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                                                              BCT Reports Only 8% of 40,000 Members Invested in the DIS or DIS Funds are of Active Choice – Mostly Associated With Young Members and Conservative Funds

                                                              20170727 PC


                                                              BCT Group ("BCT") held a media briefing today, reporting that around 40,000 BCT members under two MPF schemes are invested in the Default Investment Strategy ("DIS") or the individual funds under DIS (namely the "Core Accumulation Fund" and "Age 65 Plus Fund"). More than 90% of these members are invested in the DIS due to the default arrangement, while only a small group of members actively selected the DIS or its funds. Those in the active selection category are mostly associated with younger members aged below 35 years old. Meanwhile, in terms of assets switched from other funds to the DIS or the individual funds under DIS, the largest sum came from the lowest risk level Conservative Funds.

                                                              Ms. Ka Shi Lau, Managing Director & CEO, said, "The launch of the DIS in April brought new opportunities to the MPF market. It enhanced the public's awareness and engagement in managing their MPF. Member response to the DIS met with expectations and they generally welcomed this new option. Since the DIS has only been available for the past few months, we have not yet seen a big influx of members who actively switched over. However, we did notice that most of the members who actively chose the DIS were from the younger generation. We also realised that there is an adjustment of risk exposure from Conservative Funds to the relatively high-risk DIS, which also offers greater growth potential over the long run. This is a positive sign in view of long-term investment horizon of MPF for retirement."

                                                              In addition, Ms. Lau reminds members that if they still have not received any DIS notices, it is very likely their contact information (such as address) is not updated, and hence trustees are unable to send notices to them. She encourages these members to contact their trustee(s) as soon as possible to update their information, so they can receive important MPF information and manage their retirement assets more effectively.

                                                              Meanwhile, Mr. Michael Ha, Investment Director, presented his views on the global investment outlook for the second half of 2017, and suggested investment strategies based on three market scenarios. BCT remains positive about the long-term performance of the stock markets, but we see potential market corrections in Q4 2017.