Important Notes:

1. Principal MPF Scheme Series 800 ("Scheme") is an MPF Scheme.
2. Each of the Principal Capital Guaranteed Fund and the Principal Long Term Guaranteed Fund under this Scheme invests solely in an approved pooled investment fund in the form of an insurance policy issued by Principal Insurance Company (Hong Kong) Limited ("Principal"). The guarantee is also provided by Principal. Your investments in the Principal Capital Guaranteed Fund and Principal Long Term Guaranteed Fund, if any, are therefore subject to the credit risk of Principal. Please refer to the "Principal Capital Guaranteed Fund" and "Principal Long Term Guaranteed Fund" sections of the Principal Brochure of the Scheme for details of the credit risk, guarantee features and guarantee conditions.
3. 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. 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 MPF scheme as described in the sub-section (B) "Transferring benefits from or within the Scheme" under the section "Employee's Choice - Transferring accrued benefits to and from the Scheme" of the Principal Brochure. Please refer to page 12 of the Principal Brochure under the section "Provision of Guarantee" 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 the section "Provision of Guarantee" on page 12 and the section "Guarantee entitlement in respect of partial withdrawal of accrued benefits upon retirement or early retirement" on page 15.
4. If you are currently investing in 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 Scheme offering document or consult your trustee before making any such withdrawal.
5. Principal, the Guarantor of the Principal Capital Guaranteed Fund under this Scheme, will provide a guarantee to ensure the unit value of the fund will never decrease. Prior to 30 December 2011, under the indirect charge option (i.e. the Class I Units after 30 December 2011), part of the management fee is asset based which is deducted from the net asset value of the fund, while the remaining part is payable by deducting units from member's account. As such, capital may not be guaranteed in absolute term for scheme members under the indirect charge option before 30 December 2011. For details, please refer to the sections "How the guarantee works" and "Fees and Charges" of the Principal Brochure of the Scheme.
6. 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 this Fund will be subject to investment risks.
7. The Principal MPF Conservative Fund under this Scheme is not a guaranteed fund and does not guarantee the repayment of capital. Fees and charges of a 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.
8. You should consider your own risk tolerance level and financial circumstances before making any investment choices. When, in your selection of funds, you are in doubt as to whether a certain 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 fund(s) most suitable for you, taking into account your own circumstances.
9. You should consider your own tolerance level and financial circumstances before investing in the Default Investment Strategy ("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.
10. 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.
11. 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.
12. Investment involves risks. The value of the funds may go up and 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. You should not invest in reliance on this marketing material alone. You should read the Principal Brochure of the Scheme for further details (including investment policy, risk factors, fee and charges of the constituent funds).

Series 800 consists of 17 constituent funds with different risk/return profiles. It gives your employees more fund choices than other Principal MPF Schemes. This is particularly suitable for large companies as it provides a wide variety of investment choices for each employee.

Members could design your own investment portfolio to better meet your retirement needs. Series 800 is suitable for members with a greater investment knowledge and experience.

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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#

Principal Capital Guaranteed Fund*
Objective	To guarantee the capital value of the contributions, and to earn a competitive short-term rate of return.
Investment Portfolio	Invest in an insurance policy Approved Pooled Investment Fund ("Policy APIF") which will in turn invests in mainly a portfolio of short duration securities.   (Investments in the Policy APIF are subject to the credit risk of Principal)
Asset Allocation	Debt Securities 0 - 100% Cash & Short-term Investments (e.g. bills and deposits) 0 - 100%
Geographic Allocation	Hong Kong 100%
Risk / Return Profile#	(Guaranteed Fund)

* Principal Capital Guaranteed Fund 

Principal, the Guarantor of the Principal Capital Guaranteed Fund under this Scheme, will provide a guarantee to ensure the unit value of the fund will never decrease. Prior to 30 December 2011, under the indirect charge option (i.e. the Class I Units after 30 December 2011), part of the management fee is asset based which is deducted from the net asset value of the fund, while the remaining part is payable by deducting units from member's account. As such, capital may not be guaranteed in absolute term for scheme members under the indirect charge option before 30 December 2011. For details, please refer to the sections "How guarantee works" and "Fees and Charges" of the Principal Brochure of the Scheme.

Subject to the sole discretion of the Trustee, (i) the Class D Units will not be available to employers, employees and self-employed persons who join the Scheme on or after 1 October 2004; and (ii) personal account members and SVC members will be subject to Class I Units only.

Objective	To provide a competitive long-term total rate of return, while also providing a minimum guaranteed average annual return over the career of the members.
Investment Portfolio	Invest in a 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#	(Guaranteed Fund)

** 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, 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 page 12 of the Principal 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.                

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.

Objective	To provide a return consisting of income and capital growth over medium to long term.
Investment Portfolio	Invest in a Unit Trust APIF which will primarily invest at least 70% of its assets in Hong Kong debt securities (rated or unrated^ ), including (but not limited to) sovereign and/or non-sovereign, floating and/or fixed, of varing maturities issued by the government or by multi-lateral agencies or by companies, and denominated in Hong Kong dollars.
Asset Allocation	Debt Securities 70 - 100% Cash & Short-term Investments(e.g.bills and deposits) 0 - 30%
Geographic Allocation	Hong Kong 70- 100% Other 0 - 30%
Risk / Return Profile#

^ Investment in unrated debt securities is only limited to those issued by the "exempt authority" within the definition of Section 7 of Schedule 1 to the MPF Regulation.  

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 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 China Equity Fund
Objective	To achieve capital growth over the long term by investing mainly in China-related equities.
Investment Portfolio	Invest in a Unit Trust APIF which will invest primarily in equities issued by companies with exposure in different sectors of economies in People's Republic of China (Mainland China). A majority of the equities will be listed on the Hong Kong Stock Exchange and may include exposure to stocks listed on other exchanges within the applicable regulatory limits.
Asset Allocation	Equity Securities 70 - 100% Cash & Short-term Investments (e.g.bills and deposits) 0 - 30%
Geographic Allocation	People's Republic of China (Mainland China) 70 - 100% Other countries 0 - 30%
Risk / Return Profile #

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#

Principal Hong Kong Equity Fund
Objective	To achieve capital growth over the long-term by investing mainly in Hong Kong equity markets.
Investment Portfolio	Invest in a Unit Trust  APIF which will invest primarily in listed equities issued by companies established in Hong Kong or by companies whose shares are listed in Hong Kong.  The APIF may also invest in listed equities issued by companies which have business in Hong Kong. The fund may hold cash and short-term investments.
Asset Allocation	Equity Securities 70 - 100% Cash & Short-term Investments (e.g.bills and deposits) 0 - 30%
Geographic Allocation	Hong Kong 30 - 100% China 0 - 50% Others 0 - 30%
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.