Default Investment Strategy (DIS)

What is DIS?

DIS at a Glance

The Default Investment Strategy (“DIS”) will commence on 1 April 2017. It is a ready-made and low cost investment strategy designed for MPF members who do not have time, or do not know how to make investment decisions. Members can also actively select the DIS or funds under the DIS if they find that the solution suits their own circumstances. You can know more about the key features of the DIS here.

How does “Age-based De-risking” work?

As an MPF member approaches retirement age, the investment strategy will be progressively adjusted to reduce the proportion of higher risk assets.

  1. Aged below 50: All MPF contributions will be invested in the CAF.
  2. Aged 50 to 64: The accrued benefits in the CAF will be gradually shifted into the A65F, at a rate of around 6.7% of assets every year.
  3. Aged 64 and above: All MPF assets will be held in the A65F.
Things to Note

  1. As various investment approaches (active, passive, hybrid, etc.) can be adopted for different DIS funds under different schemes:
  2. The DIS is also for members to choose as an active choice:

Why Does DIS Matter to You?

How Does DIS Affect You?

1. You have not given investment instruction

Your MPF assets may be affected. If you are under or become 60 years old on the Effective Date (or we are not aware of your date of birth), we will send you the “DIS Re-investment Notice” (“DRN”) within 6 months of the Effective Date. If you do not respond within 42 days of the date of the DRN, your MPF assets will be invested according to the DIS.

2. You are not sure if you have given investment instruction

You should contact us as soon as possible to review your MPF investment instructions, and verify personal details (especially your address) to ensure you can receive important information from us.

3. You have given investment instruction

In general, you will not receive the “DIS Re-investment Notice”. We will continue to invest according to the investment instruction you have given.

However, there are some exceptions. For example, the future contributions in the some cases may also be redirected to DIS although you have given investment instruction before. For details, please refer to FAQ.

If you are not sure which situation you are in, please contact us.

Point to Note on De-risking Process

If one or more of the specified fund switching instruction(s) is / are being processed on the annual date of de-risking, the annual de-risking will only take place on the next dealing day upon the completion of these instructions where necessary. You should note that the annual de-risking may be postponed as a result.

Notice Distribution Schedule

Name of Notice Target Send Out Time
DIS Pre-Implementation Notice (“DPN”) & Important Note All members Before launch - January 2017
DIS Re-Investment Notice (“DRN”) Relevant members 20 April 2017 *

* This is the date on which the issuance will take place according to our current expectation (subject to unexpected circumstances giving rise to possible deviations).

If you are currently invested in the default investment arrangement (DIA) of AMTD MPF Scheme, you will receive the DIS RE-INVESTMENT NOTICE (“Notice”) in April 2017. You have to give instruction in response to the Notice within the 42-day reply period. If you want to stay invested in the original default fund, you must respond to the Notice through the following “authorized” channels, so that your instruction is received by us before the following cut-off times on the Due Date. Channels other than those set out below are not authorized for DIS purposes and submitting your instruction through unauthorized channels (e.g. via e-mail or intermediaries) is generally not acceptable (although the trustee may, on a case basis, choose to accept and process such instruction based on the actual time of receipt by the trustee).

Authorized Channels for DIS purpose Cut-off time on the Due Date
By post / In person (for instruction given by way of the Option 2 Form attached to the Notice) 6:00pm on the Due Date as shown in the Notice. Please make sure that sufficient time is allowed for postage (if applicable), so that the completed option 2 form can be received by Bank Consortium Trust Company Limited before the above cut-off time.
Fax (for instruction given by way of the Option 2 Form attached to the Notice) 23:59:59 pm on the Due Date as shown in the Notice
AMTD website (for instruction given via website ) 23:59:59 pm on the Due Date as shown in the Notice

How to Get Prepared?

  1. There are different roles to play by different stakeholders: members, employers / HR practitioners, service providers and government / regulators.
  2. While the government / regulators will be highly involved in the publicity, education, supervision and monitoring throughout the process, the other three parties can do their part to better prepare for the DIS.

Before the Launch of DIS

Members

Care about your retirement
Manage your MPF account

  1. Review your MPF investment regularly. If you have not provided any investment instruction before, please contact AMTD as soon as possible.
  2. Update personal details with us if there is any change, to ensure you can receive important DIS information.
  3. Read the notice(s) we send to you

Employers / HR

Be resourceful

  1. Understand the DIS & know the timeline
  2. Arrange member briefings for staff
  3. Remind staff to give specific investment instruction
  4. Use updated forms & materials
  5. Update your intranet, staff handbook, etc.

How AMTD can help

Provide timely information & assistance

  1. Readiness of products, forms, relevant documents
  2. Communicate with employers and members in advance
  3. Send "DIS Pre-implementation Notice" and "Important Note" to all members
  4. Provide employer & member briefings
  5. Customer service hotline and website

After the Launch of DIS

Members

Think and act

  1. Be alert of notice from AMTD
  2. What does DIS mean to you?
  3. What to do if you receive “DIS Re-investment Notice”
  4. Understand the potential impact on investment
  5. Access information via channels of AMTD

Employers / HR

Ready to help

  1. Answer enquiries
  2. Use new version of member enrolment forms
  3. Give AMTD’s channels for staff to get support (e.g. hotline, website, etc.)
  4. Work with AMTD for market update and support

How AMTD can help

Communication is key

  1. Send “DIS Re-investment Notice” to relevant members
  2. Re-invest in the DIS if no opt-out indication
  3. Send confirmation of change to relevant members
  4. On-going investor education & member communication