September 5, 2003 Fidelity Retirement Services Investment Review

Hong Kong Baptist University 1998 Superannuation Fund 1 High Growth Profile invests in Fidelity Advantage Portfolio Fund – Growth Fund Ordinary Class 2 Growth Profile invests in Fidelity Advantage Portfolio Fund – Balanced Fund Ordinary Class 3 Balanced Profile invests in Fidelity Advantage Portfolio Fund – Stable Growth Fund Ordinary Class

High Growth Profile High Growth Profile Assets as at 31 July HKD 8,977, High Growth Profile invests in Fidelity Advantage Portfolio Fund – Growth Fund Ordinary Class Benchmark: A composite index consisting of 27% FTSE AW HK, 3% HSBC, 12% FTSE AW Japan, 12% FTSE AW Asia Pacific ex. Japan ex. HK, 18% FTSE AW North America, 18% FTSE AW Europe, 7% Salomon Smith Barney WGBI, and 3% 1-month HIBOR Source: Fidelity Investments, Ordinary Class, NAV to NAV, and in USD, as of July 31, 2003.

Growth Profile Growth Profile Assets as at 31 July HKD 4,324, Growth Profile invests in Fidelity Advantage Portfolio Fund – Balanced Fund Ordinary Class Benchmark: A composite index consisting of 21.6% FTSE AW HK, 2.4% HSBC, 9% FTSE AW Japan, 9% FTSE AW Asia Pacific ex. Japan ex. HK, 14% FTSE AW North America, 14% FTSE AW Europe, 25% Salomon Smith Barney WGBI, and 5% 1-month HIBOR Source: Fidelity Investments, Ordinary Class, NAV to NAV, and in USD, as of July 31, 2003.

Balanced Profile Balanced Profile Assets as at 31 July HKD 3,048, Balanced Profile invests in Fidelity Advantage Portfolio Fund – Stable Growth Fund Ordinary Class Benchmark: A composite index consisting of 15.3% FTSE AW HK, 1.7% HSBC, 6.5% FTSE AW Japan, 6.5% FTSE AW Asia Pacific ex. Japan ex. HK, 10% FTSE AW North America, 10% FTSE AW Europe, 45% Salomon Smith Barney WGBI, and 5% 1-month HIBOR Source: Fidelity Investments, Ordinary Class, NAV to NAV, and in USD, as of July 31, 2003.

Balanced Profile Source: Fidelity Investments, Ordinary Units, NAV to NAV, in USD, at as 31/07/2003 Benchmark – Since 30/04/02 High Growth Profile invests in Fidelity Advantage Portfolio Fund – Growth Fund Ordinary Class Growth Profile invests in Fidelity Advantage Portfolio Fund – Balanced Fund Ordinary Class Balanced Profile invests in Fidelity Advantage Portfolio Fund – Stable Growth Fund Ordinary Class Growth Profile High Growth Profile

High Growth Profile invests in Fidelity Advantage Portfolio Fund – Growth Fund Ordinary Class Median: Survey median for the growth fund category is the median representative from the Mercer Hong Kong Investment Choice Universe Source: Mercer Hong Kong Investment Choice Survey, Mercer Investment Consulting, NAV to NAV, and in HKD, as of June 30, 2003.

Growth Profile Growth Profile invests in Fidelity Advantage Portfolio Fund – Balanced Fund Ordinary Class Median: Survey median for the balanced fund category is the median representative from the Mercer Hong Kong Investment Choice Universe Source: Mercer Hong Kong Investment Choice Survey, Mercer Investment Consulting, NAV to NAV, and in HKD, as of June 30, 2003.

Balanced Profile Balanced Profile invests in Fidelity Advantage Portfolio Fund – Stable Growth Fund Ordinary Class Median: Survey median for the stable growth fund category is the median representative from the Mercer Hong Kong Investment Choice Universe Source: Mercer Hong Kong Investment Choice Survey, Mercer Investment Consulting, NAV to NAV, and in HKD, as of June 30, 2003.

Asset ClassInvestment ViewMain Reasons Hong Kong EquityNeutral Deflation pressure and high unemployment rate but high dividend yield. U.S. EquityPositive Reasonable valuation. Strong buying momentum, better market breath and slowing improving economy Japanese EquityNeutral The current recovery is peaking. Skeptical on Japan economic recovery in spite of its cheap valuation. European EquityNegative Economic activity is flattening. Strengthened Euro is a de facto tightening of monetary conditions. Consumption shows further signs of weakness Other Asian Equity Moderately Positive With SARS is over, the macro environment has stablised. Strong liquidity in the region. Valuations are trading at a discount to other markets. Global Bonds Slightly Negative Less attractive compared to equities and corporate bonds offering better value than government debt. Source: Fidelity Investments, July 2003 Investment Strategy Summary

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 Discount on sales charge for personal investment savings outside the Superannuation Fund  Including both lump sum and monthly savings  Free rollover arrangement when leaving the University  Keep investing in the same profile under Saving Class  Ask for a “Fidelity Rollover Pack - ORSO” Call Fidelity at Privileges for Hong Kong Baptist University Members

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.

Fidelity Advantage Portfolio Fund (FAP) – Investment Objectives Appendix Growth Fund  Mainly invested in equity funds  Geographical bias towards Hong Kong  To maximise long term returns Balanced Fund  Normally maintain a balanced, global portfolio of bond funds and equity funds  To achieve a consistent overall return than Hong Kong inflation  With lower risk and volatility of returns in the short term Stable Growth Fund  To invest in a global portfolio of bond funds, cash funds and equity funds  With a lower weighting in equities than the Balanced Fund  To achieve a consistent overall return higher than Hong Kong inflation

Geographic Allocation Asset ClassTargetCurrent Hong Kong Equities30%30.20% Japan Equities12%12.40% Other Asia Pacific Equities12%12.63% US Equities18%17.93% European Equities18%17.71% Global Bonds7%7.08% Cash & Others3%2.06% High Growth Profile High Growth Profile invests in Fidelity Advantage Portfolio Fund – Growth Fund Ordinary Class Source: Fidelity Investments as of June 30, 2003.

Geographic Allocation Asset ClassTargetCurrent Hong Kong Equities23%24.15% Japan Equities8%9.28% Other Asia Pacific Equities13%9.57% US Equities13%13.91% European Equities13%13.84% Global Bonds25%25.20% Cash & Others5%4.05% Growth Profile Growth Profile invests in Fidelity Advantage Portfolio Fund – Balanced Fund Ordinary Class Source: Fidelity Investments as of June 30, 2003.

Geographic Allocation Asset ClassTargetCurrent Hong Kong Equities15%17.14% Japan Equities5%6.69% Other Asia Pacific Equities10%7.04% US Equities10%9.91% European Equities10%9.90% Global Bonds45%45.23% Cash & Others5%4.10% Balanced Profile Balanced Profile invests in Fidelity Advantage Portfolio Fund – Stable Growth Fund Ordinary Class Source: Fidelity Investments as of June 30, 2003.

Major Holdings HSBC Holdings PLC (HK)Hong Kong2.98% Hutchison Whampoa Ltd.Hong Kong2.91% Cheung Kong Holdings Ltd.Hong Kong2.50% Hang Seng Bank Ltd.Hong Kong2.17% China Mobile (HK) Ltd.Hong Kong2.12% Sun Hung Kai Properties Ltd.Hong Kong1.72% Hong Kong & China Gas Company Ltd.Hong Kong1.67% CLP Holdings Ltd.Hong Kong1.52% Hong Kong Electric Holdings OrdinaryHong Kong1.20% Samsung Electronics Co LtdHong Kong0.84% Total19.63% High Growth Profile * * High Growth Profile invests in Fidelity Advantage Portfolio Fund – Growth Fund Ordinary Class Source: Fidelity Investments as of June 30, 2003.

Major Holdings HSBC Holdings PLC (HK)Hong Kong2.39% Hutchison Whampoa Ltd.Hong Kong2.33% Cheung Kong Holdings Ltd.Hong Kong2.00% Hang Seng Bank Ltd.Hong Kong1.73% China Mobile (HK) Ltd.Hong Kong1.70% Sun Hung Kai Properties Ltd.Hong Kong1.38% Hong Kong & China Gas Company Ltd.Hong Kong1.34% CLP Holdings LtdHong Kong1.22% France OAT 5.75% 10/25/32France1.01% Hong Kong Electric Holdings OrdinaryHong Kong0.96% Total16.06% Growth Profile * * Growth Profile invests in Fidelity Advantage Portfolio Fund – Balanced Fund Ordinary Class Source: Fidelity Investments as of June 30, 2003.

Major Holdings France OAT 5.75% 10/25/32France1.86% HSBC Holdings PLC (HK)Hong Kong1.69% Hutchison Whampoa Ltd.Hong Kong1.65% Cheung Kong Holdings Ltd.Hong Kong1.42% Japan Government SER 4 1.1% 6/20/05Japan1.39% Instituto De Credit FRN 2/1/05France1.36% USTB 6.25% 5/15/30US1.29% Belgium Government 7.75% 10/15/04 20Belgium1.28% Hang Seng Bank LtdHong Kong1.23% China Mobile (HK) Ltd.Hong Kong1.20% Total14.37% Balanced Profile * * Balanced Profile invests in Fidelity Advantage Portfolio Fund – Stable Growth Fund Ordinary Class Source: Fidelity Investments as of June 30, 2003.