AIA MPF Launches Brand New “China HK Dynamic Asset Allocation Fund”

6 July 2017
Important Notes

  • AIA MPF – Prime Value Choice (the “Scheme”) is a Mandatory Provident Fund Scheme. The Scheme offers 28 constituent funds. The China HK Dynamic Asset Allocation Fund is one of the constituent funds of the Scheme. The China HK Dynamic Asset Allocation Fund aims to achieve long-term capital growth potential with medium-high volatility through the Value Partners Asset Allocation Fund, which (i) mainly invests in Hong Kong and China equities and debt securities, with up to 9% of its assets investing in exchange-traded funds that track the price of gold, and (ii) performs dynamic asset allocation. 

    MPF fund”, for the purposes of this document, means Constituent Fund as defined in the Glossary of the Principal Brochure of the Scheme.

  • You should consider your own risk tolerance level and financial circumstances before making any investment choices. When, in your selection of funds or the MPF Default Investment Strategy (the “DIS”), you are in doubt as to whether a certain fund or the DIS is suitable for you (including whether it is consistent with your investment objectives), you should seek independent financial and/or professional advice and choose the investment choice most suitable for you taking into account your circumstances.

  • You should not base your investment choices on this document alone and should refer to the Principal Brochure of the Scheme for details (including risk factors and fees and charges) before making any investment decision.

  • Investment involves risk, you may suffer significant loss of your investments and not all investment choices available under the Scheme would be suitable for everyone. Investment performance and returns may go down as well as up. Past performance is not indicative for future performance. For further details including fund switching, fees and charges, product features and risks involved, please refer to the Principal Brochure of the Scheme.

Capable of being Aggressive and Defensive with Equities and Bonds1
AIA Pension and Trustee Co. Ltd. (“AIA MPF”) today announced the launch of “China HK Dynamic Asset Allocation Fund” (the “Fund”), the first China HK equity and bond MPF fund to adopt a dynamic asset allocation strategy in Hong Kong. To fully capture investment opportunities, the dynamic asset allocation strategy offers investment managers of the underlying fund the flexibility to adjust the equity/bond investment mix in response to market conditions to take advantage of both the Hong Kong and China markets. The Fund also has the option to invest in exchange-traded funds that track the price of gold (“gold ETFs”) to optimise return potential. The underlying fund of this new MPF fund is managed by the Asian investment expert, Value Partners Hong Kong Limited (“Value Partners”). Leveraging Value Partners' investment expertise and AIA MPF's rich experience in MPF management, the Fund is an investment option with the goal of achieving respectable returns for members.
The “China HK Dynamic Asset Allocation Fund” mainly invests in Hong Kong and China equities and debt securities using a dynamic asset allocation strategy. With the investment expertise of Value Partners, the Fund will free members from the burden of keeping track of market conditions. Equities will be selected based on analysis of multiple quantitative data and market conditions – the Fund may allocate from 10% to 90% of assets in equities, with balance mainly in debt securities. It may also invest up to 9% of its assets in gold ETFs. This investment strategy combines the merits of both aggressive and defensive strategies while prioritising investment risk diversification.
Value Partners has demonstrated investment experience and expertise in the Greater China and Asia regions. The company has been selected by AIA MPF to manage the underlying fund of “China HK Dynamic Asset Allocation Fund”. With the professional support of AIA MPF's team, the Fund is an investment option for members who are interested in the Hong Kong and China markets.
Mr. Stephen Fung, Chief Executive Officer of AIA MPF, said, “At AIA MPF, we adhere to a customer-first philosophy. Following the smooth launch of the Default Investment Strategy (“DIS”), we are introducing the new ‘China HK Dynamic Asset Allocation Fund' to further expand our diversified fund platform. By increasing the number of our available fund options to 28, our MPF platform offers members a more comprehensive range of fund choices. This collaboration with Value Partners draws on our respective strengths for the benefit of MPF members. By adopting the dynamic asset allocation strategy and taking advantage of both the Hong Kong and China markets with this new Fund, we hope to achieve long-term capital growth potential to ensure better retirement protection of our members.”
Dr. AU King Lun, Chief Executive Officer of Value Partners, said, “We are delighted to mark our cooperation with AIA MPF with the mandate to run this newly established “China HK Dynamic Asset Allocation Fund”. Supported by a team of over 60 investment professionals, Value Partners has accumulated 24 years of investment experience in the Hong Kong and China markets with excellent track record. By leveraging our core investment strength in value investing, together with a flexible asset allocation, the new Fund constructs a solid portfolio with quality stocks and bonds of Hong Kong and China-related companies to accumulate wealth for investors' retirement portfolios.
The management fee (including the fee for constituent funds and its relevant underlying fund) of the “China HK Dynamic Asset Allocation Fund” is 1.2% per annum of net asset value (at an annualised rate). By adding the “China HK Dynamic Asset Allocation Fund”, AIA MPF's fund platform provides a total of 28 MPF funds (Appendix1) and one DIS option. This enables members at different life stages and in various market conditions to choose the MPF funds which best fit their investment needs. 
About AIA Pension and Trustee Co. Ltd.

AIA Pension and Trustee Co. Ltd. (“AIA MPF”) is a member of the AIA Group Limited. As one of the major MPF service providers in Hong Kong*, AIA MPF has a wealth of experience in managing retirement schemes and the breadth and depth of expertise to provide MPF products and services with Value, Choice and Simplicity to suit individual needs.

* Source: Gadbury MPF Market Shares Report (as at 31 March 2017) 
About AIA

AIA Group Limited and its subsidiaries (collectively “AIA” or the “Group”) comprise the largest independent publicly listed pan-Asian life insurance group. It has a presence in 18 markets in Asia-Pacific – wholly-owned branches and subsidiaries in Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei, Cambodia, a 97 per cent subsidiary in Sri Lanka, a 49 per cent joint venture in India and a representative office in Myanmar.
The business that is now AIA was first established in Shanghai almost a century ago. It is a market leader in the Asia-Pacific region (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$185 billion as of 30 November 2016. 
AIA meets the long-term savings and protection needs of individuals by offering a range of products and services including life insurance, accident and health insurance and savings plans. The Group also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of agents, partners and employees across Asia-Pacific, AIA serves the holders of more than 30 million individual policies and over 16 million participating members of group insurance schemes.
AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock code “1299” with American Depositary Receipts (Level 1) traded on the over-the-counter market (ticker symbol: “AAGIY”).

Media Enquiry:
Esther Chan
+852 2100 1416


AIA MPF fund platforms provides 28 MPF funds:
Equity Funds - Index-Tracking Collective Investment Scheme Series2
  1. American Fund
  2. Eurasia Fund
  3. Hong Kong and China Fund
  4. World Fund
    Fixed Income Funds
  6. Asian Bond Fund
  7. Global Bond Fund
  8. MPF Conservative Fund
    Dynamic Asset Allocation Funds (New)
  10. China HK Dynamic Asset Allocation Fund
  11. Manager's Choice Fund
    Equity Funds
  13. Asian Equity Fund
  14. European Equity Fund
  15. Japan Equity Fund
  16. Greater China Equity Fund
  17. Hong Kong Equity Fund
  18. North American Equity Fund
  19. Green Fund
    Guaranteed Fund
  21. Guaranteed Portfolio
    Lifestyle Funds
  23. Growth Portfolio
  24. Balanced Portfolio
  25. Capital Stable Portfolio
  26. Fidelity Growth Fund
  27. Fidelity Stable Growth Fund
  28. Fidelity Capital Stable Fund
  29. Allianz Growth Fund
  30. Allianz Stable Growth Fund
  31. Allianz Capital Stable Fund
    Default Investment Strategy Funds
  33. Core Accumulation Fund
  34. Age 65 Plus Fund
1 The Fund adopts a dynamic asset allocation strategy. The investment manager can flexibly adjust the equity-bond investment mix in response to market conditions. An “Aggressive” strategy means allocating at maximum 90% of assets to equities under favourable market conditions, whereas a “Defensive” strategy means allocating more assets to bonds and deposits under uncertain market conditions.

2 The Constituent Funds in this category are portfolio management funds investing in more than one approved ITCISs. These Constituent Funds are not index-tracking funds.