MANULIFE GLOBAL SELECT (MPF) SCHEME
CONSOLIDATED REPORT
31 March 2021
MANULIFE GLOBAL SELECT (MPF) SCHEME
CONTENTS
Pages
SCHEME REPORT 1 - 6
INVESTMENT REPORT 7 - 75
INDEPENDENT AUDITOR'S REPORT 76 - 79
AUDITED FINANCIAL STATEMENTS
Master trust scheme
Statement of profit or loss and other comprehensive income 80
Statement of net assets available for benefits 81
Statement of changes in net assets available for benefits 82
Statement of cash flows 83
Constituent funds
Statement of profit or loss and other comprehensive income 84 - 91
Statement of net assets available for benefits 92 - 99
Statement of changes in net assets available for benefits 100 - 107
Statement of cash flows 108 - 115
Notes to financial statements 116 - 146
INFORMATION FOR THE SCHEME MEMBERS 147
INDEPENDENT AUDITOR'S ASSURANCE REPORT 148 - 150
MANULIFE GLOBAL SELECT (MPF) SCHEME
SCHEME REPORT
31 March 2021
DIRECTORS OF MANULIFE PROVIDENT FUNDS TRUST COMPANY LIMITED
Alan Taylor (Independent Director) 22/F, Manulife Financial Centre 223-231 Wai Yip Street Kwun Tong, Kowloon Hong Kong
Alexander Lawrence Nutting (resigned on 1 January 2021) 18/F, Manulife Tower One Bay East 83 Hoi Bun Road Kwun Tong, Kowloon Hong Kong
Anthony Nigel Clifton Griffiths (Independent Director) 22/F, Manulife Financial Centre 223-231 Wai Yip Street Kwun Tong, Kowloon Hong Kong
Chiu Kai-ping Calvin (appointed on 1 September 2021) 23/F, Manulife Tower, One Bay East, 83 Hoi Bun Road Kwun Tong, Kowloon Hong Kong
Chow Kar Yin, Kareen (appointed on 26 April 2021) 21/F, Manulife Financial Centre 223-231 Wai Yip Street Kwun Tong, Kowloon Hong Kong
Ke Wing Siu, Nigel (resigned on 1 September 2021) 22/F, Manulife Tower, One Bay East, 83 Hoi Bun Road Kwun Tong, Kowloon Hong Kong
Leung Siu Mei, Ellen 21/F, Manulife Financial Centre 223-231 Wai Yip Street Kwun Tong, Kowloon Hong Kong
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DIRECTORS OF MANULIFE PROVIDENT FUNDS TRUST COMPANY LIMITED (continued)
Ng Ching Fat, Raymond 21/F, Manulife Financial Centre 223-231 Wai Yip Street Kwun Tong, Kowloon Hong Kong
Paul Henry Smith (appointed on 4 September 2020) 22/F, Manulife Financial Centre 223-231 Wai Yip Street Kwun Tong, Kowloon Hong Kong
2 MANULIFE GLOBAL SELECT (MPF) SCHEME
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MANAGEMENT AND ADMINISTRATION
Trustee and Manulife Provident Funds Trust Company Limited Custodian: 22/F, Manulife Financial Centre 223-231 Wai Yip Street Kwun Tong, Kowloon Hong Kong
Auditor: Ernst & Young 27/F, One Taikoo Place 979 King's Road Quarry Bay, Hong Kong
Administrator of the Manulife (International) Limited Scheme and MPF 22/F, Manulife Financial Centre corporate intermediary: 223-231 Wai Yip Street Kwun Tong, Kowloon Hong Kong
Administrator of the HSBC Institutional Trust Services (Asia) Limited Constituent Funds 1 Queen's Road, Central of the Scheme: Hong Kong
Investment Manager*: Manulife Investment Management (Hong Kong) Limited 16/F, Lee Garden One 33 Hysan Avenue Causeway Bay Hong Kong
Principal Banks: The Hong Kong and Shanghai Banking Corporation Limited HSBC Main Building 1 Queen's Road, Central, Hong Kong
Citibank, N.A. 50/F Champion Tower, 3 Garden Road Central, Hong Kong
Standard Chartered Bank Hong Kong Standard Chartered Bank Building 4-4A Des Voeux Road, Central, Hong Kong
Manulife Provident Funds Trust Company Limited (the "Trustee") does not retain a regular external legal adviser.
* Manulife Investment Management (Hong Kong) Limited ("MIMHK") is the Investment Manager of certain underlying investments of the Manulife Global Select (MPF) Scheme. MIMHK is licensed with the Securities and Futures Commission to carry out asset management activities in Hong Kong.
3 MANULIFE GLOBAL SELECT (MPF) SCHEME
SCHEME REPORT
31 March 2021
Manulife Provident Funds Trust Company Limited ("MPFTC") is pleased to present the scheme report for Manulife Global Select (MPF) Scheme (the "Scheme") together with its financial statements for the year ended 31 March 2021.
The Scheme was constituted by a master trust deed dated 29 April 2000, with the latest consolidated trust deed dated 14 September 2020. There was one supplemental deed dated 14 May 2021. The offering document was updated according to the changes made to the deed. The most updated offering document for the scheme financial year ended 31 March 2021 was dated 31 March 2020 with its first and second addendum dated 21 September 2020 and 1 December 2020 respectively. Subsequent to the financial year ended of 31 March 2021, the offering document has a third addendum dated 14 May 2021.
The Scheme is a master trust scheme, which consists of twenty-nine constituent funds. Each constituent fund has been structured as a feeder fund, the assets of, which are invested directly in a corresponding approved pooled investment fund ("APIFs"). These APIFs are structured as sub-funds of an umbrella unit trust fund (each sub-fund is referred to as "First level UT APIF") with Manulife Investment Management (Hong Kong) Limited ("MIMHK") as the investment manager except that the Interest Fund Policy and the Stable Fund Policy are each in the form of an insurance policy ("IP APIF") issued by Manulife (International) Limited ("MIL"). The Scheme also offers an investment arrangement, which is the Default Investment Strategy ("DIS") in accordance with the Mandatory Provident Fund Schemes Ordinance (the "MPFSO").
The assets of the First level UT APIF are invested by the manager of the Manulife MPF Conservative Fund invest in direct investments permissible under the Mandatory Provident Fund Schemes (General) Regulation (the "General Regulation"). The assets of the First level UT APIF are invested by the manager of the Manulife MPF Hang Seng Index Tracking Fund invest in an index-tracking collective investment scheme permissible under Section 6A of Schedule 1 to the General Regulation (currently, the Tracker Fund of Hong Kong managed by State Street Global Advisors Asia Limited). The assets of the other First level UT APIFs as well as the two IP APIFs are invested by the manager of the respective constituent funds are invested in sub-funds of 2 umbrella unit trust funds. The investment managers of the underlying investments are MIMHK, FIL Investment Management (Hong Kong) Limited ("FIL Investment") and Vanguard Investments Hong Kong Limited. The assets of the eleven First Level UT APIFs invested by the Manulife MPF Aggressive Fund, Manulife MPF Growth Fund, Manulife MPF Stable Fund, Manulife MPF International Equity Fund, Manulife MPF Retirement Income Fund, Manulife MPF Smart Retirement Fund, Manulife MPF 2025 Retirement Fund, Manulife MPF 2030 Retirement Fund, Manulife MPF 2035 Retirement Fund, Manulife MPF 2040 Retirement Fund, Manulife MPF 2045 Retirement Fund of the Scheme are allowed to be invested in index-tracking collective investment scheme ("ITCIS") permitted under the MPF legislative requirements.
With effect from 21 September 2020, a new constituent fund, Manulife MPF Retirement Income Fund (the "Retirement Income Fund") was added to the Scheme. The Retirement Income Fund is a brand new constituent fund, with new and innovative features designed to provide solutions to the retirement needs of members. The Retirement Income Fund seeks to provide regular and stable income by way of distribution of dividends to members' account/sub-account, with the secondary objective of generating long-term capital growth. Investments are made on a diversified basis. Around 20% to 60% of the underlying portfolio is indirectly invested in equities and equity-related investments, with the remainder being indirectly invested in bonds, deposits and other investments. It may invest in any region, such as America, Pacific Asia, Japan, Europe.
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SCHEME REPORT
31 March 2021
The Retirement Income Fund is designed with a unique feature of dividends distribution. It aims to distribute dividends on a regular basis and currently distribute dividends on a monthly basis having started in January 2021. Members who hold units of the Retirement Income Fund in their accounts at the designated record date are entitled to the dividends determined for the corresponding month. If the relevant Member is below the age of 65 at the record date, the dividend is automatically reinvested by subscribing for units of the Retirement Income Fund. If the relevant Member is at or above the age of 65 at the record date, the dividend is automatically invested in and credited to the Manulife MPF Interest Fund.
Pursuant to the trust deed of the Scheme, the Manulife MPF 2020 Retirement Fund ("2020 Retirement Fund") reached its maturity and was terminated on 4 January 2021 ("Maturity Date"). On the Maturity Date, all units in the 2020 Retirement Fund held by the members at the Maturity Date were automatically redeemed, and the redemption proceeds were applied to invest in and subscribe for units in the Manulife MPF Smart Retirement Fund ("Smart Retirement Fund").
Members of the Scheme can obtain information about the Scheme and its operation from the Scheme's Offering Document. Members can download the Offering Document at www.manulife.com.hk or request a copy in writing to Provident Funds Services, Manulife (International) Limited, 21/F, Tower A, Manulife Financial Centre, 223-231 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong or call the Customer Service Hotline on 2108 1388.
Members of the Scheme are also advised to review the terms of the Trust Deed. Copies of the Trust Deed are available for inspection free of charge during normal working hours at the customer service centres located at 23/F, The Lee Garden One, 33 Hysan Avenue, Causeway Bay, Hong Kong and 21/F, Tower A, Manulife Financial Centre, 223-231 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong.
Members of the Scheme may also request a copy of the consolidated reports of the Scheme for any specific financial year within the seven years preceding the date of request. Members may also download the latest consolidated report from the web site www.manulife.com.hk six months after the scheme financial year end.
MPFTC and MIL, which are both 100% owned by Manulife International Holdings Limited, and MIMHK are members of the Manulife Financial Group. MIL is an associate of MPFTC under Schedule 8 of the MPFSO.
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SCHEME REPORT
31 March 2021
The particulars of the persons who were direct controllers of MIL during the financial year ended 31 March 2021 are:
1. Anil Wadhwani 21/F, Manulife Tower, One Bay East, 83 Hoi Bun Road, Kwun Tong, Kowloon, Hong Kong
2. Christopher Alan Edwards 22/F, Manulife Financial Centre, 223-231 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong
3. David John Bell (resigned on 1 January 2021) 22/F, Manulife Financial Centre, 223-231 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong
4. Diane Margaret Daly Bean (resigned on 1 January 2021) 22/F, Manulife Financial Centre, 223-231 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong
5. Garry Alides Willinge 22/F, Manulife Financial Centre, 223-231 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong
6. Guy Raymond Adam Mills (resigned on 1 January 2021) 22/F, Manulife Financial Centre, 223-231 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong
7. Kenneth Joseph Rappold Jr 21/F, Manulife Tower, One Bay East, 83 Hoi Bun Road, Kwun Tong, Kowloon, Hong Kong
8. Damien Allen Green 22/F, Manulife Financial Centre, 223-231 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong
9. Steven Christopher Horton 22/F, Manulife Financial Centre, 223-231 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong
10. Manulife International Holdings Limited 21/F, Manulife Tower, One Bay East, 83 Hoi Bun Road, Kwun Tong, Kowloon, Hong Kong
At 31 March 2021, the Scheme recorded 121,862 participating employers and 2,096,513 accounts that were held by employee members through participating employers, self-employed person members, personal account members, individual relevant employee members under the Flexi Retirement Contribution ("FRC") and the Tax deductible Voluntary Contribution ("TVC") arrangement.
During the financial year ended 31 March 2021, total contributions and asset transfers to the Scheme were HK$35.4 billion while benefits paid out totaled HK$16.7 billion. The assets under management at 31 March 2021 were HK$290.6 billion.
Separate detailed reports of each of the constituent funds of the Scheme are included in the section "Investment Report"; the reports are prepared by MIMHK.
6 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Investment Policies
At 31 March 2021 and during the year, Manulife Global Select (MPF) Scheme was a master trust scheme offering the following twenty-nine constituent funds:
1. Manulife MPF Aggressive Fund (the "MGAG"); 2. Manulife MPF Conservative Fund (the "MGCP"); 3. Manulife MPF European Equity Fund (the "MGEE"); 4. Manulife MPF Growth Fund (the "MGGR"); 5. Manulife MPF Hong Kong Bond Fund (the "MGHB"); 6. Manulife MPF Hong Kong Equity Fund (the "MGHE"); 7. Manulife MPF Interest Fund (the "MGIT"); 8. Manulife MPF International Bond Fund (the "MGIB"); 9. Manulife MPF International Equity Fund (the "MGIE"); 10. Manulife MPF Japan Equity Fund (the "MGJE"); 11. Manulife MPF North American Equity Fund (the "MGNE"); 12. Manulife MPF Pacific Asia Equity Fund (the "MGPE"); 13. Manulife MPF Stable Fund (the "MGST"); 14. Manulife MPF Fidelity Growth Fund (the "MGFG"); 15. Manulife MPF Fidelity Stable Growth Fund (the "MGFS"); 16. Manulife MPF China Value Fund (the "MGCV"); 17. Manulife MPF Healthcare Fund (the "MGHC"); 18. Manulife MPF Pacific Asia Bond Fund (the "MGPB"); 19. Manulife MPF Hang Seng Index Tracking Fund (the "MGHS"); 20. Manulife MPF RMB Bond Fund (the "MGRB"); 21. Manulife MPF Smart Retirement Fund (the "MG15"); 22. Manulife MPF 2025 Retirement Fund (the "MG25"); 23. Manulife MPF 2030 Retirement Fund (the "MG30"); 24. Manulife MPF 2035 Retirement Fund (the "MG35"); 25. Manulife MPF 2040 Retirement Fund (the "MG40"); 26. Manulife MPF 2045 Retirement Fund (the "MG45"); 27. Manulife MPF Age 65 Plus Fund (the "MGAP"); 28. Manulife MPF Core Accumulation Fund (the "MGCA"); and 29. Manulife MPF Retirement Income Fund (the "MGRI").
Manulife MPF 2020 Retirement Fund (the "MG20") had no investments and operations since 5 January 2021. The Mandatory Provident Fund Schemes Authority (the "MPFA") approved the termination of the MG20 to take effect on 25 March 2021.
Each of the constituent funds is managed in accordance with separate and distinct investment policies reflecting the different risk profiles of the twenty-nine investment choices as set out below.
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INVESTMENT REPORT
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Investment Policies (continued)
1. MGAG The MGAG is a unitised equity fund that aims to provide long term capital growth. The underlying investments are made on a diversified basis mainly in equities and equity-related investments. The underlying portfolio may also include bonds, deposits and other investments permitted under the General Regulation up to 30% of the net asset value of MGAG. The investment manager may at its discretion invest in any region, such as America, Pacific Asia, Japan, Europe, with a relative bias towards Hong Kong and Pacific Asia region markets.
2. MGCP The MGCP is a fund mandated by the Mandatory Provident Fund Schemes Ordinance (the "MPFSO") that aims to provide a rate of return to match the prescribed savings rate published by the MPFA but with no guarantee of capital or interest. The underlying investments for MGCP are in fixed income instruments that comply with Section 37 and Schedule 1 of the General Regulation.
3. MGEE The MGEE is a unitised equity fund that aims to achieve medium to long term capital growth. The underlying investments are made on a diversified basis in shares of companies covering different sectors of the economy in Europe and, which are listed on any stock exchange. The underlying portfolio may also include bonds, deposits and other investments permitted under the General Regulation up to 30% of the net asset value of the MGEE.
4. MGGR The MGGR is a unitised balanced fund that aims to provide medium to long term capital growth. The underlying investments are made on a diversified basis. Around 50% to 90% of the underlying portfolio of the MGGR is indirectly invested in equities and equity-related investments, with the remainder of the assets being indirectly invested in bonds, deposits and other investments permitted under the General Regulation. The investment manager may at its discretion invest in any region, such as America, Pacific Asia, Japan, Europe.
5. MGHB The MGHB is a unitised bond fund that aims to provide a competitive overall rate of return. The underlying investments are made on a diversified basis with at least 70% of the net asset value of the MGHB invested in Hong Kong Dollar denominated permitted deposits and debt securities (in a portfolio with a range of maturity periods) issued by the government of Hong Kong or any Government, central bank or multilateral international agency. It may also purchase debt securities, which satisfy the minimum credit rating stipulated by the MPFA or those, which are listed on any approved stock exchange, being a security issued by, or guaranteed by, a company whose shares are so listed. The underlying portfolio may also include other investments permitted under the General Regulation up to 30% of the net asset value of the MGHB.
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Investment Policies (continued)
6. MGHE The MGHE is a unitised equity fund that aims to provide medium to long term capital growth. The underlying investments are made on a diversified basis mainly in shares of companies listed on The Hong Kong Stock Exchange or companies covering different sectors of the economy in Hong Kong and, which are listed on any stock exchange. The underlying portfolio may also include bonds, deposits and other investments permitted under the General Regulation up to 30% of the net asset value of the MGHE. The underlying portfolio may also, via the Stock Connect, invest up to 10% of its net asset value in shares of companies listed in Mainland China.
7. MGIT The MGIT is a non-unitised bond fund that aims to provide a capital guarantee and to provide members with interest each month at a rate that equals to or exceeds the prescribed savings rate published by the MPFA. The underlying investments made for MGIT are invested at least 70% of the net asset value of the MGIT in Hong Kong Dollar fixed income instruments. The underlying portfolio may include other investments permitted under the General Regulation up to 30% of the net asset value of the MGIT.
8. MGIB The MGIB is a unitised bond fund that aims to provide competitive overall rates of return. The underlying investments are made on a diversified basis mainly in permitted deposits and debt securities issued by any government, central bank or multilateral international agency. It may also purchase debt securities, which satisfy the minimum credit rating stipulated by the MPFA or those, which are listed on any approved stock exchange being a security issued by, or guaranteed by, a company whose shares are so listed. The investment manager may at its discretion invest in any region, such as North America, Europe, United Kingdom and Asia. The underlying portfolio may also include other investments permitted under the General Regulation up to 30% of the net asset value of the MGIB.
9. MGIE The MGIE is a unitised equity fund that aims to provide medium to long term capital growth. The underlying investments are made on a diversified basis in global equities and equity-related investments. The investment manager may at its discretion invest in any region, such as North America, Japan, Europe, other Pacific Asia region markets and Hong Kong. The underlying portfolio may also include bonds, deposits and other investments permitted under the General Regulation up to 30% of the net asset value of the MGIE.
10. MGJE The MGJE is a unitised equity fund that aims to provide medium to long term capital growth. The underlying investments are made on a diversified basis in shares of companies covering different sectors of the economy in Japan and, which are listed on any stock exchange. The underlying portfolio may also include bonds, deposits and other investments permitted under the General Regulation up to 30% of the net asset value of the MGJE.
11. MGNE The MGNE is a unitised equity fund that aims to provide medium to long term capital growth. The underlying investments are made on a diversified basis in shares of companies covering different sectors of the economy in North America and, which are listed on any stock exchange. The underlying portfolio may also include bonds, deposits and other investments permitted under the General Regulation up to 30% of the net asset value of the MGNE.
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INVESTMENT REPORT
Year ended 31 March 2021
Investment Policies (continued)
12. MGPE The MGPE is a unitised equity fund that aims to provide medium to long term capital growth. The underlying investments are made on a diversified basis in shares of companies covering different sectors of the Asia Pacific markets, excluding Japan and, which are listed on any stock exchange. The underlying portfolio may also include bonds, deposits and other investments permitted under the General Regulation up to 30% of the net asset value of the MGPE.
13. MGST The MGST is a unitised balanced fund that aims to provide relatively stable medium to long term growth. The underlying investments are made on a diversified basis. Up to 40% of the portfolio of the MGST is indirectly invested in equities and equity-related investments, with the remainder of the assets being indirectly invested in bonds, deposits and other investments permitted under the General Regulation. The investment manager may at its discretion invest in any region, such as America, Pacific Asia, Japan, Europe, with a relative bias towards Hong Kong.
14. MGFG The MGFG is designed to provide long term capital growth. The underlying investments of the MGFG are focused on the global equity markets while enjoying the flexibility of investing in global bonds. It is managed with a view to limiting the volatility of returns in the short term.
The assets of the first level pooled investment fund under the MGFG are invested as a feeder fund into the respective APIF operated within the umbrella unit trust structure currently managed by FIL Investment Management (Hong Kong) Limited. It is intended that the underlying investments of the APIF managed by FIL Investment Management (Hong Kong) Limited are made on a geographically diversified basis with a bias towards Hong Kong. Approximately 90% of the APIF is invested in global equities in the markets of Hong Kong, Europe, Japan, America and the Asia Pacific region.
15. MGFS The MGFS is designed to provide medium to long term capital growth. The underlying investments of the MGFS are diversified between equities and bonds and are managed with a view to limit the volatility of returns in the short term.
The assets of the first level pooled investment fund under the MGFS are invested as a feeder fund into the respective APIF operated within the umbrella unit trust structure currently managed by FIL Investment Management (Hong Kong) Limited. It is intended that the investments of the APIF managed by FIL Investment Management (Hong Kong) Limited are made on a geographically diversified basis with a bias towards Hong Kong. Approximately 50% of the APIF is invested in global equities and 45% of the APIF is invested in global bonds in the markets of Hong Kong, Europe, Japan, America and the Asia Pacific region; with the remaining 5% of the assets being in cash deposits permitted under the General Regulation.
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INVESTMENT REPORT
Year ended 31 March 2021
Investment Policies (continued)
16. MGCV The MGCV is a unitised equity fund that aims to provide medium to long term capital growth. The underlying investments are made on a diversified basis mainly in shares of companies covering different sectors of the economy in the Greater China region, including the People's Republic of China, Hong Kong and Taiwan, and, which are listed on any stock exchange subject to the restrictions in the General Regulation and, which have a value or growth proposition. The underlying portfolio may also include bonds, deposits and other permitted investments permitted under the General Regulation, up to 30% of the net asset value of the MGCV.
17. MGHC The MGHC is a unitised equity fund that aims to provide long term capital growth. The underlying investments are made on a diversified basis mainly consisting of equity-related investments and equities of companies in the health care and related industries and, which are listed on any stock exchange. The underlying portfolio may invest in shares of companies covering mainly the pharmaceutical, healthcare equipment and services, food and drug retailers, managed care business and biotechnology sectors. The investment manager may at its discretion invest in any region, such as North America (including Canada), Europe (including UK), Asia and Japan. The underlying portfolio may also include bonds, deposits and other investments permitted under the General Regulation, up to 30% of the net asset value of the MGHC.
18. MGPB The MGPB is a unitised bond fund that aims to provide competitive overall rates of return. The underlying investments are made on a diversified basis mainly in debt securities issued by any government, central bank, supra-national, multilateral international agency and corporate issuer in the Asia Pacific region. The underlying portfolio may also include other investments permitted under the General Regulation, up to 30% of the net asset value of the MGPB.
19. MGHS The MGHS is a unitised equity fund that aims to provide medium to long term capital growth. The underlying investments are in shares of constituent companies of the Hang Seng Index in substantially similar composition and weighting as they appear in the index through an approved index-tracking collective investment scheme ("ITCIS") (currently, the Tracker Fund of Hong Kong managed by State Street Global Advisors Asia Limited). The MGHS seeks to track the performance of the Hang Seng Index of Hong Kong.
20. MGRB The MGRB is a unitised bond fund that aims to provide competitive overall rates of return. The underlying investments are made on a diversified basis with at least 70% of the net asset value of the MGRB invested in Renminbi ("RMB") denominated debt securities, which are issued, traded or distributed by any government, central bank, supra-nationals, multilateral international agencies and corporate issuers outside Mainland China. The MGRB may also, through the underlying APIF, invest up to 30% of its net asset value in other RMB or non-RMB denominated investments including money market instruments, certificates of deposits, cash and deposits, and non-RMB denominated debt securities, permitted under the General Regulation.
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Investment Policies (continued)
21. MG15 The MG15 is a unitised fund and is a matured Retirement Fund designed to enable accrued benefits invested in any other Retirement Funds upon their maturity to be switched to the Smart Retirement Fund. It aims to provide medium to long term capital growth for members who hold a longer term investment view and who are prepared to accept significant fluctuations in the value of their investments in order to achieve potential medium to long term returns. The underlying investments are made on a diversified basis. Around 40% to 60% of the underlying portfolio is indirectly invested in equities and equity-related investments, with the remainder of the assets being indirectly invested in bonds, deposits and other investments permitted under the General Regulation. The investment manager may at its discretion invest in regions, such as America, Pacific Asia, Japan and Europe.
22. MG25 The MG25 is a unitised fund designed for members expecting to attain their normal retirement age around 2025. It aims to provide long term capital growth while lowering the risk of loss as the members approach their normal retirement age. The underlying investments are made on a diversified basis. At launch in 2011, around 75% - 95% of the underlying portfolio was indirectly invested in equities and equity-related investments, with the remainder of the assets being indirectly invested in bonds, deposits and other investments permitted under the General Regulation. The investment manager may at its discretion invest in regions, such as America, Pacific Asia, Japan and Europe. When the MG25 gets closer to its maturity date on the last business day of 2025, the asset allocation strategy of the underlying portfolio will become less aggressive and will increasingly contain fixed income securities.
23. MG30 The MG30 is a unitised fund designed for members expecting to attain their normal retirement age around 2030. It aims to provide long term capital growth while lowering the risk of loss as the members approach their normal retirement age. The underlying investments are made on a diversified basis. At launch in 2011, around 75% - 95% of the underlying portfolio was indirectly invested in equities and equity-related investments, with the remainder of the assets being indirectly invested in bonds, deposits and other investments permitted under the General Regulation. The investment manager may at its discretion invest in regions, such as America, Pacific Asia, Japan and Europe. When the MG30 gets closer to its maturity date on the last business day of 2030, the asset allocation strategy of the underlying portfolio will become less aggressive and will increasingly contain fixed income securities.
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INVESTMENT REPORT
Year ended 31 March 2021
Investment Policies (continued)
24. MG35 The MG35 is a unitised fund designed for members expecting to attain their normal retirement age around 2035. It aims to provide long term capital growth while lowering the risk of loss as the members approach their normal retirement age. The underlying investments are made on a diversified basis. At launch in 2011, around 80% - 100% of the underlying portfolio was indirectly invested in equities and equity-related investments, with the remainder of the assets being indirectly invested in bonds, deposits and other investments permitted under the General Regulation. The investment manager may at its discretion invest in regions, such as America, Pacific Asia, Japan and Europe. When the MG35 gets closer to its maturity date on the last business day of 2035, the asset allocation strategy of the underlying portfolio will become less aggressive and will increasingly contain fixed income securities.
25. MG40 The MG40 is a unitised fund designed for members expecting to attain their normal retirement age around 2040. It aims to provide long term capital growth while lowering the risk of loss as the members approach their normal retirement age. The underlying investments are made on a diversified basis. At launch in 2011, around 80% - 100% of the underlying portfolio was indirectly invested in equities and equity-related investments, with the remainder of the assets being indirectly invested in bonds, deposits and other investments permitted under the General Regulation. The investment manager may at its discretion invest in regions, such as America, Pacific Asia, Japan and Europe. When the MG40 gets closer to its maturity date on the last business day of 2040, the asset allocation strategy of the underlying portfolio will become less aggressive and will increasingly contain fixed income securities.
26. MG45 The MG45 is a unitised fund designed for members expecting to attain their normal retirement age around 2045. It aims to provide long term capital growth while lowering the risk of loss as the members approach their normal retirement age. The underlying investments are made on a diversified basis. At launch in 2011, around 80% - 100% of the underlying portfolio was indirectly invested in equities and equity-related investments, with the remainder of the assets being indirectly invested in bonds, deposits and other investments permitted under the General Regulation. The investment manager may at its discretion invest in regions, such as America, Pacific Asia, Japan and Europe. When the MG45 gets closer to its maturity date on the last business day of 2045, the asset allocation strategy of the underlying portfolio will become less aggressive and will increasingly contain fixed income securities.
27. MGAP The MGAP is a unitised equity fund that aims to provide stable growth to members by investing in a globally diversified manner. It is intended for members who hold a medium to long term investment view and want to seek returns through some capital appreciation and current income generation. The MGAP adopts a passive investment strategy through indirectly investing in an underlying APIF (currently the Vanguard Income Fund ("VIF")) in order to reduce the deviation of performance from the MGAP Reference Portfolio. The investment manager of the VIF uses sampling techniques in its passive investment strategy to select securities for investment for efficient portfolio management. Sampling is an approach whereby the investment manager of the VIF tracks the MGAP Reference Portfolio by investing in a representative portion, or "sample", of the full list of securities contained in the MGAP Reference Portfolio, such that the overall characteristics of the portion of securities would be similar to those of the full list of securities contained in the MGAP Reference Portfolio.
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INVESTMENT REPORT
Year ended 31 March 2021
Investment Policies (continued)
28. MGCA The MGCA is a unitised fund that aims to provide capital growth to members by investing in a globally diversified manner. It is intended for members who hold a medium to long term investment view and want to seek returns through capital appreciation and modest income generation. The MGCA adopts a passive investment strategy through indirectly investing in an underlying APIF (currently the Vanguard Moderate Growth Fund ("VMGF")) in order to reduce the deviation of performance from the MGCA Reference Portfolio. The investment manager of the VMGF uses sampling techniques in its passive investment strategy to select securities for investment for efficient portfolio management. Sampling is an approach whereby the investment manager of the VMGF tracks the MGCA Reference Portfolio by investing in a representative portion, or "sample", of the full list of securities contained in the MGCA Reference Portfolio, such that the overall characteristics of the portion of securities would be similar to those of the full list of securities contained in the MGCA Reference Portfolio.
29. MGRI The MGRI is a unitised balanced fund, which is designed to seek to provide regular and stable income by way of distribution of dividends to Members’ account/sub-account, with the secondary objective of generating long-term capital growth, for Members who hold a longer term investment view and who are prepared to accept fluctuations in the value of their investments in order to achieve long-term returns. The dividends distributed to Members’ account/sub-account are invested in the MGRI or the MGIT based on the Member’s age at the record date as explained under distribution of dividend.
MG20 The MG20 matured and terminated during the year, MG20 was a unitised fund designed for members expecting to attain their normal retirement age around 2020. It aimed to provide long term capital growth while lowering the risk of loss as the members approached their normal retirement age. The underlying investments were made on a diversified basis. At launch in 2011, around 65% - 85% of the underlying portfolio was indirectly invested in equities and equity-related investments, with the remainder of the assets being indirectly invested in bonds, deposits and other investments permitted under the General Regulation. The investment manager had the discretion to invest in regions, such as America, Pacific Asia, Japan and Europe. As the MG20 approached its maturity date on the last business day of 2020, the asset allocation strategy of the underlying portfolio became less aggressive and contained an increasingly proportion of fixed income securities.
The MG20 has had no investments and operations since 5 January 2021. The MPFA approved the termination of the MG20 to take effect on 25 March 2021.
14 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
General Investment Climate
1. North American Equity Markets
US stocks produced a stellar gain in the year ended 31 March 2021. The market started at a low in Spring 2020 due to the outbreak of the coronavirus pandemic and economic lockdowns worldwide. Indices later surged, however, buoyed by massive government stimulus, slowing Covid-19 infection rates and progress developing a vaccine and new treatments for the virus. Resolution of the November presidential election, favourable vaccine announcements and more stimulus were added tailwinds. The market paused early in 2021 following a violent protest in the US Capitol, a slower-than-expected vaccine rollout and the spread of new, more infectious coronavirus variants. However, stocks soon rose again, supported by healthy corporate earnings, a pickup in vaccine supply and the promise of a third round of stimulus checks.
We are encouraged about prospects for US stocks, given that the economy appears to be in the early stages of recovery, with vaccine rollouts expected to aid consumer demand. We anticipate resurgent capital spending, acceleration in gross domestic product, and ultimately stock market appreciation. However, we could see more volatility, as the market wrestles with policy, regulatory, interest rate and inflation risks.
2. European Equity Markets
The MSCI Europe Index fell more than 5% in 2020 in euro terms, despite rebounding sharply from the first-quarter losses triggered by national coronavirus lockdowns. However, in US dollar terms, it rose almost 6% as the weaker dollar enhanced gains for US dollar investors.
The imposition of strict national lockdowns in Europe triggered a steep correction in extremely volatile trading in March. Waves of economic stimulus measures in Europe and the US then calmed markets and spurred bargain hunting, sparking a rebound. Markets rallied in the last quarter of 2020 on encouraging announcements related to the development of potential vaccines fuelling optimism of an economic recovery, while Democratic candidate Joe Biden’s victory in the US presidential election reduced political uncertainty. In the last month of 2020, shares continued to rise, lifted by a post-Brexit trade deal at the end of the year, but the emergence of a new variant of the coronavirus curbed gains.
In early 2021, equities were adversely affected by fears of a slower economic recovery due to the slow pace of vaccine rollouts and the tightening of restrictions in some countries to contain a third wave of the pandemic. European leaders also moved to increase controls on vaccine exports and the European Commission hinted it might block them. Shares were near all-time highs at the end of March, boosted by hopes of a quicker economic recovery as the US unveiled a massive infrastructure spending programme.
15 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
General Investment Climate (continued)
3. Pacific Asia Equity Markets
Markets are pricing in higher inflation against a backdrop of unprecedented fiscal stimulus, accommodative monetary policy, and the accumulated pent-up demand from Covid-19. While such expectations are valid, there is still a large gap to fill between actual and potential output. Therefore, we do not project a large increase in inflation and believe that monetary policy will remain accommodative in the near-term.
In South Korea, investment opportunities have expanded beyond semiconductors and electric vehicle (EV) batteries. While we continue to like these sectors, we see better upside in the rebound in automotive and K-beauty products. The tightness of supply of technology materials and components is proving to be a boon for Taiwanese technology supply chains.
In Southeast Asia, Indonesia and Thailand are the clear beneficiaries of reflation trades. Malaysia and the Philippines have made slower progress in terms of inoculating their populations. The resurgence of Covid- 19 cases in the Philippines has led to stricter control of movements nationwide. We expect these two markets to underperform in the near-term. The Singapore market has performed well since the country further relaxed restrictions on social distancing following a successful containment of Covid-19.
There was a glimmer of optimism when India’s coronavirus caseload fell sharply in early 2021. However, the country has been hit by a second wave of Covid-19 that threatens to overwhelm the healthcare system. The pace of the recovery in earnings of corporates largely hinges on the pace of inoculations and how quickly the coronavirus infection rate is brought under control.
4. Global Bond Markets
International bonds posted positive returns during a 12-month period underscored by the Covid-19 pandemic. Lockdowns and shelter-in-place policies designed to slow the spread of the virus led to a severe global economic downturn in the first half of the period. Governments around the world responded with unprecedented monetary and fiscal stimulus to help shore up their economies and stabilise financial markets. By the second half of the period, the approval and rollout of coronavirus vaccines around the globe, along with emerging signs of improving economic activity, sparked optimism about a return to economic normalcy at some point in 2021.
Bond yields fell early in the period as the global recession took hold, but yields reversed course later as the economic optimism led to concerns about higher inflation down the road. Although bond yields rose overall for the period, resulting in declining bond prices, global bond markets nonetheless produced modest gains. Regionally, bond markets in the Europe and Asia-Pacific regions posted the best returns, while North American fixed-income markets lagged. On a sector basis, high-yield corporate bonds were the leading performers for the period, while government bonds underperformed.
16 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
General Investment Climate (continued)
5. Hong Kong Bond Market
The equity market remains the key driver for the Hong Kong fixed income market. With the continuing trend of Chinese companies delisting from US stock markets continuing, the Hong Kong equity market is expected to benefit from such developments, which will likely keep Hong Kong short-end interest rates at a stable and low level. Longer-term interest rates continue to reflect movement in US interest rates. The long-end movement has been much more active with the 10-year Hong Kong interest rate swap moving up to 1.7% at the end of March 2021 from 0.85% at the beginning of the year.
With higher interest rates, there is strong demand for longer-dated bonds while new supply has been more muted as corporates have been funding in US dollars. Overall, the HK dollar depreciated in the first quarter as the US dollar continued to strengthen since February supported by the rise in US real interest rates and the recently more subdued initial public offering activity. The widening interest rate differential with US rates has resulted in both the HK dollar and the renminbi weakening against the US dollar. It is expected that the US dollar/HK dollar rate will continue to be driven by real yield movements. Interest rates are also expected to have a steepening bias going forward, though liquidity conditions remain flush overall.
Note: The General Investment Climate commentary above is provided by Manulife Investment Management (Hong Kong) Limited, one of the investment managers of underlying investments of the Manulife Global Select (MPF) Scheme.
17 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Trustee's Commentary
2020 was a challenging year for global markets and the COVID-19 pandemic impacted economies across the world. Policies to contain the spread of the pandemic led to global lockdowns, ravaging the world's economies and the overall market. On the positive side, with the rapid development of effective vaccines and the gradual rolling out of vaccination programmes to combat the virus globally in the second half of the period, we look forward with cautious optimism towards the ongoing economic recovery. Most of the equity funds achieved favorable returns despite the highly volatile investment markets. The performance of the equity segment was relatively strong in this fiscal year. Part of the reason was led by COVID-19-driven equity market dropped significantly in Q1 2020.
For the 12-month period ended 31 March 2021, all the constituent funds performed positively. 11 out of 18 comparable constituent funds (61.1%) outperformed the market median under the Scheme. The top five performing funds (1-year performance) were Manulife MPF Pacific Asia Equity Fund (63.63%), Manulife MPF North American Equity Fund (62.46%), Manulife MPF European Equity Fund (57.92%), Manulife MPF International Equity Fund (56.85%) and Manulife MPF 2045 Retirement Fund (49.19%).
The five funds with the lowest performance (1-year performance) were Manulife MPF Hong Kong Bond Fund (0.34%), Manulife MPF Conservative Fund (0.45%), Manulife MPF Interest Fund (0.50%), Manulife MPF International Bond Fund (3.41%) and Manulife MPF RMB Bond Fund (7.28%).
(Source: Lipper Inc. (31 March 2021)).
The Manulife MPF Interest Fund maintained the declared interest rate at 0.50% per annum, being considerably higher than the MPFA prescribed savings rate, which the fund targets to achieve.
(Source: Manulife Global Select (MPF) Scheme Quarterly Fund Fact Sheet (31 March 2021)).
Manulife Provident Funds Trust Company Limited ("MPFTC") continues to hold a positive view of the long term capability and suitability of the fund managers as they all possess extensive, appropriate experience in managing equity and fixed income portfolios.
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INVESTMENT REPORT
Year ended 31 March 2021
Trustee's Commentary (continued)
A. Trustee's commentary on the investments held by the scheme and information of its commentary Annualized return (in terms of %) Since 1 Year 5 Years 10 Years Launch Manulife MPF Conservative Fund 0.45 0.69 0.38 0.62 Launch date: 01/12/2000 Benchmark / Performance Target 0.00 0.03 0.02 0.42 (MPFA Prescribed Savings Rate) Deviation from the benchmark / Out- Out- Out- Out- performance target performed performed performed performed Trustee's commentary The fund has significantly outperformed over 1 year, 5 years, 10 years and since launch compared with the MPFA Prescribed Saving Rate ("PSR") that is the benchmark.
No market median information is available for conservative funds as fees and charges of MPF conservative funds can be deducted from either (i) the assets of the fund or (ii) members' account by way of unit deduction.
The Manulife MPF Conservative Fund uses method (i) and, therefore, any unit prices/NAV/fund performance quoted for the constituent fund have incorporated the impact of fees and charges.
19 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Trustee's Commentary (continued)
Annualized return (in terms of %) 1 Year 5 Years 10 Years Since Launch Manulife MPF Interest Fund 0.50 0.35 0.18 0.65 Launch date: 01/12/2000 Benchmark / Performance Target 0.00 0.03 0.02 0.42 (MPFA Prescribed Savings Rate) Deviation from the benchmark / Out- Out- Out- Out- performance target performed performed performed performed Trustee's commentary The declared interest rate was 0.50% p.a. and higher than the MPFA Prescribed Saving Rate ("PSR"), which the fund targets to achieve.
The fund has outperformed over 1 year, 5 years, 10 years and since launch when compared with the MPFA PSR that is the benchmark.
There is no market median performance information available for comparison as the fund is a hard guarantee fund with customized guarantee conditions.
Manulife MPF Stable Fund 12.46 4.18 2.56 2.67 Launch date: 01/12/2000 Benchmark / Performance Target 9.98 3.65 2.63 3.27 (FER-adjusted Benchmark*) Deviation from the benchmark / Out- Out- Under- Under- performance target performed performed performed performed Trustee's commentary The fund has outperformed the FER-adjusted Benchmark over 1 year and 5 years while it underperformed the FER-adjusted Benchmark over 10 years and since launch.
According to the investment manager, security selection in HK dollar bonds and Hong Kong equities contributed to performance.
20 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Trustee's Commentary (continued)
Annualized return (in terms of %) Since 1 Year 5 Years 10 Years Launch Manulife MPF International Bond Fund 3.41 0.94 1.10 2.77 Launch date: 01/12/2000 Benchmark / Performance Target 1.50 1.31 1.10 1.88 (Lipper Global Bond Median) Deviation from the benchmark / Out- Under- Out- Inline performance target performed performed performed Trustee's commentary The fund performed better than the market median over 1 year and since launch. The fund underperformed the market median over 5 years while it was aligned with the market median over 10 years term.
According to the investment manager, sector allocation was the largest contributor during the period, driven by an overweight to investment grade corporates, municipal and US dollar emerging markets government-related debt combined with an underweight to agency Mortgage Backed Securities. The impact of security selection within the Eurozone was positive while currency management was neutral.
Manulife MPF Hong Kong Bond Fund 0.34 2.11 1.95 2.09 Launch date: 01/12/2000 Benchmark / Performance Target -0.23 1.60 1.94 1.89 (Lipper Hong Kong Dollar Bond Median) Deviation from the benchmark / Out- Out- Out- Out- performance target performed performed performed performed Trustee's commentary The fund's performance has outperformed the market median over 1 year, 5 years, 10 years and since launch.
According to the investment manager, the portfolio's overall security selection was the biggest contributor with exposure to USD-denominated bonds of an Indonesian coal mining company and HKD-denominated bonds of an international bank being the outperformers. Asset allocation contributed through the portfolio's being underweight HKD-denominated government bonds.
21 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Trustee's Commentary (continued)
Annualized return (in terms of %) 1 Year 5 Years 10 Years Since Launch Manulife MPF Pacific Asia Bond Fund 10.91 2.78 N/A 2.08 Launch date: 23/04/2012 Benchmark / Performance Target 5.96 2.19 N/A 1.12 (Lipper Asian Bond Median) Deviation from the benchmark / Out- Out- Out- N/A performance target performed performed performed Trustee's commentary The fund has outperformed the market median over 1 year, 5 years and since launch.
According to the investment manager, the fund's portfolio's overall security selection contributed to the remarkable return. Overweight exposure to Indonesian local currency bonds contributed as the Indonesian rupiah strengthened against the HK dollar and local yields fell.
Manulife MPF RMB Bond Fund 7.28 2.99 N/A 1.84 Launch date: 16/12/2013 Benchmark / Performance Target 6.83 1.75 N/A 1.10 (Lipper RMB Bond Median) Deviation from the benchmark / Out- Out- Out- N/A performance target performed performed performed Trustee's commentary The fund has outperformed the market median over 1 year, 5 years and since launch.
According to the investment manager, security selection was the biggest contributor. Asset allocation contributed to performance due to the portfolio's overweight exposure to corporate bonds.
22 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Trustee's Commentary (continued)
Annualized return (in terms of %) 1 Year 5 Years 10 Years Since Launch Manulife MPF Age 65 Plus Fund 7.90 N/A N/A 4.44 Launch date: 01/04/2017 Benchmark / Performance Target (FTSE MPF DIS Reference Portfolio- 7.50 N/A N/A 4.41 Age 65 Plus Fund) Deviation from the benchmark / Out- Out- N/A N/A performance target performed performed Trustee's commentary The fund has outperformed the DIS Reference Portfolio over 1 year and since launch.
The fund is a passively managed fund tracked against the DIS Reference Portfolio. During the period, the fund closely tracked the Reference Portfolio.
Manulife MPF Growth Fund 36.83 8.52 4.62 4.38 Launch date: 01/12/2000 Benchmark / Performance Target (Lipper Lifestyle- (>60-80% Equity) 34.97 8.61 5.00 5.00 Median) Deviation from the benchmark / Out- Under- Under- Under- performance target performed performed performed performed Trustee's commentary The fund has outperformed the market median over 1 year and it has underperformed the market median over 5 years, 10 years and since launch.
According to the investment manager, the underweight in international bonds and the security selection in Hong Kong equities contributed to the performance.
23 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Trustee's Commentary (continued)
Annualized return (in terms of %) 1 Year 5 Years 10 Years Since Launch Manulife MPF Fidelity Stable Growth Fund 22.17 6.39 4.00 5.41 Launch date: 01/09/2003 Benchmark / Performance Target 26.32 6.45 3.92 4.46 (Lipper Lifestyle - (>40-60% Equity) Median) Deviation from the benchmark / Under- Under- Out-performed Out-performed performance target performed performed Trustee's commentary The fund has underperformed the market median over 1 year and 5 years while it has outperformed the market median over 10 years and since launch.
According to the investment manager, stock selection in the US and Japan slightly detracted from performance, while the fund has slightly outperformed the internal benchmark. There were two major reasons for the fund's underperformance compared with peers. The manager's disciplined security selection approach resulted in its not chasing some of the "hot stocks". The fund experienced far less drawdown in Q1 2020 during the COVID crisis significantly outperforming the peer group at that time. After Q2 2020, the market staged a V-shape rebound and managers who had larger drawdowns in Q1 2020 generally experienced higher rebounds in percentage return terms. Compared to the 1-year peer group (that no longer included Q1 2020), the fund performance appeared weaker against that of its peer group.
Manulife MPF International Equity Fund 56.85 12.60 8.36 3.84 Launch date: 01/12/2000 Benchmark / Performance Target 50.35 10.05 7.24 6.08 (Lipper Global Equity Fund Median) Deviation from the benchmark / Out- Out- Under- Out-performed performance target performed performed performed Trustee's commentary The fund has outperformed the market median over 1 year, 5 years and 10 years but has underperformed the market median since launch.
According to the investment manager, security selection in both European equities and North American equities contributed to the return.
24 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Trustee's Commentary (continued)
Annualized return (in terms of %) 1 Year 5 Years 10 Years Since Launch Manulife MPF North American Equity Fund 62.46 14.38 11.38 4.42 Launch date: 01/12/2000 Benchmark / Performance Target 54.30 13.84 11.37 9.87 (Lipper United States Equity Median) Deviation from the benchmark / Out- Out- Out- Under- performance target performed performed performed performed Trustee's commentary The fund has outperformed the market median over 1 year, 5 years and 10 years but underperformed the market median since launch.
According to the investment manager, security selection and overweights in both the consumer discretionary and financials sectors helped push the fund well ahead during this period. Positioning in the healthcare, energy and communication services sectors and stock picks in the information technology sector further aided performance.
25 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Trustee's Commentary (continued)
Annualized return (in terms of %) 1 Year 5 Years 10 Years Since Launch Manulife MPF European Equity Fund 57.92 12.28 6.57 2.29 Launch date: 01/12/2000 Benchmark / Performance Target 43.11 6.26 4.49 3.35 (Lipper European Equity Median) Deviation from the benchmark / Out- Out- Out- Under- performance target performed performed performed performed Trustee's commentary The fund has significantly outperformed the market median over 1 year, 5 years and 10 years. It has underperformed the market median in the since launch period.
The performance of the fund has continuously improved since the underlying sub-investment manager was replaced in mid January 2019.
According to the investment manager, both stock selection and sector allocation contributed to the strong performance over 1 year, with the latter particularly due to the strategy's strong overweight of IT and underweighting Utilities (no exposure) and Consumer Staples. Stock selection within the Industrials, IT and Healthcare sectors was especially strong.
26 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Trustee's Commentary (continued)
Annualized return (in terms of %) 1 Year 5 Years 10 Years Since Launch Manulife MPF Smart Retirement Fund 27.09 6.63 3.51 3.61 Launch date: 21/02/2011 Benchmark / Performance Target 22.67 5.75 3.39 3.36 (FER-adjusted Benchmark*) Deviation from the benchmark / Out- Out- Out- Out- performance target performed performed performed performed Trustee's commentary The fund has outperformed the FER-adjusted Benchmark over 1 year, 5 years, 10 years and since launch.
According to the investment manager, both underweighting international bonds and security selection of international bonds contributed to performance.
Manulife MPF Retirement Income Fund N/A N/A N/A N/A Launch date: 21/09/2020 Benchmark / Performance Target N/A N/A N/A N/A Deviation from the benchmark / N/A N/A N/A N/A performance target Trustee's commentary The fund was launched on 21 September 2020 and there is no annualized return available at 31 March 2021.
Manulife MPF Core Accumulation Fund 29.36 N/A N/A 8.40 Launch date: 01/04/2017 Benchmark / Performance Target (FTSE MPF DIS Reference Portfolio- 29.05 N/A N/A 8.32 Core Accumulation Fund) Deviation from the benchmark / Out- Out- N/A N/A performance target performed performed Trustee's commentary The fund has outperformed the DIS Reference Portfolio over 1 year and since launch.
The fund is a passively managed fund tracked against the DIS Reference Portfolio. During the period, the fund was closely tracking the Reference Portfolio.
27 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Trustee's Commentary (continued)
Annualized return (in terms of %) 1 Year 5 Years 10 Years Since Launch Manulife MPF Healthcare Fund 24.35 7.31 9.00 7.45 Launch date: 02/04/2008 Benchmark / Performance Target 50.35 10.05 7.24 6.08 (Lipper Global Equity Median) Deviation from the benchmark / Under- Under- Out- Out- performance target performed performed performed performed Trustee's commentary There is no market median performance information available for comparison as the fund is the only sector equity fund in the MPF in the reporting period.
Because this fund is an equity fund investing globally, the "Lipper MPF Global Equity Fund category median" is used as the performance target for the fund.
The fund has underperformed the market median over 1 year and 5 years but outperformed the market median over 10 years and since launch.
According to the investment manager, the fund's relatively large allocation to cash and an underweight to the life science tools and services sub-sector detracted from performance. Individual detractors included a US biotechnology company, which underperformed as a result of unfounded investor concerns related to the pricing and sustainability of revenues for its COVID-19 treatment. The investment manager's fundamental research unequivocally supports the long-term revenue prospects for this asset. A large-capitalisation biopharmaceutical company was impacted by negative headline risk related to its COVID-19 vaccine as well as investor concerns related to its acquisition of a US biotechnology company. A Swiss multinational pharmaceutical company underperformed due to the unanticipated delay to a key pipeline product in development.
28 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Trustee's Commentary (continued)
Annualized return (in terms of %) 1 Year 5 Years 10 Years Since Launch Manulife MPF Aggressive Fund 48.16 10.71 5.80 4.62 Launch date: 01/12/2000 Benchmark / Performance Target (Lipper Lifestyle- (>80-100% Equity) 46.30 10.17 5.69 5.71 Median) Deviation from the benchmark / Out- Out- Out- Under- performance target performed performed performed performed Trustee's commentary The fund has outperformed the market median over 1 year, 5 years and 10 years while it underperformed compared with the market median since launch.
According to the investment manager, stock selection within the underlying Hong Kong Equities Fund and European Equities Fund contributed to performance.
Manulife MPF Fidelity Growth Fund 41.17 10.02 5.79 7.52 Launch date: 01/09/2003 Benchmark / Performance Target (Lipper Lifestyle- (>80-100% Equity) 46.30 10.17 5.69 5.71 Median) Deviation from the benchmark / Under- Under- Out- Out- performance target performed performed performed performed Trustee's commentary The fund has underperformed the market median over 1 year and 5 years while it has outperformed the market median over 10 years and since launch.
According to the investment manager, stock selection In the US and Japan slightly detracted from performance. However, the fund has slightly outperformed the internal benchmark. Two major reasons accounted for the fund's underperformance compared to peers. The manager's disciplined security selection approach result in it not chasing some of the "hot stocks". The fund experienced far less drawdown in Q1 2020 during the COVID crisis significantly outperforming the peer group at that time. After Q2 2020, the market staged a V-shape rebound and some managers who had larger drawdowns in Q1 2020 generally experienced a higher rebound in percentage return terms. Compared to the 1-year peer group (that no longer include Q1 2020), the fund performance appeared weaker than that of its peer group.
29 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Trustee's Commentary (continued)
Annualized return (in terms of %) 1 Year 5 Years 10 Years Since Launch Manulife MPF Pacific Asia Equity Fund 63.63 12.56 4.96 6.09 Launch date: 01/12/2000 Benchmark / Performance Target (Lipper Pacific Basin ex Japan Equity 64.87 11.46 4.30 5.85 Median) Deviation from the benchmark / Under- Out- Out- Out- performance target performed performed performed performed Trustee's commentary The fund underperformed the market median over 1 year but outperformed the market median over 5 years, 10 years and since launch.
According to the investment manager, the asset allocation decisions at the country and sector level detracted from performance, the primary detractor being its cash holding. Apart from stock selection in Australia and China and the overweight to Indonesia, stock selection in the industrials sector hindered performance.
Manulife MPF Japan Equity Fund 45.76 9.14 7.28 2.14 Launch date: 01/12/2000 Benchmark / Performance Target 42.80 8.44 6.35 1.17 (Lipper Japanese Equity Median) Deviation from the benchmark / Out- Out- Out- Out- performance target performed performed performed performed Trustee's commentary The fund has outperformed the market median over 1 year, 5 years, 10 years and since launch.
According to the investment manager, the most positive contributing stocks were a sushi conveyor-belt restaurant chain, an online fashion retailer and a company that assembles motor vehicles and manufactures automotive parts.
30 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Trustee's Commentary (continued)
Annualized return (in terms of %) 1 Year 5 Years 10 Years Since Launch Manulife MPF Hong Kong Equity Fund 43.15 12.09 5.19 5.50 Launch date: 01/12/2000 Benchmark / Performance Target 40.20 11.10 5.11 7.62 (Lipper Hong Kong Equity Median) Deviation from the benchmark / Out- Under- Out-performed Out-performed performance target performed performed Trustee's commentary The fund has outperformed the market median over 1 year, 5 years and 10 years but underperformed the market median since launch.
According to the investment manager, the outperformance was broad based as stock selection and asset allocation decisions at the sector and market level both contributed positively. Stock selection in consumer goods and financials and the overweight in China's consumer services sector also added to performance.
Manulife MPF 2045 Retirement Fund 49.19 11.15 6.08 6.17 Launch date: 21/02/2011 Benchmark / Performance Target 41.76 9.60 5.58 5.46 (FER-adjusted Benchmark*) Deviation from the benchmark / Out- Out-performed Out-performed Out-performed performance target performed Trustee's commentary The fund has outperformed the FER-adjusted Benchmark over 1 year, 5 years, 10 years and since launch.
According to the investment manager, security selection in the European equities fund and the Hong Kong equities fund contributed to performance.
31 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Trustee's Commentary (continued)
Annualized return (in terms of %) 1 Year 5 Years 10 Years Since Launch Manulife MPF 2040 Retirement Fund 48.65 11.03 6.01 6.09 Launch date: 21/02/2011 Benchmark / Performance Target 41.24 9.49 5.51 5.38 (FER-adjusted Benchmark*) Deviation from the benchmark / Out- Out-performed Out-performed Out-performed performance target performed Trustee's commentary The fund has outperformed the FER-adjusted Benchmark over 1 year, 5 years, 10 years and since launch.
According to the investment manager, security selection in the European equities fund and the Hong Kong equities fund contributed to performance.
32 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Trustee's Commentary (continued)
Annualized return (in terms of %) 1 Year 5 Years 10 Years Since Launch Manulife MPF 2035 Retirement Fund 46.58 10.76 5.90 5.98 Launch date: 21/02/2011 Benchmark / Performance Target 39.40 9.27 5.41 5.29 (FER-adjusted Benchmark*) Deviation from the benchmark / Out- Out- Out- Out-performed performance target performed performed performed Trustee's commentary The fund has outperformed the FER-adjusted Benchmark over 1 year, 5 years, 10 years and since launch.
According to the investment manager, security selection in the European equities fund and the Hong Kong equities fund contributed to performance.
Manulife MPF 2030 Retirement Fund 41.79 10.01 5.52 5.60 Launch date: 21/02/2011 Benchmark / Performance Target 34.78 8.58 5.09 4.98 (FER-adjusted Benchmark*) Deviation from the benchmark / Out- Out- Out- Out-performed performance target performed performed performed Trustee's commentary The fund has outperformed the FER-adjusted Benchmark over 1 year, 5 years, 10 years and since launch.
According to the investment manager, both underweighting international bonds and security selection in the Hong Kong equities fund contributed to performance.
Manulife MPF 2025 Retirement Fund 32.37 8.29 4.69 4.79 Launch date: 21/02/2011 Benchmark / Performance Target 26.80 7.16 4.39 4.29 (FER-adjusted Benchmark*) Deviation from the benchmark / Out- Out- Out- Out- performance target performed performed performed performed Trustee's commentary The fund has outperformed the FER-adjusted Benchmark over 1 year, 5 years, 10 years and since launch.
According to the investment manager, both underweighting international bonds and security selection in the Hong Kong equities fund contributed to performance.
33 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Trustee's Commentary (continued)
Annualized return (in terms of %) Since 1 Year 5 Years 10 Years Launch Manulife MPF Hang Seng Index Tracking Fund 22.54 8.93 N/A 6.06 Launch date: 23/04/2012 Benchmark / Performance Target 23.93 10.28 N/A 7.47 (Hang Seng Total Return Index) Deviation from the benchmark / Under- Under- Under- N/A performance target performed performed performed Trustee's commentary The fund has underperformed the Hang Seng Total Return Index over 1 year, 5 years and since launch.
The fund is an index-tracking fund to track the Hang Seng Index (Total Return), its performance is in line with the Hang Seng Total Return Index for the reporting period.
Manulife MPF China Value Fund 46.83 13.36 5.35 8.64 Launch date: 01/02/2006 Benchmark / Performance Target 60.53 15.59 6.87 8.44 (Lipper Greater China Equity Median) Deviation from the benchmark / Under- Under- Under- Out- performance target performed performed performed performed Trustee's commentary The fund has underperformed the market median over 1 year, 5 years and 10 years but outperformed since launch.
According to the investment manager, stock selection in the Taiwan consumer goods sector and the underweight in Taiwan equities detracted from performance. A key detractor was a leading hypermarket chain in China that reported results below expectations in 2020 due to lower profit margins. The company is expanding its footprint in community group purchases and strengthening its multi-channel business models. The current stock valuation is believed underestimated by the market and is expected to have potential to rebound.
* The FER-adjusted benchmark performance is an annualized figure of the benchmark performance adjusted by the Fund Expense Ratio (FER) in which the relevant Constituent Fund (CF) incurred in the captioned period.
34 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Trustee's Commentary (continued)
B. Supporting information in relation to the Trustee's assessment framework for deriving its commentary and the Trustee's actions, if any, to address its concerns raised in its commentary in Section A
The Trustee has established an assessment and monitoring framework to assess and review the performance of the investment funds via an Investment Management Control Committee ("IMCC") comprising representatives from different technical areas, reporting to the Board of the Trustee on a regular basis. The IMCC reviews each investment fund's absolute and relative performance (if applicable) over different periods to identify investment funds delivering unsatisfactory performance. If underperformance persists, further enhanced monitoring and management action will be arranged as required until it reaches a satisfactory level.
The International Bond Fund was mentioned in the report last year due to its unsatisfactory performance. The IMCC worked closely with the investment manager to launch several initiatives in mid-2020 to enhance performance. Continuous improvement has been recorded since Q3 2020, and it was ranked in the first quartile for the past 1 year at March 2021.
In addition, we are glad to report that one of the major initiatives, which we introduced in 2019, i.e. the multi-managers' platform, has proved effective in achieving diversification purposes. The performance of both the Hong Kong Equity Fund and the North American Equity Fund has improved significantly. The board has endorsed a strategy extension to Healthcare Fund with the implementation of multi-managers approach by end 2021 tentatively, subject to relevant regulatory approval.
In consideration of the likely relaxation of investment in the China A shares market in 2020, the Trustee approved the replacement of one of the underlying sub-investment managers of the China Value Fund by a manager with strong China A share investment capability. The replacement was completed successfully effective February 2021. The IMCC has also considered alternatives to address other performance issues of the fund with a plan to execute the alternative solutions in the later part of 2021.
In August 2020, Vanguard, that is managing the two Default Investment Strategy Funds (i.e. the Core Accumulation Fund and the Age 65 Plus Fund), announced its exit from Hong Kong in orderly fashion due to its Asia Strategy Shift. The Board has been informed by Vanguard that the DIS funds will be transited to another Investment Manager, subject to regulatory approval. The Trustee views this arrangement positively as it creates the least impact for the members.
The IMCC will continue to closely monitor the performance of each constituent fund for the best interest of all members while also working proactively with the investment managers to introduce new initiatives that can help to sustain or enhance the overall investment performance of our funds.
35 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Investment income and performance record for the year ended/at 31 March 2021
MGAG MGCP MGEE MGGR MGHB MGHE MGIB MGIE HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Net income excluding net appreciation/depreciation of investment ------
Net appreciation of investment - realised and unrealised 9,511,911,364 55,872,631 1,326,138,606 5,716,603,619 9,077,740 4,458,079,503 166,651,204 2,584,424,581
Income derived from investments ------Interest on interest bearing securities
Net asset value per unit 25.033 11.344 15.847 23.918 15.233 29.682 17.446 21.495
Net assets available for benefits 28,524,052,580 13,176,883,623 3,767,887,419 20,984,850,721 3,519,357,490 15,357,677,351 5,702,852,247 7,341,443,568
Highest issue price per unit # 26.643 11.344 15.978 25.278 15.624 34.754 18.251 22.062
Lowest redemption price per unit # 16.376 11.292 9.533 17.049 15.013 20.331 16.804 13.065
Net annualised investment return (%) 48.15 0.44 57.92 36.83 0.34 43.15 3.41 56.85
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2021 to the unit price at 31 March 2020.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
36 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Investment income and performance record for the year ended/at 31 March 2021 (continued)
MGIT MGJE MGNE MGPE MGST MGFG MGFS MGCV HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Net income excluding net appreciation/depreciation of investment 125,607,635 ------
Net appreciation of investment - realised and unrealised - 730,820,215 4,613,550,387 4,423,522,824 1,739,634,639 2,972,639,933 1,455,080,330 10,719,499,539
Income derived from investments Interest on interest bearing securities 125,607,635 ------
Net asset value per unit N/A 15.391 24.096 33.275 17.078 35.794 25.274 35.134
Net assets available for benefits 26,594,442,039 2,255,302,232 13,673,831,140 12,014,432,939 16,347,208,792 10,510,225,508 8,185,343,189 36,325,039,983
Highest issue price per unit # N/A 15.770 24.457 36.167 17.802 38.281 26.607 40.413
Lowest redemption price per unit # N/A 9.977 14.021 20.045 15.014 24.745 20.415 23.477
Net annualised investment return (%) 0.49 45.76 62.46 63.62 12.46 41.17 22.17 46.83
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2021 to the unit price at 31 March 2020. The net annualised investment return for MGIT is the sum of credited interest from April 2020 to March 2021 divided by the average monthly net asset value from 31 March 2020 to 31 March 2021.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
37 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Investment income and performance record for the year ended/at 31 March 2021 (continued)
MGHC MGHS MGPB MGRB MG15 MG20* MG25 MG30 HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Net income excluding net appreciation/depreciation of investment ------
Net appreciation of investment - realised and unrealised 6,017,195,290 1,156,492,475 156,503,615 111,536,362 122,728,420 131,161,837 198,730,950 240,593,041
Income derived from investments Interest on interest bearing securities ------
Net asset value per unit 25.439 16.911 12.018 11.420 14.308 - 16.042 17.347
Net assets available for benefits 32,769,958,307 5,863,234,404 1,747,089,347 2,052,714,590 1,164,216,598 - 845,777,524 854,476,082
Highest issue price per unit # 26.609 18.454 12.478 11.564 14.963 14.902 16.840 18.334
Lowest redemption price per unit # 19.893 13.415 10.765 10.598 11.047 11.526 11.838 11.900
Net annualised investment return (%) 24.35 22.54 10.91 7.28 27.09 NA 32.36 41.79
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2021 to the unit price at 31 March 2020.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
* MG20 had no investments and operations since 5 January 2021 and terminated on 25 March 2021.
38 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Investment income and performance record for the year/period ended/at 31 March 2021 (continued) For the period from 21 September 2020 (date of inception) to 31 March 2021 MG35 MG40 MG45 MGAP MGCA MGRI HK$ HK$ HK$ HK$ HK$ HK$
Net income excluding net appreciation/depreciation of investment - - - - - 9,947,686
Net appreciation of investment - realised and unrealised 267,047,486 224,199,626 394,590,644 210,373,420 2,335,177,746 7,518,729
Income derived from investments Dividend income - - - - - 9,947,686
Net asset value per unit 17.981 18.178 18.318 11.898 13.804 10.743
Net assets available for benefits 884,964,684 724,150,553 1,290,665,611 3,644,324,746 11,713,379,704 1,406,836,979
Highest issue price per unit # 19.071 19.300 19.459 12.140 13.952 11.210
Lowest redemption price per unit # 11.909 11.858 11.905 10.968 10.434 9.896
Net annualised investment return (%) 46.58 48.65 49.19 7.90 29.36 7.43
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2021 to the unit price at 31 March 2020. The net annualised investment return for MGRI is calculated based on the ratio of the unit price at 31 March 2021 to the unit price at the date of inception on 21 September 2020.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
39 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Investment income and performance record for the year ended/at 31 March 2020
MGAG MGCP MGEE MGGR MGHB MGHE MGIB MGIE HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Net income excluding net appreciation/depreciation of investment ------
Net appreciation/(depreciation) of investment - realised and unrealised ( 2,778,191,479) 169,607,016 ( 164,994,347) ( 1,586,004,199) 156,146,901 ( 1,511,644,207) 49,662,769 ( 626,444,396)
Income derived from investments ------Interest on interest bearing securities
Net asset value per unit 16.897 11.294 10.035 17.480 15.182 20.735 16.871 13.704
Net assets available for benefits 20,096,846,461 11,930,796,014 2,206,401,887 15,647,600,146 3,262,615,816 10,493,998,937 4,954,760,417 4,464,563,017
Highest issue price per unit # 21.208 11.292 12.767 20.831 15.411 25.307 17.670 17.910
Lowest redemption price per unit # 15.061 11.120 8.683 15.938 14.257 18.830 16.346 12.001
Net annualised investment return (%) (12.05) 1.55 (5.69) (9.11) 5.48 (12.91) 1.50 (11.70)
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2020 to the unit price at 31 March 2019.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
40 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Investment income and performance record for the year ended/at 31 March 2020 (continued)
MGIT MGJE MGNE MGPE MGST MGFG MGFS MGCV HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Net income excluding net appreciation/depreciation of investment 111,668,399 ------
Net depreciation of investment - realised and unrealised - ( 209,602,643) ( 918,454,842) (1,477,741,705) ( 170,117,517) ( 895,285,927) ( 289,600,157) ( 2,474,875,145)
Income derived from investments Interest on interest bearing securities 111,668,399 ------
Net asset value per unit N/A 10.559 14.832 20.337 15.186 25.355 20.688 23.928
Net assets available for benefits 24,008,225,415 1,463,058,612 6,830,316,058 7,083,651,463 13,806,567,400 7,167,732,414 6,494,039,162 23,149,355,906
Highest issue price per unit # N/A 13.654 19.630 26.801 16.031 31.246 22.967 28.822
Lowest redemption price per unit # N/A 9.348 12.983 18.091 14.495 22.780 19.320 21.778
Net annualised investment return (%) 0.49 (13.44) (10.06) (17.21) (1.12) (10.83) (4.06) (9.50)
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2020 to the unit price at 31 March 2019. The net annualised investment return for MGIT is the sum of credited interest from April 2019 to March 2020 divided by the average monthly net asset value from 31 March 2019 to 31 March 2020.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
41 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Investment income and performance record for the year ended/at 31 March 2020 (continued)
MGHC MGHS MGPB MGRB MG15 MG20 MG25 MG30 HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Net income excluding net appreciation/depreciation of investment ------
Net depreciation of investment - realised and unrealised ( 1,807,838,991) ( 888,378,321) ( 23,181,221) ( 4,193,045) ( 27,542,945) ( 31,290,118) ( 51,754,865) ( 63,567,867)
Income derived from investments Interest on interest bearing securities ------
Net asset value per unit 20.457 13.800 10.836 10.645 11.258 11.746 12.120 12.234
Net assets available for benefits 23,712,412,865 5,011,465,449 1,424,615,103 1,395,178,887 436,277,490 513,843,266 607,519,184 567,442,982
Highest issue price per unit # 23.880 17.156 11.619 10.898 12.790 13.331 14.242 14.901
Lowest redemption price per unit # 17.681 12.734 10.576 10.446 10.492 10.946 11.131 11.051
Net annualised investment return (%) (6.91) (16.56) (1.29) (0.38) (5.74) (5.68) (7.67) (9.83)
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2020 to the unit price at 31 March 2019.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
42 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Investment income and performance record for the year ended/at 31 March 2020 (continued)
MG35 MG40 MG45 MGAP MGCA HK$ HK$ HK$ HK$ HK$
Net income excluding net appreciation/depreciation of investment - - - - -
Net (depreciation)/appreciation of investment - realised and unrealised ( 70,917,083) ( 59,054,169) (105,857,685) 46,172,130 ( 456,294,740)
Income derived from investments Interest on interest bearing securities - - - - -
Net asset value per unit 12.267 12.229 12.278 11.027 10.671
Net assets available for benefits 573,297,935 455,160,175 791,166,286 2,488,918,462 7,226,901,944
Highest issue price per unit # 15.209 15.290 15.390 11.480 12.383
Lowest redemption price per unit # 11.001 10.920 10.949 10.540 9.795
Net annualised investment return (%) (10.77) (11.20) (11.35) 3.99 (4.38)
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2020 to the unit price at 31 March 2019.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
43 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Investment income and performance record for the year ended/at 31 March 2019
MGAG MGCP MGEE MGGR MGHB MGHE MGIB MGIE HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Net income excluding net appreciation/depreciation of investment ------
Net (depreciation)/appreciation of investment - realised and unrealised ( 1,182,448,691) 108,381,617 ( 19,814,609) ( 734,503,824) 110,836,507 ( 769,353,019) ( 59,828,331) ( 101,327,102)
Income derived from investments ------Interest on interest bearing securities
Net asset value per unit 19.212 11.122 10.640 19.231 14.393 23.808 16.622 15.520
Net assets available for benefits 23,341,901,072 10,476,036,171 2,145,899,331 17,176,679,172 2,545,165,853 11,594,124,105 4,074,424,934 4,646,987,261
Highest issue price per unit # 20.927 11.118 11.374 20.639 14.415 27.109 16.992 16.376
Lowest redemption price per unit # 17.105 10.992 9.187 17.491 13.526 20.281 16.153 13.352
Net annualised investment return (%) (5.19) 1.21 (0.78) (4.74) 4.61 (7.77) (1.94) (1.89)
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2019 to the unit price at 31 March 2018.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
44 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Investment income and performance record for the year ended/at 31 March 2019 (continued)
MGIT MGJE MGNE MGPE MGST MGFG MGFS MGCV HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Net income excluding net appreciation/depreciation of investment 94,650,621 ------
Net appreciation/(depreciation) of investment - realised and unrealised - ( 135,435,524) 2,700,118 ( 512,656,190) 14,865,741 ( 172,621,751) ( 38,026,759) ( 1,232,586,625)
Income derived from investments Interest on interest bearing securities 94,650,621 ------
Net asset value per unit N/A 12.198 16.491 24.565 15.358 28.434 21.564 26.441
Net assets available for benefits 21,520,774,781 1,770,111,098 5,302,027,239 8,610,329,481 13,123,366,472 7,583,339,076 6,336,800,288 26,431,770,505
Highest issue price per unit # N/A 13.726 17.831 27.050 15.461 30.221 22.149 28.852
Lowest redemption price per unit # N/A 11.131 13.265 21.856 14.423 25.102 19.929 22.546
Net annualised investment return (%) 0.49 (8.72) 0.99 (6.24) (0.07) (2.50) (1.44) (4.43)
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2019 to the unit price at 31 March 2018. The net annualised investment return for MGIT is the sum of credit interest from April 2018 to March 2019 divided by the average monthly net asset value from 31 March 2018 to 31 March 2019.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
45 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Investment income and performance record for the year ended/at 31 March 2019 (continued)
MGHC MGHS MGPB MGRB MG15 MG20 MG25 MG30 HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Net income excluding net appreciation/depreciation of investment ------
Net appreciation/(depreciation) of investment - realised and unrealised 2,156,862,266 5,627,054 14,411,401 21,793,804 ( 11,541,326) ( 17,687,531) ( 26,883,694) ( 24,748,155)
Income derived from investments Interest on interest bearing securities ------
Net asset value per unit 21.975 16.538 10.978 10.686 11.944 12.453 13.127 13.567
Net assets available for benefits 21,984,098,643 4,715,047,227 1,266,750,029 1,222,242,506 371,573,910 559,575,668 622,950,561 580,568,639
Highest issue price per unit # 22.123 17.566 10.993 10.684 12.538 13.172 14.142 14.685
Lowest redemption price per unit # 18.950 14.036 10.281 10.010 11.068 11.525 11.941 12.158
Net annualised investment return (%) 11.68 (0.76) 1.09 1.94 (3.59) (3.21) (4.50) (4.69)
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2019 to the unit price at 31 March 2018.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
46 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Investment income and performance record for the year ended/at 31 March 2019 (continued)
MG35 MG40 MG45 MGAP MGCA HK$ HK$ HK$ HK$ HK$
Net income excluding net appreciation/depreciation of investment - - - - -
Net (depreciation)/appreciation of investment - realised and unrealised ( 26,027,643) ( 19,993,872) ( 35,621,497) 36,961,032 92,809,004
Income derived from investments Interest on interest bearing securities - - - - -
Net asset value per unit 13.747 13.771 13.850 10.604 11.160
Net assets available for benefits 589,169,811 463,580,158 825,414,008 1,346,732,621 4,810,358,856
Highest issue price per unit # 14.901 14.934 15.004 10.603 11.195
Lowest redemption price per unit # 12.241 12.237 12.310 10.089 10.092
Net annualised investment return (%) (4.71) (4.73) (4.56) 2.72 2.26
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2019 to the unit price at 31 March 2018.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
47 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Performance record for the year ended/at 31 March 2018
MGAG MGCP MGEE MGGR MGHB MGHE MGIB MGIE HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Highest issue price per unit # 21.827 10.991 11.584 21.430 14.077 28.456 17.015 16.951
Lowest redemption price per unit # 16.922 10.964 10.003 17.325 13.675 19.397 16.281 13.682
Net annualised investment return (%) 18.91 0.24 6.84 16.04 0.59 32.57 4.16 14.32
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2018 to the unit price at 31 March 2017.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
48 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Performance record for the year ended/at 31 March 2018 (continued)
MGIT MGJE MGNE MGPE MGST MGFG MGFS MGCV HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Highest issue price per unit # N/A 14.528 17.774 27.994 15.924 31.626 22.896 30.315
Lowest redemption price per unit # N/A 11.261 14.502 21.263 14.395 24.446 19.425 21.709
Net annualised investment return (%) 0.22 16.31 10.49 21.85 6.86 18.23 12.53 26.84
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2018 to the unit price at 31 March 2017. The net annualised investment return for MGIT is the sum of credit interest from April 2017 to March 2018 divided by the average monthly net asset value from 31 March 2017 to 31 March 2018.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
49 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Performance record for the year ended/at 31 March 2018 (continued)
MGHC MGHS MGPB MGRB MG15 MG20 MG25 MG30 HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Highest issue price per unit # 22.177 18.345 11.036 10.492 12.984 13.564 14.661 15.295
Lowest redemption price per unit # 18.581 12.947 10.517 9.657 10.954 11.340 11.794 11.986
Net annualised investment return (%) 4.66 27.06 3.08 8.43 13.03 13.31 16.05 18.04
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2018 to the unit price at 31 March 2017.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
50 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Performance record for the year ended/at 31 March 2018 (continued)
MG35 MG40 MG45 MGAP MGCA HK$ HK$ HK$ HK$ HK$
Highest issue price per unit # 15.530 15.571 15.642 10.413 11.397
Lowest redemption price per unit # 12.083 12.079 12.123 9.998 9.979
Net annualised investment return (%) 18.60 18.86 18.89 N/A N/A
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2018 to the unit price at 31 March 2017.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
51 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Performance record for the year ended/at 31 March 2017
MGAG MGCP MGEE MGGR MGHB MGHE MGIB MGIE HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Highest issue price per unit # 17.151 10.964 10.050 17.480 14.051 19.857 17.173 13.922
Lowest redemption price per unit # 14.529 10.956 8.272 15.492 13.381 15.954 15.938 11.384
Net annualised investment return (%) 13.24 0.07 13.04 9.48 (0.33) 16.05 (2.26) 16.50
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2017 to the unit price at 31 March 2016.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
52 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Performance record for the year ended/at 31 March 2017 (continued)
MGIT MGJE MGNE MGPE MGST MGFG MGFS MGCV MGHC
HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Highest issue price per unit # N/A 11.781 15.018 21.676 14.493 24.864 19.612 22.342 19.742
Lowest redemption price per unit # N/A 9.384 11.914 17.664 13.779 21.327 18.183 17.376 17.227
Net annualised investment return (%) 0.01 15.58 20.08 16.77 3.34 11.09 4.84 16.21 5.15
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2017 to the unit price at 31 March 2016. The net annualised investment return for MGIT is the sum of credit interest from April 2016 to March 2017 divided by the average monthly net asset value from 31 March 2016 to 31 March 2017.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
53 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Performance record for the year ended/at 31 March 2017 (continued)
MGHS MGPB MGRB MG15 MG20 MG25 MG30 MG35 MG40 MG45 HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Highest issue price per unit # 13.333 10.853 10.055 11.010 11.404 11.902 12.131 12.238 12.239 12.285
Lowest redemption price per unit # 10.473 10.138 9.559 10.197 10.424 10.455 10.410 10.408 10.390 10.410
Net annualised investment return / actual net investment return (%) 18.92 0.56 (1.90) 5.59 6.59 9.96 11.99 12.75 12.89 13.06
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2017 to the unit price at 31 March 2016.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
54 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Performance record for the year ended/at 31 March 2016
MGAG MGCP MGEE MGGR MGHB MGHE MGIB MGIE HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Highest issue price per unit # 17.799 10.958 10.704 18.160 13.730 23.502 16.650 13.224
Lowest redemption price per unit # 13.522 10.954 7.895 14.605 13.323 14.719 15.941 10.530
Net annualised investment return (%) (9.17) 0.00 (11.61) (7.30) 1.23 (17.03) 1.69 (5.32)
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2016 to the unit price at 31 March 2015.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
55 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Performance record for the year ended/at 31 March 2016 (continued)
MGIT MGJE MGNE MGPE MGST MGFG MGFS MGCV MGHC HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Highest issue price per unit # N/A 11.202 13.628 22.161 14.828 26.479 20.387 26.356 21.071
Lowest redemption price per unit # N/A 8.560 10.803 16.220 13.323 19.868 17.306 16.528 16.826
Net annualised investment return (%) 0.01 (4.05) (1.29) (10.81) (3.07) (9.47) (4.57) (15.67) (10.53)
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2016 to the unit price at 31 March 2015. The net annualised investment return for MGIT is the sum of credit interest from April 2015 to March 2016 divided by the average monthly net asset value from 31 March 2015 to 31 March 2016.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
56 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Performance record for the year ended/at 31 March 2016 (continued)
MGHS MGPB MGRB MG15 MG20 MG25 MG30 MG35 MG40 MG45 HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Highest issue price per unit # 14.755 10.477 10.155 11.381 11.845 12.367 12.570 12.686 12.689 12.734
Lowest redemption price per unit # 9.725 9.783 9.528 9.728 9.907 9.827 9.725 9.701 9.675 9.689
Net annualised investment return / actual net investment return (%) (14.62) 1.66 (1.32) (4.94) (5.33) (7.29) (8.33) (8.75) (8.91) (8.99)
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2016 to the unit price at 31 March 2015.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
57 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Performance record for the year ended/at 31 March 2015
MGAG MGCP MGEE MGGR MGHB MGHE MGIB MGIE HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Highest issue price per unit # 16.673 10.954 10.461 17.285 13.628 20.260 16.853 12.749
Lowest redemption price per unit # 15.286 10.931 8.849 16.133 12.863 17.058 16.233 11.422
Net annualised investment return (%) 5.50 0.23 (0.90) 4.01 5.21 13.43 (0.96) 4.74
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2015 to the unit price at 31 March 2014.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
58 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Performance record for the year ended/at 31 March 2015 (continued)
MGIT MGJE MGNE MGPE MGST MGFG MGFS MGCV MGHC HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Highest issue price per unit # N/A 10.593 12.720 21.621 14.379 24.675 19.680 22.256 20.534
Lowest redemption price per unit # N/A 8.522 11.131 19.168 13.674 22.260 18.657 18.384 16.104
Net annualised investment return (%) 0.01 16.03 7.80 4.38 4.68 7.65 3.19 17.26 18.51
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2015 to the unit price at 31 March 2014. The net annualised investment return for MGIT is the sum of credit interest from April 2014 to March 2015 divided by the average monthly net asset value from 31 March 2014 to 31 March 2015.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
59 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Performance record for the year ended/at 31 March 2015 (continued)
MGHS MGPB MGRB MG15 MG20 MG25 MG30 MG35 MG40 MG45 HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Highest issue price per unit # 13.040 10.635 10.133 11.138 11.438 11.739 11.856 11.901 11.911 11.945
Lowest redemption price per unit # 10.989 10.216 9.858 10.590 10.733 10.874 10.902 10.925 10.927 10.955
Net annualised investment return / actual net investment return (%) 15.88 0.03 1.09 1.69 2.99 4.52 4.99 5.43 5.42 5.53
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2015 to the unit price at 31 March 2014.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
60 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Performance record for the year ended/at 31 March 2014
MGAG MGCP MGEE MGGR MGHB MGHE MGIB MGIE HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Highest issue price per unit # 15.946 10.931 10.218 16.686 13.416 18.898 16.763 12.097
Lowest redemption price per unit # 13.496 10.926 8.279 14.532 12.675 15.101 15.904 10.098
Net annualised investment return (%) 10.70 0.05 17.93 7.72 (2.89) 5.72 (0.58) 16.12
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2014 to the unit price at 31 March 2013.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
61 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Performance record for the year ended/at 31 March 2014 (continued)
MGIT MGJE MGNE MGPE MGST MGFG MGFS MGCV MGHC HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Highest issue price per unit # N/A 9.524 11.731 20.160 13.926 23.202 19.006 20.886 17.091
Lowest redemption price per unit # N/A 7.727 9.272 17.116 13.063 19.796 17.083 16.854 13.655
Net annualised investment return (%) 0.01 11.61 20.87 3.13 0.75 10.30 6.32 (0.95) 23.57
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2014 to the unit price at 31 March 2013. The net annualised investment return for MGIT is the sum of credit interest from April 2013 to March 2014 divided by the average monthly net asset value from 31 March 2013 to 31 March 2014.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
62 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Performance record for the period ended/year ended/at 31 March 2014 (continued)
MGHS MGPB MGRB MG15 MG20 MG25 MG30 MG35 MG40 MG45 HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Highest issue price per unit # 12.090 10.653 10.082 10.845 11.059 11.271 11.354 11.379 11.386 11.411
Lowest redemption price per unit # 9.987 9.802 9.877 9.742 9.688 9.694 9.688 9.680 9.677 9.695
Net annualised investment return / actual net investment return (%) 1.07 (2.06) (1.21)* 4.65 7.02 8.83 9.65 9.95 10.05 10.07
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2014 to the unit price at 31 March 2013.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
* The actual net investment return of MGRB is calculated based on the ratio of the unit price at 31 March 2014 to the unit price at its launch date on 16 December 2013.
63 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Performance record for the year ended/at 31 March 2013
MGAG MGCP MGEE MGGR MGHB MGHE MGIB MGIE HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Highest issue price per unit # 14.394 10.929 8.836 15.473 13.368 17.820 16.939 10.476
Lowest redemption price per unit # 11.491 10.925 6.534 12.968 13.011 13.488 16.250 8.166
Net annualised investment return (%) 8.59 0.01 12.35 6.91 1.69 12.57 1.72 9.72
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2013 to the unit price at 31 March 2012.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
64 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Performance record for the year ended/at 31 March 2013 (continued)
MGIT MGJE MGNE MGPE MGST MGFG MGFS MGCV MGHC HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Highest issue price per unit # N/A 8.114 9.688 19.590 13.699 20.880 17.923 20.534 13.649
Lowest redemption price per unit # N/A 6.031 7.591 15.607 12.740 16.832 15.726 15.489 10.561
Net annualised investment return (%) 0.01 11.65 10.93 7.00 3.58 8.85 5.57 7.53 18.97
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2013 to the unit price at 31 March 2012. The net annualised investment return for MGIT is the sum of credit interest from April 2012 to March 2013 divided by the average monthly net asset value from 31 March 2012 to 31 March 2013.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
65 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Performance record for the period ended/year ended/at 31 March 2013 (continued)
MGHS MGPB MG15 MG20 MG25 MG30 MG35 MG40 MG45 HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Highest issue price per unit # 11.732 10.545 10.367 10.328 10.355 10.346 10.344 10.341 10.359
Lowest redemption price per unit # 8.968 9.781 9.056 8.646 8.430 8.328 8.297 8.284 8.294
Net annualised investment return / actual net investment return (%) 10.28* 5.20* 5.04 6.73 7.99 8.54 8.73 8.74 8.82
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2013 to the unit price at its launch date at 23 Apr 2012 or 31 March 2012.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
* The actual net investment return of MGHS and MGPB is calculated based on the ratio of the unit price at 31 March 2013 to the unit price at its launch date on 23 April 2012.
66 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Performance record for the year ended/at 31 March 2012
MGAG MGCP MGEE MGGR MGHB MGHE MGIB MGIE HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Highest issue price per unit # 14.666 10.926 8.863 15.653 13.288 18.527 16.635 9.984
Lowest redemption price per unit # 10.961 10.924 6.257 12.447 12.489 11.951 15.594 7.671
Net annualised investment return (%) (8.24) 0.01 (8.74 ) (5.97 ) 3.87 (16.33 ) 4.50 (2.36 )
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2012 to the unit price at 31 March 2011.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
67 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Performance record for the year ended/at 31 March 2012 (continued)
MGIT MGJE MGNE MGPE MGST MGFG MGFS MGCV MGHC HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
Highest issue price per unit # N/A 7.894 8.689 21.444 13.448 21.089 17.603 22.073 11.593
Lowest redemption price per unit # N/A 6.247 6.582 15.531 12.544 15.791 15.118 13.810 8.874
Net annualised investment return (%) 0.01 (5.98 ) 5.19 (12.55 ) (0.92 ) (6.94 ) (1.76 ) (14.61) 6.73
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2012 to the unit price at 31 March 2011. The net annualised investment return for MGIT is the sum of credit interest from April 2011 to March 2012 divided by the average monthly net asset value from 31 March 2011 to 31 March 2012.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
68 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Performance record for the year ended/at 31 March 2012 (continued)
MG15 MG20 MG25 MG30 MG35 MG40 MG45 HK$ HK$ HK$ HK$ HK$ HK$ HK$
Highest issue price per unit # 10.418 10.434 10.447 10.439 10.438 10.444 10.457
Lowest redemption price per unit # 8.689 8.238 8.008 7.908 7.879 7.870 7.870
Net annualised investment return (%) (3.58 ) (5.62 ) (6.79 ) (7.26 ) (7.49 ) (7.59 ) (7.56 )
The net annualised investment return of each unitised constituent fund is calculated based on the ratio of the unit price at 31 March 2012 to the unit price at 31 March 2011.
# Highest issue price per unit and lowest redemption price per unit are determined by reference to published fund prices during the scheme year.
69 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Investment portfolio at 31 March 2021
Name Quoted investments Holdings Market value Cost % of of Fund - approved pooled investment fund Units HK$ HK$ net assets
MGAG Aggressive Unit Trust Fund 1,139,477,637 28,524,052,580 19,839,143,240 100.00
MGCP Conservative Unit Trust Fund 1,161,527,597 13,176,883,623 13,087,619,338 100.00
MGEE European Equity Unit Trust Fund 237,770,523 3,767,887,419 2,961,837,956 100.00
MGGR Growth Unit Trust Fund 877,353,573 20,984,850,721 15,909,356,490 100.00
MGHB Hong Kong Bond Unit Trust Fund 231,038,394 3,519,357,490 3,463,868,875 100.00
MGHE Hong Kong Equity Unit Trust Fund 517,414,450 15,357,677,351 13,306,906,211 100.00
MGIB International Bond Unit Trust Fund 326,885,479 5,702,852,247 5,640,871,685 100.00
MGIE International Equity Unit Trust Fund 341,539,886 7,341,443,568 5,093,802,644 100.00
MGIT Interest Fund Policy N/A 26,594,442,039 26,594,442,039 100.00
MGJE Japan Equity Unit Trust Fund 146,531,034 2,255,302,232 2,158,115,032 100.00
MGNE North American Equity Unit Trust Fund 567,472,766 13,673,831,140 11,059,412,661 100.00
MGPE Pacific Asia Equity Unit Trust Fund 361,060,316 12,014,432,939 9,596,880,050 100.00
MGST Stable Fund Policy 957,197,521 16,347,208,792 14,400,546,348 100.00
MGFG Growth Unit Trust Fund (Series I) 293,633,588 10,510,225,508 7,895,641,088 100.00
MGFS Stable Growth Unit Trust Fund 323,858,615 8,185,343,189 6,835,625,101 100.00
MGCV China Value Unit Trust Fund 1,033,902,044 36,325,039,983 27,628,847,265 100.00
MGHC Healthcare Unit Trust Fund 1,288,191,094 32,769,958,307 27,578,265,565 100.00
MGHS Hang Seng Index Tracking Unit Trust Fund 346,718,494 5,863,234,404 5,430,798,706 100.00
MGPB Pacific Asia Bond Unit Trust Fund 145,374,329 1,747,089,347 1,672,811,778 100.00
MGRB RMB Bond Unit Trust Fund 179,741,655 2,052,714,590 1,970,768,700 100.00
70 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Investment portfolio at 31 March 2021 (continued)
Name Quoted investments Holdings Market value Cost % of of Fund - approved pooled investment fund Units HK$ HK$ net assets
MG15 Smart Retirement Unit Trust Fund 81,368,847 1,164,216,598 1,074,900,329 100.00
MG20 2020 Retirement Unit Trust Fund* - - - -
MG25 2025 Retirement Unit Trust Fund 52,724,151 845,777,524 693,545,696 100.00
MG30 2030 Retirement Unit Trust Fund 49,256,703 854,476,082 658,517,623 100.00
MG35 2035 Retirement Unit Trust Fund 49,217,173 884,964,684 665,742,590 100.00
MG40 2040 Retirement Unit Trust Fund 39,837,001 724,150,553 543,854,355 100.00
MG45 2045 Retirement Unit Trust Fund 70,457,872 1,290,665,611 986,952,713 100.00
MGAP Age 65 Plus Unit Trust Fund 306,299,907 3,644,324,746 3,570,424,051 100.00
MGCA Core Accumulation Unit Trust Fund 848,533,016 11,713,379,704 10,038,338,067 100.00
MGRI Retirement Income Unit Trust Fund 130,952,585 1,406,836,979 1,407,569,706 100.00
Note: Investments are accounted for on a trade day basis.
* MG20 had no operations since 5 January 2021 and terminated on 25 March 2021.
71 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Statement of movement in portfolio holdings Year Year ended ended 31 March 2021 31 March 2020 Name Quoted investments % of % of of Fund - approved pooled investment fund net assets net assets
MGAG Aggressive Unit Trust Fund 100.00 100.00
MGCP Conservative Unit Trust Fund 100.00 100.00
MGEE European Equity Unit Trust Fund 100.00 100.00
MGGR Growth Unit Trust Fund 100.00 100.00
MGHB Hong Kong Bond Unit Trust Fund 100.00 100.00
MGHE Hong Kong Equity Unit Trust Fund 100.00 100.00
MGIB International Bond Unit Trust Fund 100.00 100.00
MGIE International Equity Unit Trust Fund 100.00 100.00
MGIT Interest Fund Policy 100.00 100.00
MGJE Japan Equity Unit Trust Fund 100.00 100.00
MGNE North American Equity Unit Trust Fund 100.00 100.00
MGPE Pacific Asia Equity Unit Trust Fund 100.00 100.00
MGST Stable Fund Policy 100.00 100.00
MGFG Growth Unit Trust Fund (Series I) 100.00 100.00
MGFS Stable Growth Unit Trust Fund 100.00 100.00
MGCV China Value Unit Trust Fund 100.00 100.00
MGHC Healthcare Unit Trust Fund 100.00 100.00
MGHS Hang Seng Index Tracking Unit Trust Fund 100.00 100.00
MGPB Pacific Asia Bond Unit Trust Fund 100.00 100.00
MGRB RMB Bond Unit Trust Fund 100.00 100.00
72 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Statement of movement in portfolio holdings (continued) Year/period Year ended ended 31 March 2021 31 March 2020 Name Quoted investments % of % of of Fund - approved pooled investment fund net assets net assets
MG15 Smart Retirement Unit Trust Fund 100.00 100.00
MG20 2020 Retirement Unit Trust Fund* - 100.00
MG25 2025 Retirement Unit Trust Fund 100.00 100.00
MG30 2030 Retirement Unit Trust Fund 100.00 100.00
MG35 2035 Retirement Unit Trust Fund 100.00 100.00
MG40 2040 Retirement Unit Trust Fund 100.00 100.00
MG45 2045 Retirement Unit Trust Fund 100.00 100.00
MGAP Age 65 Plus Unit Trust Fund 100.00 100.00
MGCA Core Accumulation Unit Trust Fund 100.00 100.00
MGRI Retirement Income Unit Trust Fund** 100.00 -
* MG20 had no operations since 5 January 2021 and terminated on 25 March 2021.
** MGRI was launched on 21 September 2020.
73 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Fund expense ratio
Year ended Year ended Name Quoted investments 31 March 2021 31 March 2020 of Fund - approved pooled investment fund % %
MGAG Aggressive Unit Trust Fund 1.79 1.80
MGCP Conservative Unit Trust Fund 0.72 0.77
MGEE European Equity Unit Trust Fund 1.78 1.81
MGGR Growth Unit Trust Fund 1.78 1.78
MGHB Hong Kong Bond Unit Trust Fund 1.18 1.18
MGHE Hong Kong Equity Unit Trust Fund 1.79 1.81
MGIB International Bond Unit Trust Fund 1.17 1.18
MGIE International Equity Unit Trust Fund 1.77 1.79
MGIT Interest Fund Policy 1.78 1.79
MGJE Japan Equity Unit Trust Fund 1.80 1.80
MGNE North American Equity Unit Trust Fund 1.74 1.78
MGPE Pacific Asia Equity Unit Trust Fund 1.82 1.85
MGST Stable Fund Policy 1.77 1.77
MGFG Growth Unit Trust Fund (Series I) 1.78 1.78
MGFS Stable Growth Unit Trust Fund 1.77 1.78
MGCV China Value Unit Trust Fund 1.96 2.00
MGHC Healthcare Unit Trust Fund 1.92 1.93
MGHS Hang Seng Index Tracking Unit Trust Fund 1.01 1.01
MGPB Pacific Asia Bond Unit Trust Fund 1.24 1.26
MGRB RMB Bond Unit Trust Fund 1.19 1.21
74 MANULIFE GLOBAL SELECT (MPF) SCHEME
INVESTMENT REPORT
Year ended 31 March 2021
Fund expense ratio (continued)
Year/period ended Year ended Name Quoted investments 31 March 2021 31 March 2020 of Fund - approved pooled investment fund % %
MG15 Smart Retirement Unit Trust Fund 1.05 1.08
MG20 2020 Retirement Unit Trust Fund 0.82 1.07 (for the period from 1 April 2020 to 25 March 2021 (date of termination))
MG25 2025 Retirement Unit Trust Fund 1.06 1.06
MG30 2030 Retirement Unit Trust Fund 1.07 1.07
MG35 2035 Retirement Unit Trust Fund 1.07 1.07
MG40 2040 Retirement Unit Trust Fund 1.08 1.09
MG45 2045 Retirement Unit Trust Fund 1.06 1.06
MGAP Age 65 Plus Unit Trust Fund 0.80 0.78
MGCA Core Accumulation Unit Trust Fund 0.76 0.76
MGRI Retirement Income Unit Trust Fund 0.72 - (fund expense ratio for the period from 21 September 2020 (date of inception) to 31 March 2021)
75 Ernst & Young §i<§E'rBRi$5I'a*§FE Tel EE: +852 2846 9888 27/F, One Taikoo Place §>&u>m§€§979§»£ Fax go +852 2868 4432 Zéik 979 King's Road ey.com EY K3iE-}£27*§ Ouarry Bay, Hong Kong
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF MANULIFE GLOBAL SELECT (MPF) SCHEME
Report on the audit of the financial statements
Opinion
We have audited the financial statements of Manulife Global Select (MPF) Scheme (the "Scheme") set out on pages 80 to 146, which comprise the statement of net assets available for benefits as at 31 March 2021, and the statement of profit or loss and other comprehensive income, the statement of changes in net assets available for benefits and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the financial statements give a true and fair view of the financial position of the Scheme as at31 March 2021, and its financial transactions and cash flows for the year then ended in accordance with Hong Kong Financial Reporting Standards ("HKFRSs") issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA").
Basis for opinion
We conducted our audit in accordance with Hong Kong Standards on Auditing ("HKSAs") and with reference to Practice Note 860.1 (Revised), The Audit of Retirement Schemes issued by the HKICPA. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Scheme in accordance with the HKlCPA's Code of Ethics for Professional Accountants (the "Code"), and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of matter
We draw attention to note 2.1 to the financial statements which describes that Manulife MPF 2020 Retirement Fund was terminated on 25 March 2021. Accordingly, the financial statements of Manulife MPF 2020 Retirement Fund for the period from 1 April 2020 to 25 March 2021 (date of termination) have been prepared on a liquidation basis as described in note 2.1. Our opinion is not modified in respect of this matter.
Information other than the financial statements and auditor's report thereon
The trustee of the Scheme is responsible for the other information. The other information comprises the information included in the consolidated report, other than the financial statements, our auditor's report and independent auditor's assurance report.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report the fact. We have nothing to report in this regard.
76
A member firm of Ernst & Young Global Limited EYwk
INDEPENDENT AUDlTOR'S REPORT (continued) TO THE TRUSTEE OF MANULIFE GLOBAL SELECT (MPF) SCHEME
Responsibilities of trustee for the financial statements
The trustee is responsible for the preparation of the financial statements that give a true and fair view in accordance with HKFRSs issued by the HKICPA and for such internal control as the trustee determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustee is responsible for assessing the Scheme's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustee either intends to liquidate the Scheme or to cease operations, or has no realistic alternative but to do so.
In addition, the trustee is required to ensure that the financial statements have been properly prepared in accordance with sections 80, 81, 83 and 84 of the Mandatory Provident Fund Schemes (General) Regulation (the "General Regulation").
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Our report is made solely to you, as a body, in accordance with Section 102 of the General Regulation, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with HKSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. In addition, we are required to assess whether the financial statements of the Scheme have been properly prepared, in all material respects, in accordance with sections 80, 81, 83 and 84 of the General Regulation.
As part of an audit in accordance with HKSAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Scheme's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustee.
77
A member firm of Ernst 8. Young Global Limited EYwe(
INDEPENDENT AUDlTOR'S REPORT (continued) TO THE TRUSTEE OF MANULIFE GLOBAL SELECT (MPF) SCHEME
Auditor's responsibilities for the audit of the financial statements (continued)
. For the Scheme and the individual constituent funds, including Manulife MPF Aggressive Fund, Manulife MPF Conservative Fund, Manulife MPF European Equity Fund, Manulife MPF Growth Fund, Manulife MPF Hong Kong Bond Fund, Manulife MPF Hong Kong Equity Fund, Manulife MPF Interest Fund, Manulife MPF International Bond Fund, Manulife MPF International Equity Fund, Manulife MPF Japan Equity Fund, Manulife MPF North American Equity Fund, Manulife MPF Pacific Asia Equity Fund, Manulife MPF Stable Fund, Manulife MPF Fidelity Growth Fund, Manulife MPF Fidelity Stable Growth Fund, Manulife MPF China Value Fund, Manulife MPF Healthcare Fund, Manulife MPF Pacific Asia Bond Fund, Manulife MPF Hang Seng Index Tracking Fund, Manulife MPF RMB Bond Fund, Manulife MPF Smart Retirement Fund, Manulife MPF 2025 Retirement Fund, Manulife MPF 2030 Retirement Fund, Manulife MPF 2035 Retirement Fund, Manulife MPF 2040 Retirement Fund, Manulife MPF 2045 Retirement Fund, Manulife MPF Age 65 Plus Fund, Manulife MPF Core Accumulation Fund and Manulife MPF Retirement income Fund (the "CFs"), conclude on the appropriateness of the trustee's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Scheme's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Scheme and the CFs to cease to continue as a going concern. For Manulife MPF 2020 Retirement Fund, conclude on the appropriateness of the trustee's use of the going concern basis of accounting. When such use is inappropriate and the trustee uses an alternative basis of accounting, we conclude on the appropriateness of the trustee's use of the alternative basis of accounting. We also evaluate the adequacy of the disclosures describing the alternative basis of accounting and reasons for its use. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with the trustee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
78
A member firm of Ernst & Young Global Limited EYBik
INDEPENDENT AUDITOR'S REPORT (continued) TO THE TRUSTEE OF MANULIFE GLOBAL SELECT (MPF) SCHEME
Report on matters under the Mandatory Provident Fund Schemes (General) Regulation
a. In our opinion, the financial statements have been properly prepared, in all material respects, in accordance with sections 80, 81, 83 and 84 of the General Regulation.
b. We have obtained all the information and explanations which, to the best of our knowledge and belief, are necessary for the purpose of our audit.
-T\ Q.
Certified Public Accountants Hong Kong 14 September 2021
79
A member firm of Ernst & Young Global Limited MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Year ended 31 March 2021
2021 2020 HK$ HK$
INVESTMENT INCOME Dividend income 9,947,686 - Net realised gains on disposal of investments at fair value through profit or loss 12,545,382,308 3,446,148,098 Net change in unrealised gains/losses on investments at fair value through profit or loss ______49,637,582,______083 _(19,605,718,49______7) 62,192,912,077 (16,159,570,399)
OTHER INCOME Interest income ______717,864 ______1,115,243
62,193,629,941 (16,158,455,156)
EXPENSES Bank charges ______1,033,115______1,011,814
PROFIT/(LOSS) AND TOTAL COMPREHENSIVE INCOME FOR THE YEAR ______62,192,596,82______6 _(_16,159,466,970______)
80 MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
At 31 March 2021
Notes 2021 2020 HK$ HK$
ASSETS Investments at fair value through profit or loss 6 289,242,619,950 208,264,729,153 Contribution receivables from employers 544,263,891 596,619,767 Contribution receivables Bom employees 285,511,703 361,007,160 Amounts receivable on sale of investments l 1(b) 806,106,836 878,406,601 Other receivables 11(b) 57,098,473 40,000,404 Cash and cash equivalents 7 844,128,588 702,868,295
TOTAL ASSETS 291,779,729,441 210,843,631,380
LIABILITIES Benefits payable 176,874,534 135,312,866 Amounts payable on purchase of investments 11(b) 667,755,338 815,694,236 Other payables 351,373,885 252,540,408
TOTAL LIABILITIES 1,196,003,757 1,203,547,510
EQUITY Net assets available for benefits 290,583,725,684 209,640,083,870
TOTAL LIABILITIES AND EQUITY 291,779,729,441 210,843,631,380
For and on behalf of Manulife Provident Funds Trust Company Limited
...... Ellen Leuri I/R5ymond N Director Director
81 MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Year ended 31 March 2021
Notes 2021 2020 HK$ HK$
BALANCE BROUGHT FORWARD ______209,640,083,870 ______207,290,714,011
CONTRIBUTIONS RECEIVED AND RECEIVABLE 4 From employers Normal or mandatory 6,936,571,253 6,696,699,224 Additional voluntary 1,606,604,766 1,611,395,839
From members Normal or mandatory 6,803,717,049 6,560,601,850 Additional voluntary 1,427,351,947 1,047,394,681
Transfers in Group transfers in from other schemes 2,849,039,622 4,474,883,991 Individual transfers in from other schemes ______15,791,249,287 ______11,240,191,556 ______35,414,533,924 ______31,631,167,141
BENEFITS PAID AND PAYABLE 5 Death or disability benefits ( 299,570,094) ( 263,344,056) Lump sum retirement benefits ( 3,496,319,420) ( 2,734,858,639) Payments to and on account of leavers Refunds of contributions ( 4,424,253,433) ( 3,415,038,659) Group transfers out to other schemes ( 175,687,320) ( 171,215,896) Individual transfers out to other schemes ( 8,157,090,936) ( 6,391,179,253) Withdrawal from special voluntary contribution ______( 110,567,733) ______( 146,693,809 ) ______( 16,663,488,936) ( ______13,122,330,312 )
228,391,128,858 225,799,550,840
Total comprehensive income for the year ______62,192,596,826 ( ______16,159,466,970)
BALANCE CARRIED FORWARD ____290,583,725,68______4 ______209,640,083,870
82 MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF CASH FLOWS
Year ended 31 March 2021
Note 2021 2020 HK$ HK$
CASH FLOWS FROM OPERATING ACTIVITIES Profit/(loss) for the year 62,192,596,826 ( 16,159,466,970) Adjustments for: Net change in unrealised gains/losses on investments at fair value through profit or loss ( 49,637,582,083) 19,605,718,497 Net realised gains on disposal of investments at fair value through profit or loss ( 12,545,382,308) ( 3,446,148,098) Interest income ______( ______717,864 ) ( ______1,115,243 ) 8,914,571 ( 1,011,814)
(Increase)/decrease in other receivables ( 17,098,069) 1,424,396 Increase in other payables ______98,833,______477 ______63,539,721 Net cash flows from operating activities ______90,649,9______79 ______63,952,303
CASH FLOWS FROM INVESTING ACTIVITIES Purchases of investments at fair value through profit or loss (150,891,695,273) (102,623,930,748) Sales of investments at fair value through profit or loss 132,146,737,369 84,316,855,661 Interest received ______717,864 ______1,115,243 Net cash flows used in investing activities ______( 18,744,240,______040 ) (______18,305,959,844 )
CASH FLOWS FROM FINANCING ACTIVITIES Contributions received 35,426,725,308 31,457,636,166 Benefits paid ( 16,621,927,268) ( 13,094,025,776) Distribution paid __ ( ______9,947,686 ) ______- Net cash flows from financing activities ______18,794,850,35______4 ______18,363,610,390
NET INCREASE IN CASH AND CASH EQUIVALENTS 141,260,293 121,602,849
Cash and cash equivalents at beginning of year ______702,868,295______581,265,446______
CASH AND CASH EQUIVALENTS AT END OF YEAR ______844,128,58______8 ______702,868,295______
ANALYSIS OF BALANCES OF CASH AND CASH EQUIVALENTS Bank balances 7 ______844,128,588______702,868,295
83
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - CONSTITUENT FUNDS
Year ended 31 March 2021
MGAG MGCP MGEE MGGR MGHB MGHE MGIB MGIE HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
INVESTMENT INCOME Net realised gains on disposal of investments at fair value through profit or loss 872,347,631 130,508,216 370,071,216 520,422,446 151,364,718 1,376,990,884 148,357,285 315,498,150
Net change in unrealised gains/losses on investments at fair value through profit or loss ______8,639,563,733 (____ 74,635,585)______956,067,390 ______5,196,181,173 (1______42,286,978) ______3,081,088,619 ______18,293,919 __2,268,926,431______
PROFIT AND TOTAL COMPREHENSIVE INCOME FOR THE YEAR ______9,511,911,364 ____ 55,872,631______1,326,138,606______5,716,603,619 ______9,077,740 ______4,458,079,503______166,651,204 ______2,584,424,581_____
84
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - CONSTITUENT FUNDS (continued)
Year ended 31 March 2021
MGIT MGJE MGNE MGPE MGST MGFG MGFS MGCV HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
INVESTMENT INCOME Net realised gains on disposal of investments at fair value through profit or loss - 421,417,297 1,323,791,387 1,004,423,538 381,163,503 352,843,621 181,321,325 2,584,277,900
Net change in unrealised gains/losses on investments at fair value through profit or loss ______-______309,402,918 ______3,289,759,000______3,419,099,286 _____1,358,471,136______2,619,796,312______1,273,759,005______8,135,221,639______- 730,820,215 4,613,550,387 4,423,522,824 1,739,634,639 2,972,639,933 1,455,080,330 10,719,499,539
OTHER INCOME Interest income ______125,607,635______- ______- ______- ______- ______- ______- ______-
PROFIT AND TOTAL COMPREHENSIVE INCOME FOR THE YEAR 125,607,635______730,820,215______4,613,550,387______4,423,522,824 _____1,739,634,639______2,972,639,933______1,455,080,330______10,719,499,539______
85
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - CONSTITUENT FUNDS (continued)
Year ended 31 March 2021
For the period from 1 April 2020 to 25 March 2021 (date of termination) MGHC MGHS MGPB MGRB MG15 MG20 MG25 MG30 HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
INVESTMENT INCOME Net realised gains on disposal of investments at fair value through profit or loss 1,282,402,409 119,007,853 73,601,050 57,248,825 17,107,250 128,285,544 33,793,528 23,923,352
Net change in unrealised gains/losses on investment at fair value through profit or loss ______4,734,792,881______1,037,484,622______82,902,565 _____54,287,537______105,621,170 ______2,876,293 ______164,937,422 ______216,669,689
PROFIT AND TOTAL COMPREHENSIVE INCOME FOR THE YEAR/PERIOD ______6,017,195,290____ _1,156,492,475______156,503,615 ______111,536,362 ______122,728,420 ______131,161,837 ______198,730,950 ______240,593,041
86
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - CONSTITUENT FUNDS (continued)
Year ended 31 March 2021
For the period from 21 September 2020 (date of inception) to 31 March 2021 MG35 MG40 MG45 MGAP MGCA MGRI HK$ HK$ HK$ HK$ HK$ HK$
INVESTMENT INCOME Dividend income - - - - - 9,947,686 Net realised gains on disposal of investments at fair value through profit or loss 25,003,892 21,979,533 46,445,973 153,658,092 294,266,799 8,251,456 Net change in unrealised gains/losses on investment at fair value through profit or loss 242,043,594______202,220,093 _____ 348,144,671______56,715,328______2,040,910,947______( 732,72____7_)
PROFIT AND TOTAL COMPREHENSIVE INCOME FOR THE YEAR/PERIOD 267,047,486______224,199,626 _____ 394,590,644______210,373,420______2,335,177,746______17,466,415______
87
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - CONSTITUENT FUNDS
Year ended 31 March 2020
MGAG MGCP MGEE MGGR MGHB MGHE MGIB MGIE HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
INVESTMENT INCOME Net realised gains on disposal of investments at fair value through profit or loss 375,471,225 95,199,560 39,517,014 231,209,830 77,364,978 49,467,071 35,017,048 118,856,769
Net change in unrealised gains/losses on investments at fair value through profit or loss (3,153,662,70______4) ____ 74,407,456______(204,511,361) (1,817,214,029)______78,781,923 (1,561,111,278)______14,645,721 (745,301,165)______
(LOSS)/PROFIT AND TOTAL COMPREHENSIVE INCOME FOR THE YEAR ______(2,778,191,479 ) ____169,607,016______(164,994,347) (1,586,004,199)______156,146,901 (1,511,644,207)______49,662,769 (626,444,396)______
88
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - CONSTITUENT FUNDS (continued)
Year ended 31 March 2020
MGIT MGJE MGNE MGPE MGST MGFG MGFS MGCV HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
INVESTMENT INCOME Net realised gains on disposal of investments at fair value through profit or loss - 4,965,369 138,714,836 142,099,835 222,093,724 158,434,260 66,674,310 779,865,031
Net change in unrealised gains/losses on investments at fair value through profit or loss ______-______(214,568,012) (1,057,169,678)______(1,619,841,540)______(392,211,241) (1,053,720,______187) ___(356,274,467)______(3,254,740,176)______- (209,602,643) ( 918,454,842) (1,477,741,705) (170,117,517) ( 895,285,927) (289,600,157) (2,474,875,145)
OTHER INCOME Interest income ______111,668,399______- ______- ______- ______- ______- ______- ______-
PROFIT/(LOSS) AND TOTAL COMPREHENSIVE INCOME FOR THE YEAR ______111,668,399______(209,602,643)______(______918,454,842)______(1,477,741,705)______(170,117,517) (_____ 895,285,927)______(289,600,157)______(2,474,875,145)______
89
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - CONSTITUENT FUNDS (continued)
Year ended 31 March 2020
MGHC MGHS MGPB MGRB MG15 MG20 MG25 MG30 HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
INVESTMENT INCOME Net realised gains on disposal of investments at fair value through profit or loss 559,595,372 12,374,587 23,716,179 16,427,633 3,598,479 8,188,268 9,063,859 6,881,153
Net change in unrealised gains/losses on investment at fair value through profit or loss (2,367,434,363)______(900,752,908)______(46,897,400) ______(20,620,678) ______(31,141,424 ) ______(39,478,386) (60,818,724)______(70,449,020)
LOSS AND TOTAL COMPREHENSIVE INCOME FOR THE YEAR (1,807,838,991)______(888,378,321)______(23,181,221) ______( 4,193,045) ______(27,542,945 ) ______(31,290,118) (51,754,865)______(63,567,867)
90
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - CONSTITUENT FUNDS (continued)
Year ended 31 March 2020
MG35 MG40 MG45 MGAP MGCA HK$ HK$ HK$ HK$ HK$
INVESTMENT INCOME Net realised gains on disposal of investments at fair value through profit or loss 7,840,602 6,900,978 11,668,006 71,027,257 62,246,466
Net change in unrealised gains/losses on investment at fair value through profit or loss ______(78,757,685) ______(65,955,147) _____(117,525,691)______(24,855,127)______(518,541,206)____
(LOSS)/PROFIT AND TOTAL COMPREHENSIVE INCOME FOR THE YEAR ______(70,917,083) ______(59,054,169) _____(105,857,685)______46,172,130______(456,294,740)______
91
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS - CONSTITUENT FUNDS
At 31 March 2021
Notes MGAG MGCP MGEE MGGR MGHB MGHE MGIB MGIE HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
ASSETS Investments at fair value through profit or loss 6 28,524,052,580 13,176,883,623 3,767,887,419 20,984,850,721 3,519,357,490 15,357,677,351 5,702,852,247 7,341,443,568 Amounts receivable on subscription 11(b) 16,294,446 46,183,174 8,137,717 12,809,155 2,325,501 38,623,888 8,680,439 10,234,244 Amounts receivable on sale of investments 11(b) ______27,389,041 ______102,537,419 ____ 9,700,373______18,688,765 ______19,188,744 ______62,848,119 ______13,673,049 ______8,462,477
TOTAL ASSETS 28,567,736,067______13,325,604,216______3,785,725,509_____ 21,016,348,641______3,540,871,735 15,459,149,358______5,725,205,735 ______7,360,140,289
LIABILITIES Amounts payable on redemption 11(b) 27,389,041 102,537,419 9,700,373 18,688,765 19,188,744 62,848,119 13,673,049 8,462,477 Amounts payable on purchase of investments 11(b) ______16,294,446 ______46,183,174 ____ 8,137,717______12,809,155 ______2,325,501 ______38,623,888 ______8,680,439 ______10,234,244
TOTAL LIABILITIES ______43,683,487 ______148,720,593 ______17,838,090 ______31,497,920 ______21,514,245 ______101,472,007 ______22,353,488 ______18,696,721
EQUITY Net assets available for benefits 28,524,052,580______13,17______6,883,623 ____ 3,767,887,419_____ 20,984,850,721______3,519,357,490 15,357,677,351______5,702,852,247 ______7,341,443,568
TOTAL LIABILITIES AND EQUITY 28,567,736,067______13,325,604,216______3,785,725,509_____ 21,016,348,641______3,540,871,735 15,459,149,358______5,725,205,735 ______7,360,140,289____
CAPITAL ACCOUNT'S UNITS IN ISSUE ______1,139,477,637 ______1,161,527,597 ____ 237,770,523______877,353,573 ______231,038,394 ______517,414,450 ______326,885,479 ______341,539,886
NET ASSET VALUE PER UNIT ______25.033 ______11.344 _____ 15.847______23.918 ______15.233 ______29.682 ______17.446 ______21.495___
92
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS - CONSTITUENT FUNDS (continued)
At 31 March 2021
Notes MGIT MGJE MGNE MGPE MGST MGFG MGFS MGCV HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
ASSETS Investments at fair value through profit or loss 6 26,594,442,039 2,255,302,232 13,673,831,140 12,014,432,939 16,347,208,792 10,510,225,508 8,185,343,189 36,325,039,983 Amounts receivable on subscription 11(b) 154,185,330 135,796,502 38,185,601 55,159,509 18,173,048 9,567,976 5,829,907 43,577,027 Amounts receivable on sale of investments 11(b) ______140,270,378 ______71,686,471 ______56,282,404 ______20,668,234 ______25,503,300 ______12,292,441 ______7,664,455 ______71,396,251
TOTAL ASSETS ______26,888,897,747 ______2,462,785,205 13,768,299,145______12,090,260,682______16,390,885,140______10,532,085,925______8,198,837,551 36,440,013,261______
LIABILITIES Amounts payable on redemption 11(b) 140,270,378 71,686,471 56,282,404 20,668,234 25,503,300 12,292,441 7,664,455 71,396,251 Amounts payable on purchase of investments 11(b) ______154,185,330 ______135,796,502 ______38,185,601 ______55,159,509 ______18,173,048 ______9,567,976 ______5,829,907 ______43,577,027
TOTAL LIABILITIES ______294,455,708 ______207,482,973 ______94,468,005 ______75,827,743 ______43,676,348 ______21,860,417 ______13,494,362______114,973,278
EQUITY Net assets available for benefits ______26,594,442,039 ______2,255,302,232 13,673,831,140______12,014,432,939______16,347,208,792______10,510,225,508______8,185,343,189_____ 36,325,039,983______
TOTAL LIABILITIES AND EQUITY ______26,888,897,747 ______2,462,785,205 13,768,299,145______12,090,260,682______16,390,885,140______10,532,085,925______8,198,837,551 36,440,013,261______
CAPITAL ACCOUNT'S UNITS IN ISSUE ______N/A ______146,531,034 ______567,472,766 ______361,060,316 ______957,197,521 ______293,633,588 ______323,858,615 ______1,033,902,044
NET ASSET VALUE PER UNIT ______N/A ______15.391 ______24.096 ______33.275 ______17.078 ______35.794 ______25.274 ______35.134
93
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS - CONSTITUENT FUNDS (continued)
At 31 March 2021
Notes MGHC MGHS MGPB MGRB MG15 MG20* MG25 MG30 HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
ASSETS Investments at fair value through profit or loss 6 32,769,958,307 5,863,234,404 1,747,089,347 2,052,714,590 1,164,216,598 - 845,777,524 854,476,082 Amounts receivable on subscription 11(b) 20,514,514 12,599,100 2,319,439 3,667,972 1,964,270 - 163,582 798,051 Amounts receivable on sale of investments 11(b) ______36,253,016______35,991,961 _____ 2,487,860______22,541,027 ______2,352,794 ______- ______811,123 ______855,617
TOTAL ASSETS ______32,826,725,837______5,911,825,465 _____ 1,751,896,646______2,078,923,589 ______1,168,533,662 ______- ______846,752,229 ______856,129,750
LIABILITIES Amounts payable on redemption 11(b) 36,253,016 35,991,961 2,487,860 22,541,027 2,352,794 - 811,123 855,617 Amounts payable on purchase of investments 11(b) ______20,514,514______12,599,100______2,319,439______3,667,972 ______1,964,270 ______- ______163,582 ______798,051
TOTAL LIABILITIES ______56,767,530______48,591,061 _____ 4,807,299______26,208,999 ______4,317,064 ______- ______974,705 ______1,653,668
EQUITY Net assets available for benefits ______32,769,958,307______5,863,234,404 _____ 1,747,089,347______2,052,714,590 ______1,164,216,598 ______- ______845,777,524 ______854,476,082
TOTAL LIABILITIES AND EQUITY ______32,826,725,837______5,911,825,465 _____ 1,751,896,646______2,078,923,589 ______1,168,533,662 ______- ______846,752,229 ______856,129,750
CAPITAL ACCOUNT'S UNITS IN ISSUE ______1,288,191,094______346,718,494 _____ 145,374,329______179,741,655 ______81,368,847______- ______52,724,151 ______49,256,703
NET ASSET VALUE PER UNIT ______25.439______16.911 _____ 12.018______11.420 ______14.308 ______- ______16.042 ______17.347
* The fund was terminated on 25 March 2021.
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6L6'9s8'90v'I 6L6'9s8'90v'I
ss0'0s9'0I ss0'0s9'0I
sss'zs6'0s1 sss'zs6'0s1 €68'Iv8'0z1>'I €68'Iv8'0z1>'I E 'E17L'0I
Raymond
Director
Director
EHKS
CDSMGRI
10.743
3,354,861 3,354,861
3,354,861
10,650,053
10,650,053
10,650,053
14,004,914
130,952,585
,406,836,979
,406,836,979
l
1,406,836,979
1,420,841,893
l 1,420,841,893
1,420,841,893
voow voow
S>IH S>IH
69589661 69589661
69589661 69589661
s06'€08'9sL'u s06'€08'9sL'u
v0L66L£'£IL'u v0L66L£'£IL'u zw'g9p'g zw'g9p'g
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zw's9v'£ zw's9v'£
[0Z'17Zp'gZ [0Z'17Zp'gZ 9I0'€£s'8t>8 9I0'€£s'8t>8
906'£08'9€L'u 906'£08'9€L'u V08'€I V08'€I
HKS
13.804
MGCA
3,465,442
3,465,442
19,958,759
19,958,759
23,424,201
848,533,016
1,736,803,905
l
11,713,379,704
11,713,379,704
11,736,803,905
9vL'i7z£'17v9's 9vL'i7z£'17v9's
908'181'5 908'181'5
6w'9sL'6 6w'9sL'6
617i7'9€L'6 617i7'9€L'6
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9vL'vz£'w9's 9vL'vz£'w9's
I00'£vz'6s9'£ I00'£vz'6s9'£
L06'66z'90€ L06'66z'90€ I00'£17z'6s9'€ I00'£17z'6s9'€
(continued) (continued)
goHKS
11.898
MGAP 11.898 S6 S6
5,181,806
9,736,449
5,181,806
9,736,449
14,918,255
306,299,907
95
FUNDS FUNDS
3,644,324,746
3,659,243,001
3,659,243,001
3,644,324,746
119's99'06z'1 119's99'06z'1
9L8'9I8'I 9L8'9I8'I
99€'v68'£6z'1 99€'v68'£6z'1
698'IIi7'I 698'IIi7'I
9L8'9I8'I 9L8'9I8'I 698'u17'I 698'u17'I
9s~z'1768'€6z'I 9s~z'1768'€6z'I
sw.'8zz'€ sw.'8zz'€
zL8'Lsv'0L zL8'Lsv'0L 81€'81 81€'81 II9's99'06z'I II9's99'06z'I
HK$
HKS
MG45 MG45
18.318
1,411,869
1,816,876
1,816,876
1,411,869
3,228,745
70,457,872
1,290,665,611
1,290,665,611
1,293,894,356
1,293,894,356
CONSTITUENT
CONSTITUENT
avow avow
S>I;H S>I;H
£ss'osI'vzL £ss'osI'vzL
£vo'svL £vo'svL 6z8'L8z'szL 6z8'L8z'szL
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svo'st>L svo'st>L 9Lz'L€I'1 9Lz'L€I'1
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8LII8I 8LII8I
100'L£8'6€ 100'L£8'6€ €ss'osI'vzL €ss'osI'vzL
-
-
Limited
Limited
HKS
MG40
18.178
392,233
745,043
392,233
745,043
1,137,276
39,837,001
725,287,829
724,150,553
725,287,829
724,150,553
BENEFITS BENEFITS Company
Company
6ss'z0s'I 6ss'z0s'I
v89'v96'v88 v89'v96'v88
99/.'LLL'9ss 99/.'LLL'9ss
£5L'01s £5L'01s 6£€z0€1 6£€z0€1
9sL'LLL'988 9sL'LLL'988
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££50I; ££50I; v89'v96'v88 v89'v96'v88
sLI'Ltz'6v sLI'Ltz'6v I86ILI I86ILI
FOR FOR
HKSHKS Trust Trust
MG35
MG35
17.981
510,733
510,733
1,302,339
1,302,339
1,813,072
49,217,173
.
884,964,684
886,777,756
884,964,684
886,777,756
.
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11(b)
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11(b)
11(b)
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LIABILITIES
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.
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31 31
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assets
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MANULIFE
MANULIFE At
STATEMENT STATEMENT ASSETS ASSETS
Amounts
Amounts
Amol Amol
Amounts Amounts Amounts
TOTAL TOTALASSETS Amounts
Investments TOTAL EQUITY
LIABILITIESLIABILITIES TCTAL Net Investments
TOTAL
EQUITY
CAPITAL
TOTAL CAPITAL NET
Net
NETASSET For
For
Director
Ellen Ellen Director ..
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS - CONSTITUENT FUNDS
At 31 March 2020
Notes MGAG MGCP MGEE MGGR MGHB MGHE MGIB MGIE HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
ASSETS Investments at fair value through profit or loss 6 20,096,846,461 11,930,796,014 2,206,401,887 15,647,600,146 3,262,615,816 10,493,998,937 4,954,760,417 4,464,563,017 Amounts receivable on subscription 11(b) 13,056,610 122,279,976 3,311,769 14,878,394 22,358,677 101,920,568 13,358,281 4,951,267 Amounts receivable on sale of investments 11(b) ______26,309,733 ______85,734,279 ____ 10,093,084______18,457,219 ______19,358,210 ______128,191,278 ______24,558,198 ______7,347,948
TOTAL ASSETS 20,136,212,80______4 12,138,810,269______2,219,_806,740____ 15,680,935,759______3,304,332,703 10,724,110,783______4,992,676,896 ______4,476,862,232
LIABILITIES Amounts payable on redemption 11(b) 26,309,733 85,734,279 10,093,084 18,457,219 19,358,210 128,191,278 24,558,198 7,347,948 Amounts payable on purchase of investments 11(b) ______13,056,610 ______122,279,976 ____ 3,311,769______14,878,394 ______22,358,677 ______101,920,568 ______13,358,281 ______4,951,267
TOTAL LIABILITIES ______39,366,343 ______208,014,255 ______13,404,853 ______33,335,613 ______41,716,887 ______230,111,846 ______37,916,479 ______12,299,215
EQUITY Net assets available for benefits 20,096,846,46______1 11,930,796,014______2,206,401,887_____ 15,647,600,146______3,262,615,816 10,493,998,937______4,954,760,417 ______4,464,563,017
TOTAL LIABILITIES AND EQUITY 20,136,212,80______4 12,138,810,269______2,219,806,740_____ 15,680,935,759______3,304,332,703 10,724,110,783______4,992,676,896 ______4,476,862,232
CAPITAL ACCOUNT'S UNITS IN ISSUE ______1,189,404,194 ______1,056,413,593 ____ 219,871,890______895,189,045 ______214,895,410 ______506,100,305 ______293,685,116 ______325,787,722
NET ASSET VALUE PER UNIT ______16.897 ______11.294 _____ 10.035______17.480 ______15.182 ______20.735 ______16.871 ______13.704
96
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS - CONSTITUENT FUNDS (continued)
At 31 March 2020
Notes MGIT MGJE MGNE MGPE MGST MGFG MGFS MGCV HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
ASSETS Investments at fair value through profit or loss 6 24,008,225,415 1,463,058,612 6,830,316,058 7,083,651,463 13,806,567,400 7,167,732,414 6,494,039,162 23,149,355,906 Amounts receivable on subscription 11(b) 185,980,141 27,223,820 39,475,601 86,245,595 21,566,499 6,917,160 5,226,901 33,450,854 Amounts receivable on sale of investments 11(b) ______113,421,563 ______15,999,378 ______64,932,122 ______96,510,855 ______29,302,113 ______17,006,634 ______11,215,763 ______48,741,097
TOTAL ASSETS ______24,307,627,119 ______1,506,281,810 ______6,934,723,781 ______7,266,407,913______13,857,______436,012 ______7,191,656,208 ______6,510,481,826 23,231,547,857______
LIABILITIES Amounts payable on redemption 11(b) 113,421,563 15,999,378 64,932,122 96,510,855 29,302,113 17,006,634 11,215,763 48,741,097 Amounts payable on purchase of investments 11(b) ______185,980,141 ______27,223,820 ______39,475,601 ______86,245,595 ______21,566,499 ______6,917,160 ______5,226,901 ______33,450,854
TOTAL LIABILITIES ______299,401,704 ______43,223,198 ______104,407,723 ______182,756,450 ______50,868,612 ______23,923,794 ______16,442,664 ______82,191,951
EQUITY Net assets available for benefits ______24,008,225,415 ______1,463,058,612 ______6,830,316,058 ______7,083,651,463 13,806,567______,400 ______7,167,732,414 ______6,494,039,162 23,149,355,906______
TOTAL LIABILITIES AND EQUITY ______24,307,627,119 ______1,506,281,810 ______6,934,723,781 ______7,266,407,913 1______3,857,436,012 ______7,191,656,208 ______6,510,481,826 23,231,547,857______
CAPITAL ACCOUNT'S UNITS IN ISSUE ______N/A ______138,563,553 ______460,525,553 ______348,317,858 ______909,169,399 ______282,695,986______313,900,044 ______967,461,056
NET ASSET VALUE PER UNIT ______N/A ______10.559 ______14.832 ______20.337 ______15.186 ______25.355 ______20.688 ______23.928
97
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS - CONSTITUENT FUNDS (continued)
At 31 March 2020
Notes MGHC MGHS MGPB MGRB MG15 MG20 MG25 MG30 HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
ASSETS Investments at fair value through profit or loss 6 23,712,412,865 5,011,465,449 1,424,615,103 1,395,178,887 436,277,490 513,843,266 607,519,184 567,442,982 Amounts receivable on subscription 11(b) 38,127,386 22,353,835 5,800,400 7,725,170 870,646 333,225 125,702 89,921 Amounts receivable on sale of investments 11(b) ______65,280,001______38,394,109 _____ 8,661,126______7,449,632 ______705,529 ______974,693 ______1,514,660 ______739,195
TOTAL ASSETS ______23,815,820,252______5,072,213,393 _____ 1,439,076,629______1,410,353,689 ______437,853,665 ______515,151,184 ______609,159,546 ______568,272,098
LIABILITIES Amounts payable on redemption 11(b) 65,280,001 38,394,109 8,661,126 7,449,632 705,529 974,693 1,514,660 739,195 Amounts payable on purchase of investments 11(b) ______38,127,386______22,353,835 _____ 5,800,400______7,725,170 ______870,646 ______333,225 ______125,702 ______89,921
TOTAL LIABILITIES ______103,407,387______60,747,944 _____ 14,461,526______15,174,802 ______1,576,175 ______1,307,918 ______1,640,362 ______829,116
EQUITY Net assets available for benefits ______23,712,412,865______5,011,465,449 _____ 1,424,615,103______1,395,178,887 ______436,277,490 ______513,843,266 ______607,519,184 ______567,442,982
TOTAL LIABILITIES AND EQUITY ______23,815,820,252______5,072,213,393 _____ 1,439,076,629______1,410,353,689 ______437,853,665 ______515,151,184 ______609,159,546 ______568,272,098
CAPITAL ACCOUNT'S UNITS IN ISSUE ______1,159,160,487______363,137,802 _____ 131,471,857______131,068,394 ______38,752,326 ______43,745,079 ______50,127,211 ______46,381,316
NET ASSET VALUE PER UNIT ______20.457______13.800 ______10.836______10.645 ______11.258 ______11.746 ______12.120 ______12.234
98
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS - CONSTITUENT FUNDS (continued)
At 31 March 2020
Notes MG35 MG40 MG45 MGAP MGCA HK$ HK$ HK$ HK$ HK$
ASSETS Investments at fair value through profit or loss 6 573,297,935 455,160,175 791,166,286 2,488,918,462 7,226,901,944 Amounts receivable on subscription 11(b) 204,107 380,888 1,036,660 24,258,464 12,185,719 Amounts receivable on sale of investments 11(b) ______799,914 ______1,227,101 ______1,456,809 ______12,687,387 ______21,336,971
TOTAL ASSETS ______574,301,956 ______456,768,164 ______793,659,755 ______2,525,864,313 ______7,260,424,634
LIABILITIES Amounts payable on redemption 11(b) 799,914 1,227,101 1,456,809 12,687,387 21,336,971 Amounts payable on purchase of investments 11(b) ______204,107 ______380,888 ______1,036,660 ______24,258,464 ______12,185,719
TOTAL LIABILITIES ______1,004,021 ______1,607,989 ______2,493,469 ______36,945,851 ______33,522,690
EQUITY Net assets available for benefits ______573,297,935 ______455,160,175 ______791,166,286 ______2,488,918,462 ______7,226,901,944
TOTAL LIABILITIES AND EQUITY ______574,301,956 ______456,768,164 ______793,659,755 ______2,525,864,313 ______7,260,424,634
CAPITAL ACCOUNT'S UNITS IN ISSUE ______46,733,862 ______37,218,250______64,437,948 ______225,701,164 ______677,228,648
NET ASSET VALUE PER UNIT ______12.267 ______12.229 ______12.278 ______11.027 ______10.671
99
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS - CONSTITUENT FUNDS
Year ended 31 March 2021
MGAG MGCP MGEE MGGR MGHB MGHE MGIB MGIE HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
BALANCE BROUGHT FORWARD ______20,096,846,461 11,930,796,014______2,206,401,887 ______15,647,600,146 ______3,262,615,816 ______10,493,998,937 ______4,954,760,417 ______4,464,563,017
Proceeds on issue 2,804,631,774 13,608,857,587 2,542,533,698 2,531,406,503 3,467,872,858 10,604,687,229 4,058,800,656 1,628,331,495 Payments on redemption (______3,889,337,019) ______(12,418,642,609)(2,307,186,772) ______(2,910,759,547) (3,220,208,924)______(10,199,088,318 ) (3,477,360,030)______(1,335,875,525)______(______1,084,705,245) ______1,190,214,978 ______235,346,926 ______( 379,353,044) ______247,663,934 ______405,598,911 ______581,440,626 ______292,455,970
Total comprehensive income for the year ______9,511,911,364 ______55,872,631 ______1,326,138,606 ______5,716,603,619 ______9,077,740 ______4,458,079,503 ______166,651,204 ______2,584,424,581 BALANCE CARRIED FORWARD ______28,524,052,580 _ 13,176,883,623______3,767,887,419 ______20,984,850,721 ______3,519,357,490 ______15,357,677,351 ______5,702,852,247 ______7,341,443,568 ______
UNITS OUTSTANDING AT BEGINNING OF YEAR 1,189,404,194 1,056,413,593 219,871,890 895,189,045 214,895,410 506,100,305 293,685,116 325,787,722
Units issued 127,042,613 1,200,819,661 188,405,945 116,487,569 224,901,529 384,219,635 228,735,031 87,486,283 Units redeemed (______176,969,170) _( _1,095,705,657)______( 170,507,312)______( 134,323,041) (______208,758,545) ______( 372,905,490) (______195,534,668) (______71,734,119)
UNITS OUTSTANDING AT END OF YEAR ______1,139,477,637 __ 1,161,527,597______237,770,523______877,353,573 ______231,038,394 ______517,414,450 ______326,885,479 ______341,539,886 ______
100
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS - CONSTITUENT FUNDS (continued)
Year ended 31 March 2021
MGIT MGJE MGNE MGPE MGST MGFG MGFS MGCV HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
BALANCE BROUGHT FORWARD ______24,008,225,415 ______1,463,058,612 ______6,830,316,058 ______7,083,651,463 ______13,806,567,400 ______7,167,732,414 ______6,494,039,162 ______23,149,355,906
Proceeds on issue 22,299,177,931 12,443,861,954 10,807,494,965 7,165,991,597 4,171,259,474 2,258,066,195 1,558,001,808 13,368,510,558 Payments on redemption (19,838,568,942)______(12,382,438,549)______( 8,577,530,270) ______(6,658,732,945) ______( 3,370,252,721) (______1,888,213,034) (1,321,778,111)______(10,912,326,020)______2,460,608,989 ______61,423,405 ______2,229,964,695 ______507,258,652 ______801,006,753 ______369,853,161 ______236,223,697______2,456,184,538
Total comprehensive income for the year ______125,607,635 ______730,820,215 ______4,613,550,387 ______4,423,522,824 ______1,739,634,639 ______2,972,639,933 ______1,455,080,330______10,719,499,539
BALANCE CARRIED FORWARD ______26,594,442,039 ______2,255,302,232 13,673,831,140______12,014,432,939______16,347,208,792 10,510,225,508______8,185,343,189______36,325,039,983
UNITS OUTSTANDING AT BEGINNING OF YEAR N/A 138,563,553 460,525,553 348,317,858 909,169,399 282,695,986 313,900,044 967,461,056
Units issued N/A 952,087,844 518,570,317 247,062,094 250,608,387 70,239,058 65,034,341 405,171,800 Units redeemed ______N/A (______944,120,363) ______( 411,623,104) ______( 234,319,636) ______( 202,580,265) (_____ 59,301,456)______(______55,075,770)_ (______338,730,812)
UNITS OUTSTANDING AT END OF YEAR ______N/A ______146,531,034 ______567,472,766 ______361,060,316 ______957,197,521 ______293,633,588______323,858,615______1,033,902,044
101
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS - CONSTITUENT FUNDS (continued)
Year ended 31 March 2021
For the period from 1 April 2020 to 25 March 2021 (date of termination) MGHC MGHS MGPB MGRB MG15 MG20 MG25 MG30 HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
BALANCE BROUGHT FORWARD ______23,712,412,865 ______5,011,465,449 _1,_424,615,103______1,395,178,887 ______436,277,490 ______513,843,266 ______607,519,184 ______567,442,982
Proceeds on issue 12,161,379,482 6,604,371,563 1,280,395,888 1,780,668,194 796,800,605 144,954,747 252,394,579 180,149,128 Payments on redemption (______9,121,029,330) (6,909,095,083)______(1,114,425,259)______(1,234,668,853)______(191,589,917) ______(789,959,850) ______(212,867,189) ______(133,709,069) ______3,040,350,152 (______304,723,520) __ 165,970,629______545,999,341 ______605,210,688 ______(645,005,103) ______39,527,390 ______46,440,059
Total comprehensive income for the year/period ______6,017,195,290 ______1,156,492,475 __ 156,503,615______111,536,362 ______122,728,420 ______131,161,837 ______198,730,950 ______240,593,041
BALANCE CARRIED FORWARD ______32,769,958,307 ______5,863,234,404 _1,747,089,347______2,052,714,590 1,164,216,598______- ______845,777,524 ______854,476,082
UNITS OUTSTANDING AT BEGINNING OF YEAR/PERIOD 1,159,160,487 363,137,802 131,471,857 131,068,394 38,752,326 43,745,079 50,127,211 46,381,316
Units issued 506,980,132 430,864,701 106,924,889 158,805,187 56,710,947 10,675,210 16,690,613 11,371,524 Units redeemed (______377,949,525) (______447,284,009) _( ______93,022,417) (______110,131,926) ______( 14,094,426) ______( 54,420,289) ______( 14,093,673) ______( 8,496,137)
UNITS OUTSTANDING AT END OF YEAR/PERIOD ______1,288,191,094 ______346,718,494 __ 145,374,329______179,741,655 ______81,368,847 ______- ______52,724,151 ______49,256,703
102
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS - CONSTITUENT FUNDS (continued)
Year ended 31 March 2021
For the period from 21 September 2020 (date of inception) to 31 March 2021 MG35 MG40 MG45 MGAP MGCA MGRI HK$ HK$ HK$ HK$ HK$ HK$
BALANCE BROUGHT FORWARD ______573,297,935 ______455,160,175 ______791,166,286 _2,488,918,462______7,226,901,944 ______-
Proceeds on issue 184,641,927 165,275,455 361,985,961 4,738,701,111 5,061,463,129 1,711,088,324 Payments on redemption ______(140,022,664) ______(120,484,703) (______257,077,280) (3,793,668,247)______(2,910,163,115)______(______311,770,074) ______44,619,263 ______44,790,752 ______104,908,681 __ 945,032,864______2,151,300,014 ______1,399,318,250
Total comprehensive income for the year/period 267,047,486 224,199,626 394,590,644 210,373,420 2,335,177,746 17,466,415 Distributions to unitholders ______- ______- ______- ______- ______- (______9,947,686)
BALANCE CARRIED FORWARD ______884,964,684 ______724,150,553 1,290,665,611______3,644,324,746______11,713,379,704______1,406,836,979
UNITS OUTSTANDING AT BEGINNING OF YEAR/PERIOD 46,733,862 37,218,250 64,437,948 225,701,164 677,228,648 -
Units issued 11,336,431 10,146,490 21,856,954 401,875,376 399,894,735 159,712,122 Units redeemed ______( 8,853,120) ______( 7,527,739) (______15,837,030) (_ _ 321,276,633)______(______228,590,367) (______28,759,537)
UNITS OUTSTANDING AT END OF YEAR/PERIOD ______49,217,173 ______39,837,001 ______70,457,872 __ 306,299,907______848,533,016 ______130,952,585
103
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS - CONSTITUENT FUNDS
Year ended 31 March 2020
MGAG MGCP MGEE MGGR MGHB MGHE MGIB MGIE HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
BALANCE BROUGHT FORWARD ______23,341,901,072 10,476,036,171______2,145,899,331 ______17,176,679,172 ______2,545,165,853 ______11,594,124,105 ______4,074,424,934 ______4,646,987,261
Proceeds on issue 2,503,019,470 9,139,096,368 1,054,902,061 2,565,639,580 2,040,072,524 7,407,483,079 2,825,529,585 1,294,459,514 Payments on redemption (______2,969,882,602) _( _ 7,853,943,541)______( 829,405,158) ______( 2,508,714,407) (1,478,769,462)______( 6,995,964,040) (1,994,856,871)______(______850,439,362) (______466,863,132) _ _1,285,152,827______225,496,903 ______56,925,173 ______561,303,062______411,519,039 ______830,672,714 ______444,020,152
Total comprehensive income for the year (______2,778,191,479 ) ______169,607,016 ______( 164,994,347)______( 1,586,004,199) ______156,146,901 ______( 1,511,644,207) ______49,662,769 (______626,444,396) BALANCE CARRIED FORWARD ______20,096,846,461 _ 11,930,796,014______2,206,401,887 ______15,647,600,146 ______3,262,615,816 ______10,493,998,937 ______4,954,760,417 ______4,464,563,017 ______
UNITS OUTSTANDING AT BEGINNING OF YEAR 1,214,965,926 941,913,059 201,680,827 893,168,007 176,835,813 486,984,420 245,125,182 299,426,151
Units issued 129,569,037 814,908,361 93,039,942 132,323,018 138,107,868 323,668,802 166,421,491 80,653,768 Units redeemed (______155,130,769) _( ______700,407,827) ______( 74,848,879) ______( 130,301,980) (______100,048,271) ______( 304,552,917) (______117,861,557) (______54,292,197)
UNITS OUTSTANDING AT END OF YEAR ______1,189,404,194 __ 1,056,413,593______219,871,890 ______895,189,045 ______214,895,410 ______506,100,305 ______293,685,116 ______325,787,722______
104
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS - CONSTITUENT FUNDS (continued)
Year ended 31 March 2020
MGIT MGJE MGNE MGPE MGST MGFG MGFS MGCV HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
BALANCE BROUGHT FORWARD ______21,520,774,781 ______1,770,111,098 ______5,302,027,239 ______8,610,329,481 ______13,123,366,472 ______7,583,339,076 ______6,336,800,288 ______26,431,770,505
Proceeds on issue 16,136,116,859 7,873,550,012 6,064,940,028 3,379,332,983 3,883,055,999 1,867,753,996 1,471,741,040 6,125,791,780 Payments on redemption (13,760,334,62______4 ) (7,970,999,855)______(3,618,196,367) (3,428,269,296)______( 3,029,737,554) (1,388,074,731)______(1,024,902,009)______(6,933,331,234) ______2,375,782,235 (______97,449,843) ______2,446,743,661 (______48,936,313) ______853,318,445 ______479,679,265 ______446,839,031______( 807,539,454)
Total comprehensive income for the year ______111,668,399 (______209,602,643) ______( 918,454,842) (1,477,741,705)______( 170,117,517) (______895,285,927) (______289,600,157)______(2,474,875,145)
BALANCE CARRIED FORWARD ______24,008,225,415 ______1,463,058,612 ______6,830,316,058 ______7,083,651,463 ______13,806,567,400 ______7,167,732,414 ______6,494,039,162______23,149,355,906
UNITS OUTSTANDING AT BEGINNING OF YEAR N/A 145,116,719 321,511,406 350,513,046 854,472,231 266,697,161 293,866,078 999,659,749
Units issued N/A 634,662,365 355,665,722 140,203,842 249,864,022 65,187,055 67,250,856 235,223,653 Units redeemed ______N/A (______641,215,531) ______( 216,651,575) (______142,399,030) ______( 195,166,854) (______49,188,230) (______47,216,890)______( 267,422,346)
UNITS OUTSTANDING AT END OF YEAR ______N/A ______138,563,553 ______460,525,553 ______348,317,858 ______909,169,399 ______282,695,986 ______313,900,04_4 ______967,461,056
105
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS - CONSTITUENT FUNDS (continued)
Year ended 31 March 2020
MGHC MGHS MGPB MGRB MG15 MG20 MG25 MG30 HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
BALANCE BROUGHT FORWARD ______21,984,098,643 ______4,715,047,227 _ 1,266,750,029______1,222,242,506 ______371,573,910 ______559,575,668 ___ 622,950,561______580,568,639
Proceeds on issue 9,806,222,148 6,992,045,718 914,308,692 878,843,252 189,581,357 113,545,355 160,076,878 143,178,608 Payments on redemption (______6,270,068,935) (5,807,249,175)______( _ 733,262,397)______(______701,713,826) ______( 97,334,832) ______(127,987,639) ______(123,753,390) ______( 92,736,398) ______3,536,153,213 ______1,184,796,543 __ 181,046,295______177,129,426 ______92,246,525 ______( 14,442,284) ______36,323,488 ______50,442,210
Total comprehensive income for the year (______1,807,838,991) (______888,378,321) _( ______23,181,221) (______4,193,045 ) ______( 27,542,945 ) ______( 31,290,118) ______( 51,754,865) ______( 63,567,867)
BALANCE CARRIED FORWARD ______23,712,412,865 ______5,011,465,449 _ 1,424,615,103______1,395,178,887 ______436,277,490 ______513,843,266 ______607,519,184______567,442,982
UNITS OUTSTANDING AT BEGINNING OF YEAR 1,000,420,009 285,100,043 115,386,468 114,383,106 31,108,611 44,934,734 47,455,690 42,791,144
Units issued 449,491,141 448,111,662 81,849,321 82,877,840 15,729,890 9,021,867 12,033,921 10,427,146 Units redeemed (______290,750,663) (______370,073,903) _( ______65,763,932) (______66,192,552) ______( 8,086,175) ______( 10,211,522 ) ______( 9,362,400) ______( 6,836,974)
UNITS OUTSTANDING AT END OF YEAR ______1,159,160,487 ______363,137,802 __ 131,471,857______131,068,394 ______38,752,326 ______43,745,079 ______50,127,211 ______46,381,316
106
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS - CONSTITUENT FUNDS (continued)
Year ended 31 March 2020
MG35 MG40 MG45 MGAP MGCA HK$ HK$ HK$ HK$ HK$
BALANCE BROUGHT FORWARD ______589,169,811 ______463,580,158 ______825,414,008 _1,346,732,621______4,810,358,856
Proceeds on issue 148,124,944 135,743,261 245,263,871 2,999,454,008 4,576,570,534 Payments on redemption ______( 93,079,737) ______( 85,109,075) ______(173,653,908)___ (1,903,440,297)______(1,703,732,706)______55,045,207 ______50,634,186 ______71,609,963 _ 1,096,013,711______2,872,837,828
Total comprehensive income for the year ______( 70,917,083) ______( 59,054,169) ______(105,857,685) ______46,172,130 (______456,294,740)
BALANCE CARRIED FORWARD ______573,297,935 ______455,160,175 ______791,166,286 _2,488,918,462______7,226,901,944
UNITS OUTSTANDING AT BEGINNING OF YEAR 42,857,575 33,663,375 59,597,673 127,004,502 431,034,774
Units issued 10,635,424 9,734,682 17,473,466 269,729,297 394,624,567 Units redeemed ______( 6,759,137) ______( 6,179,807) ______( 12,633,191) (_ _ 171,032,635)______(______148,430,693)
UNITS OUTSTANDING AT END OF YEAR ______46,733,862 ______37,218,250 ______64,437,948 __ 225,701,164______677,228,648
107
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF CASH FLOWS - CONSTITUENT FUNDS
Year ended 31 March 2021
MGAG MGCP MGEE MGGR MGHB MGHE MGIB MGIE HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
CASH FLOWS FROM OPERATING ACTIVITIES Profit for the year 9,511,911,364 55,872,631 1,326,138,606 5,716,603,619 9,077,740 4,458,079,503 166,651,204 2,584,424,581 Adjustments for: Net change in unrealised gains/losses on investments at fair value through profit or loss (8,639,563,733) 74,635,585 ( 956,067,390) (5,196,181,173) 142,286,978 ( 3,081,088,619) ( 18,293,919) (2,268,926,431) Net realised gains on disposal of investments at fair value through profit or loss ( 872,347,631) ( 130,508,216) ( 370,071,216) ( 520,422,446) ( 151,364,718) ( 1,376,990,884) ( 148,357,285) ( 315,498,150) ______
Net cash flows from operating activities ------______
CASH FLOWS FROM INVESTING ACTIVITIES Purchases of investments at fair value through profit or loss (2,801,393,938) (13,684,954,389) (2,537,707,750) (2,533,475,742) (3,487,906,034) (10,667,983,909) (4,063,478,498) (1,623,048,518) Sales of investments at fair value through profit or loss 3,888,257,711 12,401,839,469 2,307,579,483 2,910,528,001 3,220,378,390 10,264,431,477 3,488,245,179 1,334,760,996 ______Net cash flows from/(used in) investing activities 1,086,863,773 ( 1,283,114,920) ( 230,128,267) 377,052,259 ( 267,527,644) ( 403,552,432) ( 575,233,319) ( 288,287,522) ______
CASH FLOWS FROM FINANCING ACTIVITIES Subscriptions received 2,801,393,938 13,684,954,389 2,537,707,750 2,533,475,742 3,487,906,034 10,667,983,909 4,063,478,498 1,623,048,518 Redemption paid (3,888,257,711) (12,401,839,469) (2,307,579,483) (2,910,528,001) (3,220,378,390) (10,264,431,477) (3,488,245,179) (1,334,760,996) ______Net cash flows (used in)/from financing activities (1,086,863,773) 1,283,114,920 230,128,267 ( 377,052,259) 267,527,644 403,552,432 575,233,319 288,287,522 ______
NET CHANGE IN CASH AND CASH EQUIVALENTS ------
Cash and cash equivalents at beginning of year ------______
CASH AND CASH EQUIVALENTS AT END OF YEAR ------______
108
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF CASH FLOWS - CONSTITUENT FUNDS (continued)
Year ended 31 March 2021
MGIT MGJE MGNE MGPE MGST MGFG MGFS MGCV HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
CASH FLOWS FROM OPERATING ACTIVITIES Profit for the year 125,607,635 730,820,215 4,613,550,387 4,423,522,824 1,739,634,639 2,972,639,933 1,455,080,330 10,719,499,539 Adjustments for: Net change in unrealised gains/losses on investments at fair value through profit or loss - ( 309,402,918) ( 3,289,759,000) (3,419,099,286) (1,358,471,136) (2,619,796,312) (1,273,759,005) ( 8,135,221,639) Net realised gains on disposal of investments at fair value through profit or loss - ( 421,417,297) ( 1,323,791,387) (1,004,423,538) ( 381,163,503) ( 352,843,621) ( 181,321,325) ( 2,584,277,900) Interest income (______125,607,635) ______- ______- ______- ______- ______- ______- ______-
Net cash flows from operating activities ______- ______- ______- ______- ______- ______- ______- ______-
CASH FLOWS FROM INVESTING ACTIVITIES Purchases of investments at fair value through profit or loss (22,330,972,742) (12,335,289,272) (10,808,784,965) (7,197,077,683) (4,174,652,925) (2,255,415,379) (1,557,398,802) (13,358,384,385) Sales of investments at fair value through profit or loss 19,811,720,127 12,326,751,456 8,586,179,988 6,734,575,566 3,374,051,534 1,892,927,227 1,325,329,419 10,889,670,866 Interest received ______125,607,635 ______- ______- ______- ______- ______- ______- ______- Net cash flows used in investing activities (______2,393,644,980) (______8,537,816)______( 2,222,604,977)______( 462,502,117) (______800,601,391) ______( 362,488,152) ______( 232,069,383) (______2,468,713,519)
CASH FLOWS FROM FINANCING ACTIVITIES Subscriptions received 22,205,365,107 12,335,289,272 10,808,784,965 7,197,077,683 4,174,652,925 2,255,415,379 1,557,398,802 13,358,384,385 Redemption paid (19,811,720,127)______(12,326,751,456)______(______8,586,179,988)______(6,734,575,566) (3,374,051,534)______(1,892,927,227) ______(1,325,329,419) (10,889,670,866)______Net cash flows from financing activities ______2,393,644,980 ______8,537,816______2,222,604,977______462,502,117 ______800,601,391 ______362,488,152 ______232,069,383 ______2,468,713,519
NET CHANGE IN CASH AND CASH EQUIVALENTS ------
Cash and cash equivalents at beginning of year ______- ______- ______- ______- ______- ______- ______- ______-
CASH AND CASH EQUIVALENTS AT END OF YEAR ------______
109
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF CASH FLOWS - CONSTITUENT FUNDS (continued)
Year ended 31 March 2021
For the period from 1 April 2020 to 25 March 2021 (date of termination) MGHC MGHS MGPB MGRB MG15 MG20 MG25 MG30 HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
CASH FLOWS FROM OPERATING ACTIVITIES Profit for the year/period 6,017,195,290 1,156,492,475 156,503,615 111,536,362 122,728,420 131,161,837 198,730,950 240,593,041 Adjustments for: Net change in unrealised gains/losses on investments at fair value through profit or loss ( 4,734,792,881) (1,037,484,622) ( 82,902,565) ( 54,287,537) (105,621,170) ( 2,876,293) (164,937,422) (216,669,689) Net realised gains on disposal of investments at fair value through profit or loss (______1,282,402,409)___ (______119,007,853) (______73,601,050)___ (______57,248,825) ______( 17,107,250) ______(128,285,544) ______( 33,793,528) ______( 23,923,352)
Net cash flows from operating activities ______- ______- ______- ______- ______- ______- ______- ______-
CASH FLOWS FROM INVESTING ACTIVITIES Purchases of investments at fair value through profit or loss (12,178,992,354) (6,614,126,298) (1,283,876,849) (1,784,725,392) (795,706,981) (145,287,972) (252,356,699) (179,440,998) Sales of investments at fair value through profit or loss _____9,150,056,315______6,911,497,231 ___1,12_0,598,525______1,219,577,458 ______189,942,652 ______790,934,543 ______213,570,726 ______133,592,647 Net cash flows (used in)/from investing activities (_____ 3,028,936,0______39) ______297,370,933 (___ 163,278,324)______(______565,147,934) ______(605,764,329) ______645,646,571 ______( 38,785,973) ______( 45,848,351)
CASH FLOWS FROM FINANCING ACTIVITIES Subscriptions received 12,178,992,354 6,614,126,298 1,283,876,849 1,784,725,392 795,706,981 145,287,972 252,356,699 179,440,998 Redemption paid (______9,150,056,315)_____ (6,911,497,231)______(1,120,598,525)______(1,219,577,458)______(189,942,652) ______(790,934,543) ______(213,570,726) ______(133,592,647) Net cash flows from/(used in) financing activities ______3,028,936,039_____ (______297,370,933) ______163,278,324______565,147,934 ______605,764,329 ______(645,646,571) ______38,785,973 ______45,848,351
NET CHANGE IN CASH AND CASH EQUIVALENTS ------
Cash and cash equivalents at beginning of year/period ______- ______- ______- ______- ______- ______- ______- ______-
CASH AND CASH EQUIVALENTS AT END OF YEAR/PERIOD ------______
110
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF CASH FLOWS - CONSTITUENT FUNDS (continued)
Year ended 31 March 2021
For the period from 21 September 2020 (date of inception) to 31 March 2021 MG35 MG40 MG45 MGAP MGCA MGRI HK$ HK$ HK$ HK$ HK$ HK$
CASH FLOWS FROM OPERATING ACTIVITIES Profit for the year/period 267,047,486 224,199,626 394,590,644 210,373,420 2,335,177,746 17,466,415 Adjustments for: Net change in unrealised gains/losses on investments at fair value through profit or loss (242,043,594) (202,220,093) (348,144,671) ( 56,715,328) (2,040,910,947) 732,727 Net realised gains on disposal of investments at fair value through profit or loss ______( 25,003,892) ______( 21,979,533) ______( 46,445,973) (__ 153,658,092)______( 294,266,799) ______( 8,251,456 ) Net cash flows from operating activities ______- ______- ______- ______- ______- ______9,947,686
CASH FLOWS FROM INVESTING ACTIVITIES Purchases of investments at fair value through profit or loss (184,335,301) (164,911,300) (361,610,752) (4,757,777,769) (5,070,183,406) (1,700,438,271) Sales of investments at fair value through profit or loss ______139,520,239 ______121,319,571 ______256,717,213 __3,796,619,185______2,911,541,327 ______308,415,213 Net cash flows used in investing activities ______(44,815,062) ______( 43,591,729) ______(104,893,539) (__ 961,158,584)______(2,158,642,079) ______(1,392,023,058 )
CASH FLOWS FROM FINANCING ACTIVITIES Subscriptions received 184,335,301 164,911,300 361,610,752 4,757,777,769 5,070,183,406 1,700,438,271 Redemption paid (139,520,239) (121,319,571) (256,717,213) (3,796,619,185) (2,911,541,327) ( 308,415,213) Distribution paid ______- ______- ______- ______- ______- ______( 9,947,686 ) Net cash flows from financing activities ______44,815,062 ______43,591,729 ______104,893,539 ___ 961,158,584______2,158,642,079 ______1,382,075,372
NET CHANGE IN CASH AND CASH EQUIVALENTS ------
Cash and cash equivalents at beginning of year/period ______- ______- ______- ______- ______- ______-
CASH AND CASH EQUIVALENTS AT END OF YEAR/PERIOD ------______
111
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF CASH FLOWS - CONSTITUENT FUNDS
Year ended 31 March 2020
MGAG MGCP MGEE MGGR MGHB MGHE MGIB MGIE HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
CASH FLOWS FROM OPERATING ACTIVITIES (Loss)/profit for the year (2,778,191,479) 169,607,016 ( 164,994,347) (1,586,004,199) 156,146,901 (1,511,644,207) 49,662,769 ( 626,444,396) Adjustments for: Net change in unrealised gains/losses on investments at fair value through profit or loss 3,153,662,704 ( 74,407,456) 204,511,361 1,817,214,029 ( 78,781,923) 1,561,111,278 ( 14,645,721) 745,301,165 Net realised gains on disposal of investments at fair value through profit or loss ( 375,471,225) ( 95,199,560) ( 39,517,014) ( 231,209,830) ( 77,364,978) ( 49,467,071) ( 35,017,048) ( 118,856,769) ______
Net cash flows from operating activities ------______
CASH FLOWS FROM INVESTING ACTIVITIES Purchases of investments at fair value through profit or loss (2,511,836,925) (9,044,376,357) (1,054,549,272) (2,561,313,193) (2,031,605,487) (7,396,086,881) (2,816,747,474) (1,292,201,500) Sales of investments at fair value through profit or loss 2,956,482,474 7,813,076,540 821,980,348 2,554,414,993 1,463,515,566 6,980,493,089 1,973,676,544 845,242,022 ______Net cash flows from/(used in) investing activities 444,645,549 (1,231,299,817) ( 232,568,924) ( 6,898,200) ( 568,089,921) (415,593,792) ( 843,070,930) ( 446,959,478) ______
CASH FLOWS FROM FINANCING ACTIVITIES Subscriptions received 2,511,836,925 9,044,376,357 1,054,549,272 2,561,313,193 2,031,605,487 7,396,086,881 2,816,747,474 1,292,201,500 Redemption paid (2,956,482,474) (7,813,076,540) ( 821,980,348) (2,554,414,993) (1,463,515,566) (6,980,493,089) (1,973,676,544) ( 845,242,022) ______Net cash flows (used in)/from financing activities ( 444,645,549) 1,231,299,817 232,568,924 6,898,200 568,089,921 415,593,792 843,070,930 446,959,478 ______
NET CHANGE IN CASH AND CASH EQUIVALENTS ------
Cash and cash equivalents at beginning of year ------______
CASH AND CASH EQUIVALENTS AT END OF YEAR ------______
112
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF CASH FLOWS - CONSTITUENT FUNDS (continued)
Year ended 31 March 2020
MGIT MGJE MGNE MGPE MGST MGFG MGFS MGCV HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
CASH FLOWS FROM OPERATING ACTIVITIES Profit/(loss) for the year 111,668,399 ( 209,602,643) ( 918,454,842) (1,477,741,705) ( 170,117,517) ( 895,285,927) ( 289,600,157) (2,474,875,145) Adjustments for: Net change in unrealised gains/losses on investments at fair value through profit or loss - 214,568,012 1,057,169,678 1,619,841,540 392,211,241 1,053,720,187 356,274,467 3,254,740,176 Net realised gains on disposal of investments at fair value through profit or loss - ( 4,965,369) ( 138,714,836) ( 142,099,835) ( 222,093,724) ( 158,434,260) ( 66,674,310) ( 779,865,031) Interest income (______111,668,399 ) ______- ______- ______- ______- ______- ______- ______-
Net cash flows from operating activities ______- ______- ______- ______- ______- ______- ______- ______-
CASH FLOWS FROM INVESTING ACTIVITIES Purchases of investments at fair value through profit or loss (16,007,110,051) (8,016,522,308) (6,033,735,509) (3,306,333,014) (3,868,527,188) (1,866,692,775) (1,470,474,961) (6,107,383,272) Sales of investments at fair value through profit or loss 13,705,773,835 7,973,763,234 3,562,265,144 3,410,593,645 3,018,100,646 1,376,779,450 1,018,054,657 6,912,531,926 Interest received ______111,668,399 ______- ______- ______- ______- ______- ______- ______- Net cash flows (used in)/from investing activities (______2,189,667,817 ) (______42,759,074) (2,471,470,365)______104,260,631 (______850,426,542) ______( 489,913,325) ______( 452,420,304) ______805,148,654
CASH FLOWS FROM FINANCING ACTIVITIES Subscriptions received 15,895,441,652 8,016,522,308 6,033,735,509 3,306,333,014 3,868,527,188 1,866,692,775 1,470,474,961 6,107,383,272 Redemption paid (13,705,773,83______5 ) (7,973,763,234)______(3,562,265,144)______(3,410,593,645) (3,01______8,100,646) ______(1,376,779,450) ______(1,018,054,657) ______(6,912,531,926) Net cash flows from/(used in) financing activities ______2,189,667,817 ______42,759,074 ______2,471,470,365 ______( 104,260,631) ______850,426,542 ______489,913,325 ______452,420,304 ______( 805,148,654)
NET CHANGE IN CASH AND CASH EQUIVALENTS ------
Cash and cash equivalents at beginning of year ______- ______- ______- ______- ______- ______- ______- ______-
CASH AND CASH EQUIVALENTS AT END OF YEAR ------______
113
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF CASH FLOWS - CONSTITUENT FUNDS (continued)
Year ended 31 March 2020
MGHC MGHS MGPB MGRB MG15 MG20 MG25 MG30 HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
CASH FLOWS FROM OPERATING ACTIVITIES Loss for the year (1,807,838,991) ( 888,378,321) ( 23,181,221) ( 4,193,045) ( 27,542,945) ( 31,290,118) ( 51,754,865) ( 63,567,867) Adjustments for: Net change in unrealised gains/losses on investments at fair value through profit or loss 2,367,434,363 900,752,908 46,897,400 20,620,678 31,141,424 39,478,386 60,818,724 70,449,020 Net realised gains on disposal of investments at fair value through profit or loss (______559,595,372) (______12,374,587) ______( 23,716,179) ______( 16,427,633) ______( 3,598,479) ______( 8,188,268) ______( 9,063,859) ______( 6,881,153)
Net cash flows from operating activities ______- ______- ______- ______- ______- ______- ______- ______-
CASH FLOWS FROM INVESTING ACTIVITIES Purchases of investments at fair value through profit or loss (9,787,976,465) (6,988,551,724) (910,202,503) (873,800,002) (188,824,944) (113,261,069) (160,831,615) (143,102,271) Sales of investments at fair value through profit or loss ______6,222,452,255 ______5,799,479,250 ______728,460,123______696,937,858 ______97,615,069 ______127,580,532 ______122,718,512 ______92,332,565 Net cash flows (used in)/from investing activities (3,565,524,210)______(1,189,072,474)______(181,742,380) ______(176,862,144) ______( 91,209,875) ______14,319,463 ______( 38,113,103) ______( 50,769,706)
CASH FLOWS FROM FINANCING ACTIVITIES Subscriptions received 9,787,976,465 6,988,551,724 910,202,503 873,800,002 188,824,944 113,261,069 160,831,615 143,102,271 Redemption paid (6,222,452,255)______(5,799,479,250)______(728,460,123) ______(696,937,858) ______( 97,615,069) ______(127,580,532) ______(122,718,512) ______( 92,332,565) Net cash flows from/(used in) financing activities ______3,565,524,210 ______1,189,072,474 ______181,742,380 ______176,862,144 ______91,209,875 ______( 14,319,463) ______38,113,103 ______50,769,706
NET CHANGE IN CASH AND CASH EQUIVALENTS ------
Cash and cash equivalents at beginning of year ______- ______- ______- ______- ______- ______- ______- ______-
CASH AND CASH EQUIVALENTS AT END OF YEAR ------______
114
MANULIFE GLOBAL SELECT (MPF) SCHEME
STATEMENT OF CASH FLOWS - CONSTITUENT FUNDS (continued)
Year ended 31 March 2020
MG35 MG40 MG45 MGAP MGCA HK$ HK$ HK$ HK$ HK$
CASH FLOWS FROM OPERATING ACTIVITIES (Loss)/profit for the year ( 70,917,083) ( 59,054,169) (105,857,685) 46,172,130 ( 456,294,740) Adjustments for: Net change in unrealised gains/losses on investments at fair value through profit or loss 78,757,685 65,955,147 117,525,691 24,855,127 518,541,206 Net realised gains on disposal of investments at fair value through profit or loss ______( 7,840,602) ______( 6,900,978) ______( 11,668,006) __( _ 71,027,257)______( 62,246,466)
Net cash flows from operating activities ______- ______- ______- ______- ______-
CASH FLOWS FROM INVESTING ACTIVITIES Purchases of investments at fair value through profit or loss (148,659,404) (135,476,191) (244,769,148) (2,977,355,070) (4,565,624,175) Sales of investments at fair value through profit or loss ______92,537,999 ______84,149,291 ______172,488,158 __1,894,335,025______1,687,356,512 Net cash flows used in investing activities ______( 56,121,405) ______( 51,326,900) ______( 72,280,990) (1,083,020,045)______(2,878,267,663)
CASH FLOWS FROM FINANCING ACTIVITIES Subscriptions received 148,659,404 135,476,191 244,769,148 2,977,355,070 4,565,624,175 Redemption paid ______( 92,537,999) ______( 84,149,291) ______(172,488,158) (1,894,335,025)______(1,687,356,512) Net cash flows from financing activities ______56,121,405 ______51,326,900 ______72,280,990 ___1,083,020,045______2,878,267,663
NET CHANGE IN CASH AND CASH EQUIVALENTS - - - - -
Cash and cash equivalents at beginning of year ______- ______- ______- ______- ______-
CASH AND CASH EQUIVALENTS AT END OF YEAR - - - - - ______
115 MANULIFE GLOBAL SELECT (MPF) SCHEME
NOTES TO FINANCIAL STATEMENTS
31 March 2021
1. THE SCHEME
The Manulife Global Select (MPF) Scheme (the "Scheme") is established and governed by its trust deed dated 29 April 2000 (the "Trust Deed"), with the latest consolidated Trust Deed dated 14 September 2020, as amended. The Scheme is approved by the Mandatory Provident Fund Schemes Authority (the "MPFA") as a master trust scheme under the requirements of the Mandatory Provident Fund Schemes Ordinance (the "MPFSO") and the Mandatory Provident Fund Schemes (General) Regulation (the "General Regulation").
At 31 March 2021, the Scheme offers twenty-nine constituent funds. Each constituent fund has been structured as a feeder fund, the assets of which are invested directly in a corresponding approved pooled investment fund ("APIF").
Pursuant to the MPF Scheme Brochure, with the approval of the MPFA and the Securities and Futures Commission (the "regulators"), upon reaching its maturity date, the Manulife MPF 2020 Retirement Fund (the "2020 Retirement Fund") was closed with member's accumulation being invested into the Manulife MPF Smart Retirement Fund. The Trustee obtained the approval-in-principle on the application for termination and cancellation of approved status of the 2020 Retirement Fund from the regulators on 10 September 2020. The 2020 Retirement Fund then matured and was terminated on 4 January 2021 as planned. The regulators provided the final approval on the termination of the 2020 Retirement Fund on 25 March 2021. The approval status of the 2020 Retirement Fund was also cancelled on the same date.
2.1 BASIS OF PREPARATION
These financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs") (which include all Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards ("HKASs") and Interpretations) issued by the Hong Kong Institute of Certified Public Accountants (the "HKICPA"), accounting principles generally accepted in Hong Kong and the General Regulation. They have been prepared under the historical cost convention, except for the remeasurement of investments at fair value through profit or loss as further explained below. These financial statements are presented in Hong Kong Dollars.
As a result of the termination of Manulife MPF 2020 Retirement Fund ("MG20") as disclosed in note 1 to the financial statements, the financial statements of the MG20 for the year ended 31 March 2020 were prepared on a liquidation basis and the financial statements for the current period from 1 April 2020 to 25 March 2021 (date of termination) have continued to be prepared on a liquidation basis. All assets and liabilities of the MG20 were transferred to another CF offered by the Scheme on 5 January 2021, no assets nor liabilities were held by the MG20 at the date of termination. No expenses associated with the termination of MG20 are provided as they will be borne by the trustee.
116 MANULIFE GLOBAL SELECT (MPF) SCHEME
NOTES TO FINANCIAL STATEMENTS
31 March 2021
2.2 CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES
The Scheme has adopted the Conceptual Framework for Financial Reporting 2018 and the following revised HKFRSs for the first time in the current year's financial statements, which are applicable to the Scheme.
Amendments to HKFRS 3 Definition of a Business Amendments to HKFRS 9, Interest Rate Benchmark Reform HKAS 39 and HKFRS 7 Amendments to HKAS 1 Definition of Material and HKAS 8
The nature and the impact of the Conceptual Framework for Financial Reporting 2018 and the revised HKFRSs are described below:
Conceptual Framework for Financial Reporting 2018 (the “Conceptual Framework”) The Conceptual Framework sets out a comprehensive set of concepts for financial reporting and standard setting, and provides guidance for preparers of financial statements in developing consistent accounting policies and assistance to all parties to understand and interpret the standards. The Conceptual Framework is not a standard, and none of the concepts contained therein override the concepts or requirements in any standard. The Conceptual Framework did not have any significant impact on the financial position and performance of the Scheme.
Amendments to HKFRS 3 Definition of a Business Amendments to HKFRS 3 clarify and provide additional guidance on the definition of a business. The amendments clarify that for an integrated set of activities and assets to be considered a business, it must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. A business can exist without including all of the inputs and processes needed to create outputs. The amendments remove the assessment of whether market participants are capable of acquiring the business and continuing to produce outputs. Instead, the focus is on whether acquired inputs and acquired substantive processes together significantly contribute to the ability to create outputs. The amendments have also narrowed the definition of outputs to focus on goods or services provided to customers, investment income or other income from ordinary activities. Furthermore, the amendments provide guidance to assess whether an acquired process is substantive and introduce an optional fair value concentration test to permit a simplified assessment of whether an acquired set of activities and assets is not a business. The Scheme has applied the amendments prospectively to transactions or other events that occurred on or after 1 January 2020. The amendments did not have any impact on the financial position and performance of the Scheme.
Amendments to HKFRS 9, HKAS 39 and HKFRS 7 Interest Rate Benchmark Reform Amendments to HKFRS 9, HKAS 39 and HKFRS 7 address the effects of interbank offered rate reform on financial reporting. The amendments provide temporary reliefs, which enable hedge accounting to continue during the period of uncertainty before the replacement of an existing interest rate benchmark. In addition, the amendments require companies to provide additional information to investors about their hedging relationships, which are directly affected by these uncertainties. The amendments did not have any impact on the financial position and performance of the Scheme as the Scheme does not have any interest rate hedge relationships.
117 MANULIFE GLOBAL SELECT (MPF) SCHEME
NOTES TO FINANCIAL STATEMENTS
31 March 2021
2.2 CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES (continued)
Amendments to HKAS 1 and HKAS 8 Definition of Material Amendments to HKAS 1 and HKAS 8 provide a new definition of material. The new definition states that information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements. The amendments clarify that materiality will depend on the nature or magnitude of information. The amendments did not have any impact on the financial position and performance of the Scheme.
2.3 ISSUED BUT NOT YET EFFECTIVE HONG KONG FINANCIAL REPORTING STANDARDS
The Scheme has not applied the following new and revised HKFRSs, that have been issued but are not yet effective for the accounting year ended 31 March 2021 in these financial statements. Among these HKFRSs, the following are expected to be relevant to the Scheme's financial statements upon becoming effective:
Amendments to HKFRS 3 Reference to the Conceptual Framework2 Amendments to HKFRS 9, Interest Rate Benchmark Reform - Phase 21 HKAS 39, HKFRS 7, HKFRS 4 and HKFRS 16 Amendments to HKAS 1 Classification of Liabilities as Current or Non-current3, 4 Annual Improvements to Amendments to HKFRS 1, HKFRS 9, Illustrative HKFRSs 2018-2020 Examples accompanying HKFRS 16, and HKAS 412
1 Effective for annual periods beginning on or after 1 January 2021 2 Effective for annual periods beginning on or after 1 January 2022 3 Effective for annual periods beginning on or after 1 January 2023 4 As a consequence of the amendments to HKAS 1, Hong Kong Interpretation 5 Presentation of Financial Statements - Classification by the Borrower of a Term Loan that Contains a Repayment on Demand Clause was revised in October 2020 to align the corresponding wording with no change in conclusion
Amendments to HKFRS 3 Business Combinations - Reference to the Conceptual Framework The amendments are intended to replace a reference to the previous Framework for the Preparation and Presentation of Financial Statements with a reference to the Conceptual Framework for Financial Reporting issued in June 2018 without significantly changing its requirements. The amendments also added to an exception to the recognition principle of HKFRS 3 to avoid the issue of potential ‘day 2’ gains or losses arising for liabilities and contingent liabilities that would be within the scope of HKAS 37 or HK(IFRIC)-Int 21 Levies, if incurred separately. In addition, the amendments clarify existing guidance in HKFRS 3 for contingent assets that would not be affected by replacing the reference to the Framework for the Preparation and Presentation of Financial Statements. The amendments are effective for annual reporting periods beginning on or after 1 January 2022 and apply prospectively. The amendments are not expected to have any impact on the financial position or performance of the Scheme upon adoption.
118 MANULIFE GLOBAL SELECT (MPF) SCHEME
NOTES TO FINANCIAL STATEMENTS
31 March 2021
2.3 ISSUED BUT NOT YET EFFECTIVE HONG KONG FINANCIAL REPORTING STANDARDS (continued)
Amendments to HKFRS 9, HKAS 39, HKFRS 7, HKFRS 4 and HKFRS 16 - Interest Rate Benchmark Reform – Phase 2 The amendments address issues not dealt with in the previous amendments that might affect financial reporting when an entity replaces the old interest rate benchmark with an alternative benchmark rate as a result of the interest rate benchmark reform. The Phase 2 amendments provide a practical expedient to allow the effective interest rate to be updated to reflect the changes to the alternative benchmark rate without adjusting the carrying amount when accounting for changes to contractual cash flows of financial assets and liabilities. In addition, an entity will not have to discontinue its hedge accounting solely because it makes changes required by the interest rate benchmark reform, if the hedge meets other hedge accounting criteria. Furthermore, the amendments require an entity to disclose additional information to enable users of financial statements to understand the effect of interest rate benchmark reform on an entity’s financial instruments and risk management strategy. The amendments are effective for annual periods beginning on or after 1 January 2021 and shall be applied retrospectively, but entities are not required to restate the comparative information.
Amendments to HKAS 1 Classification of Liabilities as Current or Non-current The amendments clarify the requirements for classifying liabilities as current or non-current. The amendments specify that if an entity’s right to defer settlement of a liability is subject to the entity complying with specified conditions, the entity has a right to defer settlement of the liability at the end of the reporting period if it complies with those conditions at that date. Classification of a liability is unaffected by the likelihood that the entity will exercise its right to defer settlement of the liability. The amendments also clarify the situations that are considered a settlement of a liability. The amendments are effective for annual periods beginning on or after 1 January 2023 and shall be applied retrospectively. Earlier application is permitted. The amendments are not expected to have any significant impact on the Scheme's financial statements.
Annual Improvements to HKFRS 2018-2020 - Amendments to HKFRS 1, HKFRS 9, Illustrative examples accompanying HKFRS 16, and HKAS 41 The Scheme expects to adopt the amendments from 1 January 2022. None of the amendments are expected to have a significant financial impact on the Scheme. Details of the amendments are as follows:
• HKFRS 9 Financial Instruments clarifies the fees that an entity includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability. These fees include only those paid or received between the borrower and the lender, including fees paid or received by either the borrower or lender on the other’s behalf. An entity applies the amendment to financial liabilities that are modified or exchanged on or after the beginning of the annual reporting period in which the entity first applies the amendment.
119 MANULIFE GLOBAL SELECT (MPF) SCHEME
NOTES TO FINANCIAL STATEMENTS
31 March 2021
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Other than as adjusted for the adoption of the liquidation basis in the preparation of the financial statements of MG20, as disclosed in note 2.1 to the financial statements, the significant accounting policies applied in the preparation of these financial statements of the Scheme and its underlying constituent funds are set out below.
Revenue recognition Revenue from Contracts with Customers Revenue from contracts with customers is recognised when control of goods or services is transferred to the customers at an amount that reflects the consideration to which the Scheme expects to be entitled in exchange for those goods or services.
When the consideration in a contract includes a variable amount, the amount of consideration is estimated to which the Scheme will be entitled in exchange for transferring the goods or services to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved.
When the contract contains a financing component, which provides the customer a significant benefit of financing the transfer of goods or services to the customer for more than one year, revenue is measured at the present value of the amount receivable, discounted using the discount rate that would be reflected in a separate financing transaction between the Scheme and the customer at contract inception. When the contract contains a financing component, which provides the Scheme a significant financial benefit for more than one year, revenue recognised under the contract includes the interest expense accreted on the contract liability under the effective interest method. For a contract where the period between the payment by the customer and the transfer of the promised goods or services is one year or less, the transaction price is not adjusted for the effects of a significant financing component, using the practical expedient in HKFRS 15.
There is no revenue from contracts with customers recognised during the year.
Other income Interest income is recognised on an accrual basis using the effective interest method by applying the rate that exactly discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter period, when appropriate, to the net carrying amount of the financial asset.
Realised and unrealised gains and losses on investments at fair value through profit or loss are dealt with in profit or loss in the year in which they arise.
Expenses All expenses are accounted for on an accrual basis.
Contributions Contributions are accounted for on an accrual basis.
Benefits Benefits are accounted for on an accrual basis.
120 MANULIFE GLOBAL SELECT (MPF) SCHEME
NOTES TO FINANCIAL STATEMENTS
31 March 2021
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Cash and cash equivalents For the purpose of the statement of cash flows, cash and cash equivalents comprise cash on hand and demand deposits, and short term highly liquid investments that are readily convertible into known amounts of cash, are subject to an insignificant risk of changes in value, and have a short maturity of generally within three months when acquired, less bank overdrafts, which are repayable on demand and form an integral part of the Scheme's or its underlying constituent funds' cash management.
For the purpose of the statement of net assets available for benefits, cash and cash equivalents comprise cash at bank, including term deposits, which are not restricted as to use.
Financial assets Trade receivables that do not contain a significant financial component or for which the Scheme has applied the practical expedient of not adjusting the effect of a significant financial component are measured at the transaction price determined under HKFRS 15. All other financial assets are initially recognised at fair value plus transaction costs that are attributable to the acquisition of the financial assets, except in the case of financial assets recorded at fair value through profit or loss.
Regular way purchases and sales of financial assets are recognised on the trade date, that is, the date when the Scheme commits to purchase or sell the assets.
(a) Classification and measurement Debt instruments that do not meet the criteria for amortised cost or as financial assets at fair value through other comprehensive income are measured at fair value through profit or loss. Interest income for these financial assets is included in finance income.
Equity investments are measured at fair value through profit or loss unless, on initial recognition, the Scheme has irrevocably elected to designate the investments that are not held for trading as equity investments at fair value through other comprehensive income. Dividends of such investments are recognised in profit or loss when the Scheme's right to receive payment is established. Changes in the fair value of such investments are recognised in other comprehensive income and are never transferred to profit or loss even when the assets are sold.
(b) Impairment The Scheme applies the expected credit loss model to all the financial assets that are subject to impairment, financial guarantee contracts or contract assets under HKFRS 15. For trade receivables and contract assets, without a significant financial component, if any, the Scheme applies the simplified approach, which requires impairment allowances to be measured for lifetime expected credit losses.
121 MANULIFE GLOBAL SELECT (MPF) SCHEME
NOTES TO FINANCIAL STATEMENTS
31 March 2021
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Financial assets (continued) (b) Impairment (continued) For other financial assets, impairment allowances are recognised under the general approach where expected credit losses are recognised in two stages. For credit exposures where there has not been a significant increase in credit risk since initial recognition, the Scheme is required to provide for credit losses that result from possible default events within the next 12 months. For those credit exposures where there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure irrespective of the timing of the default.
The Scheme considers a default has occurred when a financial asset is more than 90 days past due unless the Scheme has reasonable and supportable information to demonstrate that a more appropriate default criterion should be applied.
(c) Derecognition Financial assets are derecognised when the rights to receive cash flows from the assets have expired; or where the Scheme has transferred its contractual rights to receive the cash flows of the financial assets and has transferred substantially all the risks and rewards of ownership; or where control is not retained.
Financial liabilities Financial liabilities include bank and other borrowings, trade payables, accruals and other monetary liabilities. They are initially recognised at the fair value of the consideration received less directly attributable transaction costs. After initial recognition, they are subsequently measured at amortised cost using the effective interest rate method.
Financial liabilities are derecognised when they are extinguished, i.e., when the obligation is discharged or cancelled, or expires.
Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount is reported in the statement of net assets available for benefits if there is currently an enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.
Fair value measurement The Scheme and its underlying constituent funds measure their equity investments at fair value at the end of each reporting period. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability, or in the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Fund. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
122 MANULIFE GLOBAL SELECT (MPF) SCHEME
NOTES TO FINANCIAL STATEMENTS
31 March 2021
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Fair value measurement (continued) The Scheme and its underlying constituent funds use valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole.
Level 1 – based on quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2 – based on valuation techniques for which the lowest level input that is significant to the fair value measurement is observable, either directly or indirectly Level 3 – based on valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Scheme and its underlying constituent funds determine whether transfers have occurred between levels in the hierarchy by reassessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
Proceeds and payments on issue and redemption of units The net asset values of the constituent funds are computed on each business day. Prices for issues and redemptions on each business day are based on the closing valuation of that business day, except for Manulife MPF Interest Fund ("MGIT"), the valuation of which is performed on a monthly basis on the last calendar day of each month. For MGIT, no price is issued as it is a non-unitised fund.
Proceeds and payments for units issued and redeemed are shown as movement in the statement of changes in net assets available for benefits of the respective constituent funds.
123 MANULIFE GLOBAL SELECT (MPF) SCHEME
NOTES TO FINANCIAL STATEMENTS
31 March 2021
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Related parties A party is considered to be related to the Scheme and its underlying constituent funds if:
(a) the party is a person or a close member of that person's family and that person
(i) has control or joint control over the Scheme and its underlying constituent funds;
(ii) has significant influence over the Scheme and its underlying constituent funds; or
(iii) is a member of the key management personnel of the Trustee; or
(b) the party is an entity where any of the following conditions applies:
(i) the entity and the Scheme and its underlying constituent funds are members of the same group;
(ii) one entity is an associate or joint venture of the other entity (or of a parent, subsidiary or fellow subsidiary of the other entity);
(iii) the entity and the Trustee are joint ventures of the same third party;
(iv) one entity is a joint venture of a third entity and the other entity is an associate of the third entity;
(v) the entity is a post-employment benefit plan for the benefit of employees of either the Trustee or an entity related to the Trustee;
(vi) the entity is controlled or jointly controlled by a person identified in (a);
(vii) a person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity); and
(viii) the entity, or any member of a group of which it is a part, provides key management personnel services to the Trustee.
124 MANULIFE GLOBAL SELECT (MPF) SCHEME
NOTES TO FINANCIAL STATEMENTS
31 March 2021
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Associates For the purpose of these financial statements, an associate of the Scheme and its underlying constituent funds include each of the following:
(a) an officer, who may be an individual or a corporate entity, of the Scheme and its underlying constituent funds; (b) a close relative, partner or employee of an officer of the Scheme and its underlying constituent funds; (c) an associated company of the Scheme and its underlying constituent funds; (d) an officer of an associated company; and (e) a close relative, partner or employee of an officer of an associated company.
4. CONTRIBUTIONS
Mandatory contributions for both the employers and members are equal to 5% of the members' relevant income up to HK$30,000 per month but in respect of members earning less than HK$7,100 per month, the members' mandatory contribution is nil.
Self-employed persons must contribute 5% of their relevant income subject to a maximum contribution of HK$1,500 per month to the Scheme unless their relevant income is less than HK$7,100 per month or HK$85,200 per year.
Any contributions made to the Scheme by the employers or members in excess of their mandatory contributions are considered and recorded as additional voluntary contributions.
5. BENEFITS
Members will become entitled to benefits in respect of mandatory contributions to the Scheme under the requirements of the MPFSO. Currently, these circumstances include where the member (i) reaches the age of 65; (ii) permanently ceases employment after reaching the age of 60; (iii) retires on the ground of total incapacity; (iv) has a terminal illness; (v) permanently departs from Hong Kong; (vi) dies or (vii) has the right to claim a small balance pursuant to the MPFSO.
Members will become entitled to benefits in respect of voluntary contributions to the Scheme in circumstances set out in the Trust Deed and the relevant participation agreement.
125 MANULIFE GLOBAL SELECT (MPF) SCHEME
NOTES TO FINANCIAL STATEMENTS
31 March 2021
6. INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS
The Scheme 2021 2020 HK$ HK$ Investments in quoted investments - constituent funds MGAG 28,524,052,580 20,096,846,461 MGCP 13,176,883,623 11,930,796,014 MGEE 3,767,887,419 2,206,401,887 MGGR 20,984,850,721 15,647,600,146 MGHB 3,519,357,490 3,262,615,816 MGHE 15,357,677,351 10,493,998,937 MGIB 5,702,852,247 4,954,760,417 MGIE 7,341,443,568 4,464,563,017 MGIT 26,594,442,039 24,008,225,415 MGJE 2,255,302,232 1,463,058,612 MGNE 13,673,831,140 6,830,316,058 MGPE 12,014,432,939 7,083,651,463 MGST 16,347,208,792 13,806,567,400 MGFG 10,510,225,508 7,167,732,414 MGFS 8,185,343,189 6,494,039,162 MGCV 36,325,039,983 23,149,355,906 MGHC 32,769,958,307 23,712,412,865 MGHS 5,863,234,404 5,011,465,449 MGPB 1,747,089,347 1,424,615,103 MGRB 2,052,714,590 1,395,178,887 MG15 1,164,216,598 436,277,490 MG20 Note 1 - 513,843,266 MG25 845,777,524 607,519,184 MG30 854,476,082 567,442,982 MG35 884,964,684 573,297,935 MG40 724,150,553 455,160,175 MG45 1,290,665,611 791,166,286 MGAP 3,644,324,746 2,488,918,462 MGCA 11,713,379,704 7,226,901,944 MGRI ______1,406,836,979______- Investments at fair value ______289,242,619,950 ______208,264,729,153 Investments at cost ______241,765,405,902 ______210,425,097,188
Note 1: MG20 had no investments and operations since 5 January 2021 and terminated on 25 March 2021.
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31 March 2021
7. CASH AND CASH EQUIVALENTS
2021 2020 HK$ HK$
Cash and bank balances 840,988,588 699,898,295 Time deposit ______3,140,000 ______2,970,000 ______844,128,588 ______702,868,295
Cash at bank earns interest at floating rates based on daily bank deposit rates. Short term time deposits are made for periods of one month, and earn interest at the short term time deposit rate. The carrying amounts of the cash and cash equivalents approximate their fair values.
8. BANK LOANS, OVERDRAFTS AND OTHER BORROWINGS
The Scheme and its underlying constituent funds had no bank loans, overdrafts and other borrowings at 31 March 2021 (2020: Nil).
9. INCOME TAX
The Scheme and its underlying constituent funds are not subject to Hong Kong Profits tax as they are not considered to be carrying on a business in Hong Kong. Reconciliations of the tax expense/credit applicable to income/loss for the year using the statutory rate to tax expense/credit at the effective tax rate have not been presented as the income/loss of the Scheme and its underlying constituent funds are not subject to tax.
10. ACCRUED BENEFITS
The total accrued benefits vested in the members' accounts amounted to HK$288,376,244,115 at 31 March 2021 (2020: HK$207,632,274,341).
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31 March 2021
11. TRANSACTIONS WITH ASSOCIATES AND RELATED PARTY TRANSACTIONS
(a) Transactions with associates and related parties
The assets of the constituent funds of the Scheme are invested directly in sub-funds of corresponding approved pooled investment funds ("APIFs").
During the year, the constituent funds had the following transactions with the APIFs:
2021 2020 HK$ HK$
Investments in APIFs 150,743,756,375 102,935,443,504 Redemption of investments in APIFs ______132,074,437,604 ______84,660,611,827
The purchase cost and redemption price of investments in an APIF are determined based on the net asset value of the APIFs at the time of purchase and redemption. All such transactions were entered into in the ordinary course of business and on normal commercial terms. The transaction fees of each subscription/redemption/transfer transacted between the constituent funds and the APIFs are charged to the APIFs. Rebalancing transactions among Manulife MPF funds are not counted as transactions and do not incur any transaction fee.
Manulife Investment Management (Hong Kong) Limited is the investment manager of underlying investments under the Scheme. Depending on the investment strategies of any new constituent funds established on or after 5 January 2006, assets of the relevant constituent fund may be invested in an APIF for which annual performance fees may be levied.
In respect of the China Value Fund, an annual performance fee may be levied at the underlying APIF depending on the net asset value of the underlying APIF.
Except for the above, there was no transaction entered into with the investment manager, associates of the investment manager or its delegates, administrators, trustee, custodian and/or any associates, during the year (2020: Nil).
(b) Outstanding balances with related parties
The Scheme and its underlying constituent funds had amounts receivable/payable on sale/purchase of investments and other receivables at the end of the reporting period. The balances are unsecured, interest-free and normally settled within one week. Their carrying amounts approximate their fair values.
(c) Compensation of key management personnel of the Scheme and its underlying constituent funds
No key management personnel received any compensation in respect of their services rendered to the Scheme and its underlying constituent funds during the year (2020: Nil).
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31 March 2021
12. SOFT COMMISSION ARRANGEMENTS
No soft commission has been arranged by the Scheme or its underlying constituent funds during the year (2020: Nil).
13. SECURITY LENDING ARRANGEMENTS
During the year, the Scheme and its underlying constituent funds did not enter into any security lending arrangements (2020: Nil).
14. NEGOTIABILITY OF ASSETS
At 31 March 2021, there was no statutory or contractual requirement restricting the negotiability of the assets of the Scheme and its constituent funds (2020: Nil).
15. COMMITMENTS
The Scheme and its underlying constituent funds had no commitments at 31 March 2021 (2020: Nil).
16. CONTINGENT LIABILITIES
The Scheme and its underlying constituent funds had no contingent liabilities at 31 March 2021 (2020: Nil).
17. MARKETING EXPENSES
There were no advertising expenses, promotional expenses, commissions or brokerage fees payable to the MPF intermediaries of the Scheme deducted from the constituent funds during the year (2020: Nil).
18. DISTRIBUTION
The Manulife MPF Retirement Income Fund (the "MGRI") aims to distribute dividends on a monthly basis. The distribution of dividends commenced in January 2021. The amount of dividend per unit of the Retirement Income Fund is determined with reference to the recommendation of the investment manager of the underlying first level APIF.
The distributions made by the MGRI for the period from 21 September 2020 (date of inception) to 31 March 2021 were as follows:
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31 March 2021
18. DISTRIBUTION (continued)
Unit HK$/Unit HK$
Distribution for January 2021 72,952,188.576 0.033 2,407,422 (paid on 22 January 2021) Distribution for February 2021 104,151,173.558 0.033 3,436,989 (paid on 23 February 2021) Distribution for March 2021 124,341,675.295 0.033 4,103,275 (paid on 24 March 2021) ______9,947,686 ______
19. FINANCIAL INSTRUMENTS BY CATEGORY
The carrying amounts of each of the categories of financial instruments at the end of the reporting period are as follows:
2021
Financial assets Financial assets at Financial fair value through assets at profit or loss amortised cost Total HK$ HK$ HK$
Investments at fair value through profit or loss 289,242,619,950 - 289,242,619,950 Contribution receivables from employers - 544,263,891 544,263,891 Contribution receivables from employees - 285,511,703 285,511,703 Amounts receivable on sale of investments - 806,106,836 806,106,836 Financial assets included in other receivables - 57,098,473 57,098,473 Cash and cash equivalents ______- ______844,128,588 _____844,128,588______289,242,619,950 ______2,537,109,491 ______291,779,729,441
Financial liabilities Financial liabilities at amortised cost HK$
Benefits payable 176,874,534 Amounts payable on purchase of investments 667,755,338 Financial liabilities included in other payables ______351,373,885______1,196,003,757__
130 MANULIFE GLOBAL SELECT (MPF) SCHEME
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31 March 2021
19. FINANCIAL INSTRUMENTS BY CATEGORY (continued)
2020
Financial assets Financial assets at Financial fair value through assets at profit or loss amortised cost Total HK$ HK$ HK$
Investments at fair value through profit or loss 208,264,729,153 - 208,264,729,153 Contribution receivables from employers - 596,619,767 596,619,767 Contribution receivables from employees - 361,007,160 361,007,160 Amounts receivable on sale of investments - 878,406,601 878,406,601 Financial assets included in other receivables - 40,000,404 40,000,404 Cash and cash equivalents ______- ______702,868,295 ______702,868,295 ______208,264,729,153 ______2,578,902,227 ______210,843,631,380
Financial liabilities Financial liabilities at amortised cost HK$
Benefits payable 135,312,866 Amounts payable on purchase of investments 815,694,236 Financial liabilities included in other payables ______252,540,408______1,203,547,51__0
131 MANULIFE GLOBAL SELECT (MPF) SCHEME
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31 March 2021
20. FAIR VALUE HIERARCHY
The Scheme uses the following hierarchy for determining and disclosing the fair values of financial instruments:
Management has assessed that the fair values of financial receivables and payables, cash and cash equivalents, and other payables approximate to their carrying amounts largely due to the short term maturities of these instruments.
The following tables illustrate the fair value measurement hierarchy of the Scheme's financial instruments:
Assets measured at recurring fair value
At 31 March 2021:
Fair value measurement using Quoted prices Significant Significant in active observable unobservable Markets Inputs Inputs (Level 1) (Level 2) (Level 3) Total HK$'000 HK$'000 HK$'000 HK$'000 Investments at fair value through profit or loss: APIFs 289,242,620 - - 289,242,620
289,242,620 - - 289,242,620
At 31 March 2020:
Fair value measurement using Quoted prices Significant Significant in active observable unobservable Markets Inputs Inputs (Level 1) (Level 2) (Level 3) Total HK$'000 HK$'000 HK$'000 HK$'000 Investments at fair value through profit or loss: APIFs 208,264,729 - - 208,264,729
208,264,729 - - 208,264,729
During the year, there were no transfers of fair value measurements between Level 1 and Level 2 and no transfers into or out of Level 3 (2020: Nil).
132 MANULIFE GLOBAL SELECT (MPF) SCHEME
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31 March 2021
21. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Scheme's principal financial instruments comprise investments at fair value through profit or loss and cash and cash equivalents. The main risks arising from the Scheme's financial instruments are price risk, foreign currency risk, interest rate risk, credit risk and liquidity risk. The policies for managing each of these risks are summarised below.
Price risk
Price risk is the risk that the fair values of equity securities decrease as a result of changes in the levels of equity indices and the value of individual securities. The Scheme and its underlying constituent funds are exposed to price risk arising from investments in underlying APIFs classified as trading equity investments at the end of the reporting period. Each constituent fund of the Scheme is managed in accordance with separate and distinct investment policies reflecting the different risk profiles of the investments and there is no concentration of price risk for each constituent fund of the Scheme. The positions held by the Scheme and its underlying constituent funds at the end of the reporting period are disclosed in the investment portfolios.
At 31 March 2021 and 2020, it is estimated that had the equity indices increased by 5%, with all other variables held constant, net assets attributable to unitholders and profit would have increased by the amounts shown below:
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31 March 2021
21. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Price risk (continued)
At 31 March 2021 Change in net assets and income (HK$'000) Market Indices (+5%) MGGR MGAG MGPE MGIE MGHE MGJE MGNE MGEE MGFG MGFS MGCV FTSE MPF Europe 123,327 211,213 - 49,266 - - - 151,172 - - - FTSE MPF Hong Kong 244,394 402,654 183,756 12,495 773,840 ------FTSE MPF Japan 69,626 118,380 - 17,538 - 93,160 - - - - - FTSE MPF USA 70,063 118,098 - 114,117 - - 374,287 - - - - FTSE MPF Asia Pacific ex JP & HK 99,983 170,924 366,201 31,689 ------FTSE MPF Greater China ------1,858,319 Russell 1000 57,805 101,511 - 98,423 - - 373,148 - - - - S&P 500 58,188 102,184 - 99,076 - - 375,621 - - - - MSCI AC World Information Technology 5,730 10,226 ------Citigroup WGBI Non-Exempt Auth 10% ------521,006 409,896 - Cap, 25% Hedged to HKD FTSE MPF Hong Kong FTSE AW North America Index FTSE AW Europe Index FTSE W Japan Index FTSE AW Asia Pacific Ex Japan Ex HK1 month HIBOR
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31 March 2021
21. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Price risk (continued)
At 31 March 2021 (continued) Change in net assets and income (HK$'000) Market Indices (+5%) MGHC MG15 MG25 MG30 MG35 MG40 MG45 MGHS MGAP MGCA MGST MGRI FTSE MPF Europe - 5,063 4,024 5,323 6,231 5,323 9,606 - - - 34,402 2,986 FTSE MPF Hong Kong - 9,739 7,901 10,398 11,847 10,114 18,100 - - - 120,042 9,070 FTSE MPF Japan - 2,923 2,473 3,298 3,635 3,260 5,733 - - - 35,563 - FTSE MPF USA - 2,831 2,035 3,008 3,539 3,008 5,485 - - - 25,831 3,804 FTSE MPF Asia Pacific ex JP & HK - 4,160 3,403 4,311 4,992 4,235 7,714 - - - 7,185 9,076 MSCI World Health Care 1,450,027 ------Russell 1000 - 2,081 1,880 2,551 3,021 2,618 4,767 - - - 19,805 3,357 S&P 500 - 2,095 1,892 2,568 3,041 2,636 4,798 - - - 19,937 3,379 MSCI AC World Information - 219 205 223 242 193 350 - - - - - Technology Hang Seng Index ------287,503 - - - - FTSE MPF All-World Index ------182,385 594,763 - - Citi MPF Government Bond Index MPFA prescribed savings rate
A 5% drop in the equity indices would have resulted in an equal but opposite effect on the financial statements as shown above, on the basis that all other variables remained constant. In practice, the actual trading results may differ from the above sensitivity analysis and the difference could be material.
MGCP, MGHB, MGIT, MGIB, MGPB and MGRB invest in underlying investments that are fixed-income instruments. The price of those securities is primarily subject to fluctuations in interest rates for which the associated interest rate risk is covered in the later part of this note.
135 MANULIFE GLOBAL SELECT (MPF) SCHEME
NOTES TO FINANCIAL STATEMENTS
31 March 2021
21. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Price risk (continued)
At 31 March 2020 Change in net assets and income (HK$'000) Market Indices (+5%) MGGR MGAG MGPE MGIE MGHE MGJE MGNE MGEE MGFG MGFS MGCV FTSE MPF Europe 80,352 139,475 - 34,018 - - - 100,978 - - - FTSE MPF Hong Kong 151,781 250,489 109,083 4,632 496,912 ------FTSE MPF Japan 68,242 120,041 - 15,765 - 83,220 - - - - - FTSE MPF USA 46,971 68,335 - 62,803 - - 173,340 - - - - FTSE MPF Asia Pacific ex JP & HK 62,238 109,249 221,158 19,355 ------FTSE MPF Greater China ------1,091,020 Russell 1000 46,611 80,509 - 52,247 - - 197,756 - - - - S&P 500 43,922 75,865 - 49,233 - - 186,348 - - - - MSCI AC World Information Technology 2,760 4,926 ------Citigroup WGBI Non-Exempt Auth 10% ------359,181 322,012 - Cap, 25% Hedged to HKD FTSE MPF Hong Kong FTSE AW North America Index FTSE AW Europe Index FTSE W Japan Index FTSE AW Asia Pacific Ex Japan Ex HK1 month HIBOR
136 MANULIFE GLOBAL SELECT (MPF) SCHEME
NOTES TO FINANCIAL STATEMENTS
31 March 2021
21. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Price risk (continued)
At 31 March 2020 (continued) Change in net assets and income (HK$'000) Market Indices (+5%) MGHC MG15 MG20 MG25 MG30 MG35 MG40 MG45 MGHS MGAP MGCA MGST FTSE MPF Europe - 1,378 1,679 2,971 3,488 3,962 3,273 5,770 - - - 21,358 FTSE MPF Hong Kong - 2,838 3,316 5,074 6,153 6,930 5,765 9,976 - - - 77,150 FTSE MPF Japan - 1,358 1,644 2,467 2,967 3,217 2,860 4,862 - - - 32,030 FTSE MPF USA - 1,097 1,001 1,812 2,194 2,289 1,860 2,813 - - - 12,732 FTSE MPF Asia Pacific ex JP & HK - 1,284 1,468 2,201 2,614 2,935 2,477 4,311 - - - 2,156 MSCI World Health Care 1,079,032 ------Russell 1000 - 680 1,079 1,639 1,799 1,959 1,559 2,798 - - - 10,753 S&P 500 - 640 1,017 1,544 1,695 1,846 1,469 2,637 - - - 10,133 MSCI AC World Information - - - - - Technology 41 65 99 107 116 93 168 Hang Seng Index ------252,462 - - - FTSE MPF All-World Index ------120,132 360,242 - Citi MPF Government Bond Index MPFA prescribed savings rate
A 5% drop in the equity indices would have resulted in an equal but opposite effect on the financial statements as shown above, on the basis that all other variables remained constant. In practice, the actual trading results may differ from the above sensitivity analysis and the difference could be material.
MGCP, MGHB, MGIT, MGIB, MGPB and MGRB invest in underlying investments that are fixed-income instruments. The price of those securities is primarily subject to fluctuations in interest rates for which the associated interest rate risk is covered in the later part of this note.
137 MANULIFE GLOBAL SELECT (MPF) SCHEME
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31 March 2021
21. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Foreign currency risk
Foreign currency risk is the risk that the value of financial assets or liabilities will fluctuate due to changes in foreign exchange rates. The Scheme and its underlying constituent funds are exposed to foreign currency risk from its cash and investments in underlying APIFs, which are denominated in currencies other than Hong Kong Dollars and United States Dollars, which are officially linked to the Hong Kong Dollar. The Scheme and its underlying constituent funds' overall currency positions are monitored on a daily basis by the investment manager.
The Scheme and its underlying constituent funds primarily utilise forward exchange contracts and futures to hedge foreign-currency-denominated financial assets and liabilities. Increases or decreases in the Scheme and its underlying constituent funds' foreign-currency-denominated financial assets and liabilities are partially offset by gains and losses on the economic hedging instruments.
The tables below indicate currencies other than Hong Kong Dollars and United States Dollars to which the Scheme and its underlying constituent funds had significant exposure at the end of the reporting periods on its financial assets and liabilities. At 31 March 2021 and 2020, it is estimated that had the Hong Kong Dollars or the United States Dollars strengthened by 5% in relation to the foreign currencies with significant exposure, with all other variables held constant, net assets attributable to unitholders and profit would have decreased by the amounts shown below.
At 31 March 2021 Currency MGGR MGAG MGPE MGIE MGHE MGIB MGJE MGST (+5%) HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 AUD - 48,251 102,637 - - - - - DKK - 46,820 ------CNH - - - - 37,420 - - - EUR 98,718 131,214 - 30,431 - 91,987 - 34,288 GBP - - - - - 15,469 - - INR - - 79,986 - - - - - JPY 89,002 139,088 - 20,403 - 30,383 108,380 45,834 KOW - 46,334 97,979 - - - - - SGD - - 19,664 - - - - - TWD - - 89,418 - - - - - Total 187,720 411,707 389,684 50,834 37,420 137,839 108,380 80,122
138 MANULIFE GLOBAL SELECT (MPF) SCHEME
NOTES TO FINANCIAL STATEMENTS
31 March 2021
21. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Foreign currency risk (continued)
At 31 March 2021 (continued) Currency MGEE MG15 MG25 MG30 MG35 MG40 MG45 MGFG (+5%) HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 AUD - - - 1,302 1,441 1,203 2,184 - CHF 25,711 ------CNH - 2,333 ------DKK 33,436 - - - 1,390 1,181 2,130 - EUR 90,319 6,481 4,422 4,216 4,201 3,363 5,993 67,020 GBP 8,517 ------JPY - 4,535 3,539 4,171 4,378 3,845 6,740 71,860 KOW - - - - 1,351 1,146 2,088 - SEK 27,468 ------Total 185,451 13,349 7,961 9,689 12,761 10,738 19,135 138,880
Currency MGFS MGCV MGHC MGPB MGRB MGAP MGCA MGRI (+5%) HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 AUD - - - 8,370 - - - 2,994 CHF - - 86,224 - - - - - CNH - 123,910 - - 87,070 - - 3,695 EUR 44,041 - 66,564 - - 3,323 31,111 2,143 GBP - - 71,148 - - 1,603 14,695 - IDR - - - 7,893 - - - - JPY 70,957 - 49,671 - - 2,718 25,335 - KOW - - - 7,613 - - - 2,838 MYR - - - 5,652 - - - - NZD - - - 3,135 - - - - SGD - - - 2,660 - - - - TWD - 398,774 - - - - - 2,216 Total 114,998 522,684 273,607 35,323 87,070 7,644 71,141 13,886
A 5% weakening of the Hong Kong Dollars or the United States Dollars against the foreign currencies would have resulted in an equal but opposite effect on the financial statements as shown above, on the basis that all other variables remained constant. In practice the actual trading results may differ from the above sensitivity analysis and the difference could be material.
MGCP, MGHB, MGIT and MGHS are mainly denominated in Hong Kong Dollars and MGNE is mainly denominated in United States Dollars. Therefore, there is no significant exposure to foreign currency risk.
139 MANULIFE GLOBAL SELECT (MPF) SCHEME
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31 March 2021
21. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Foreign currency risk (continued)
At 31 March 2020 Currency MGGR MGAG MGPE MGIE MGIB MGJE MGST (+5%) HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 AUD - 30,840 61,999 - - - - DKK - - - 6,819 - - - EUR 67,934 72,412 - 17,576 83,748 - - GBP - - - - 14,218 - - INR - - 38,958 - - - - JPY 68,820 104,882 - 13,629 29,471 71,948 29,351 KOW - - 49,759 - - - - TWD - - 48,976 - - - - Total 136,754 208,134 199,692 38,024 127,437 71,948 29,351
Currency MGEE MG15 MG20 MG25 MG30 MG35 MG40 MG45 (+5%) HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 AUD ------701 1,219 CHF 16,591 ------CNH - 787 1,121 929 - - - - DKK 20,242 ------EUR 49,462 2,418 2,674 2,880 2,330 2,152 1,699 2,978 GBP 8,675 ------JPY - 1,782 2,068 2,625 2,773 2,845 2,497 4,242 SEK 12,779 ------Total 107,749 4,987 5,863 6,434 5,103 4,997 4,897 8,439
140 MANULIFE GLOBAL SELECT (MPF) SCHEME
NOTES TO FINANCIAL STATEMENTS
31 March 2021
21. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Foreign currency risk (continued)
At 31 March 2020 (continued) Currency MGFG MGFS MGCV MGHC MGPB MGRB MGAP MGCA (+5%) HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 AUD - - - - 7,491 - - - CHF - - - 68,111 - - - - CNH - - 36,679 - - 57,022 - - EUR 37,570 46,578 - - - - 2,427 20,598 GBP ------1,239 10,434 IDR - - - - 5,867 - - - JPY 43,497 27,908 - 47,640 - - 2,230 19,000 KOW - - - - 5,820 - - - MYR - - - - 4,142 - - - PHP - - - - 2,464 - - - SGD - - - - 2,523 - - - TWD - - 259,888 - - - - - Total 81,067 74,486 296,567 115,751 28,307 57,022 5,896 50,032
A 5% weakening of the Hong Kong Dollars or the United States Dollars against the foreign currencies would have resulted in an equal but opposite effect on the financial statements as shown above, on the basis that all other variables remained constant. In practice the actual trading results may differ from the above sensitivity analysis and the difference could be material.
MGCP, MGHB, MGHE, MGIT and MGHS are mainly denominated in Hong Kong Dollars and MGNE is mainly denominated in United States Dollars. Therefore, there is no significant exposure to foreign currency risk.
Interest rate risk
Interest rate risk is the risk that the value of financial instruments or future cash flows will fluctuate as a result of changes in market interest rates. The Scheme and its underlying constituent funds are exposed to interest rate risk on the underlying APIFs, which invest in interest-bearing securities and cash deposits.
Interest rates are determined by factors of supply and demand in the international money markets, which are influenced by macro-economic factors. Fluctuations in short term and/or long term interest rates may affect the value of the units. Fluctuations in interest rates of the currencies in which the units are denominated and/or fluctuations in interest rates of the currencies in which an underlying portfolio's investments are denominated may affect the value of the units.
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31 March 2021
21. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Interest rate risk (continued)
It is the Scheme and its underlying constituent funds' policies that the interest-bearing securities held by the underlying APIFs of the constituent funds of the Scheme are selected on a diversified basis mainly in short and medium term fixed income instruments in accordance with the investment policies of the underlying APIFs, which satisfy the minimum credit rating stipulated by the MPFA, so as to minimise the interest rate risk of the Scheme and its underlying constituent funds from changes in market interest rates.
At 31 March 2021 and 2020, it is estimated that an increase of interest rate by 25 basis points ("bps"), with all other variables held constant, would have resulted in a decrease in net assets attributable to unitholders of the constituent funds set out below by the amounts shown below:
Change in interest rate (+25 bps) At 31 March 2021 At 31 March 2020 HK$'000 HK$'000 MGAG ( 4,687) ( 4,732) MGCP 7,264 6,934 MGGR ( 40,685) ( 41,563) MGHB ( 49,065) ( 43,968) MGIB ( 98,127) ( 87,696) MGIT (243,738) (215,668) MGST (152,476) (122,922) MGFG ( 2,086) ( 9,986) MGFS ( 49,634) ( 38,117) MGPB ( 23,209) ( 18,477) MGRB ( 20,277) ( 12,337) MG15 ( 5,918) ( 2,783) MG20 - ( 3,084) MG25 ( 3,548) ( 2,485) MG30 ( 1,652) ( 951) MG35 ( 713) ( 295) MG40 ( 231) ( 128) MG45 ( 336) ( 252) MGAP ( 11,034) ( 7,675) MGCA ( 17,234) ( 10,369) MGRI ( 10,418) -
A decrease of the interest rate by 25 bps would have an equal but opposite effect of the net assets attributable to unitholders of the above sub-funds. The other sub-funds may hold cash or cash equivalents that may be subject to interest rate risk. This is relatively immaterial to the size of the sub-funds' net asset value.
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21. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Credit risk
Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Scheme and its underlying constituent funds are exposed to credit risk on financial instruments with a maximum exposure equal to the carrying amount of these instruments.
It is the Scheme's constituent funds' policy to engage only with internally approved counterparties.
The investment manager continuously monitors the credit risk on financial instruments and counterparties and does not expect any material losses due to credit risk.
Concentrations of credit risk are managed by geographical region and by industry sector. There are no significant concentrations of credit risk within the Scheme and its underlying constituent funds.
Maximum exposure and year-end staging at 31 March 2021 The table below shows the maximum exposure to credit risk based on the Scheme's credit policy, which is mainly based on past due information unless other information is available without undue cost or effort, and year-end staging classification at 31 March 2021. The amounts presented are gross carrying amounts for financial assets.
12-month ECLs Lifetime ECLs Simplified Stage 1 Stage 2 Stage 3 approach HK$ HK$ HK$ HK$ HK$
Contribution receivables from employers 544,263,891 - - - 544,263,891 Contribution receivables from employees 285,511,703 - - - 285,511,703 Amounts receivable on sale of investments 806,106,836 - - - 806,106,836 Other receivables 57,098,473 - - - 57,098,473 Cash and cash equivalents 844,128,588 - - - 844,128,588 ______2,537,109,491 - - - 2,537,109,491 ______
Maximum exposure and year-end staging at 31 March 2020 The table below shows the maximum exposure to credit risk based on the Scheme's credit policy, which is mainly based on past due information unless other information is available without undue cost or effort, and year-end staging classification at 31 March 2020. The amounts presented are gross carrying amounts for financial assets.
12-month ECLs Lifetime ECLs Simplified Stage 1 Stage 2 Stage 3 approach HK$ HK$ HK$ HK$ HK$
Contribution receivables from employers 596,619,767 - - - 596,619,767 Contribution receivables from employees 361,007,160 - - - 361,007,160 Amounts receivable on sale of investments 878,406,601 - - - 878,406,601 Other receivables 40,000,404 - - - 40,000,404 Cash and cash equivalents 702,868,295 - - - 702,868,295 ______2,578,902,227 - - - 2,578,902,227 ______
143 MANULIFE GLOBAL SELECT (MPF) SCHEME
NOTES TO FINANCIAL STATEMENTS
31 March 2021
21. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Liquidity risk
Liquidity risk is the risk that the Scheme and its underlying constituent funds will encounter difficulty in raising funds to meet commitments. Liquidity risk may result from an inability to sell a financial instrument within a reasonable time at an amount close to its fair value.
Considering that the Scheme invests the majority of the assets in actively traded markets, management of the Scheme and its underlying constituent funds consider the liquidity risk of the Scheme and its underlying constituent funds is minimal.
Capital management
The operation of the Scheme is regulated and supervised by the MPFA and the Scheme is governed by the trust deed of the Scheme. The primary objective of the Scheme's capital management is to achieve reasonable returns on investments for the Scheme assets.
The capital of the Scheme represents net assets attributable to unitholders. The Scheme does not raise capital by issue of shares or debt, or in any way other than contributions made to the Scheme. During the financial period, the Scheme has complied with the General Regulations and there has been no material change to the trust deed of the Scheme that has impacted how the Scheme should manage its capital.
144 MANULIFE GLOBAL SELECT (MPF) SCHEME
NOTES TO FINANCIAL STATEMENTS
31 March 2021
22. PAYMENTS CHARGED TO DIS CONSTITUENT FUNDS
In accordance with the Mandatory Provident Fund legislation, the aggregate of the payments for services to the MGAP and MGCA must not, in a single day, exceed a daily rate of 0.75% per annum of the net asset value of each of the MGAP and MGCA divided by the number of days in the year.
The above aggregate payment for services includes, but is not limited to, the fees paid or payable for the services provided by the Trustee, the Administrator, the Investment Manager, the Custodian and the Sponsor and/or promoter (if any) of each of the MGCA and MGAP and its underlying investment fund(s), and any of the representatives of these parties and such fees are calculated as a percentage of the net asset value of each of the MGCA and MGAP and its underlying investment fund(s), but do not include any out-of-pocket expenses incurred by each of the MGCA and MGAP and their underlying investment fund(s).
In accordance with the Mandatory Provident Fund legislation, the total amount of all payments that is charged to or imposed on a DIS constituent fund or members who invest in a DIS constituent fund, for out-of-pocket expenses incurred by the Trustee on a recurrent basis in the discharge of the Trustee's duties to provide services in relation to a DIS constituent fund, shall not in a single year exceed 0.2% per annum of the net asset value of each of the MGCA and MGAP.
For this purpose, out-of-pocket expenses include, for example, annual audit expenses, printing or postage expenses relating to recurrent activities (such as issuing annual benefit statements), recurrent legal and professional expenses, safe custody charges, which are customarily not calculated as a percentage of the net asset value and transaction costs incurred by a DIS constituent fund in connection with recurrent acquisition of investments for the DIS constituent fund (including, for example, costs incurred in acquiring underlying funds) and annual statutory expenses (such as compensation fund levy where relevant) of the DIS constituent fund.
Out-of-pocket expenses that are not incurred on a recurrent basis may still be charged to or imposed on a DIS constituent fund and such out-of-pocket expenses are not subject to the above statutory limit. Examples include audit expense, independent review expense or accounting expense related to a one- off issue, such as scheme merger, change of trustee or scheme administrator.
Payment for services, out-of-pocket expenses and other payment charged to the MGCA and MGAP are disclosed below. Payments for services and out-of-pocket expenses are those defined in the MPF Ordinance.
145 MANULIFE GLOBAL SELECT (MPF) SCHEME
NOTES TO FINANCIAL STATEMENTS
31 March 2021
22. PAYMENTS CHARGED TO DIS CONSTITUENT FUNDS (continued)
2021 2020 MGAP MGCA MGAP MGCA HK$ HK$ HK$ HK$ Payments for out-of-pocket expenses - Audit Fees 43,629 48,098 39,595 43,726 - Accounting and Professional Fees 13,650 13,650 13,650 13,650 - Annual Fee 8,096 8,096 4,785 4,785 - Transaction Handling Fees 153,542 152,936 153,336 153,336 - Interest Expense 1,183,713 17,360 428,904 4,037 - Indemnity Insurance 8,563 26,948 4,197 14,533 - Expenses incurred in respect of administration of scheme and 313,580 942,267 192,824 669,267 constituent funds - Cash Payment Fee 13,915 16,905 6,440 6,325 Total out-of-pocket expenses 1,738,688 1,226,260 843,731 909,659
Payments for services - Administration Fee 15,646,257 47,729,527 9,520,844 31,394,990 - Investment Management Fee 319,746 974,197 194,538 640,809 Total payments for services expenses 15,966,003 48,703,724 9,715,382 32,035,799
Total payments 17,704,691 49,929,984 10,559,113 32,945,458
Out-of-pocket expenses expressed as a percentage of average net asset value at the last dealing day of each month of the DIS constituent funds 0.05% 0.01% 0.04% 0.01%
23. APPROVAL OF FINANCIAL STATEMENTS
The financial statements were approved and authorised for issue by the Trustee on 14 September 2021.
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MANULIFE GLOBAL SELECT (MPF) SCHEME
INFORMATION FOR THE SCHEME MEMBERS
31 March 2021
Members of the Scheme are informed about the financial position of their MPF contributions through the use of a secure PIN, which provides access to Smart Call (an IVR service) or e-MPF online service (a web based service). Both services allow members to enquire about their fund balances and perform routine transactions, such as changing investment instructions. Members can also find comprehensive information in the online monthly Member Benefit Statement via e-MPF. After log on to e-MPF, members can set up a fund price alert by selecting the fund and setting a target unit price by the MPF Fund Price Alert. An email alert will be sent to members when the target unit price is reached. In addition, members are kept abreast of the investment market with an online view of monthly fund performance through visiting www.manulife.com.hk to access the e-MPF service. To further facilitate the provision of information to members, a Manulife App for mobile devices has been launched allowing access to fund information as well as login to the Customer Website for account balances etc.
Employers can understand the operation of the Scheme through the Employer's Operations Manual, which continues to be a valuable guide for administrative duties and compliance obligations. In addition, employers may use the internet to access, at their convenience, information relating to their sub-scheme. This includes the current Cash Account Balance and the status of Contribution Allocation.
As an additional service, for members that have an email address on its records, Manulife initiates timely emails to alert members that contributions have been allocated to accounts and fund switch transactions have been executed.
147 Ernst & Young §i<§E"rE@$5]'>%F)? Tel EES: +852 2846 9888 27/F, One Taikoo Place §§EH 8@§§E979% Fax f§E2 +852 2868 4432 979 King's Road ey.com EYwk X315 Ii27ii Ouarry Bay, Hong Kong
INDEPENDENT AUDITOR'S ASSURANCE REPORT TO THE TRUSTEE OF MANULIFE GLOBAL SELECT (MPF) SCHEME
We have audited the financial statements of Manulife Global Select (MPF) Scheme (the "Scheme") for the year ended 31 March 2021 in accordance with Hong Kong Standards on Auditing and with reference to Practice Note 860.1 (Revised), The Audit of Retirement Schemes ("PN 860.1 (Revised)") issued by the Hong Kong Institute of Certified Public Accountants ("HKlCPA"), and have issued an unqualified auditor's report thereon dated 14 September 2021.
Pursuant to section 102 of the Mandatory Provident Fund Schemes (General) Regulation (the "General Regulation"), we are required to report whether the Scheme complied with certain requirements of the Mandatory Provident Fund Schemes Ordinance ("MPFSO") and the General Regulation.
Trustee's Responsibility
The General Regulation requires the trustee to ensure that:
(a) proper accounting and other records are kept in respect of the constituent funds of the Scheme, the Scheme assets and all financial transactions entered into in relation to the Scheme,
(b) the requirements specified in the guidelines made by the Mandatory Provident Fund Schemes Authority (the "MPFA") under section 28 of the MPFSO with respect to forbidden investment practices and the requirements of sections 37(2), 51 and 52 and Part x of, and Schedule 1 to, the General Regulation are complied with,
(C) the requirements under sections 34DB(1)(a), (b), (c) and (d), 34DC(1) and 34DD(1) and (4) of the MPFSO are complied with, and
(d) the Scheme assets are not subject to any encumbrance, otherwise than as permitted by the General Regulation.
Our Independence and Quality Control
We have complied with the independence and other ethical requirements of the Code of Ethics for Professional Accountants issued by the HKICPA, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior.
Our firm applies Hong Kong Standard on Quality Control 1, Quality Control for Firms that Pe/form Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
Auditor's Responsibility
Our responsibility is to report on the Scheme's compliance with the above requirements based on the results of the procedures performed by us.
We conducted our engagement in accordance with Hong Kong Standard on Assurance Engagements 3000 (Revised), Assurance Engagements Other Than Audits or Reviews of Historical Financial information and with reference to PN 860.1 (Revised) issued by the HKICPA. We have planned and performed our work to obtain reasonable assurance on whether the Scheme has complied with the above requirements.
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INDEPENDENT AUDITOR'S ASSURANCE REPORT (continued) TO THE TRUSTEE OF MANULIFE GLOBAL SELECT (MPF) SCHEME
Auditor's Responsibility (continued)
We have planned and performed such procedures as we considered necessary with reference to the procedures recommended in PN 860.1 (Revised) issued by the HKICPA, which included reviewing, on a test basis, evidence obtained from the Trustee regarding the Scheme's compliance with the above requirements.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Opinion
Based on the foregoing:
1. in our opinion:
8) proper accounting and other records have been kept during the year ended 31 March 2021 in respect of the constituent funds of the Scheme, the Scheme assets and all financial transactions entered into in relation to the Scheme, and
b) the requirements specified in the guidelines made by the MPFA under section 28 of the MPFSO with respect to forbidden investment practices and the requirements of sections 37(2), 51 and 52 and Part x of, and Schedule 1 to, the General Regulation have been complied with, in all material respects, as at 31 March 2021, 31 December 2020 and 30 June 2020, and cl the requirements specified in the MPFSO under sections 34DB(1)(a), (b), (c) and (d) 34DC(1) and 34DD(1) and (4)(a) with respect to the investment of accrued benefits and control of payment for services relating to Manulife MPF Core Accumulation Fund and Manulife MPF Age 65 Plus Fund have been complied with, in all material respects, as at 31 March 2021, 31 December 2020 and 30 June 2020, and
d) the requirements specified in section 34DD(4)(b) of the MPFSO with respect to the controls of out-of-pocket expenses of the Manulife MPF Core Accumulation Fund and Manulife MPF Age 65 Plus Fund have been complied with, in all material respects, as at 31 March 2021.
2. as at 31 March 2021, the Scheme assets were not subject to any encumbrance, otherwise than as permitted by the General Regulation.
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A member firm of Ernst & Young Global Limited EYwk
INDEPENDENT AUDlTOR'S ASSURANCE REPORT (continued) TO THE TRUSTEE OF MANULIFE GLOBAL SELECT (MPF) SCHEME
Other Matter
The requirement(s) specified in the MPFSO under section(s) 34Dl(1) and (2) and 34DK(2) with respect to the transfer of accrued benefits to an account and specified notice, and 34DJ(2), (3), (4) and (5) with respect to locating scheme members relating to Manulife MPF Core Accumulation Fund and Manulife MPF Age 65 Plus Fund are not applicable to the trustee during the year ended 31 March 2021 as the trustee has completed the relevant transitional provisions. Accordingly, there is no reporting on these sections.
Intended Users and Purpose
This report is intended solely for submission by the trustee to the MPFA pursuant to section 102 of the General Regulation, and is not intended to be, and should not be, used by anyone for any other purpose.
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Certified Public Accountants Hong Kong 14 September 2021
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A member firm of Ernst & Young Global Limited