Hong Kong Regulations

MANDATORY PROVIDENT FUND SCHEMES (GENERAL) REGULATION - SECT 87

Investment report to be prepared

(1) The approved trustee of a registered scheme must, for each
financial period of the scheme, ensure that an investment report is prepared
for the scheme in accordance with this section.

(2) The investment report must also include the following information-

   (a)  an analysis of the investments held by the trustee in respect of
        the scheme and particulars of the income derived from those
        investments during the financial period concerned;

   (b)  a commentary by the trustee on the analysis;

   (c)  particulars of the investment policy followed by the trustee during
        that financial period and any change in the statement of investment
        policy that will materially affect the risk attached to the
        investments of the scheme;

   (d)  for that financial period and for each of the 2 immediately preceding
        financial periods (if any) of each constituent fund of the  scheme-

        (i)    the amount of net income (excluding capital appreciation or
               depreciation) derived from the investment of the funds of
               the scheme; and

        (ii)   the amount by which the value of the scheme assets has
               appreciated or depreciated during the financial period; and

        (iii)  the value of the scheme assets derived from the investment of
               the funds of the scheme as ascertained in accordance with the
               applicable  accounting guideline.

(3) The information referred to in subsection (2) must be adequate to ensure
that scheme members are provided with a proper understanding of-

   (a)  the investments made in respect of the scheme; and

   (b)  the net return derived from those investments (excluding any
        appreciation or depreciation of the value of the scheme assets
        attributable to those investments); and

   (c)  the appreciation or depreciation of the value of the scheme assets
        attributable to those investments.