Hong Kong Baptist University 1998 Superannuation Fund

Investment Review – September 2004

2

Market Review & Outlook

Fund Performance

Retirement Planning

Member Services

Disclaimer

Special Offer to Members

Agenda

3

Performance of Major Asset Classes in Q2-2004

Source : Fidelity, June 30, 2004

-8.51

-4.53

-3.59

-3.22

0.04

0.28

0.82

1.53

1.98

-1.85

-10 -8 -6 -4 -2 0 2 4

Asia Pacific ex-Japan & ex-HK Equities

Hong Kong Equities

Japanese Equities

Global Bonds

HK Dollar Bonds

Hong Kong 1 Month Hibor

US 3-month Treasury Bill

Global Equities

American Equities

European Equities

% Change in HK$ in Q2-2004

4

Prospects for Major Stock Markets

US market

Robust economic growth and favourable corporate profit outlook

Concerns over accelerating inflation and higher interest rates

European market

Profit growth likely to improve following the US

Worries over weak consumer activity and currency strengthening

Japanese market

Positive macro-economic outlook and earnings growth prospects

Threats from slow-down in China, firming oil prices and US rate hike

5

Tightening Measures in China : Preventive In Nature

Source : MS, June 2004

-5

0

5

10

15

20

25

30

35

40

45

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 1Q 04 2Q 04

%

Real GDP Y-O-Y Change %

CPI, Y-O-Y, %

Fixed Investment (Real) YOY Change %

1993/94 Macro

Austerity Measures

Current

Tightening

6

FAP Fund Performance

7

Your investment fund choices

Source: Fidelity Investments

Hig

her

Ris

k

5%

50%

45% Balanced Profile(FAP Stable Growth Fund)

3%90%

7%

High Growth Profile(FAP Growth Fund)

5% 70%

25%

Growth Profile(FAP Balanced Fund)

Global equities Hong Kong equitiesGlobal bonds Short-term deposit & money market instruments

Higher Return

8

High Growth Profile

(FAP Growth Fund)

Growth Profile

(FAP Balanced Fund)

Balanced Profile

(FAP Stable Growth)

In % Fund Benchmark Fund Benchmark Fund Benchmark

Equities 94.7 90.0 74.0 70.0 54.4 50.0

HK 29.0 30.0 23.1 24.0 16.3 17.0

Japan 15.6 12.0 12.0 9.0 9.5 6.5

Other A/P 12.5 12.0 9.6 9.0 7.4 6.5

US 18.3 18.0 14.2 14.0 10.2 10.0

Europe 19.3 18.0 15.1 14.0 11.0 10.0

Bonds 3.0 7.0 21.3 25.0 41.0 45.0

Cash 2.3 3.0 4.7 5.0 4.6 5.0

Asset Allocation

Source: Fidelity Investments, 30 June 2004

9

Fund Performance as at 30 July 04

Cumulative

Performance (in %)July 04

YTD

1/01/04 – 30/07/04

Last 1 Year

1/08/03 – 30/07/04

Since Scheme Inception

27/04/02 – 30/07/04

High Growth Profile

(FAP Growth Fund)-2.3 -0.5 19.9 14.8

Growth Profile

(FAP Balanced Fund)-1.9 -0.6 17.3 17.3

Balanced Profile

(FAP Stable Growth)-1.6 -1.1 14.3 19.5

Source: Fidelity Investments, NAV to NAV

10

Cumulative Performance,

In %

Last Quarter Year-to-Date Last 1 Year

Fidelity Median Fidelity Median Fidelity Median

High Growth Profile

(FAP Growth Fund)-2.5 -2.9 2.3 1.5 26.7 26.7

Growth Profile

(FAP Balanced Fund)-2.5 -2.8 1.8 0.9 21.8 21.3

Balanced Profile

(FAP Stable Growth)-2.7 -2.8 0.9 0.2 16.8 16.3

Fund Performance Vs Industry Median as at 30 June 2004

Source: Watson Wyatt, Managed Fund Report, net of management fees, in HKD* Fidelity Investments, Ordinary Class, NAV to NAV, cumulative performance in USD

11

Retirement Planning

12

1. Invest “time”/ “Age”

When it comes to retirement investment, . . .

Key things

YOUshould consider

2. Risk level that you are comfortable with

3. Diversify among asset classes to reduce risk

13

Member Services

14

Services Information Available

Fidelity’s Hotlines:

2629 2666

Fidelity’s Website: www.fidelity.com.hk

Fund information Fund prices Download marketing literatures

Dedicated Phone Team

Mon – Fri, 9:00am to 6:00pm

Sat, 9:00am to 1:00pm

Speak directly to our investment specialist who can provide you with market update and retirement planning assistance

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All views expressed in this presentation are those of Fidelity Investments and cannot be construed as an offer or recommendation.

Investment involves risks. Past performance is no guarantee of future returns. Please refer to the Explanatory Memorandum of Fidelity Advantage Portfolio Fund for further details.

Investment in the Fidelity Advantage Portfolio Fund is not available to the general investing public. Investment in the Fidelity Advantage Portfolio Fund is available only to ORSO and MPF retirement benefit schemes, their related Approved Pool Investment Funds, 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 MPF retirement benefit scheme but wish to invest your accrued benefits in Fidelity managed funds, please contact Fidelity for further details about our range of investment funds, which are available to the general public.

Disclaimer

16

17

Special Offer to Members

18

Special Offer

Fidelity Personal Account – Retail Funds*2%

Front end fees:

* Sales charge for Fidelity Funds – American Growth Fund remains at 5.25%. For details of Fidelity Funds, please refer to the relevant offering document.