Download - September 5, 2003
September 5, 2003
Fidelity Retirement Services Investment Review
Hong Kong Baptist University 1998 Superannuation Fund
High Growth Profile1
Equities90%
Cash3%Bonds
7%
Growth Profile2
Bonds25%
Equities70%
Cash5%
Balanced Profile3
Cash5%
Bonds45%
Equities50%
1 High Growth Profile invests in Fidelity Advantage Portfolio Fund – Growth Fund Ordinary Class2 Growth Profile invests in Fidelity Advantage Portfolio Fund – Balanced Fund Ordinary Class
3 Balanced Profile invests in Fidelity Advantage Portfolio Fund – Stable Growth Fund Ordinary Class
Cumulative Performance
0%
3%
6%
9%
12%
15%
3-Month 13.3% 12.2%
Benchmark Fund
High Growth Profile
High Growth Profile Assets as at 31 July 2003 - HKD 8,977,816.22 High Growth Profile invests in Fidelity Advantage Portfolio Fund – Growth Fund Ordinary Class
Benchmark: A composite index consisting of 27% FTSE AW HK, 3% HSBC, 12% FTSE AW Japan, 12% FTSE AW Asia Pacific ex. Japan ex. HK, 18% FTSE AW North America, 18% FTSE AW Europe, 7% Salomon Smith Barney WGBI, and 3% 1-month HIBOR
Source: Fidelity Investments, Ordinary Class, NAV to NAV, and in USD, as of July 31, 2003.
Cumulative Performance
0%
10%
20%
30%
40%
Since 1/1995 34.8% 38.4%
Benchmark Fund
Cumulative Performance
0.0%
3.0%
6.0%
9.0%
12.0%
3-Month 10.2% 9.4%
Benchmark Fund
Growth Profile
Growth Profile Assets as at 31 July 2003 - HKD 4,324,671.62 Growth Profile invests in Fidelity Advantage Portfolio Fund – Balanced Fund Ordinary Class
Benchmark: A composite index consisting of 21.6% FTSE AW HK, 2.4% HSBC, 9% FTSE AW Japan, 9% FTSE AW Asia Pacific ex. Japan ex. HK, 14% FTSE AW North America, 14% FTSE AW Europe, 25% Salomon Smith Barney WGBI, and 5% 1-month HIBOR
Source: Fidelity Investments, Ordinary Class, NAV to NAV, and in USD, as of July 31, 2003.
Cumulative Performance
0%
10%
20%
30%
40%
50%
Since 1/1995 45.5% 45.3%
Benchmark Fund
Cumulative Performance
0.0%
2.0%
4.0%
6.0%
8.0%
3-Month 7.1% 6.6%
Benchmark Fund
Balanced Profile
Balanced Profile Assets as at 31 July 2003 - HKD 3,048,752.46 Balanced Profile invests in Fidelity Advantage Portfolio Fund – Stable Growth Fund Ordinary Class
Benchmark: A composite index consisting of 15.3% FTSE AW HK, 1.7% HSBC, 6.5% FTSE AW Japan, 6.5% FTSE AW Asia Pacific ex. Japan ex. HK, 10% FTSE AW North America, 10% FTSE AW Europe, 45% Salomon Smith Barney WGBI, and 5% 1-month HIBOR
Source: Fidelity Investments, Ordinary Class, NAV to NAV, and in USD, as of July 31, 2003.
Cumulative Performance
0%
5%
10%
15%
Since 5/1997 11.2% 13.4%
Benchmark Fund
Balanced Profile
Source: Fidelity Investments, Ordinary Units, NAV to NAV, in USD, at as 31/07/2003Benchmark – Since 30/04/02
High Growth Profile invests in Fidelity Advantage Portfolio Fund – Growth Fund Ordinary ClassGrowth Profile invests in Fidelity Advantage Portfolio Fund – Balanced Fund Ordinary Class
Balanced Profile invests in Fidelity Advantage Portfolio Fund – Stable Growth Fund Ordinary Class
Cumulative Performance
0%
1%
Since26/04/02
0.8% 0.1%
Benchmark Fund
Cumulative Performance
0%
2%
4%
6%
Since26/04/02
5.6% 4.5%
Benchmark Fund
Growth ProfileHigh Growth ProfileCumulative Performance
-5%
-4%
-3%
-2%
-1%
0%
Since26/04/02
-3.7% -4.3%
Benchmark Fund
High Growth Profile
Cumulative Performance
0%
3%
6%
9%
6-Month 8.5% 7.7%
Median Fund
Cumulative Performance
0%
3%
6%
9%
12%
15%
3-Month 13.7% 13.5%
Median Fund
High Growth Profile invests in Fidelity Advantage Portfolio Fund – Growth Fund Ordinary ClassMedian: Survey median for the growth fund category is the median representative from the Mercer Hong Kong Investment Choice Universe
Source: Mercer Hong Kong Investment Choice Survey, Mercer Investment Consulting, NAV to NAV, and in HKD, as of June 30, 2003.
Growth Profile
Cumulative Performance
0.0%
2.0%
4.0%
6.0%
8.0%
6-Month 7.7% 7.4%
Median Fund
Cumulative Performance
0.0%
3.0%
6.0%
9.0%
12.0%
3-Month 11.6% 11.3%
Median Fund
Growth Profile invests in Fidelity Advantage Portfolio Fund – Balanced Fund Ordinary ClassMedian: Survey median for the balanced fund category is the median representative from the Mercer Hong Kong Investment Choice Universe
Source: Mercer Hong Kong Investment Choice Survey, Mercer Investment Consulting, NAV to NAV, and in HKD, as of June 30, 2003.
Balanced Profile
Cumulative Performance
0.0%
2.0%
4.0%
6.0%
8.0%
6-Month 7.2% 7.1%
Median Fund
Cumulative Performance
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
3-Month 9.3% 9.1%
Median Fund
Balanced Profile invests in Fidelity Advantage Portfolio Fund – Stable Growth Fund Ordinary ClassMedian: Survey median for the stable growth fund category is the median representative from the Mercer Hong Kong Investment Choice Universe
Source: Mercer Hong Kong Investment Choice Survey, Mercer Investment Consulting, NAV to NAV, and in HKD, as of June 30, 2003.
Asset Class Investment View Main Reasons
Hong Kong Equity NeutralDeflation pressure and high unemployment rate but high dividend yield.
U.S. Equity PositiveReasonable valuation. Strong buying momentum, better market breath and slowing improving economy
Japanese Equity NeutralThe current recovery is peaking. Skeptical on Japan economic recovery in spite of its cheap valuation.
European Equity NegativeEconomic activity is flattening. Strengthened Euro is a de facto tightening of monetary conditions. Consumption shows further signs of weakness
Other Asian EquityModerately
Positive
With SARS is over, the macro environment has stablised. Strong liquidity in the region. Valuations are trading at a discount to other markets.
Global BondsSlightly
Negative
Less attractive compared to equities and corporate bonds offering better value than government debt.
Source: Fidelity Investments, July 2003
Investment Strategy Summary
Contact Fidelity Investments
2629-2666
www.fidelity.com.hk
Hotline
Website
Discount on sales charge for
personal investment savings outside
the Superannuation Fund
Including both lump sum and
monthly savings
Free rollover arrangement when
leaving the University
Keep investing in the same profile
under Saving Class
Ask for a “Fidelity Rollover Pack -
ORSO”
Call Fidelity at 2629-2666
Privileges for Hong Kong Baptist University Members
Investment involves risks. Past performance is no guarantee of future returns. Please refer to the Explanatory Memorandum of Fidelity Advantage Portfolio Fund for further details.
Investment in the Fidelity Advantage Portfolio Fund is not available to the general investing public. Investment in the Fidelity Advantage Portfolio Fund is available only to ORSO and MPF retirement benefit schemes, their related Approved Pool Investment Funds, institutions, high net worth individuals, or those individuals who have recently been or still are members of an ORSO or MPF retirement benefit scheme.
If you are an individual retail investor who is not a current member of an ORSO or MPF retirement benefit scheme but wish to invest your accrued benefits in Fidelity managed funds, please contact Fidelity for further details about our range of investment funds, which are available to the general public.
Fidelity Advantage Portfolio Fund (FAP) – Investment Objectives
Appendix
Growth Fund Mainly invested in equity funds
Geographical bias towards Hong Kong
To maximise long term returns
Balanced Fund
Normally maintain a balanced, global portfolio of bond funds and equity funds
To achieve a consistent overall return than Hong Kong inflation
With lower risk and volatility of returns in the short term
Stable Growth Fund
To invest in a global portfolio of bond funds, cash funds and equity funds
With a lower weighting in equities than the Balanced Fund
To achieve a consistent overall return higher than Hong Kong inflation
Geographic Allocation
Asset Class Target Current
Hong Kong Equities 30% 30.20%
Japan Equities 12% 12.40%
Other Asia Pacific Equities 12% 12.63%
US Equities 18% 17.93%
European Equities 18% 17.71%
Global Bonds 7% 7.08%
Cash & Others 3% 2.06%
High Growth Profile
High Growth Profile invests in Fidelity Advantage Portfolio Fund – Growth Fund Ordinary ClassSource: Fidelity Investments as of June 30, 2003.
Geographic Allocation
Asset Class Target Current
Hong Kong Equities 23% 24.15%
Japan Equities 8% 9.28%
Other Asia Pacific Equities 13% 9.57%
US Equities 13% 13.91%
European Equities 13% 13.84%
Global Bonds 25% 25.20%
Cash & Others 5% 4.05%
Growth Profile
Growth Profile invests in Fidelity Advantage Portfolio Fund – Balanced Fund Ordinary ClassSource: Fidelity Investments as of June 30, 2003.
Geographic Allocation
Asset Class Target Current
Hong Kong Equities 15% 17.14%
Japan Equities 5% 6.69%
Other Asia Pacific Equities 10% 7.04%
US Equities 10% 9.91%
European Equities 10% 9.90%
Global Bonds 45% 45.23%
Cash & Others 5% 4.10%
Balanced Profile
Balanced Profile invests in Fidelity Advantage Portfolio Fund – Stable Growth Fund Ordinary ClassSource: Fidelity Investments as of June 30, 2003.
Major Holdings
HSBC Holdings PLC (HK) Hong Kong 2.98%
Hutchison Whampoa Ltd. Hong Kong 2.91%
Cheung Kong Holdings Ltd. Hong Kong 2.50%
Hang Seng Bank Ltd. Hong Kong 2.17%
China Mobile (HK) Ltd. Hong Kong 2.12%
Sun Hung Kai Properties Ltd. Hong Kong 1.72%
Hong Kong & China Gas Company Ltd.
Hong Kong 1.67%
CLP Holdings Ltd. Hong Kong 1.52%
Hong Kong Electric Holdings Ordinary Hong Kong 1.20%
Samsung Electronics Co Ltd Hong Kong 0.84%
Total 19.63%
High Growth Profile*
* High Growth Profile invests in Fidelity Advantage Portfolio Fund – Growth Fund Ordinary ClassSource: Fidelity Investments as of June 30, 2003.
Major Holdings
HSBC Holdings PLC (HK) Hong Kong 2.39%
Hutchison Whampoa Ltd. Hong Kong 2.33%
Cheung Kong Holdings Ltd. Hong Kong 2.00%
Hang Seng Bank Ltd. Hong Kong 1.73%
China Mobile (HK) Ltd. Hong Kong 1.70%
Sun Hung Kai Properties Ltd. Hong Kong 1.38%
Hong Kong & China Gas Company Ltd. Hong Kong 1.34%
CLP Holdings Ltd Hong Kong 1.22%
France OAT 5.75% 10/25/32 France 1.01%
Hong Kong Electric Holdings Ordinary Hong Kong 0.96%
Total 16.06%
Growth Profile*
* Growth Profile invests in Fidelity Advantage Portfolio Fund – Balanced Fund Ordinary ClassSource: Fidelity Investments as of June 30, 2003.
Major Holdings
France OAT 5.75% 10/25/32 France 1.86%
HSBC Holdings PLC (HK) Hong Kong 1.69%
Hutchison Whampoa Ltd. Hong Kong 1.65%
Cheung Kong Holdings Ltd. Hong Kong 1.42%
Japan Government SER 4 1.1% 6/20/05 Japan 1.39%
Instituto De Credit FRN 2/1/05 France 1.36%
USTB 6.25% 5/15/30 US 1.29%
Belgium Government 7.75% 10/15/04 20 Belgium 1.28%
Hang Seng Bank Ltd Hong Kong 1.23%
China Mobile (HK) Ltd. Hong Kong 1.20%
Total 14.37%
Balanced Profile*
* Balanced Profile invests in Fidelity Advantage Portfolio Fund – Stable Growth Fund Ordinary ClassSource: Fidelity Investments as of June 30, 2003.