OREANDA-NEWS. June 26, 2012. Bank of East Asia (Trustees) Limited (“BEA Trustees”), a wholly-owned subsidiary of The Bank of East Asia (“BEA”), announces that it will lower management fees for 10 constituent funds under the BEA (MPF) Master Trust Scheme, and launch two new constituent funds under its Mandatory Provident Fund Schemes on 3rd July, 2012, reported the press-centre of BEA Trustees.

With effect from 3rd July, 2012, the management fees for nine constituent funds (including six equity funds and three mixed assets funds) will be lowered from 1.55% to 1.20% per annum of the net asset value, which equates to a management fee reduction of 23%; while the management fee for the BEA (MPF) Hong Kong Equity Fund will be lowered from 1.45% to 1.20% per annum of the net asset value, which equates to a management fee reduction of 17%. Both existing and new members holding the above-mentioned constituent funds are entitled to the new management fees. As over 80% of all managed assets of the BEA (MPF) Master Trust Scheme are currently invested in the above-mentioned 10 constituent funds, the majority of BEA (MPF) Master Trust Scheme members will benefit from this management fee reduction. For a complete list of the 10 constituent funds, please refer to the Appendix.

In addition, on 3rd July, 2012, BEA Trustees will launch two new constituent funds, the BEA (MPF) RMB & HKD Money Market Fund (this Constituent Fund is denominated in HKD only and not in RMB), and the BEA (Industry Scheme) RMB & HKD Money Market Fund (this Constituent Fund is denominated in HKD only and not in RMB) under the BEA (MPF) Master Trust Scheme and the BEA (MPF) Industry Scheme, respectively.

The two new constituent funds will primarily invest in HKD and RMB-denominated instruments, namely short-term deposits (such as certificates of deposits and term deposits) placed with authorised financial institutions in Hong Kong, and debt securities including bonds, fixed and floating rate securities, convertible bonds, and notes with a remaining maturity period of two years or less, issued or distributed outside Mainland China by banks, corporations, and governments, and will not invest in securities issued within Mainland China through any Qualified Foreign Institutional Investor quota. The management fee of each constituent fund is 0.79% per annum of the net asset value.

The addition of these two constituent funds will bring the total number of constituent fund options under the BEA (MPF) Master Trust Scheme to 16, and under the BEA (MPF) Industry Scheme to 10.

“We are reducing our management fees up to 23% for 10 constituent funds in order to provide our customers with quality MPF services at competitive prices,” says Mr. Patrick C.M. Li, Director & Chief Executive of BEA Trustees. “We are confident that these fee reductions will further enhance our competitiveness in the marketplace and bring us more new customers as well as transfer-in assets.

“Moreover, the launch of the two new constituent funds makes BEA Trustees the first MPF service provider to offer constituent funds holding at least 50% of the net asset value in assets denominated and settled in RMB. This enables us to meet our customers’ need for RMB investments and allows us to further strengthen our market position as the provider of a complete MPF solution,” he adds.