BEA (MPF) Master Trust Scheme Explanatory …

1 Sponsor : The Bank of East Asia, LimitedTrustee : Bank of East Asia (Trustees) LimitedVersion date : March 2020 BEA (MPF) Hotline : (+852) 2211 1777 (operated by Bank of East Asia (Trustees) Limited)Fax : (+852) 3608 6003 Email : address : (MPF) Master Trust SCHEMEM andatory provident FundMPF Scheme BROCHUREIMPORTANT: Important If you are in doubt about the meaning or effect of the contents of this MPF Scheme Brochure, you should seek independent professional advice. The Master Trust offers different Constituent Funds (i) investing in one or more APIFs and/or approved ITCISs which invest in equities or bonds; or (ii) making direct investments. Each Constituent fund has a different risk profile. The BEA (MPF) Long Term Guaranteed fund invests solely in an APIF in a form of insurance policy provided by Principal Insurance Company (Hong Kong) Limited. A guarantee is also given by Principal Insurance Company (Hong Kong) Limited. Your investment (if any) in this BEA (MPF) Long Term Guaranteed fund is therefore subject to the credit risk of Principal Insurance Company (Hong Kong) Limited.

2 Please refer to Appendix 1 to this MPF Scheme Brochure for details of the credit risk, guarantee features and guarantee conditions of this BEA (MPF) Long Term Guaranteed fund . If you are investing in this BEA (MPF) Long Term Guaranteed fund , a withdrawal of the accrued benefits on the ground of terminal illness may affect your entitlement to the guarantee and you may lose your guarantee. For details, please refer to Appendix 1 to this MPF Scheme Brochure or consult the Trustee before making any such withdrawal. The BEA (MPF) Conservative fund does not provide any guarantee of the repayment of capital. Investment involves risks. You should consider your own risk tolerance level and financial circumstances before making any investment choices. In your selection of Constituent Funds, if you are in doubt as to whether a certain Constituent fund is suitable for you (including whether it is consistent with your investment objectives), you should seek financial and/or professional advice and choose the Constituent fund (s) most suitable for you taking into account your circumstances.

3 You should consider your own risk tolerance level and financial circumstances before investing in the DIS. You should note that the BEA (MPF) Core Accumulation fund and the BEA (MPF) Age 65 Plus fund may not be suitable for you, and there may be a risk mismatch between the BEA (MPF) Core Accumulation fund and the BEA (MPF) Age 65 Plus fund and your risk profile (the resulting portfolio risk may be greater than your risk preference). You should seek financial and/or professional advice if you are in doubt as to whether the DIS is suitable for you, and make the investment decision most suitable for you taking into account your circumstances. You should note that the implementation of the DIS may have an impact on your MPF investments and accrued benefits. You should consult with the Trustee if you have doubts on how you are being OF CONTENTSH eading Page Number1.

4 INTRODUCTION .. About the BEA (MPF) Master Trust Scheme .. Investment of contributions ..12. DIRECTORY OF APPROVED TRUSTEE AND OTHER SERVICE PROVIDERS .. Sponsor .. Trustee .. Investment Manager ..33. fund OPTIONS, INVESTMENT OBJECTIVES AND POLICIES .. Scheme structure .. Table for Constituent Funds .. Investment objectives and policies .. Currency exposure .. Investment and borrowing restrictions .. Consequences of exceeding the investment limit .. Establishment, termination, merger and division of Constituent Funds ..304. RISKS .. Risk categories .. Risk factors ..315. FEES AND CHARGES .. Fee table .. Definitions .. No switching fee .. Change in Mandate fee .. Fees and out-of-pocket expenses related to the BEA (MPF) Conservative Fees and out-of-pocket expenses related to the BEA (MPF) Long Term Guaranteed fund .. Other charges and expenses .. Fees and out-of-pocket expenses of the DIS .. Cash rebates and soft commissions.

5 Explanatory notes ..576. ADMINISTRATIVE PROCEDURES .. How to join .. Contributions .. Investment in Constituent Funds .. Entitlement to accrued benefits .. Realisation of Units .. Payment of accrued benefits .. Other points to note .. Transfers ..767. OTHER INFORMATION .. Calculation .. Taxation .. Accounts, reports and statements .. Trust Deed .. Modification of Trust Deed and participation agreements .. Termination, merger or division of Master Trust .. Documents available .. Automatic exchange of financial account information ..848. GLOSSARY ..86 APPENDIX 1 BEA (MPF) LONG TERM GUARANTEED fund ..90 APPENDIX 2 FURTHER INFORMATION ON THE INDEXES ..11211. INTRODUCTIONThe Trustee and the Sponsor each accepts responsibility for the information contained in this MPF Scheme Brochure as being accurate at the date of publication. However, neither the delivery of this MPF Scheme Brochure nor the offer of or agreement to participate in the Master Trust shall under any circumstances constitute a representation that the information contained in this MPF Scheme Brochure is correct as of any time subsequent to such date.

6 This MPF Scheme Brochure may from time to time be updated. Intending participants in the Master Trust should ask the Trustee or the Sponsor if any supplements to this MPF Scheme Brochure or any later MPF Scheme Brochure have been Master Trust has been authorised by the SFC and approved by the MPFA in Hong Kong. In granting such authorisation and approval, neither the SFC nor the MPFA takes any responsibility for the financial soundness of the Master Trust or for the accuracy of any of the statements made or opinions expressed in this MPF Scheme Brochure. Such authorisation and approval does not imply that participation in the Master Trust is recommended by the SFC or the MPFA. SFC authorisation is not a recommendation or endorsement of an MPF Scheme or pooled investment fund nor does it guarantee the commercial merits of an MPF Scheme or pooled investment fund or its performance.

7 It does not mean the MPF Scheme or pooled investment fund is suitable for all Scheme participants or fund holders nor is it an endorsement of its suitability for any particular Scheme participant or fund action has been taken to permit an offering of participation in the Master Trust or the distribution of this MPF Scheme Brochure in any jurisdiction where action would be required for such purpose other than Hong Kong. Accordingly, this MPF Scheme Brochure may not be used in any jurisdiction where its distribution is not About the BEA (MPF) Master Trust SchemeThe BEA (MPF) Master Trust Scheme is a Master Trust established by a Trust deed dated as of 31st January, 2000 (as amended from time to time) between The Bank of East Asia, Limited as Sponsor and Bank of East Asia (Trustees) Limited as Trustee. It is established under and governed by the laws of Hong Investment of contributionsContributions are invested in one or more of the Constituent Funds established under the Master Trust , in accordance with instructions given from time to time by Members.

8 For details, please refer to the CONTRIBUTIONS sub-section under the 6. ADMINISTRATIVE PROCEDURES section of this MPF Scheme DIRECTORY OF APPROVED TRUSTEE AND OTHER SERVICE PROVIDERSS ponsorThe Bank of East Asia, Limited10 Des Voeux Road Central, Hong KongTrustee, Custodian and AdministratorBank of East Asia (Trustees) Limited32nd Floor, BEA Tower, Millennium City 5, 418 Kwun Tong Road, Kwun Tong, Kowloon, Hong KongInvestment ManagerBEA Union Investment Management Limited5th Floor, 10 Des Voeux Road Central, Hong KongGuarantorPrincipal Insurance Company (Hong Kong) Limited30th Floor, Millennium City 6, 392 Kwun Tong Road, Kwun Tong, Kowloon, Hong Kong Legal AdvisersBaker & McKenzie14th Floor, One Taikoo Place, 979 King s Road, Quarry Bay, Hong KongAuditorsKPMG8th Floor, Prince s Building, 10 Chater Road, Central, Hong SponsorThe Bank of East Asia, Limited (the Bank ) was incorporated in Hong Kong in 1918 and is the sponsor of the Master Trust .

9 The Bank is dedicated to providing comprehensive retail banking, commercial banking, wealth management, and investment services to its customers in Hong Kong, Mainland China, and other major markets around the world. The Bank is the largest independent local bank in Hong Kong, with total consolidated assets of billion ( billion) as of 31st December, 2018. The Bank is listed on The Stock Exchange of Hong Kong. The Sponsor is responsible for business development, marketing, and product development, as well as ancillary and support services to the Trustee as may be agreed between them from time to time. Where contributions and accrued benefits deriving from contributions to the Master Trust and other amounts are held in an interest bearing account with the Bank as described in this MPF Scheme Brochure, the Bank will pay interest on such amounts at a rate no lower than the prevailing commercial rate for deposits of a similar size and TrusteeBank of East Asia (Trustees) Limited was incorporated in Hong Kong in 1975 and is the trustee of the Master Trust .

10 The Trustee is registered as a Trust company in Hong Kong and has been approved by the MPFA as an approved trustee for MPF purposes1 . The Trustee is also a wholly owned subsidiary of the the Trust Deed, the Trustee is responsible for the administration of the Master Trust and the safekeeping of the assets of the Master Trust . The Trustee also acts as custodian of the assets of the Master Such approval does not imply recommendation by the Investment ManagerBEA Union Investment Management Limited was incorporated in Hong Kong in 1988 and is the investment manager of the Master Trust . Previously known as East Asia Asset Management Company Limited, the Investment Manager is jointly owned by the Bank and Union Asset Management Holding Investment Manager has been appointed to manage the assets of the Constituent Funds other than the BEA (MPF) Long Term Guaranteed fund . 4 Two or more APIFs and/or approved ITCISsHang Seng China Enterprises Index ETFD irect investmentsDirect investmentsTracker fund of Hong KongPrincipal Long Term Guaranteed FundBEA Union Investment Core Accumulation FundBEA Union Investment Age 65 Plus Fund3.