Transcript Fidelity Advantage Portfolio Fund – Growth Fund

Fidelity Retirement Services
Investment Review
September 5, 2003
Hong Kong Baptist University 1998 Superannuation Fund
High Growth Profile1
Bonds
7%
Growth Profile2
Cash
3%
Balanced Profile3
Cash
5%
Cash
5%
Bonds
25%
Equities
90%
Equities
70%
Bonds
45%
1 High Growth Profile invests in Fidelity Advantage Portfolio Fund – Growth Fund Ordinary Class
2 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
Equities
50%
High Growth Profile
Cumulative Performance
Cumulative Performance
15%
40%
12%
30%
9%
20%
6%
10%
3%
0%
0%
3-Month
Benchmark
Fund
13.3%
12.2%
Since 1/1995
Benchmark
Fund
34.8%
38.4%
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.
Growth Profile
Cumulative Performance
12.0%
Cumulative Performance
50%
40%
9.0%
30%
6.0%
20%
3.0%
10%
0.0%
3-Month
0%
Benchmark
Fund
10.2%
9.4%
Since 1/1995
Benchmark
Fund
45.5%
45.3%
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.
Balanced Profile
Cumulative Performance
Cumulative Performance
15%
8.0%
6.0%
10%
4.0%
5%
2.0%
0%
0.0%
3-Month
Benchmark
Fund
7.1%
6.6%
Since 5/1997
Benchmark
Fund
11.2%
13.4%
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.
High Growth Profile
Growth Profile
Cumulative Performance
0%
Balanced Profile
Cumulative Performance
1%
Cumulative Performance
6%
-1%
4%
-2%
-3%
2%
-4%
-5%
Since
26/04/02
0%
Benchmark
Fund
-3.7%
-4.3%
Since
26/04/02
0%
Benchmark
Fund
0.8%
0.1%
Since
26/04/02
Benchmark
Fund
5.6%
4.5%
Source: Fidelity Investments, Ordinary Units, NAV to NAV, in USD, at as 31/07/2003
Benchmark – Since 30/04/02
High Growth Profile invests in Fidelity Advantage Portfolio Fund – Growth Fund Ordinary Class
Growth Profile invests in Fidelity Advantage Portfolio Fund – Balanced Fund Ordinary Class
Balanced Profile invests in Fidelity Advantage Portfolio Fund – Stable Growth Fund Ordinary Class
High Growth Profile
Cumulative Performance
15%
Cumulative Performance
9%
12%
6%
9%
6%
3%
3%
0%
3-Month
0%
Median
Fund
13.7%
13.5%
6-Month
Median
Fund
8.5%
7.7%
High Growth Profile invests in Fidelity Advantage Portfolio Fund – Growth Fund Ordinary Class
Median: 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
Cumulative Performance
12.0%
8.0%
9.0%
6.0%
6.0%
4.0%
3.0%
2.0%
0.0%
0.0%
3-Month
Median
Fund
11.6%
11.3%
6-Month
Median
Fund
7.7%
7.4%
Growth Profile invests in Fidelity Advantage Portfolio Fund – Balanced Fund Ordinary Class
Median: 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
10.0%
Cumulative Performance
8.0%
8.0%
6.0%
6.0%
4.0%
4.0%
2.0%
2.0%
0.0%
3-Month
0.0%
Median
Fund
9.3%
9.1%
6-Month
Median
Fund
7.2%
7.1%
Balanced Profile invests in Fidelity Advantage Portfolio Fund – Stable Growth Fund Ordinary Class
Median: 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.
Investment Strategy Summary
Asset Class
Investment View
Hong Kong Equity
Neutral
U.S. Equity
Positive
Japanese Equity
Neutral
European Equity
Negative
Other Asian Equity
Global Bonds
Moderately
Positive
Slightly
Negative
Main Reasons
Deflation pressure and high unemployment rate but
high dividend yield.
Reasonable valuation. Strong buying momentum,
better market breath and slowing improving
economy
The current recovery is peaking. Skeptical on Japan
economic recovery in spite of its cheap valuation.
Economic activity is flattening. Strengthened Euro is
a de facto tightening of monetary conditions.
Consumption shows further signs of weakness
With SARS is over, the macro environment has
stablised. Strong liquidity in the region. Valuations
are trading at a discount to other markets.
Less attractive compared to equities and corporate
bonds offering better value than government debt.
Source: Fidelity Investments, July 2003
Contact Fidelity Investments
Hotline
2629-2666
Website
www.fidelity.com.hk
Privileges for Hong Kong Baptist University Members

Discount on sales charge for

personal investment savings outside
Free rollover arrangement when
leaving the University
the Superannuation Fund


Including both lump sum and
Keep investing in the same profile
under Saving Class
monthly savings

Ask for a “Fidelity Rollover Pack ORSO”
Call Fidelity at 2629-2666
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.
Appendix
Fidelity Advantage Portfolio Fund (FAP) – Investment Objectives
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
High Growth Profile
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 invests in Fidelity Advantage Portfolio Fund – Growth Fund Ordinary Class
Source: Fidelity Investments as of June 30, 2003.
Growth Profile
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 invests in Fidelity Advantage Portfolio Fund – Balanced Fund Ordinary Class
Source: Fidelity Investments as of June 30, 2003.
Balanced Profile
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 invests in Fidelity Advantage Portfolio Fund – Stable Growth Fund Ordinary Class
Source: Fidelity Investments as of June 30, 2003.
High Growth Profile*
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
0.84%
Hong Kong
Total
19.63%
* High Growth Profile invests in Fidelity Advantage Portfolio Fund – Growth Fund Ordinary Class
Source: Fidelity Investments as of June 30, 2003.
Growth Profile*
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
* Growth Profile invests in Fidelity Advantage Portfolio Fund – Balanced Fund Ordinary Class
Source: Fidelity Investments as of June 30, 2003.
16.06%
Balanced Profile*
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 invests in Fidelity Advantage Portfolio Fund – Stable Growth Fund Ordinary Class
Source: Fidelity Investments as of June 30, 2003.