1. HONG KONG BAPTIST UNIVERSITY Finance Office
Welcome
Seminar on New Switching Methodology
Date : 16 Feb 2006 (Thu)
Time : 1:00 pm – 2:00 pm
Venue : RRS905, Run Run Shaw Building

2. Content Background The Changes Existing Switching Method
New Switching Method
Instruction Forms
Timetable
Questions & Answers

3. Background Existing switching method has been in use since Apr 2002
The Finance Office has been from time to time receiving comments from Fund members on the switching method
A complete review was conducted in Sep 2005

4. Background - 2 The Review
Visit commercial retirement fund administrators
Focus group discussion

5. The Changes - 1
No need to sell all investment holdings, members can select to sell a % of any number of his/her holding(s), e.g. 40% of PF01.
Members may allocate the redemption proceed of each portfolio individually, e.g. the redemption proceeds in 1 above may be allocated to PF03 and PF06 on a 50:50 basis.

6. 3. Rules Governing the Specifications of %
The Changes - 2
3. Rules Governing the Specifications of %
Minimum = 20% (Remain the same)
Increment = 5% (Formerly 10%)

7. Existing Switching Method -1
Port-folio
Date
Unit
Unit Price
(HK$)
NAV
New Allocation (%)
PF01
25/1/06
1.5678
(1%)
PF05
1.4567
(12%)
30%
PF07
(87%)
70%

8. Existing Switching Method – 1 (Cont)
Sell 100% PF01
Buy PF05
30% $
Sell 100% PF05
Buy PF07
70%
Sell 100% PF07

9. Existing Switching Method – 2
Disadvantages
a higher “out of market risk” because all holdings have to be sold
cannot leave one or more portfolio intact
cannot specify to sell specific portfolio

10. New Switching Method – 1 To switch the same as the old method 100% 30%
Port-folio
Date
Unit
Unit Price (HK$)
NAV
(HK$)
Switch-out (%)
Switch-in(%)
PF01
25/1/06
1.5678
100%
PF05
1.4567
30%
PF06
PF07
70%
Total

11. New Switching Method – 1 (Cont)
Sell 100% PF01
Buy PF05
30% $
Sell 100% PF05
Buy PF07
70%
Sell 100% PF07

12. New Switching Method – 2 To sell specific portfolio 100% 45% 55%
Date
Unit
Unit Price (HK$)
NAV
(HK$)
Switch-out (%)
Switch-in(%)
PF01
25/1/06
1.5678
100%
PF05
1.4567
45%
PF06
55%
PF07
Total

13. New Switching Method – 2 (Cont)
Sell 100% PF01
Buy PF05
45% $
Sell 0% PF05
Buy PF06
55%
Sell 45% PF07

14. To allocate redemption proceeds individually
New Switching Method – 3
To allocate redemption proceeds individually
Port-folio
Switch-out (%)
Switch-in
(%)
PF01
PF05
PF06
Total
100%
50%
PF07
60%
40%
30%

15. New Switching Method – 3 (Cont)
Buy PF05
50%
Sell 100% PF01 $
Buy PF06
50%
Buy PF01
40%
Sell 60% PF07 $
30%
Buy PF05
30%
Buy PF06

16. New Switching Method - 4 Advantages lower “out of market risk”
can leave one or more portfolio intact
can specify to sell specific portfolio

17. Form A - Asset Switching

18. Form A (Cont)- Contribution Allocation (No change)

19. Form A (Cont) – Declaration and Signature
Chan Tai Man
28 Feb 2006
Chan Tai Man (123456)
Form A should NOT be used when you want to make specific allocation of the redemption proceeds of individual portfolio.

20. Form B - Asset Switching (by Individual Portfolio)
Please download it from
Form B should be used when you want to make specific allocation of the redemption proceeds of individual portfolio.

21. Time Table New Switching Effective Month Mar 2006
Date for FO to send switching invitation memo
20 Feb 2006
Deadline to return the Investment Switching Instruction Form to FO
17 March 2006
Date for FO to send confirmation
20 March 2006
Deadline to report discrepancy to FO
23 March 2006

22. Presentation Slides available at“

23. Enquiry Finance Office Tel No. Mr Bernard Lau 3411 7924
Ms Elaine So

24. Questions & Answers
Thank You