisfying any of the following conditions:

(a) Attainment of the normal retirement age or retirement at or after the early retirement age but before the normal retirement age

(b) Total incapacity

(c) Terminal illness

(d) Death

(e) Permanent departure from Hong Kong

(f) Claim of "small balance" 

The above conditions (a) to (f) apply to employee members, self-employed persons, existing Special Voluntary Contributions members and personal account members.

(g) Termination of the member's employment (regardless of the reason of termination) and the continuous period for which the member has been investing in the fund up to and including the last date of his employment ("qualifying period") is at least 36 complete months.  The qualifying period in respect of a member will also be re-set to zero if the member (or his personal representative) effects a redemption, switching out or withdrawal of the units of the fund other than upon the occurrence of a qualifying event.  For the avoidance of doubt, condition (g) does not apply to self-employed persons or personal account members.

 

If a redemption, switching out or withdrawal of units of the fund is effected by a member other than upon the occurrence of a qualifying event as stated above, the guarantee will be affected and the member's investments in this fund will be subject to market fluctuation and investment risks.  Please refer to the MPF Scheme Brochure under the section "Provision of Guarantee" for details of the guarantee conditions.

 


 

Principal MPF Conservative Fund** 
Objective To at least earn a net return equal to the "prescribed savings rate" (which is broadly the average rate of interest on a Hong Kong dollar savings account) determined by the MPFA. 
Investment Portfolio

Invest in a unit trust Approved Pooled Investment Fund ("Unit Trust APIF") which will consist of a portfolio of bank deposits, short duration securities and high quality money market instruments denominated in Hong Kong dollars.

 

 
Asset Allocation
Certificates of Deposit

0 - 95%

Debt Securities

0 - 95%

Cash & Short-term Investments   (e.g.bills and deposits)

0 - 100%

Geographic Allocation

Hong Kong

100%

Risk / Return Profile#

 

** Principal MPF Conservative Fund

 

Principal MPF Conservative Fund under this Scheme is not a guaranteed fund and does not guarantee the repayment of capital. 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.  This Fund uses method (i) and, therefore, unit prices/net asset value/fund performance quoted have incorporated the impact of fees and charges.  





Principal HK Dollar Savings Fund 
Objective To earn a competitive short-to-medium term rate of return. 
Investment Portfolio

Invest in a Unit Trust APIF which will invest in a portfoilo of high quality Hong Kong dollar short-to- medium duration debt securities.  The Unit Trust APIF may also hold assets denominated in US dollars or other currencies. 

 

Asset Allocation
Short-to-medium Duration Debt Securities (e.g. certificates of deposits)

60 - 100%

Cash & Short-term Investments
(e.g.bills and deposits)

0 - 40%

Geographic Allocation

Hong Kong

70 - 100%

United States

0 - 30%

Europe

0 - 30%

Others

0 - 20%

Risk / Return Profile#

 

Note:  Investment in the Principal HK Dollar Savings Fund is different from placing deposits with a bank or deposit-taking company and is not protected by the Deposit Protection Scheme.  Investments in this Fund will be subject to investment risks.


 

Principal Asian Bond Fund  
Objective  To provide a return consisting of income and capital growth over medium to long term.  
Investment Portfolio Invest in two or more APIFs (in the form of unit trusts) and/or approved ITCISs, each of which in turn makes direct investments. Through these underlying investments, the fund will invest a majority of its assets in Asian debt securities, including (but not limited to) sovereign and/or non-sovereign, floating and/or fixed, of varying maturities issued by the government or by multi-lateral agencies or by companies, and denominated in major Asian currencies. The types of debt securities that the fund primarily intends to invest into are government bonds, corporate bonds/debentures, floating rate notes, bills, commercial papers and certificates of deposit. In addition, the fund will invest not more than 30% of its assets in time deposits or may hold cash.
Asset Allocation
Debt Securities

70 - 100%

Cash & Time Deposits

0 - 30%

Geographic Allocation
Asia1  

80- 100%

Others2 

0 - 20%

Risk / Return Profile#

1 Asia includes (but is not limited to) China, Hong Kong, South Korea and Singapore.

2 Others include (but is not limited to) Australia, Europe, and USA




Principal Stable Yield  Fund 
Objective  To seek long-term growth of capital through investing entirely in an Approved Pooled Investment Fund ("APIF"). 
Investment Portfolio Invest in an APIF (in the form of a unit trust), which will in turn invest in two or more APIFs and/or Approved ITCISs.  Through these underlying investments, the fund will invest primarily in equities and debt securities of different countries.  The fund will provide an international exposure for investors' monies, with relatively more emphasis on debt investments.
Asset Allocation
Equity Securities

0 - 60%

Debt Securities

20 - 90%

Cash & Short-term Investments (e.g. bills and deposits)

0 - 30%

Geographic Allocation
Asia

0 - 75%

Europe

0 - 75%

North America

0 - 80%

South America

0 - 10%

Africa / Middle East

0 - 10%

Others

0 - 20%

Risk / Return Profile#



Principal Long Term Accumulation Fund 
Objective To earn a competitive long-term total rate of return through investing in a balanced portfolio. 
Investment Portfolio

Invest in a Unit Trust Policy APIF which will in turn invest in two or more APIFs and/or ITCIS.

 

Asset Allocation
Equity Securities

20 - 80%

Debt Securities

15 - 75%

Cash & Short-term Investments  (e.g.bills and deposits)

0 - 20%

Geographic Allocation

United States

15 - 100%

Asia

0 - 85%

Europe

0 - 30%

Others

0 - 20%

Risk / Return Profile#



Principal Global Growth Fund
Objective To seek long-term growth of capital through investing in a balanced portfolio. 
Investment Portfolio
  • Invest in a Unit Trust APIF which will in turn invest in two or more APIFs and/or ITCIS. Through these underlying investments, the fund will invest primarily in equities and debt securities of different countries. The fund will normally target a larger allocation to equity investments than debt securities.

 

Asset Allocation
Equity Securities

30 - 90%

Debt Securities

10 - 70%

Cash & Short-term Investments (e.g.bills and deposits)

0 - 30%

Geographic Allocation
Asia  

0 - 75%

South America

0 - 10%

Europe       

0 - 75%

Africa/Middle East

0 - 10%

North America

0 - 80%

Others

0 -  20%

Risk / Return Profile#


 

Principal Aggressive Strategy Fund
Objective To seek long-term growth of capital through investing entirely in an Approved Pooled Investment Fund ("APIF"). 
Investment Portfolio

Invest in an APIF (in the form of a unit trust), which will in turn invest in two or more APIFs and/or Approved ITCISs. Through these underlying investments, the fund will invest primarily in equities and debt securities of different countries. The fund will provide an international exposure for investors' monies, with relatively more emphasis on equity investments.

Asset Allocation
Equity Securities

60 - 100%

Debt Securities

0 - 40%

Cash & Short-term Investments (e.g.bills and deposits)

0 - 30%

Geographic Allocation

Asia Pacific

0  - 75%

Europe

0 - 75%

North America

0 - 80%

South America

0 - 10%

Africa / Middle East

0 - 10%

Risk / Return Profile#

 



Principal Hang Seng Index Tracking Fund 
Objective To provide investment results that closely correspond to the performance of the Hang Seng Index through investing all or substantially all of the fund's assets in units of The Tracker Fund of Hong Kong. 
Investment Portfolio

Invest in The Tracker Fund of Hong Kong, which will in turn invest all or substantially all of its assets in equity securities listed on the Hong Kong Stock Exchange Limited.  

Asset Allocation
Equity Securities

90 - 100%

Cash & Short-term Investments (e.g.bills and deposits)

0 - 10%

 

Geographic Allocation

Hong Kong

20 - 80%

China

20 - 80%

Risk / Return Profile#

NOTE:

Investors should note that (i) the above ranges of asset and geographic allocations are for indication only and long term allocations may vary with changing market conditions; and (ii) the geographic allocation for equity investments is classified by the principal place of business of the issuers and the geographic allocation for debt investments is classified by their currency denomination.