fidelity retirement services performance update · 1995 1996 1997 1998 1999 2000 ... source:...

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1995 1996 1997 1998 1999 2000 2001 2002 2003

Major Market Indices

Source: Micropal, as of May 30, 2003, in USD.

Fidelity Retirement HotlinesFor MPF members 2500 1666

For ORSO members

• With Bermuda Trust (Far East) Ltd.as administrator 2500 1666

• With other administrators 2629 2666

Fidelity Website www.fidelity.com.hk

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MARKET REVIEW AND OUTLOOK JUNE 2003

FIDELITY RETIREMENT SERVICESPerformance Update

• Equities built on the previous month’s modest gains with a robustadvance fuelled by investor interest in property developers andcompanies with strong links to mainland China, which led to the rise ofHang Seng Index by 8.8%.

• Most Asia Pacific markets rallied during the month of May. Investorswelcomed progress in the containment of the SARS virus and re-focusedtheir attention on corporate profitability. Stocks in outsourcingcompanies proved to be particularly popular.

• Having underperformed in April, the Taiwanese market reboundedstrongly in May, with the weighted index rallying by 9.8% over the month.

• In Korea, the KOSPI advanced by 5.7%, as the central bank’s decision totrim interest rates was well received by market participants in thatcountry. A number of consumer stocks attracted renewed buying interest,whilst technology shares rose in line with their counterparts elsewhere.

• In Singapore, Strait Times Index posted a gain of 5.3%. The stockmarket benefited from news that a new free trade agreement with theUS had been signed, which boosted shares in the city state’s export-related businesses.

• Australia’s All Ordinaries Index recorded a modest rise of only 0.3%, asequities struggled to make headway. Investor sentiment was dampenedby the strength of the Australian dollar, which resulted in reducedearnings forecasts for companies in the important resources sector.

• Indonesia again proved to be the best performer amongst the smallerexchanges, with the Jakarta SE Composite Index advancing by 9.7% overthe month. Investors were encouraged by the country’s falling interestrates and significant progress with structural reforms.

• Japanese stocks climbed higher in May. The Topix rose by 5.2%,reaching a three-month high. At the sector level, the largest advancescame from stocks in the areas of non-ferrous metals, metal products andmiscellaneous financials. Exporters and technology stocks also did well,supported by rallies in US markets and a stabilization in foreignexchange rates.

• The government and the Bank of Japan (BoJ) approved a number ofmeasures aimed at supporting the stock market. Investors, however,were skeptical about their effectiveness. There were renewed fears aboutinstability in the financial system after Resona Bank applied to thegovernment for public funds to help keep it in business. Thegovernment agreed to infuse 2 trillion yen in the troubled company inJune to boost its depleted capital.

• Corporate results for the year to March were favourable. The figuresshowed that Japanese companies achieved strong profit growth, mainlythrough cost cutting. Firms listed on the TSE1 Index (excludingfinancials) recorded a 75% year-on-year jump in recurring profits.

• US equities, rose in May, boosted by improving data on the economy.Surveys showed rising consumer confidence and increasedmanufacturing activity.

• According to information released by the National Association of Realtors,the sale of existing homes surged by 5.6% month-on-month in April, afterjumping 5.5% in March. Housing has remained one of the strongestsectors in the economy, helped by historically low mortgage rates.

• In May, the Institute for Supply Management’s Manufacturing Indexrecorded the largest monthly rise since December 2002. The Chicagobranch of the National Association of Purchasing Managers also reportedan expansion in manufacturing activity in their region.

• Scores for both the Conference Board’s Consumer Confidence Index andthe University of Michigan’s Consumer Sentiment Index improved in Maysuggesting that domestic spending could pick up in coming months.

• Despite recent encouraging signs, the economy may remain anaemicover the next few months. However, many economists are nowforecasting growth to pick up towards the end of the year.

• Most eurozone markets gained in May, despite the release ofdisappointing economic data and the continued strength of the euroagainst the dollar. The MSCI Europe ex UK and FTSE All Share Indicesrose by 1.7% and 4.4% respectively.

• The possibility of a recession in Europe increased, as gross domestic productfigures showed that the economies of Germany, Italy and the Netherlandscontracted in the first quarter.

• In France, the appreciating currency weighed on manufacturing confidence,which fell to a 14-month low in May. However, the German IFO survey ofbusiness confidence rose unexpectedly, benefiting from the conclusion ofthe Iraq war, improved consumer confidence and lower oil prices.

• The strength of the euro is likely to continue to make operatingconditions tough for European companies, particularly for those withextensive trade links outside the region.

• Global bond markets gained in May. High-grade US corporate bondsoutperformed treasuries. However, government and corporate bondsperformed in line in Europe, with both sectors rising amid weakeconomic data.

• Investor gloom about Europe’s economy and rising expectations of a ratecut by the European Central Bank benefited fixed-income securities inthe eurozone.

• In Japan, government bonds strengthened in response to concerns aboutdeflation.

* Please note that all stock market results quoted for the individual South East Asianmarkets are simple price changes, not total returns.

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HK Dollar Money Fund �� !"#

Growth Fund �� !

Balanced Fund �� !

Stable Growth Fund �� !"#

Capital Stable Fund �� !"#

US Dollar Money Fund �� !"#

Fund Asset Allocation =�� !"# ~ë=çÑ=�� PNLMPLOMMP Top 5 Holdings =�� !"# ~ë=çÑ=�� PNLMPLOMMP

Hutchison Whampoa Ltd. 2.96%�� !

HSBC Holdings Plc (HK) 2.90%�� !

Hang Seng Bank Ltd. 2.35%�� !

Cheung Kong Holdings Ltd. 2.33%�� !

China Mobile (HK) Ltd. 2.08%�� !

Fund Asset Allocation =�� !"# ~ë=çÑ=�� PNLMPLOMMP Top 5 Holdings =�� !"# ~ë=çÑ=�� PNLMPLOMMP






Fund Asset Allocation =�� !"# ~ë=çÑ=�� PNLMPLOMMP

6.03%Japan Equities�� !

3.98%Cash & Others�� !"

9.81%European Equities

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46.91%Bonds��

9.35%US Equities�� !

6.69%Other Asia Pacific Equities�� !"#$

17.23%Hong Kong Equities�� !

Top 5 Holdings =�� !"# ~ë=çÑ=�� PNLMPLOMMP

France OAT 5.75% 10/25/32 1.96%

USTB 6.25% 5/15/30 1.77%



Japan Govt. SER 41.1% 6/20/05 1.58%



7.95%Cash & Others�� !"5.87%

European Equities�� !

62.86%Bonds��

5.40%US Equities�� ! 4.11%

Other Asia Pacific Equities�� !"#$



France OAT 5.75% 10/25/32 2.60%

USTB 6.25% 5/15/30 2.35%

Japan Govt. SER 41.1% 6/20/05 2.10%

Instituto De Credit FRN 2/1/05 2.02%

Belgium Govt. 7.75% 10/15/04 20 1.81%



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US Treasury –3-month Discount Rate�� !�� !"#

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�� !

8.62%Bonds��


12.42%Other Asia Pacific Equities

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26.82%Bonds��




FIDELITY ADVANTAGE PORTFOLIO FUND As of May 30, 2003

� � ! " # $ % & ' �� !!"#$%"&'

ORSO�� !"#

US Interest Rate & Bond Yield =�� !"#$%&

US Treasury –10-Year Benchmark Bond�� !"�#$%

96.02%USD Money MarketInstruments�� !"#$%

3.98%USD Fixed Deposits

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1995 1996 1997 1998 1999 2000 2001 2002 2003

%Hong Kong Interest Rate =�� !

99.47%HKD Money MarketInstruments�� !"#$%

0.53%HKD Fixed Deposits

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Source �� !"Datastream

Hong Kong Deposit 3-month -Middle Rate�� !"#$%&'

1995 1996 1997 1998 1999 2000 2001 2002 2003

Fund Manager �� ! : Ignatius Lee �� Fund Size =�� ! : US$160.12M�� !"#

Fund Price & Performance =�� !"#$










Fund Manager �� ! : Ignatius Lee �� Fund Size =�� ! : HK$374.20M�� !"#


Performance �� !=(US$)

YTD 1 Month 1 Year Since Launch�� ! �� !"

16/01/1995 US$12.62 5.2% 6.3% -10.2% 26.2%

16/01/1995 US$13.09 5.5% 6.4% -9.7% 30.9%

15/03/2002 US$12.62 5.3% 6.3% -10.2% -9.1%

Class ��

Administration�� !"#

Ordinary�� !

Savings�� !

NAV Price�� !"�

Launch Date�� !



16/01/1995 US$13.57 5.7% 5.8% -4.4% 35.7%

16/01/1995 US$14.06 5.9% 5.8% -4.0% 40.6%

15/03/2002 US$13.57 5.7% 5.8% -4.4% -2.9%

Class ��


Ordinary�� !

Savings�� !


Launch Date�� !



31/05/1997 US$16.37 6.2% 5.2% 1.7% 9.1%

31/05/1997 US$16.80 6.5% 5.3% 2.2% 12.0%

15/03/2002 US$16.38 6.2% 5.2% 1.7% 3.9%

Class ��


Ordinary�� !

Savings�� !


Launch Date�� !



16/01/1995 US$15.08 6.4% 4.5% 7.3% 50.8%

16/01/1995 US$15.63 6.6% 4.5% 7.8% 56.3%

15/03/2002 US$15.07 6.4% 4.5% 7.3% 10.0%

Class ��


Ordinary�� !

Savings�� !


Launch Date�� !

Performance �� !=(HK$)


24/06/1998 HK$57.87 0.2% 0.0% 0.6% 15.7%

24/06/1998 HK$59.17 0.4% 0.1% 1.1% 18.3%

15/03/2002 HK$57.84 0.2% 0.0% 0.6% 0.8%

Class ��


Ordinary�� !

Savings�� !


Launch Date�� !



08/03/1995 US$13.29 0.2% 0.1% 0.5% 32.9%

08/03/1995 US$13.82 0.4% 0.1% 1.0% 38.2%

15/03/2002 US$13.28 0.2% 0.1% 0.5% 0.8%

Class ��


Ordinary�� !

Savings�� !


Launch Date�� !

Investment in the Fidelity Advantage Portfolio Fund is not available to the general investing public. Investment in the Fidelity Advantage Por tfolio Fund is available only to ORSO and MPF retirement benefit schemes, their related Approved Pool InvestmentFunds, institutions, high net worth individuals, or those individuals who have recently been or still are members of an ORSO or MPF retirement benefit scheme. If you are an individual retail investor who is not a current member of an ORSO or MPFretirement benefit scheme wishing to invest your accrued benefits and want to invest in Fidelity managed funds, please contact Fidelity for fur ther details about our other ranges of investment funds, which are available to the general investing public.�� !"#$%&'("#)*+,-"#./012�� !"#$%&'3456789:;<=>'89:;?@AB(CDEF"#&'?GH"#I?.J"#KL2MNOPQMRS6789:;M=>'89:;PT"#U�� !"#$%&'()*+,-./01234-./056789:;<=>?5@ABC&'DEFGH5I4:JKLEF:MNOPQR&'STU%5VWEF&'I4XYZ[\']^

Capital Preservation Fund �� !

Hong Kong Equity Fund �� !"#

Growth Fund �� !

Balanced Fund �� !

Stable Growth Fund �� !"#

Capital Stable Fund �� !"#

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�� !

8.63%Bonds��


12.42%Other Asia Pacific Equities

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�� !

26.80%Bonds��














�� !

46.88%Bonds��





France OAT 5.75% 10/25/32 1.96%

USTB 6.25% 5/15/30 1.77%



Japan Govt. SER 41.1% 6/20/05 1.58%



62.84%Bonds��



10.31%Hong Kong Equities

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France OAT 5.75% 10/25/32 2.60%

USTB 6.25% 5/15/30 2.34%

Japan Govt. SER 41.1% 6/20/05 2.09%

Instituto De Credit FRN 2/1/05 2.02%

Belgium Govt. 7.75% 10/15/04 20 1.81%


0.53%HKD Fixed Deposits

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99.47%HKD Money MarketInstruments�� !"#$%

FIDELITY RETIREMENT MASTER TRUST As of May 30, 2003

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%Hong Kong Interest Rate =�� !


Hong Kong Deposit Call -Middle Rate�� !"#$%&

Launch Date =�� ! : 01/12/2000Fund Size =�� ! : HK$332.45M�� !"#


Launch Date �� ! : 01/12/2000Fund Size =�� ! : HK$609.83M�� !"#










Investment involves risks. Past performance is no guarantee of future returns. Please refer to the Explanatory Memorandum of Fidelity Advantage Portfolio Fund or the Principal Brochure of Fidelity Retirement Master Trust for details.Unless otherwise stated, all performance data are from Fidelity Investments, NAV to NAV.




HK$7.464 2.9% 8.9% -14.7% -25.4%


Fund ��



HK$7.731 4.9% 6.3% -11.0% -22.7%


Fund ��



HK$8.604 5.3% 5.6% -5.4% -14.0%


Fund ��



HK$9.513 5.7% 5.0% 0.7% -4.9%


Fund ��



HK$10.422 5.9% 4.2% 6.2% 4.2%


Fund ��



HK$10.278 0.0% 0.0% 0.1% 2.8%


Fund ��

5.87%European Equities�� !

fidelity retirement services performance update · 1995 1996 1997 1998 1999 2000 ... source:...

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