Manager Introduction

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Notices - BCT (MPF) Pro Choice

MPF Scheme Brochure (Issued in Mar 2020)

Notices - BCT (MPF) Industry Choice

MPF Scheme Brochure (Issued in Mar 2020)

Leaflet and Useful Links

Hong Kong Investment Funds Association Website

Frequently Asked Questions

Why Does DIS Matter to You?

How Does DIS Affect You?

You HAVE NOT given investment instruction

Your MPF assets may be affected. If you are under or become 60 years old on the Effective Date (or we are not aware of your date of birth), you should have received the "DIS Re-investment Notice" (“DRN”) within 6 months of the Effective Date. If you did not respond within 42 days of the date of the DRN, your MPF assets would be invested according to the DIS.
You are NOT SURE if you have given investment instruction

You should contact us as soon as possible to review your MPF investment instructions, and verify personal details (especially your address) to ensure you can receive important information from us.
You HAVE GIVEN investment instruction

In general, you would not receive the “DIS Re-investment Notice”. We will continue to invest according to the investment instruction you have given.

However, there are some exceptions. For example, the future contributions in some cases may also be redirected to DIS although you have given investment instruction before.

If you are not sure which situation you are in, please contact us.

Point to Note on De-risking Process

If one or more of the specified fund switching instruction(s) is / are being processed on the annual date of de-risking, the annual de-risking will only take place on the next dealing day upon the completion of these instructions where necessary. You should note that the annual de-risking may be postponed as a result.

Notice Distribution Schedule and "Opt-out" Arrangement

Name of Notice	Target	Send Out Time
DIS Pre-Implementation Notice (“DPN”) & Important Note	All members	December 2016 to January 2017
DIS Re-Investment Notice ("DRN")	Relevant members	20 April 2017

Members who HAVE NOT given any investment instruction would receive the "DIS Re-investment Notice" ("DRN"). If the relevant members do not agree to accept the new arrangement, they need to opt-out by replying to BCT. If no reply is given within 42 days of the date of the "DIS Re-investment Notice", any MPF assets already accumulated, future contributions and MPFs transferred from another scheme in the future would be invested in accordance with the DIS.

Relevant members have until "Due Date" (i.e. 42 days after the date of the DRN) to give instruction in response to the DRN. If they want to stay invested in the original default fund, they must respond to the DRN through the following "authorized" channels, so that relevant instruction is received by us before the following cut-off times on the Due Date. Channels other than those set out below are not authorized for DIS purposes and submitting the instruction through unauthorized channels (e.g. via e-mail, intermediaries or bank branches) is generally not acceptable (although the trustee may, on a case basis, choose to accept and process such instruction based on the actual time of receipt by the trustee).

Authorized Channels for DIS Purpose	Cut-off Time on the Due Date
By post / In person (for instruction given by way of the attached Option 2 Form)	6:00 pm on the Due Date. Please make sure that sufficient time is allowed for postage (if applicable), so that the completed option 2 form can be received by Bank Consortium Trust Company Limited before the above cut-off time.
Fax (for instruction given by way of the attached Option 2 Form)	23:59:59 pm on the Due Date
BCT website / BCT mobile apps (for instruction given via such website / apps)	23:59:59 pm on the Due Date

What is DIS?

DIS at a Glance

The Default Investment Strategy ("DIS") commenced on 1 April 2017. It is a ready-made and low cost investment strategy designed for MPF members who do not have time, or do not know how to make investment decisions. The DIS standardizes the default arrangements of the MPF schemes. In the new arrangement, the MPF benefits of members who do not give an investment instruction would be invested automatically according to the DIS. Members can also actively select the DIS or funds under the DIS if they find that the solution suits their own circumstances. You can know more about the key features of the DIS here.

DIS "1,2,3"

ONE
Investment Solution

Ready-made and low cost

TWO
Constituent Funds

Core Accumulation Fund ("CAF")- 核心累積基金
Age 65 Plus Fund ("A65F")- 65 歲後基金

THREE
Features

Fee cap: Management fee: 0.75% p.a. of NAV
Out-of-pocket expenses: 0.20% p.a. of NAV
Age-based de-risking
Globally diversified investment principle

How does “Age-based De-risking” work?

As an MPF member approaches retirement age, the investment strategy will be progressively adjusted to reduce the proportion of higher risk assets. The age-based de-risking will be generally carried out on members' birthday.

Aged below 50: All MPF contributions will be invested in the CAF.
Aged 50 to 64: The accrued benefits in the CAF will be gradually shifted into the A65F, at a rate of around 6.7% of assets every year.
Aged 64 and above: All MPF assets will be held in the A65F.

Things to Note

As various investment approaches (active, passive, hybrid, etc.) can be adopted for different DIS funds under different schemes:

The DIS is also for members to choose as an active choice:

Active Investment Option	De-risking Applies
DIS (the strategy)
Core Accumulation Fund Age 65 Plus Fund

DIS does not guarantee capital or positive returns. Similar to all investments, DIS is subject to investment risks and it involves risks applicable to mixed asset funds.
DO NOT rush to go into the DIS.
Be aware of fee and risk profile differences between original default fund and the DIS (especially if the original default fund is a low risk fund).