Bank of East Asia adds six constituent funds to its MPF schemes in 2012

This article is a rewrite of a report from February 2012.

The Bank of East Asia announced in February 2012 that its trustee arm would add six new constituent funds to the MPF schemes under its management, widening the fund menu. The new line-up spans index-tracking funds, a North American equity fund and an Asian equity fund, giving members more ways to match their investment needs.

Which six MPF constituent funds did Bank of East Asia launch in 2012?

In February 2012, Bank of East Asia’s trustee announced six new MPF constituent funds: two index-tracking funds each for the BEA (MPF) Master Trust Scheme and the BEA (MPF) Industry Scheme, plus two equity funds. After the launch, the Master Trust Scheme offered 15 constituent funds and the Industry Scheme nine.

How do the six new funds work?

What characterises index-tracking funds?

The goal of an index-tracking fund is simple: replicate the index as closely as practicable. The two China tracking funds invest in a single approved index-tracking fund — the Hang Seng H-Share Index ETF; the two Hong Kong tracking funds invest in the Tracker Fund of Hong Kong. Such funds typically charge less than actively managed ones and suit members who believe in long-term market growth without picking stocks. But tracking an index is not capital protection — when the index falls, the fund falls too. Members can compare fees and track records at browse MPF funds.