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BCOM JOYFUL RETIREMENT MPF SCHEME

Consolidated Report

For the Year Ended 31 December 2019

Contents Pages ♦ Scheme Report 1 – 14 ♦ Investment Report ♦ Investment Policies 15 – 18 ♦ Commentary 19 – 39 ♦ Trustee’s Commentary 40 – 45 ♦ Investment Income and Performance Record 46 – 55 ♦ Investment Portfolio 56 – 78 ♦ Statement of Movement in Portfolio Holdings 79 – 127 ♦ Reports and Financial Statements

BCOM Joyful Retirement MPF Scheme Scheme Report for the year ended 31 December 2019 ___________________________________________________________________________

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1. The Scheme BCOM Joyful Retirement MPF Scheme (“Scheme”) is a provident fund scheme registered under

s.21 of the Mandatory Provident Fund Schemes Ordinance (“Ordinance”) for the purpose of

providing benefits to its members upon their retirement or occurrence of the other events

prescribed by the Ordinance. The Scheme takes the form of Master Trust Scheme and is open for

participation by the employers, their relevant employees and the other persons who are required

by the Ordinance to join a mandatory provident fund scheme. Besides, Members of the Scheme

may at their election make “Joyful Smart Personal Contribution” to the Scheme which is not

related to their employment or self-employment. The benefits payable to the members are funded

by the contributions paid to the Scheme in respect of the members and the net investment return

thereof. The Scheme consisted of thirteen constituent funds as at the end of this financial year.

They were the BCOM MPF Conservative Fund, BCOM Guaranteed (CF) Fund, BCOM Global

Bond (CF) Fund, BCOM Stable Growth (CF) Fund, BCOM Balanced (CF) Fund, BCOM

Dynamic Growth (CF) Fund, BCOM Asian Dynamic Equity (CF) Fund, BCOM Hong Kong

Dynamic Equity (CF) Fund, BCOM Greater China Equity (CF) Fund, BCOM China Dynamic

Equity (CF) Fund, BCOM HSI Tracking (CF) Fund, BCOM Core Accumulation Fund and

BCOM Age 65 Plus Fund.


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2. Financial Development During the year, the total contributions received and receivable including mandatory

contributions, voluntary contributions, assets transfers and special contribution in relation to the

GIC Project in amounted to HK$1,045.22 million, while the total amount paid or payable for

redemptions including claims for payment of benefits, asset transfers out and forfeitures was

HK$622.81 million. The net asset value of each constituent fund as at the year end is stated in the

following list:

31/12/2019

HK$

BCOM MPF Conservative Fund 1,155,405,730

BCOM Guaranteed (CF) Fund 900,880,184

BCOM Stable Growth (CF) Fund 577,512,729

BCOM Balanced (CF) Fund 459,659,981

BCOM Dynamic Growth (CF) Fund 279,169,043

BCOM Asian Dynamic Equity (CF) Fund 468,346,880

BCOM Hong Kong Dynamic Equity (CF) Fund 444,576,211

BCOM China Dynamic Equity (CF) Fund 499,966,359

BCOM HSI Tracking (CF) Fund 569,181,430

BCOM Global Bond (CF) Fund 170,357,251

BCOM Greater China Equity (CF) Fund 264,547,790

BCOM Core Accumulation Fund 223,366,293

BCOM Age 65 Plus Fund 84,254,869

Total 6,097,224,750

The total net assets of the constituent funds, excluding contributions and redemptions during the

year, increased by HK$494.68 million which was mainly attributable to the gross income of

HK$68.24 million in the form of deposit interest, bond interest, dividend income and other

income, plus realized and unrealized loss on investments of HK$493.46 million and less

operating expenses of HK$67.02 million.


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3. Governing Rules and Principal Brochure During the year, the Governing Rules and Principal Brochure of the Scheme had been amended as follows: (1) Tax Deductible Voluntary Contribution (“TVC”)

With effect from 1 April 2019, the features of TVC were made to the Scheme:

(a) Any person who fulfils the eligibility requirements can set up a TVC account and pay

TVC into such account.

(b) TVC is a new type of contribution and can only be paid into a TVC account of a

registered scheme, such as the Scheme.

(c) TVC may be eligible for tax concessions starting from the year of assessment

2019/2020. The maximum tax deductible amount for the year of assessment 2019/2020

is HK$60,000. It is an aggregate limit for both TVC and other qualifying annuity

premiums.

(d) TVC is voluntary in nature. However, it is subject to the same vesting, preservation and

withdrawal restrictions applicable to Mandatory Contributions. In particular, Members

should note that the accrued benefits held in a TVC account can only be withdrawn

upon retirement age 65 or on other statutory grounds under the MPF legislation.

(2) Clarification relating to Voluntary Contributions

The Approved Trustee may reject an application from any Individual Relevant Employee to

participate in the Scheme. Circumstances where the Approved Trustee may do so include but

are not limited to the following: (i) where the Trustee has reason to know that information and

documents provided to the Approved Trustee are incorrect or incomplete; (ii) failure of

applicants to provide information and documents as required by the Approved Trustee to

ensure compliance with applicable laws and regulations relating to anti-money laundering /

tax reporting; and/or (iii) other circumstances which the Approved Trustee may consider

appropriate.


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3. Governing Rules and Principal Brochure (Continued)

(3) Fee Reduction

Owing to the reduction of the investment management fee and/or trustee fee at the underlying

fund level, the management fee payable out of the underlying fund, and the aggregate

management fee (comprising both constituent fund and underlying fund levels) of the

following constituent funds have been reduced as shown in the table below:

Name Management fee (p.a.) payable out of the underlying fund level

Aggregate management fee (p.a.) (comprising both the constituent fund and underlying fund levels)

Effective date

Before* After* Before* After* BCOM Stable Growth (CF) Fund

0.735% 0.705% 1.61% 1.58% 1 March 2019 0.705% 0.695% 1.58% 1.57% 1 August 2019#

BCOM Balanced (CF) Fund

0.735% 0.705% 1.61% 1.58% 1 March 2019 0.705% 0.695% 1.58% 1.57% 1 August 2019#

BCOM Dynamic Growth (CF) Fund

0.45% Up to 0.45%

1.575% Up to 1.575%

1 May 2019

BCOM Greater China Equity (CF) Fund

Up to 0.48%

Up to 0.45%

Up to 1.585%

Up to 1.555%

1 May 2019

*Before / after the applicable effective date as indicated in the last column.

#The Principal Brochure will be updated to reflect the change.

(4) Clarification with regard to the Statements of Investment Policies of the BCOM Asian

Dynamic Equity (CF) Fund and BCOM Hong Kong Dynamic Equity (CF) Fund

BCOM Asian Dynamic Equity (CF) Fund and BCOM Hong Kong Dynamic Equity (CF)

Fund (collectively, "CFs") invest in Principal Asian Equity Fund and Principal Hong Kong

Equity Fund (collectively, the "Underlying APIFs") respectively. To enhance disclosure, the

Statements of Investment Policies of the CFs have been updated to align with the

corresponding changes to the investment policies of the Underlying APIFs. The geographic

allocations are stated to be for indication purposes only and long term allocations may vary

with changing market conditions.


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3. Governing Rules and Principal Brochure (Continued) (5) Miscellaneous changes

With a view to enhancing clarity and disclosure, we have taken this opportunity to update the

Principal Brochure:

(a) addition of disclosure enhancements regarding the relevance of SFC authorization; and

(b) removal of disclosure related to the maximum value of Non-Employment Related VCs

(i.e. HK$600,000) to the BCOM Guaranteed (CF) Fund in any financial period of the

Scheme, with a view to enhancing the flexibility of Members to invest in the BCOM

Guaranteed (CF) Fund.

The above only gives a summary of the important features of the changes to the Governing Rules

and Principal Brochure. For details, please refer to the Trust Deed and Principal Brochure.


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4. Information

Members of the Scheme who require further information about the Scheme and its operations

may contact the Trustee of the Scheme, Bank of Communications Trustee Limited through

Customer Service Hotline no. 2239 5559 or write to the Trustee at 1/F, Far East Consortium

Building, 121 Des Voeux Road Central, Hong Kong.

5. Service Providers and other relevant parties During the year, the Trustee also performed the functions of Trustee and Administrator to keep

members’ records and Custodian to safekeep the assets of the Scheme. Other service providers

and relevant parties were as follows: -

Investment Manager: (for BCOM Guaranteed (CF) Fund and BCOM MPF Conservative Fund)

BCOM Finance (Hong Kong) Limited 1/F, Far East Consortium Building, 121 Des Voeux Road Central, Hong Kong.

Sub-custodian:

Citibank N.A. Hong Kong 10/F, Two Harbour Front, 22 Tak Fung Street, Hunghom, Kowloon, Hong Kong.

Auditor:

PricewaterhouseCoopers 22/F, Prince’s Building, Central, Hong Kong.

Legal Advisor : Baker & McKenzie 14/F, One Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong. (Formerly 14 Floor, Hutchison House, 10 Harcourt Road, Hong Kong.)

Sponsor :

BOCOM MPF & Financial Services Company Limited 1/F, Far East Consortium Building, 121 Des Voeux Road Central, Hong Kong.


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Bankers:

Name

Business Address

Agricultural Bank of China, Hong Kong Branch

25/F, Agricultural Bank of China Tower, 50 Connaught Road Central, Hong Kong.

Bank of China (Hong Kong) Limited

3/F, Bank of China Tower, 1 Garden Road, Central, Hong Kong.

Bank of Communications Co., Ltd. Hong Kong Branch Bank of Communications (Hong Kong) Limited

Unit B B/F & G/F, Unit C G/F, 1-3/F, 16/F Room 01 & 18/F Wheelock House, 20 Pedder Street, Central, Hong Kong. Unit B B/F & G/F, Unit C G/F, 1-3/F, 16/F Room 01 & 18/F Wheelock House, 20 Pedder Street, Central, Hong Kong.

China Construction Bank (Asia) Corporation Limited

G/F, 6 Des Voeux Road Central, Hong Kong.

China Construction Bank Corporation, Hong Kong Branch

29/F, CCB Tower, 3 Connaught Road Central, Central, Hong Kong.

China Everbright Bank, Hong Kong Branch

30/F, Far East Finance Centre, 16 Harcourt Road, Hong Kong.

China Merchants Bank, Hong Kong Branch

27/F & 28/F, Three Exchange Square, 8 Connaught Place, Hong Kong (Formerly 21/F, Bank of America Tower, 12 Harcourt Road, Central, Hong Kong)

Chiyu Banking Corporation Limited 78 Des Voeux Road Central, Hong Kong.

Chong Hing Bank Limited Chong Hing Bank Centre, 24 Des Voeux Road Central, Hong Kong.

Citibank N.A. Hong Kong 10/F, Two Harbour Front, 22 Tak Fung Street, Hunghom, Kowloon, Hong Kong.

China CITIC Bank International Limited CMB Wing Lung Bank Limited

232 Des Voeux Road Central, Hong Kong. 45 Des Voeux Road Central, Hong Kong.

DBS Bank (Hong Kong) Limited 14/F, One Island East, 18 Westlands Road, Quarry Bay, Hong Kong


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Bankers (continued): Name

Business Address

Fubon Bank (Hong Kong) Limited

Fubon Bank Building, 38 Des Voeux Road Central, Hong Kong.

Industrial and Commercial Bank of China (Asia) Limited

Shop F, G/F, Kai Tak Commercial Bldg., 317-319 Des Voeux Road Central, Hong Kong.

Nanyang Commercial Bank Ltd G/F, 151 Des Voeux Road Central, Hong Kong.

Public Bank (Hong Kong) Limited Public Bank Centre, 120 Des Voeux Road Central, Hong Kong.

Shanghai Commercial Bank Limited 41-47, Jervois Street, Hong Kong.

The Bank of East Asia Limited 17/F, United Centre, 95 Queensway, Hong Kong.

OCBC Wing Hang Bank Limited

161 Queen’s Road Central, Hong Kong.


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Brokers: Name Business Address Bank of Communications Co., Ltd. Hong Kong Branch

Unit B B/F & G/F, Unit C G/F, 1-3/F, 16/F Room 01 & 18/F Wheelock House, 20 Pedder Street, Central, Hong Kong.

Goldman Sachs Group Inc. (execution broker for Bloomberg Tradebook)

68/F, Cheung Kong Center, 2 Queen’s Road, Central, Hong Kong.

BOCOM International Securities Limited 9/F, Man Yee Building, 68 Des Voeux Road Central, Hong Kong

China International Capital Corporation Hong Kong Securities Ltd.

29/F, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong.

China Merchants Securities (HK) Co., Ltd.

48/F, One Exchange Square, 8 Connaught Place, Central, Hong Kong.

Daiwa Capital Markets Hong Kong Limited

Level 26, One Pacific Place, 88 Queensway, Hong Kong.

DBS Vickers (Hong Kong) Limited 18/F, Man Yee Building, 68 Des Voeux Road Central, Hong Kong.

Shenwan Hongyuan Future (H.K.) Limited Level 19, 28 Hennessy Road, Hong Kong Shenwan Hongyuan Securities (H.K.) Limited

Level 19, 28 Hennessy Road, Hong Kong

VC Brokerage Limited

28/F, The Centrium, 60 Wyndham Street, Central, Hong Kong.


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6. Associates of the Trustee Bank of Communications (Hong Kong) Limited, BCOM Finance (Hong Kong) Limited, BOCOM International Securities Limited, BOCOM MPF & Financial Services Company Limited and Bank of Communications Co., Ltd. Hong Kong Branch are associates of the Trustee as Bank of Communications (Hong Kong) Limited, BCOM Finance (Hong Kong) Limited, BOCOM MPF & Financial Services Company Limited and the Trustee are the wholly owned subsidiaries of Bank of Communications Co., Ltd. and BOCOM International Securities Limited is a subsidiary of Bank of Communications Co., Ltd. Particulars of the Controllers of the associates of the Trustee during the year and up to the date of this report are given below: Bank of Communications (Hong Kong) Limited Executive Directors Business Address Wang Feng (Appointment Date: 27 February 2019)

20 Pedder Street, Central, Hong Kong

Chan Ha Fong Nancy 20 Pedder Street, Central, Hong Kong Meng Yu 20 Pedder Street, Central, Hong Kong Fan Chaorong (Appointment Date: 20 September 2019)


Shou Fugang (Resigned Date: 27 February 2019)


Cheng Man Wang (Resigned Date: 20 September 2019)


Non-executive Directors

Zhang Hui

No. 188, Yin Cheng Zhong Lu, China (Shanghai) Pilot Free Trade Zone, PRC

Zhu Chen


Independent non-executive Directors Tang Kwai Chang


Chan Ka Lok 20 Pedder Street, Central, Hong Kong Chan Ching Har Eliza (Appointment Date: 3 September 2019)


Lam Yim Nam (Appointment Date: 23 December 2019)



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BCOM Finance (Hong Kong) Limited Director Business Address Shou Fugang 18/F, Fairmont House, 8 Cotton Tree Drive,

Central, Hong Kong Liu Wang Kit, Alan 20 Pedder Street, Central, Hong Kong Kwan Shui Cheung 3/F, Far East Consortium Building,

121 Des Voeux Road Central, Hong Kong Bank of Communications Co., Ltd. Hong Kong Branch Executive Directors Business Address Ren Deqi Peng Chun (Resigned Date: 9 April 2019) Hou Weidong (Resigned Date: 27 April 2020) Wu Wei (Appointment Date: 31 January 2019) (Resigned Date: 22 August 2019)

No. 188, Yin Cheng Zhong Lu, China (Shanghai) Pilot Free Trade Zone, PRC No. 188, Yin Cheng Zhong Lu, China (Shanghai) Pilot Free Trade Zone, PRC No. 188, Yin Cheng Zhong Lu, China (Shanghai) Pilot Free Trade Zone, PRC No. 188, Yin Cheng Zhong Lu, China (Shanghai) Pilot Free Trade Zone, PRC


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Bank of Communications Co., Ltd. Hong Kong Branch (Continued) Non-executive Directors He Zhaobin Song Guobin

Li Longcheng (Appointment Date: 2 June 2020) Chan Siu Chung (Appointment Date: 17 October 2019) Song Hongjun (Appointment Date: 5 August 2019) Chen Junkui (Appointment Date: 9 August 2019) Liu Haoyang Wong Tung Shun, Peter (Resigned Date: 21 June 2019) Wang Taiyin (Resigned Date: 2 June 2020) Wong Pik Kuen, Helen (Resigned Date: 15 August 2019) Liu Hanxing (Resigned Date: 21 June 2019) Luo Mingde (Resigned Date: 21 June 2019)

No. 188, Yin Cheng Zhong Lu, China (Shanghai) Pilot Free Trade Zone, PRC No. 188, Yin Cheng Zhong Lu, China (Shanghai) Pilot Free Trade Zone, PRC No. 188, Yin Cheng Zhong Lu, China (Shanghai) Pilot Free Trade Zone, PRC No. 188, Yin Cheng Zhong Lu, China (Shanghai) Pilot Free Trade Zone, PRC No. 188, Yin Cheng Zhong Lu, China (Shanghai) Pilot Free Trade Zone, PRC No. 188, Yin Cheng Zhong Lu, China (Shanghai) Pilot Free Trade Zone, PRC No. 188, Yin Cheng Zhong Lu, China (Shanghai) Pilot Free Trade Zone, PRC No. 188, Yin Cheng Zhong Lu, China (Shanghai) Pilot Free Trade Zone, PRC No. 188, Yin Cheng Zhong Lu, China (Shanghai) Pilot Free Trade Zone, PRC No. 188, Yin Cheng Zhong Lu, China (Shanghai) Pilot Free Trade Zone, PRC No. 188, Yin Cheng Zhong Lu, China (Shanghai) Pilot Free Trade Zone, PRC No. 188, Yin Cheng Zhong Lu, China (Shanghai) Pilot Free Trade Zone, PRC

Independent non-executive Directors Li Jian No. 188, Yin Cheng Zhong Lu,

China (Shanghai) Pilot Free Trade Zone, PRC Liu Li


Yeung Chi Wai, Jason Woo Chin Wan, Raymond Cai Haoyi Shi Lei (Appointment Date: 25 December 2019)

No. 188, Yin Cheng Zhong Lu, China (Shanghai) Pilot Free Trade Zone, PRC No. 188, Yin Cheng Zhong Lu, China (Shanghai) Pilot Free Trade Zone, PRC No. 188, Yin Cheng Zhong Lu, China (Shanghai) Pilot Free Trade Zone, PRC No. 188, Yin Cheng Zhong Lu, China (Shanghai) Pilot Free Trade Zone, PRC

Yu Yongshun (Resigned Date: 21 June 2019)



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BOCOM International Securities Limited

Director Business Address Cheng Chuange 9/F, Man Yee Building,

68 Des Voeux Road Central, Hong Kong Tan Yueheng Xi Xuanhua

9/F, Man Yee Building, 68 Des Voeux Road Central, Hong Kong 9/F, Man Yee Building, 68 Des Voeux Road Central, Hong Kong

Li Ying (Resigned Date: 6 November 2019)

9/F, Man Yee Building, 68 Des Voeux Road Central, Hong Kong

BOCOM MPF & Financial Services Company Limited Director Business Address Fan Chaorong (Appointment Date: 16 October 2019) Yeung Wai Ping (Appointment Date: 27 May 2020)

20 Pedder Street, Central, Hong Kong 1/F, Far East Consortium Building, 121 Des Voeux Road Central, Hong Kong

Pu Yuechuan (Appointment Date: 27 May 2020)

1/F, Far East Consortium Building, 121 Des Voeux Road Central, Hong Kong

Ng Ping Kwong Chan Ha Fong Nancy

1/F, Far East Consortium Building, 121 Des Voeux Road Central, Hong Kong 20 Pedder Street, Central, Hong Kong

(Resigned Date: 17 October 2019) Li Siu Kei (Resigned Date: 27 May 2020)



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7. Directors of the Trustee during the year and up to the date of this report Executive Directors Business Address Yeung Wai Ping (Appointment Date: 9 April 2020) Lau Kwok Ying Ng Ping Kwong Non-executive Directors Fan Chaorong (Appointment Date: 16 October 2019) Li Siu Kei (Redesignated from Executive Director to Non-Executive Director on 9 April 2020) Chan Ha Fong Nancy (Resigned Date: 17 October 2019) Independent non-executive Directors

1/F, Far East Consortium Building, 121 Des Voeux Road Central, Hong Kong 1/F, Far East Consortium Building, 121 Des Voeux Road Central, Hong Kong 1/F, Far East Consortium Building, 121 Des Voeux Road Central, Hong Kong 20 Pedder Street, Central, Hong Kong 1/F, Far East Consortium Building, 121 Des Voeux Road Central, Hong Kong 20 Pedder Street, Central, Hong Kong

Lui Yu Hon


Chan Wai Hing


BCOM Joyful Retirement MPF Scheme Investment Report for the year ended 31 December 2019 _______________________________________________________________________________

15

Investment Policies At 31 December 2019 and during the year, BCOM Joyful Retirement MPF Scheme is a master trust scheme and offering the following 13 constituent funds: 1. BCOM MPF Conservative Fund; 2. BCOM Guaranteed (CF) Fund; 3. BCOM Stable Growth (CF) Fund; 4. BCOM Balanced (CF) Fund; 5. BCOM Dynamic Growth (CF) Fund; 6. BCOM Asian Dynamic Equity (CF) Fund; 7. BCOM Hong Kong Dynamic Equity (CF) Fund; 8. BCOM China Dynamic Equity (CF) Fund; 9. BCOM HSI Tracking (CF) Fund; 10. BCOM Global Bond (CF) Fund; 11. BCOM Greater China Equity (CF) Fund; 12. BCOM Core Accumulation Fund; and 13. BCOM Age 65 Plus Fund. Each of the constituent funds is managed in accordance with separate and distinct investment policies reflecting the different risk profiles of the 13 investment choices as set out below. 1. BCOM MPF Conservative Fund

The investment objective is to obtain a return that is higher than the prescribed savings rate. The Fund will directly invest in Hong Kong dollar-denominated bank deposits and short-term debt securities subject to the requirements of Section 37 of the Regulation.

2. BCOM Guaranteed (CF) Fund

The investment objective is to achieve long term capital growth. The investment policy is to invest in a diversified portfolio comprising cash and deposits, debt securities, equities and authorized unit trusts. The investment strategy is in an attempt to limit risk through prudent diversification in various asset classes and geographic exposure.

3. BCOM Stable Growth (CF) Fund The investment objective is to achieve a long term return in excess of Hong Kong price inflation (as measured by the Consumer Price Index Type A). The Fund will seek to achieve its investment objective by investing its assets in a single APIF, the Schroder MPF Stable Growth Fund, which is a fund of funds managed by Schroder Investment Management (Hong Kong) Limited. The principal underlying investments of the Fund will be in quoted securities, government and corporate bonds and cash deposits worldwide.


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Investment Policies (Continued) 4. BCOM Balanced (CF) Fund

The investment objective is to achieve a long term return in excess of salary inflation in Hong Kong (as indicated by the Hong Kong Monthly Digest of Statistics as published by the Census and Statistics Department of the Government of Hong Kong). The Fund will seek to achieve its investment objective by investing its assets in a single APIF, the Schroder MPF Balanced Investment Fund, which is a fund of funds managed by Schroder Investment Management (Hong Kong) Limited. The principal underlying investments of the Fund will be in quoted securities, government and corporate bonds and cash deposits worldwide.

5. BCOM Dynamic Growth (CF) Fund

The investment objective is to maximize long-term overall returns by investing primarily in global equities. The Fund will seek to achieve its investment objectives by investing its assets in a single APIF, the Allianz Choice Growth Fund of Allianz Global Investors Choice Fund, which is a fund of funds managed by Allianz Global Investors Asia Pacific Limited. The APIF may invest in the countries comprised in the MSCI World Index which covers all the major world stock markets including those in Japan, North America, Asia and Europe.

6. BCOM Asian Dynamic Equity (CF) Fund The investment objective is to achieve capital growth over the long-term by investing in Asian equity markets. The Fund will seek to achieve its investment objectives by investing its assets in a single APIF, the Principal Asian Equity Fund of Principal Unit Trust Umbrella Fund, managed by Principal Asset Management Company (Asia) Limited. The investment fund will in turn invest in another APIF which consists primarily of Asian equities and can include exposure to cash and short-term investments.

7. BCOM Hong Kong Dynamic Equity (CF) Fund The investment objective is to achieve capital growth over the long-term by investing mainly in Hong Kong equity markets. The Fund will seek to achieve its investment objectives by investing its assets in a single APIF, the Principal Hong Kong Equity Fund of the Principal Life Style Fund, managed by Principal Asset Management Company (Asia) Limited. The investment fund will invest at least 70% of its assets in listed equities issued by companies established in Hong Kong or by companies whose shares are listed (including but not limited to H shares and shares of red-chip companies) on the Hong Kong Stock Exchange. The investment fund may also invest in listed equities issued by companies which have business in Hong Kong. The investment fund holds up to 30% of its assets in cash and time deposits on a temporary basis or for such longer period as the circumstances require to maintain liquidity.


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Investment Policies (Continued)

7. BCOM Hong Kong Dynamic Equity (CF) Fund (Continued) The investment fund may invest in eligible China A-Shares and China B-Shares listed on the Shanghai or Shenzhen stock exchanges.

8. BCOM China Dynamic Equity (CF) Fund

The investment objective is to achieve capital growth over the long-term by investing mainly in China-related equities. The Fund will seek to achieve its investment objectives by investing its assets in a single APIF, the Principal China Equity Fund of the Principal Life Style Fund, managed by Principal Asset Management Company (Asia) Limited. The investment fund will invest at least 70% of its assets in equities issued by companies with exposure to different sectors of the economy in the People's Republic of China (Mainland China) or in collective investment schemes as permitted under the MPF Regulation which primarily invest in such equity securities. Equity securities include but are not limited to equity shares, preference shares and depositary receipts. The investment fund may hold cash and short-term investments for cash management purpose. The investment fund may invest in eligible China A-Shares and China B-Shares listed on the Shanghai or Shenzhen stock exchanges.

9. BCOM HSI Tracking (CF) Fund

The investment objective is to provide investment results that closely correspond to the performance of the Hang Seng Index (the “Index”). The Fund will seek to achieve its investment objectives by investing its assets entirely in a single approved index-tracking collective investment scheme (ITCIS), Tracker Fund of Hong Kong, managed by State Street Global Advisors Asia Limited. The approved ITCIS holds shares in the constituent companies of the Index in substantially similar composition and weighting as they appear in the Index and may also invest in certain other permitted investments in seeking to meet the investment objective. The index is composed of a representative sample of the shares of constituent companies listed on the Stock Exchange of Hong Kong which generally have high market value and liquidity and is designed such that it reproduces the performance of a hypothetical portfolio made up of the shares of the constituent companies with an interest in each constituent company which is proportionate to such constituent company’s market capitalization. Whilst the investment objective of the Fund and the underlying approved ITCIS is to track the Index, there can be no assurance that the performance of the Fund nor the underlying approved ITCIS will at any time be identical to the Index.


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Investment Policies (Continued)

10. BCOM Global Bond (CF) Fund

The investment objective is to achieve steady growth over the long term through investment in a portfolio of global bonds. The Fund will seek to achieve its investment objective by investing its assets in a single APIF, the MPF Bond Fund of Invesco Pooled Investment Fund, which is a fund of funds managed by Invesco Hong Kong Limited. The principal underlying investments of the Fund will be in global bonds and HK dollar-denominated bonds.

11. BCOM Greater China Equity (CF) Fund The investment objective is to achieve long term capital growth by investing mainly in Greater China-related equities. The Fund will seek to achieve its investment objective by investing its assets in a single APIF, the Allianz Choice Greater China Fund of Allianz Global Investors Choice Fund, managed by Allianz Global Investors Asia Pacific Limited. The APIF invests primarily in the equity markets of Hong Kong and Taiwan; or companies that derive a predominant portion of their revenue and/or profits from Greater China Region.

12. BCOM Core Accumulation Fund

The investment objective is to provide capital growth to Members by investing in a globally diversified manner. The Fund will seek to achieve its investment objective by investing its assets in a single APIF, the Core Accumulation Fund under the Invesco Pooled Investment Fund, managed by Invesco Hong Kong Limited, which in turn invests in two APIFs. The underlying APIFs adopt an active investment strategy, which aims to promote efficiency and minimized cost for the purpose of DIS asset rebalancing. The Fund will make reference to its Reference Portfolio.

13. BCOM Age 65 Plus Fund

The investment objective is to provide stable growth to Members by investing in a globally diversified manner.

The Fund will seek to achieve its investment objective by investing its assets in a single APIF, the Age 65 Plus Fund under the Invesco Pooled Investment Fund, managed by Invesco Hong Kong Limited, which in turn invests in two APIFs. The underlying APIFs adopt an active investment strategy, which aims to promote efficiency and minimized cost for the purpose of DIS asset rebalancing. The Fund will make reference to its Reference Portfolio.


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Commentary The below market commentaries are prepared by fund managers and only reflect the situation at the time of writing. 1. BCOM MPF Conservative Fund Review and Outlook The US Federal Reserve (“US Fed”) lowered its projections for US economic growth and inflation, and changed drastically its tone on monetary policy from “hawkish” last December to “dovish” in Q1. Also, the US Fed would slow starting in May and stop at the end of September, shrinking the balance sheet, in light of slowing global economic growth and avoiding an over-tightening financial conditions, whereas the European Central Bank announced no interest rate hike in the year. In the Q2, although the US economy remained in good condition, the Sino-US trade conflict reportedly had led many industries in the US to take a pessimistic view of the US economic outlook. Therefore, more US Fed policy officials had repeatedly hinted in the past month that they were willing to consider interest rates cuts to support the economy. Then, the federal funds rate futures had implied the US Fed would likely cut interest rates three times in the second half of this year. The long-term and short-term interest rates of the US dollar fell across the board. The medium-term to long-term interest rates in the Hong Kong dollar also followed the suit. But the short-term interest rates in Hong Kong dollar was relatively volatile and strong. In particular, in the middle of June close to the half-year end, banks broke out a battle for deposits. The fixed deposit rates with tenors of 1 month or above were generally offered with 2% or more. As in the Hong Kong dollar government bond capital market, the medium-term to long-term interest rate lowered more than the short-term interest rate in the first half of this year, the yield curve became "inverted". This reflected that Hong Kong might face an economic downturn in the future. In Q3, the US Fed cut the federal funds rate by 0.25% twice, but the US Fed Chairman, Powell commented the rate cut at end of July essentially as a mid-cycle adjustment to monetary policy, disappointing the dovish in the market, which had expected a beginning of a rate cutting cycle. The yield curve in US dollar shifted downwards. The Hong Kong dollar SWAP rate of tenor more than 3 years followed the US to edge down while the SWAP rate of tenor ranging from 1 to 3 years inched up 0.02 – 0.06%, due to escalating social unrest changing liquidity preference of maturity segments for banks and investors. Though the business fixed investment and exports had weakened and the prolonged weakness in manufacturing, and trade tensions were expected to spread to services sector and ultimately employment, the US economy was still robust with rising household spending and strong labor market Also, the US Fed would expand its balance sheet again for reserve management purposes (short-term liquidity) soon whereas the European Central Bank would restart quantitative easing for stimulating economy in November. In October, the US Fed implemented the third “insurance cut” by lowering the federal funds rate by 0.25% to 1.50% - 1.75% amid solid job gains, moderate rising economy and strong household spending. In December, it commented that unless economic outlook including global developments and muted inflation pressures, changed significantly, “the current stance of monetary policy is appropriate”, and released “dot plot” of the Fed funds target rate implying that the Fed funds rate would be kept on hold in 2020 and rise 0.25% only in 2021. As the US interest rate was expected to stay unchanged for the next year, and the escalating social unrest in Hong Kong caused some fear on capital outflow, the short-term interest rates in Hong Kong dollar edged up in general, except the 1-month HIBOR rising more sharply by 0.78% to close at 2.67% in the Q4.


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Commentary (continued) 1. BCOM MPF Conservative Fund (continued) The Fund recorded the net asset value of fund units at $13.4756 and an annualized rate of return for 1.19%, which outperformed the prevailing “Prescribed Savings Rate” (PSR) of 0.10% in the year ended December 31, 2019. For reserve management purposes (short-term liquidity), the US Fed’s balance sheet had expanded by about USD400 billion to above USD4.1 trillion at the end of this year. The European Central Bank and People’s Bank of China had been also adopting quantitative easing or loose monetary policy for stimulating economy. In Hong Kong the prolonged civil unrest and weakening trade had plunged economy into recession in 2019 and the effect of the blow would continue to spread in 2020. Thus, we expect the global monetary accommodation and weak Hong Kong economy would suppress interest rates in Hong Kong dollar in the coming year. 2. BCOM Guaranteed (CF) Fund Review and Outlook The US Federal Reserve (US Fed) lowered its projections for US economic growth and inflation, and changed drastically its tone on monetary policy from “hawkish” last December to “dovish” in Q1. Also, the US Fed would slow starting in May and stop at the end of September, shrinking the balance sheet, in light of slowing global economic growth and avoiding an over-tightening financial conditions, whereas the European Central Bank announced no interest rate hike in the year. In Q2, although the US economy remains in good condition, the Sino-US trade conflict reportedly had led many industries in the US to take a pessimistic view of the US economic outlook. Therefore, more US Fed policy officials had repeatedly hinted in the past month that they were willing to consider interest rates cuts to support the economy. Then, the federal funds rate futures had implied the US Fed would likely cut interest rates three times in the second half of this year. In Q3, the US Fed cut the federal funds rate by 0.25% twice, but the US Fed Chairman, Powell commented the rate cut in end of July essentially as a mid-cycle adjustment to monetary policy, disappointing the dovish in the market, which had expected a beginning of a rate cutting cycle. The yield curve in US dollar shifted downwards. The Hong Kong dollar SWAP rate of tenor more than 3 years followed the US to edge down while the SWAP rate of tenor ranging from 1 to 3 years inched up 0.02 – 0.06%, due to escalating social unrest changing liquidity preference of maturity segments for banks and investors. In October the US Fed implemented the third “insurance cut” by lowering the federal funds rate by 0.25% to 1.50% - 1.75% amid solid job gains, moderate rising economy and strong household spending. In December, it commented that unless economic outlook including global developments and muted inflation pressures, changed significantly, “the current stance of monetary policy is appropriate”, and released “dot plot” of the Fed funds target rate implying that the Fed funds rate would be kept on hold in 2020 and rise 0.25% only in 2021. As the US interest rate was expected to stay unchanged for the next year, and the escalating social unrest in Hong Kong caused some fear on capital outflow, the short-term interest rates in Hong Kong dollar edged up in general in Q4.


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Commentary (continued) 2. BCOM Guaranteed (CF) Fund (continued) The major global stock markets rebounded from a weak Q4 of last year since the beginning of the year because with the Sino-US trade conflicts showing signs of easing in Q1, the market expected China and the United States could reach an agreement. The China and Hong Kong stock market also benefited from the China's positive monetary and fiscal policies. To support domestic demand and the economy, China announced a reduction in value-added tax to ease the burden on manufacturing and small-micro enterprises; tax rate would be cut from the current 16% to 13% for the manufacturing sector, and from 10% to 9% for the transportation, construction and other industries sectors. At the start of the Q2, the global major stock markets continued to rise, thanks to the hope that the US would keep interest rate on hold and that China and the US could reach a trade agreement. Hong Kong stocks rose above the 30,000 level in April. However, in early May, the US President Trump suddenly announced that the tariff rate of imports from China amounting to USD 200 billion would be raised to 25%, frightening stock investors to dump in the market. At the end of June, China and the US were expected to reopen trade negotiations. In July, Hong Kong stocks traded in a range of 1,000 points above 28,000 awaiting China and the US’s reopening trade negotiations. In August, the US President Trump suddenly announced to add 10% tariff to imports from China amounting to USD 300 billion. China retaliated with tariff hike on USD75 billion of US goods and halting purchases of soybean from the US. And, the Renminbi depreciated below the psychological level of 7 versus US dollar. Thus, the Hong Kong stock suffered a deep correction for more than 2,000 points and was further worsened by a prolonged social unrest. Though the US’s business fixed investment and exports had weakened, and the prolonged weakness in manufacturing and trade tensions were expected to spread to services sector and ultimately employment, the economy was still robust with rising household spending and strong labor market. Also, the US Fed would expand its balance sheet again for reserve management purposes (short-term liquidity) soon whereas the European Central Bank would restart quantitative easing for stimulating economy in November. In Q4, the Hong Kong equities market was mainly driven by the development of the trade negotiation between the US and China, Hong Kong’s social unrest as well as fading worry of slowing global economic growth. In December, the US suspended a tariff on Chinese import effective on December 15 and a phase-one trade agreement between the US and China was expected to conclude, so the Hang Seng Index was stimulated to close at 28,190, posting a gain of 8.04% in this quarter and 9.10% in this year respectively. The net asset value of the Fund units rose to HK $13.5846, gaining 2.54% in the year ended December 31, 2019. For reserve management purposes (short-term liquidity), the US Fed’s balance sheet had expanded by about USD400 billion to above USD4.1 trillion at the end of this year. The European Central Bank and People’s Bank of China had been also adopting quantitative easing or loose monetary policy for stimulating economy. Thus, we expect the Hong Kong stocks should be limited at its downsides with the global monetary accommodation and would be rerated with a higher valuation if the China economy was confirmed to stabilize even though the unresolved social unrest would continue to hurt Hong Kong economy and the phase-two trade talk between the US and China, touching upon structural issues might not go smoothly in the coming year. In addition, we expect the global monetary accommodation and weak Hong Kong economy would suppress interest rates in Hong Kong dollar in 2020.


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Commentary (continued) 3. BCOM Stable Growth (CF) Fund Review Global equities posted sharp declines in Q4 2018 on persistent concerns over global trade and slowing economic growth. In developed markets, US equities declined materially, with especially steep falls in December. European equities also fell amid fragile economic data and Brexit uncertainties while weakness in Japan equities coincided with periods of yen strength. Similarly, emerging markets equities fell with the familiar array of global trade and growth concerns weighing on returns. In fixed income, government bond yields reflected broader risk aversion and macro uncertainty. The 10-year Treasury yield fell from 3.06% to 2.68% while Bund yields declined from 0.47% to 0.24%. The Federal Reserve (Fed) raised rates twice over the quarter on continued stability in economic data. However, the central bank grew otherwise more dovish in tone, signalling a more cautious view for coming months. Corporate bonds had a challenging quarter and underperformed government bond, with both investment grade and high yield weaker. Hard currency EM bonds were down, but local currency bonds were higher as US dollar strength waned and currencies of oil exporters benefited from weaker energy prices. Lastly, commodities largely fell due to the large decline in the energy component, as oil prices declined heavily on concerns of oversupply in the face of a weakening outlook for global demand. On the other hand, precious metals prices posted solid gains amid spurred demand for traditionally safe-haven assets. The US dollar index rose and the greenback appreciated against most developed currencies apart from the Japanese Yen and New Zealand dollar. Going into 2019, global equities rebounded strongly as trade tensions eased and major central banks grew more accommodative. US equities led gains as economic growth and corporate earnings remained firm. Elsewhere, Asian and emerging markets also recorded strong returns. In particular, Chinese equities were boosted by the ongoing government support and easing policies. In fixed income, bond yields continued to fall on the back of a more supportive policy environment. US 10-year Treasury yields fell 30 bps and reached their lowest level since late 2017. Notably, the three-month Treasury bill yield rose higher than that of 10-year bonds in March. This yield curve inversion highlighted growing caution among investors over economic growth. 10-year Bund yields were also more than 30bps lower and fell below zero for the first time since October 2016. Corporate bonds had a strong quarter, having fallen sharply in Q4. High yield credit - harder hit than investment grade in Q4 – outperformed. EM bonds also had a positive quarter with hard currency outperforming. Commodities recorded positive gains over, with the energy component leading the way as crude oil prices rebounded on the back of production cuts and US sanctions. For currencies, the US dollar index continued to move higher. Most developed currencies depreciated against the greenback apart from the Japanese Yen and Swiss Franc. Asian currencies also lost ground against the US dollar, with the exception of the Indian Rupee which gained over +2%.


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Commentary (continued)

3. BCOM Stable Growth (CF) Fund (continued) Global equities rose in Q2, despite a steep fall in May due to concerns over the US-China trade war. However, investors were broadly cheered by ongoing central bank dovishness and indications of progress in trade tensions by the end of June. Emerging market shares lagged their developed market counterparts, especially as trade uncertainty weighed on Chinese equities. Government bond yields fell markedly over the quarter. The 10-year US Treasury yield was more than 40 basis points (bps) lower over while the 10-year Bund yield also fell 30bps further into negative territory. In credit, corporate bonds outperformed government bonds. Investment grade saw better returns than high yield as it tends to benefit more from falling yields. Elsewhere, emerging market bonds had a positive quarter. Local currency bonds performed particularly well against a weaker US dollar. With increasing concerns over the outlook for global growth, commodities delivered a negative return, with industrial metals recording the steepest falls. By contrast, precious metals recorded gains, led by gold. For currencies, the US dollar index declined over the quarter and the greenback depreciated against most major currencies including the Euro and Japanese Yen. Asian currencies posted mixed performance against the US dollar with Chinese Renminbi being the worst performer. Finally in Q3 2019, US-China trade dispute rumbled on and global growth concerns continued to weigh on market sentiment. However, central banks remained supportive. The US Federal Reserve cut rates twice and the European Central Bank (ECB) cut once, while also announcing the restart of quantitative easing. Developed markets recorded small gains, with Japan equities outperforming. On the other hand, Emerging and Asian markets fell. Those markets most sensitive to US dollar strength came under pressure. Turning to fixed income, government bond yields declined markedly over the quarter due to heightened risk aversion. The US 10-year Treasury yield was more than 30 bps lower and briefly dipped lower than the two-year yield, a yield curve inversion indicating significant economic pessimism among bond investors. In Europe, the 10-year Bund yield fell 24bps to finish even deeper in negative territory. Corporate bonds benefited from the decline in global yields and outperformed government bonds. Investment grade corporate bonds returned strong returns, while the riskier high yield part of the market also performed well. Across emerging market bonds, hard currency and corporate debt made positive returns, while local currency bonds declined. Lastly, commodities posted a negative return, weighed down by US dollar strength. Energy was the weakest component, amid a selloff in crude oil prices as demand concerns outweighed ongoing supply risks. By contrast, precious metals delivered sold gains as investors moved into perceived safe haven assets. Within the currency space, the US dollar Index rose and the greenback appreciated against most developed currencies apart from the Canadian Dollar and Japanese Yen. The US dollar also appreciated against most Asian currencies, although the Thai Baht was notably stronger.


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Commentary (continued)

3. BCOM Stable Growth (CF) Fund (continued) Outlook Looking at our asset class views, we maintain a neutral view on equities over the medium term and will continue to be tactical in the short-term given the increase in volatility due to the noises from geopolitics, presenting opportunities to gain from action allocation. Regional wise, our preference for US remains unchanged as our high conviction trade, given the quality and stability of earnings. We continue to remain cautious on European and Japanese equities, while actively managing the EM exposure to capture the value opportunities available to us. Earnings outlook have deteriorated in Europe, and the ECB has already delivered on the monetary promise. This means that further upside is likely to be limited as fiscal expansion for the region will continue to see challenges. EM continues to be a region with high expected returns and also volatility, and thus a tactical approach is required. For duration, we continue to favour the diversification benefits of the asset class, although this has weakened as from a valuation perspective. Duration has delivered significantly as a risk diversifier over the last few months, and have reversed recently. From this point onwards, duration will also require a more tactical approach to management in order to limit the short-term risk coming from the high valuation of the assets. For credit, we believe that short-term there could be wobbles in spreads, which could present opportunity for investors. We continue to believe that the technical and liquidity backdrop should remain supportive of the asset class over the medium term as the cycle extends. Turning to commodities, we remain cautious in certain segments including energy, industrial metals and agriculture. That being said, we maintain a positive view on gold based on potential for further growth disappointment and the provision of liquidity by central banks.


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Commentary (continued) 4. BCOM Balanced (CF) Fund Review Global equities posted sharp declines in Q4 2018 on persistent concerns over global trade and slowing economic growth. In developed markets, US equities declined materially, with especially steep falls in December. European equities also fell amid fragile economic data and Brexit uncertainties while weakness in Japan equities coincided with periods of yen strength. Similarly, emerging markets equities fell with the familiar array of global trade and growth concerns weighing on returns. In fixed income, government bond yields reflected broader risk aversion and macro uncertainty. The 10-year Treasury yield fell from 3.06% to 2.68% while Bund yields declined from 0.47% to 0.24%. The Federal Reserve (Fed) raised rates twice over the quarter on continued stability in economic data. However, the central bank grew otherwise more dovish in tone, signalling a more cautious view for coming months. Corporate bonds had a challenging quarter and underperformed government bond, with both investment grade and high yield weaker. Hard currency EM bonds were down, but local currency bonds were higher as US dollar strength waned and currencies of oil exporters benefited from weaker energy prices. Lastly, commodities largely fell due to the large decline in the energy component, as oil prices declined heavily on concerns of oversupply in the face of a weakening outlook for global demand. On the other hand, precious metals prices posted solid gains amid spurred demand for traditionally safe-haven assets. The US dollar index rose and the greenback appreciated against most developed currencies apart from the Japanese Yen and New Zealand dollar. Going into 2019, global equities rebounded strongly as trade tensions eased and major central banks grew more accommodative. US equities led gains as economic growth and corporate earnings remained firm. Elsewhere, Asian and emerging markets also recorded strong returns. In particular, Chinese equities were boosted by the ongoing government support and easing policies. In fixed income, bond yields continued to fall on the back of a more supportive policy environment. US 10-year Treasury yields fell 30 bps and reached their lowest level since late 2017. Notably, the three-month Treasury bill yield rose higher than that of 10-year bonds in March. This yield curve inversion highlighted growing caution among investors over economic growth. 10-year Bund yields were also more than 30bps lower and fell below zero for the first time since October 2016. Corporate bonds had a strong quarter, having fallen sharply in Q4. High yield credit - harder hit than investment grade in Q4 – outperformed. EM bonds also had a positive quarter with hard currency outperforming. Commodities recorded positive gains over, with the energy component leading the way as crude oil prices rebounded on the back of production cuts and US sanctions. For currencies, the US dollar index continued to move higher. Most developed currencies depreciated against the greenback apart from the Japanese Yen and Swiss Franc. Asian currencies also lost ground against the US dollar, with the exception of the Indian Rupee which gained over +2%.


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Commentary (continued) 4. BCOM Balanced (CF) Fund (continued) Global equities rose in Q2, despite a steep fall in May due to concerns over the US-China trade war. However, investors were broadly cheered by ongoing central bank dovishness and indications of progress in trade tensions by the end of June. Emerging market shares lagged their developed market counterparts, especially as trade uncertainty weighed on Chinese equities. Government bond yields fell markedly over the quarter. The 10-year US Treasury yield was more than 40 basis points (bps) lower over while the 10-year Bund yield also fell 30bps further into negative territory. In credit, corporate bonds outperformed government bonds. Investment grade saw better returns than high yield as it tends to benefit more from falling yields. Elsewhere, emerging market bonds had a positive quarter. Local currency bonds performed particularly well against a weaker US dollar. With increasing concerns over the outlook for global growth, commodities delivered a negative return, with industrial metals recording the steepest falls. By contrast, precious metals recorded gains, led by gold. For currencies, the US dollar index declined over the quarter and the greenback depreciated against most major currencies including the Euro and Japanese Yen. Asian currencies posted mixed performance against the US dollar with Chinese Renminbi being the worst performer. Finally in Q3 2019, US-China trade dispute rumbled on and global growth concerns continued to weigh on market sentiment. However, central banks remained supportive. The US Federal Reserve cut rates twice and the European Central Bank (ECB) cut once, while also announcing the restart of quantitative easing. Developed markets recorded small gains, with Japan equities outperforming. On the other hand, Emerging and Asian markets fell. Those markets most sensitive to US dollar strength came under pressure. Turning to fixed income, government bond yields declined markedly over the quarter due to heightened risk aversion. The US 10-year Treasury yield was more than 30 bps lower and briefly dipped lower than the two-year yield, a yield curve inversion indicating significant economic pessimism among bond investors. In Europe, the 10-year Bund yield fell 24bps to finish even deeper in negative territory. Corporate bonds benefited from the decline in global yields and outperformed government bonds. Investment grade corporate bonds returned strong returns, while the riskier high yield part of the market also performed well. Across emerging market bonds, hard currency and corporate debt made positive returns, while local currency bonds declined. Lastly, commodities posted a negative return, weighed down by US dollar strength. Energy was the weakest component, amid a selloff in crude oil prices as demand concerns outweighed ongoing supply risks. By contrast, precious metals delivered sold gains as investors moved into perceived safe haven assets. Within the currency space, the US dollar Index rose and the greenback appreciated against most developed currencies apart from the Canadian Dollar and Japanese Yen. The US dollar also appreciated against most Asian currencies, although the Thai Baht was notably stronger.


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Commentary (continued) 4. BCOM Balanced (CF) Fund (continued) Outlook Looking at our asset class views, we maintain a neutral view on equities over the medium term and will continue to be tactical in the short-term given the increase in volatility due to the noises from geopolitics, presenting opportunities to gain from action allocation. Regional wise, our preference for US remains unchanged as our high conviction trade, given the quality and stability of earnings. We continue to remain cautious on European and Japanese equities, while actively managing the EM exposure to capture the value opportunities available to us. Earnings outlook have deteriorated in Europe, and the ECB has already delivered on the monetary promise. This means that further upside is likely to be limited as fiscal expansion for the region will continue to see challenges. EM continues to be a region with high expected returns and also volatility, and thus a tactical approach is required. For duration, we continue to favour the diversification benefits of the asset class, although this has weakened as from a valuation perspective. Duration has delivered significantly as a risk diversifier over the last few months, and have reversed recently. From this point onwards, duration will also require a more tactical approach to management in order to limit the short-term risk coming from the high valuation of the assets. For credit, we believe that short-term there could be wobbles in spreads, which could present opportunity for investors. We continue to believe that the technical and liquidity backdrop should remain supportive of the asset class over the medium term as the cycle extends. Turning to commodities, we remain cautious in certain segments including energy, industrial metals and agriculture. That being said, we maintain a positive view on gold based on potential for further growth disappointment and the provision of liquidity by central banks. 5. BCOM Dynamic Growth (CF) Fund Market Review Global equities delivered robust gains over 2019, with the FTSE All-World Index recording its strongest annual performance in a decade. After a weak end to 2018, stock markets rebounded in January and the advance continued throughout 2019, with many markets closing the year at, or near, record/multi-month highs. Central bank monetary policy U-turns and better-than-expected corporate earnings fuelled the rally, as did optimism over improved U.S./China trade relations, although trade-war flare ups and fears of a severe global slowdown caused significant stock market corrections in May and August, respectively. In general, developed markets outperformed developing ones. At a sector level, technology stocks led the advance, while energy was the weakest sector.


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Commentary (continued) 5. BCOM Dynamic Growth (CF) Fund (continued) Global bonds rallied strongly as central banks undertook monetary policy U-turns, switching from raising rates to reducing them. After a relatively quiet first quarter, bond yields declined sharply in the second and third quarters, before backing up in the fourth quarter. Having started the year around 2.7%, in August the yield on the 10-year US Treasury bond briefly fell below 1.5%, a level last seen in the summer of 2016, before closing December near 1.9%. August also saw European bond yields fall to record lows, with the entire German yield curve moving below zero. At its peak in late August, the total amount of global bonds trading on yields of below zero reached USD 17 trillion, compared to around USD 11 trillion by the end of 2019. The global economy slowed, mainly due to the impact of the US/China trade war. With inflation also easing, many central banks were forced to change their monetary policy stance to stave off the threat of a more severe slowdown. In July, the US Federal Reserve cut rates for the first time since 2008, with two further rate cuts following in September and October. This was followed by similar moves across the developed and developing world. The central bank measures helped to bolster confidence in the economic outlook, with data showing signs that the slowdown may have bottomed out during the fourth quarter. In currency markets, the British pound ended a volatile year notably higher against most major currencies. Fears of a no-deal Brexit continued to plague the UK currency for much of the year, but sterling surged in the fourth quarter on the unexpected news that new UK Prime Minister Boris Johnson had secured a new Withdrawal Agreement with the EU. The UK currency strengthened further following the Conservative Party’s decisive victory in the UK general election. The Japanese yen also experienced a rollercoaster ride, appreciating for the first three quarters before weakening sharply in the fourth quarter as risk appetite rose. Meanwhile, the euro weakened modestly against the US dollar, reflecting the continued anemic growth outlook in Europe. Outlook Equities We have a neutral view on equity market. Outbreak of the coronavirus will likely dampen investors’ sentiment in the near term, but progress on US-China trade discussions and continued easing monetary policies from global central banks shall support the equity market in the long term. Within the developed markets, we are positive on US but negative on Europe and Japan. Strong US housing market and robust labour market remain positive signal for US equities. The US economy should continue be supported by accommodative policy by the Fed. On the other hand, spread of coronavirus in Europe and weak economic data, together with political risks, will likely put pressure on growth and sentiment on European equities. In Japan, macro data such as industrial product and retail sales, continue to be weak. The fiscal stimulus package announced in late 2019 may help preempt a recession in 2020 but is not likely to provide much positive impulse on Japanese economy. We expect Japanese equity market may likely lag global equities.


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Commentary (continued) 5. BCOM Dynamic Growth (CF) Fund( continued) In Asia ex Japan, we hold a neutral view on HK/China and rest of Asia. Coronavirus will likely exert downward pressure on growth in the near term and lead to increased volatility in equity market. We will revisit our positioning when the situation improves. However, policy support from the government and reduced uncertainties on trade tensions should help cushion the negative pressure to a manageable level. Bonds Although political tail risks have receded in January, particularly those related to the US-China trade conflict and Brexit, the outbreak of nCoV in China caught the market off guard. With the number of confirmed nCoV cases continuing to rise globally, uncertainty over the extent of the impact on global growth has increased significantly. Comparing this with the SARS outbreak in 2003, we expect the macro-economic implications over global growth could be larger with the nCoV outbreak, as the Chinese economy now represents 18% of the world’s GDP, compared to only 4% back in 2003. As a result, we expect the market to remain defensive until there is more clarity, keeping US Treasuries in bidding mode. Front-end of the curve shall remain well-supported, given the disruption on global economic growth may lead to increasing expectation of a US Fed easing. From an interest rate perspective, the fund favours US over both Europe and Japan, given the US Treasury market is relatively more justified in terms of valuation and with better upside potential, as the US Fed has more options relative to the other developed markets in adopting accommodative easing measures during a sharp global economic slowdown. 6. BCOM Asian Dynamic Equity (CF) Fund Review Global equity markets surged into the end of the year as year-long uncertainties began to find clarity. An agreed upon phase one trade deal between the U.S. and China was cheered by the market while the never-ending Brexit dynamics found reprieve following the latest elections as a Conservatives majority lessens the likelihood of a Hard Brexit. The two catalysts spurred a risk-on rally to close out the year inducing a shift into market laggards, namely emerging markets and smaller companies, while bond-proxy sectors that previously could do no wrong were significant laggards amid profit taking. Outlook The Asia Pacific ex-Japan markets returned a healthy 10.5% during the quarter, but still behind the overall emerging markets return of 11.9%. Of the largest markets, Taiwan, China, and South Korea outperformed while Australia and India failed to keep pace with the fierce fourth quarter rally. Our Asia Pacific ex-Japan Opportunities strategy underperformed by approximately 60 bps during the fourth quarter but outperformed by over 50 bps for the full 2019 calendar year.


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Commentary (continued) 6. BCOM Asian Dynamic Equity (CF) Fund (continued) The overall Australian market does not look cheap, but we continue to find solid idiosyncratic stock ideas. Specifically, the software industry continues to provide much needed diversification into the Asia region where tech hardware has been dominating. Also, we like companies who generate offshore earnings relative to domestic Australian companies. 7. BCOM Hong Kong Dynamic Equity (CF) Fund Review In 2019, the Hang Seng Index was up 13.6%. The Principal Hong Kong Index, the index of the Hong Kong equity portfolio, returned 13.4% this quarter. Materials, information technology, and consumer discretionary sectors outperformed, while utilities, energy, and consumer staples sectors lagged during the quarter. Hong Kong Markit PMI increase from 38.5 in November to 42.1 in December. Export growth recover a little to -1.4% in November versus -9.2% in October, and import growth was -5.8% in November versus -11.5% in October. Official CPI was at 3.0% in November, below estimates. Retail sales growth was -23.6% in terms of value and -25.4% in November, the third consecutive month we saw a -20% decrease. Outlook Hong Kong SAR’s trade activities remained subdued in December. In the near term, the external trading environment is likely to remain challenging. Retail sales will continue to be impacted severely due to the prolonged protests. On China side, on December 13, the United States and China announced that an agreement on Phase 1 trade negotiations had been reached. On the domestic front, November data points came in above expectations and reinforce our view of a cyclical bottoming-out. Overall earnings revision remained positive in December. Therefore, we turned slightly more positive on China with a focus on domestic consumption opportunities. 8. BCOM China Dynamic Equity (CF) Fund Review In 2019, Materials, information technology, and consumer discretionary sectors outperformed, while utilities, energy, and communication service sectors lagged during the quarter. China’s economics activities continued to show some positive signs in December. Official Manufacturing Purchasing Managers’ Index (PMI) remained at 50.2 in December, and Caixin manufacturing PMI edged down to 51.3 from 51.8 in November. Exports growth slightly edge down to -1.1% year-over-year (yoy) in November from -0.9% in October, and imports growth recover from -3.5% to 2.5%. Industrial production year-to-date (YTD) remained at 5.6%. Retail sales growth accelerated to 8.0% in November from 7.2% in October, above expectation. Total social financing was US$1,750 billion, above expectation which was US$1,485 billion.


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Commentary (continued) 8. BCOM China Dynamic Equity (CF) Fund (continued) Outlook On December 13, the United States and China announced that an agreement on Phase 1 trade negotiations had been reached. On the domestic front, November data points came in above expectations and reinforced our view of a cyclical bottoming-out. For policy, interest rate reform took another solid step as the People’s Bank of China guided commercial banks to convert old index lending rates into loan prime rates (LPR) for the existing and new loan books, along with the well expected 50 basis points reserve requirement ratio (RRR) cut. Overall earnings revision remained positive in December. Therefore, we turned more positive with a focus on domestic consumption opportunities. 9. BCOM HSI Tracking (CF) Fund Review and Outlook In Q1, both the US and Euro central bank projected outlook on economic growth and inflation weaker than previously anticipated, and turned to “dovish” stance on monetary policy. The US Federal Reserve (“US Fed”) stated that interest rate hike was most likely on hold this year and should end the balance sheet runoff at the end of September while the European Central Bank announced interest rates would be held at current levels at least through the end of the year. The People’s Bank of China lowered the bank reserve requirement ratio by 1% in January and relaxed aggregate social financing to boost liquidity and support credit expansion. The global financial conditions then returned to be more accommodative like the Q3 of last year. Together with strong fiscal policy support, China economy stabilized in March as indicated by the Caixin China Manufacturing Purchasing Managers’ Index rising to 50.8 from 49.9 in February with a good new order growth. This March figure represented an expansion of the manufacturing sector compared to the previous month since last December. Moreover, the US decided to delay tariff increases on imports from China, amounting to $200 billion, signaling good progress of Sino-US trade negotiations. In Q2, both the US and Euro central bank turned to be more “dovish” on monetary policy amid weakening global financial conditions including weak global Purchasing Managers’ Index, low global inflation and weakening economic growth. The US Fed policy officials stated that they were willing to cut interest rates to sustain economic growth this year while the European Central Bank announced interest rates cuts and purchases of government bonds would be implemented, if needed, to boost growth. Thus, interest rate cuts totaling 0.50% - 0.75% was expected from the US Fed by this yearend, boosting sentiment of stock markets. Amid strong tax cut policy support and easing credit conditions, China economy stabilized in March and April but dipped again in May. The China Manufacturing Purchasing Managers’ Index for May dropped to 49.4 from 50.5 and 50.1 for March and April respectively, and the industrial production as well as fixed assets investment for May grew weaker than the expected at 5.0% and 5.6% respectively. Together with US president Trump’s sudden hiking import tariff to 25% on China goods worth USD200 billion, the Hong Kong stock had suffered a correction for 11% until a new round of Sino-US trade talk was expected to reopen around the G20 summit near the end of June.


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Commentary (continued) 9. BCOM HSI Tracking (CF) Fund (continued) In August, the US President Trump suddenly announced a new tariff of 10% on USD300 billion of imports from China, which would be effective in September. Later, the US also announced plans to hike tariffs of USD250 billion of goods imported from China from 25% to 30% in October. In retaliation to the US’s stepping up trade tariffs, China increased tariffs on USD75 billion of imports from the US, suspended purchases of soybean from the US and allowed to weaken Renminbi below 7 versus 1 US dollar. Also, the protracted social unrest had been damaging Hong Kong economy as well as investment outlook. Following the US Fed’s interest rate cuts in July, although the US Fed Chairman, Powell downplayed the rate cut in July not as a start of a rate cut cycle, the federal funds rate futures still priced in one or two more interest rate cuts totaling 0.25% or 0.50% in Q4. And the US Fed would soon announce measures for reopening purchase of the Treasuries including only the US government bills, for reserve management purposes (short-term liquidity) while the European Central Bank would restart quantitative easing program of buying bonds amounting to EUR20 billion a month, starting from November, for sustaining economy. In early October, as the Hong Kong Government imposed the "anti-mask law", escalating social riots, Hong Kong stocks continued to drop, and the Hang Seng Index fell below the 25,500 level. With the positive progress of the Sino-US trade talks and waning worries of the global economic recession, the Hang Seng Index rebounded once to test 28,000 points at the beginning of November. However, the passage of the "Hong Kong Human Rights and Democracy Act" overshadowed the Sino-US trade talks, and Hong Kong stocks fell again. In December, the Sino-US trade negotiations made another breakthrough and the US agreed to suspend the tariffs originally imposed on China on December 15, stimulating the Hong Kong stock market. The Hang Seng Index closed at 28,190, posting an increase of 8.04% during the Q4, and 9.10% in this year. The Fund’s unit net asset value increased to HK $32.7153, advancing 11.86% in the year ended December 31, 2019. China's economy had recently shown signs of stabilization. The China Manufacturing Purchasing Manager Index for November was 50.2, returning above the 50-point boundary between expansion and contraction since April, and was better than the expected 49.5. The Caixin China Manufacturing Purchasing Managers Index, reflecting manufacturing activity of the small and medium enterprises, also expanded for the fifth consecutive month, the highest since 2017, and reported at 51.8 in November, slightly higher than the expected 51.5. In addition, industrial production, fixed asset investment and retail sales for personal or household consumption performed well. Looking forward, we expect that the global monetary accommodation would still suppress interest rates and boost sentiment of stock markets. Also, the current valuation of Hong Kong stocks is relatively low with the Hang Seng Index trading at about 11 times earnings. As long as the Chinese economy continued to stabilize and the local political situation would not further deteriorate, we expect the Hong Kong stocks’ valuation would increase in the coming year.


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Commentary (continued) 10. BCOM Global Bond (CF) Fund Review and Outlook 2019 started with a strong rebound following a sharp decline at the end of the previous year. Global developed bonds rallied as bond investors remained fairly subdued about the prospects of economic growth, inflation, and the likelihood of central banks raising interest rates. A series of disappointing economic data releases in Europe and in the US meant there was a shift in tone from both the European Central Bank (ECB) and Federal Reserve (Fed) and at the end of Q1, both central banks delivered downbeat assessments and indicated rates would not rise in 2019, with the ECB announcing a new Targeted Long-Term Refinancing Operation (TLTRO). The second quarter of 2019 started on a positive note with data suggesting the Chinese economy had grown at a faster rate than expected but the strong start of the year for risk assets stalled in May as a result of increased geopolitical risks, in particular the escalation of trade tensions between US and China. Following the Fed and ECB’s pivot toward more accommodative monetary policy, other central banks followed suit, the Bank of Canada abandoned its bias for higher interest rates, the reserve Bank of Australia adopted a similar policy and the Central Bank of Sweden lowered the projected path of the policy rate. The Bank of Japan also acted in a similar fashion, committing to extremely low interest rates until at least spring 2020. The third quarter of 2019 was a strong quarter for bonds with yields falling in various markets, due to expectations about accommodative central bank policies and due to risk aversion sentiment when US-China trade tensions escalated. In the US, the Fed cut rates by 25bps in July but the accompanying statement to the decision stating that the cut represented a mid-cycle adjustment rather than the beginning of a substantial reduction in interest rates was met with some disappointment by the markets. As a result, bond yields increased, and the dollar strengthened following the first cut in interest rates for over a decade. The Fed eased policy further in September by lowering the funds rate by another 25bps, but the news that seven participants were in favour while five were against the cut was once again interpreted as a hawkish signal. In Europe, expectations of future monetary policy easing by the ECB through increasing the money supply, also helped support the bond market. In September the ECB announced a package of monetary stimulus, among the measures announced was a cut in the deposit interest rate and an open-ended resumption of QE. The year ended with improved sentiment as forward-looking economic growth indicators stabilized, suggesting that the downward trend in global output was bottoming out. Adding to this, there were signs of a potential easing of trade tensions between the US and China. This drove government bond yields higher during this period. The move higher in yields was relatively orderly and viewed by many as a positive correction from historically low levels. The focus in the UK has been around Brexit and the year has been marked by several developments which included two deals with the EU, a PM resignation and a new general election. The latest election delivered a conclusive result in December which helped improving certainty around Brexit.


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Commentary (continued) 10. BCOM Global Bond (CF) Fund (continued) We entered 2019 positioned to benefit from an outperformance of credit versus government bonds, an underperformance of the US Dollar versus other major currencies and an outperformance of the US Treasury market versus German bonds. One of our main views this year was based on a low probability risk of a hard Brexit, and this was implemented by tactically trading UK duration which added to performance during this period. The year was also market by a pivot to more accommodative monetary by the Fed and the ECB, this supported our US duration outright view and our relative view on European core and peripheral rates, in particular Spain and Italy, both adding to performance. At the start of 2019 we also believe that Emerging markets asset class was oversold and that there was value in idiosyncrasy of some countries, this view overall also added to performance. Accommodative central banks and positive developments on US-China trade deal supported credit spreads and our allocation to European and US credit outperformed, particularly financials and industrials. 11. BCOM Greater China Equity (CF) Fund Market review The Greater Chinese equities rebounded significantly in Q1 2019, mainly driven by the strong performance of Chinese companies. In fact, the market has more than reversed the losses in the second half of last year. A number of factors came together to create this truly important change in market psychology. A more dovish US Fed, significantly lower global interest rates and signs of an easing US-China trade tension all played their part. News that MSCI was to increase the China A weighting in its widely followed emerging markets index was also a positive factor. Foreign investor flows through the Stock Connect schemes continue to reach new record levels. Whilst economic readings so far this year are still weak, Chinese authorities injected a record amount of liquidity into China’s economy, cut reserve requirement ratio for banks and announced further stimulus measures. The greater Chinese equities retreated in Q2 2019. In May, market faced the headwind from the escalating China-US trade war. Along with higher tariffs, the continuing dispute included the blacklisting of specific companies after the Trump administration effectively banned US companies from using any equipment made by Huawei. Market recovered in June and remains optimistic due to potential stimulus measures from the Chinese government to cushion the negative impact of higher US tariffs. Market also anticipated the probability of President Xi and President Trump reaching an agreement at the recent G20 Summit to return to the negotiating table. At the same time, MSCI raised the China A-Shares percentage in its emerging market indices as planned. The greater Chinese equities closed with a loss in Q3 2019. In general, losses in August were offset by gains in September, as sentiment was lifted by increasing hopes of improved trade relations between the US and China, as well as by interest rate cuts by the Chinese central bank. Supported by loosening monetary measures including an RRR cut, Chinese stocks fluctuated with trade headlines and weaker economic data. Taiwan was the best performing market, helped by strong returns from semiconductor companies that rebounded after a weak second quarter. Meanwhile, Hong Kong stocks fell sharply amid ongoing mass protests, disrupting business.


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Commentary (continued) 11. BCOM Greater China Equity (CF) Fund (continued) The greater China equities closed with strong gains in Q4 2019, as sentiment was lifted by US and China’s phase-one trade deal. Additionally, amid hopes that the slowdown in China’s economy may have bottomed out, double-digit gains were seen in the equity market. In November, the Caixin manufacturing purchasing managers’ index rose to 51.8, its highest level since December 2016. Besides, PBoC had unexpectedly trimmed its seven-day repurchase rate for the first time in more than four years. Taiwan was the best performing market, helped by strong returns from semiconductor companies. Despite positive absolute returns, Hong Kong stocks were the worst performer amid the ongoing social unrest. Outlook Although political tail risks have receded in January, particularly those related to the US-China trade conflict and Brexit, the outbreak of nCoV in China caught the market off guard. There are fears that the latest macro-economic improvements could be jeopardised as several factories in China have closed. As a result, we expect the market to remain defensive until there is more clarity. Many smaller sized enterprises will struggle to survive the current crisis; therefore industry consolidators should gain market share and ultimately outperform peers. Intra-market volatility and sector rotation is likely to persist. Overall, we believe the economic value of the businesses we invest into should not be impacted, and therefore significant market or specific stock weakness is likely to be a long term buying opportunity. 12. BCOM Core Accumulation Fund Review Equity Strategy: Global equity markets ended the first quarter of the year in positive territory. Driven mostly by gains in the US equity market, global stocks saw their largest quarterly gains since 2010. The positive investor sentiment offset concerns over the health of the global economy and was fueled by optimism over trade talks between the two largest economies (China and the US) and a dovish rhetoric from several central banks, including the Fed and the European Central Bank. Markets were especially boosted by the Fed’s announcement that it would put further interest increases on hold. All three months in the first quarter saw positive returns in global equity markets. Despite the question of UK’s departure from the European Union, which dominated headlines throughout the first quarter of the year, the UK equity market along with the European equity market provided positive returns three months in a row.


36

Commentary (continued) 12. BCOM Core Accumulation Fund (continued) While markets performed well in April and June, the month of May recorded a negative performance. Continued fears of a trade war between the US and China weighed on markets mid-quarter as the US threatened increased tariffs and accused China of backpedaling. In June, international markets rose steadily, soothed by an improving outlook for global economic growth, the prospect of resolving US-Sino trade relations and a more accommodative tone from central banks including the US Federal Reserve. Stocks hence benefitted from the likelihood of an accommodative central bank policy which was reflected in 10-Year Treasury Notes declining 40 basis points and German 10-Year Bunds trading at a record low of -33 basis points. While markets posted gains in July they tumbled significantly in August. September saw a recovery that was able to offset the losses of the previous months. Continued fears of a trade war between the US and China weighed on markets as the US threatened increased tariffs and accused China of backpedaling. The prospect of resolving US-Sino trade relations and a more accommodative tone from central banks including the US Federal Reserve drove positive performance in the last month of the quarter. Stocks hence benefitted from an accommodative central bank policy which saw the restart of the QE in Europe and further rates cuts by the US Federal Reserve. Global equity markets ended the fourth quarter of the year in positive territory amid receding fears of a global recession and signs of progress in US-China trade talks. In October, markets gained in response to several positive catalysts including a US interest rates cut, positive news flow around US-China trade negotiations, and a raft of upbeat corporate results. The optimistic environment helped ease concerns that global economic growth is losing momentum. This trend continued in November, as policies from central banks remained supportive and investors expected that low interest rates would be in place for longer. With the agreement of phase one US-China trade negotiations and an emphatic victory for the UK’s Conservative Party, global equity markets saw a positive December and ended the year of 2019 with substantial gains. Fixed Income Strategy: Throughout 2019 our portfolio was positioned to take advantage of deeper valued government bonds, but with hedges in lower volatility bonds to control portfolio tail risk, an allocation designed to do well in an environment of generally rising rates. Against a background of central bank easing and dovish policymaker rhetoric bond markets performed strongly. Our underweight positions to the core bond markets of the US, Germany and the UK underperformed in this environment. Tilts towards bond markets with stronger value characteristics saw positive performance contributions from Canada and the USA. Tilts towards markets with stronger carry characteristics saw positive performance from Sweden and New Zealand and the tilts towards markets with stronger quality characteristics witnessed positive contributions from Switzerland, Sweden and Japan. By contrast exposure to Australia captured under the both the quality and carry factors contributed negatively. Elsewhere Emerging market exposures provided a strong positive contribution to performance.


37

Commentary (continued) 12. BCOM Core Accumulation Fund (continued) Global growth shows signs of stabilization, especially in Europe and China. In the US, data has softened but the Fed remains supportive and we expect the 3-6-month growth trend to come around 1.75%. Consumer confidence has softened but remains at high levels, but business investment could continue to weigh on growth with continued political and trade uncertainty. In terms of inflation, we expect it to look much like it has in the post-crisis period at around 2.0%-2.5% per year. We have seen some impact from tariffs on flexible prices which we expect to wane by the end of 2020. Policy wise, we believe the Fed is done cutting interest rates for the next six months. It has communicated that it is relatively comfortable with the current pace of economic growth and sees limited inflation pressures. For the Fed to cut further, growth must slow significantly. On the other hand, the Fed is unlikely to raise rates in the near future as it has committed to not raising rates unless there is a substantial increase in inflation. In Europe, we expect German car manufacturing to pick up in the fourth quarter and European consumers remain in good shape, based on rising real wages, low inflation and falling unemployment, which should support the service sector. However, the US, China and UK are key markets for European exporters, exposing the eurozone to the effects of Brexit, a China slowdown and the risk of US auto tariffs. We continue to forecast a trend of low inflation for Europe despite some noise caused by tariffs. We expect monetary policy to remain on hold, with ECB policy essentially tapped out at negative interest rates of -0.50% and the recent resumption of quantitative easing. There have been calls for fiscal expansion, but economic conditions would have to deteriorate to heighten the political appetite for increased spending, in our view, and we believe this is unlikely in 2020. We expect Chinese growth to be just below 6% but there is optimism that regional trade agreements and China’s Belt and Road Initiative could open new avenues for international trade. We expect further monetary easing in the second half of 2020, but for now, rising headline inflation driven by rising food prices, constrains monetary policy. Inflation hit 3.8% in October (versus an official desired level of 3%) and could reach 5%-6% in the first quarter of 2020. We expect fiscal policy to be more proactive in 2020, which could result in a higher fiscal deficit, a larger quota for local government special project bonds and a further pick up in credit growth in early 2020. 13. BCOM Age 65 Plus Fund Review Equity Strategy: Global equity markets ended the first quarter of the year in positive territory. Driven mostly by gains in the US equity market, global stocks saw their largest quarterly gains since 2010. The positive investor sentiment offset concerns over the health of the global economy and was fueled by optimism over trade talks between the two largest economies (China and the US) and a dovish rhetoric from several central banks, including the Fed and the European Central Bank. Markets were especially boosted by the Fed’s announcement that it would put further interest increases on hold. All three months in the first quarter saw positive returns in global equity markets. Despite the question of UK’s departure from the European Union, which dominated headlines throughout the first quarter of the year, the UK equity market along with the European equity market provided positive returns three months in a row.


38

Commentary (continued) 13. BCOM Age 65 Plus Fund (continued) While markets performed well in April and June, the month of May recorded a negative performance. Continued fears of a trade war between the US and China weighed on markets mid-quarter as the US threatened increased tariffs and accused China of backpedaling. In June, international markets rose steadily, soothed by an improving outlook for global economic growth, the prospect of resolving US-Sino trade relations and a more accommodative tone from central banks including the US Federal Reserve. Stocks hence benefitted from the likelihood of an accommodative central bank policy which was reflected in 10-Year Treasury Notes declining 40 basis points and German 10-Year Bunds trading at a record low of -33 basis points. While markets posted gains in July they tumbled significantly in August. September saw a recovery that was able to offset the losses of the previous months. Continued fears of a trade war between the US and China weighed on markets as the US threatened increased tariffs and accused China of backpedaling. The prospect of resolving US-Sino trade relations and a more accommodative tone from central banks including the US Federal Reserve drove positive performance in the last month of the quarter. Stocks hence benefitted from an accommodative central bank policy which saw the restart of the QE in Europe and further rates cuts by the US Federal Reserve. Global equity markets ended the fourth quarter of the year in positive territory amid receding fears of a global recession and signs of progress in US-China trade talks. In October, markets gained in response to several positive catalysts including a US interest rates cut, positive news flow around US-China trade negotiations, and a raft of upbeat corporate results. The optimistic environment helped ease concerns that global economic growth is losing momentum. This trend continued in November, as policies from central banks remained supportive and investors expected that low interest rates would be in place for longer. With the agreement of phase one US-China trade negotiations and an emphatic victory for the UK’s Conservative Party, global equity markets saw a positive December and ended the year of 2019 with substantial gains. Fixed Income Strategy: Throughout 2019 our portfolio was positioned to take advantage of deeper valued government bonds, but with hedges in lower volatility bonds to control portfolio tail risk, an allocation designed to do well in an environment of generally rising rates. Against a background of central bank easing and dovish policymaker rhetoric bond markets performed strongly. Our underweight positions to the core bond markets of the US, Germany and the UK underperformed in this environment. Tilts towards bond markets with stronger value characteristics saw positive performance contributions from Canada and the USA. Tilts towards markets with stronger carry characteristics saw positive performance from Sweden and New Zealand and the tilts towards markets with stronger quality characteristics witnessed positive contributions from Switzerland, Sweden and Japan. By contrast exposure to Australia captured under the both the quality and carry factors contributed negatively. Elsewhere Emerging market exposures provided a strong positive contribution to performance.


39

Commentary (continued) 13. BCOM Age 65 Plus Fund (continued) Global growth shows signs of stabilization, especially in Europe and China. In the US, data has softened but the Fed remains supportive and we expect the 3-6-month growth trend to come around 1.75%. Consumer confidence has softened but remains at high levels, but business investment could continue to weigh on growth with continued political and trade uncertainty. In terms of inflation, we expect it to look much like it has in the post-crisis period at around 2.0%-2.5% per year. We have seen some impact from tariffs on flexible prices which we expect to wane by the end of 2020. Policy wise, we believe the Fed is done cutting interest rates for the next six months. It has communicated that it is relatively comfortable with the current pace of economic growth and sees limited inflation pressures. For the Fed to cut further, growth must slow significantly. On the other hand, the Fed is unlikely to raise rates in the near future as it has committed to not raising rates unless there is a substantial increase in inflation. In Europe, we expect German car manufacturing to pick up in the fourth quarter and European consumers remain in good shape, based on rising real wages, low inflation and falling unemployment, which should support the service sector. However, the US, China and UK are key markets for European exporters, exposing the eurozone to the effects of Brexit, a China slowdown and the risk of US auto tariffs. We continue to forecast a trend of low inflation for Europe despite some noise caused by tariffs. We expect monetary policy to remain on hold, with ECB policy essentially tapped out at negative interest rates of -0.50% and the recent resumption of quantitative easing. There have been calls for fiscal expansion, but economic conditions would have to deteriorate to heighten the political appetite for increased spending, in our view, and we believe this is unlikely in 2020. We expect Chinese growth to be just below 6% but there is optimism that regional trade agreements and China’s Belt and Road Initiative could open new avenues for international trade. We expect further monetary easing in the second half of 2020, but for now, rising headline inflation driven by rising food prices, constrains monetary policy. Inflation hit 3.8% in October (versus an official desired level of 3%) and could reach 5%-6% in the first quarter of 2020. We expect fiscal policy to be more proactive in 2020, which could result in a higher fiscal deficit, a larger quota for local government special project bonds and a further pick up in credit growth in early 2020.


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Trustee's Commentary

A. Trustee’s commentary on analysis of the investments held by the scheme and supporting information of its commentary

Annualized return (in terms of %) 1 year 5 years 10 years Since

Launch BCOM MPF Conservative Fund

Launch date: 01/12/2000 1.19 0.64 0.64 1.26

Benchmark / Performance Target Note 1 0.10 0.03 0.02 0.45

Deviation from the benchmark / performance target Note 1 1.09 0.61 0.62 0.81

Trustee’s commentary

The performance of the fund for 1 year, 5 years, 10 years and since launch were consistently above the performance target.

According to the investment manager, as the market expected the US Fed would stop raising rate, the Hong Kong dollar short-term interest rate fell rapidly in the beginning of 2019. But later on, it rebounded and jumped sharply, as the political situation in Hong Kong became uncertain, causing the fund flowed out from Hong Kong.

On the strong performance of interest rate market, the HK fixed deposit rate rose. In the end of the year, most banks offered more than 2% annual rate to fixed deposit with 1 month to 6 month tenor. The fund was benefited from the attractive fixed deposit rate, thus outperforming the performance target .

BCOM Guaranteed (CF) Fund

Launch date: 01/12/2000 2.54 0.96 0.78 1.62

Benchmark / Performance Target Note 2 3.78 0.81 1.57 N/A

Deviation from the benchmark / performance target Note 2 -1.24 0.15 -0.79 N/A


The performance of the fund for 5 years was above the performance target and the performance of the fund for 1 year and 10 years were below the performance target.

According to the investment manager, in 2019, amid a global monetary accommodation, expectation for conclusion of a phase-one trade agreement between the US and China, and escalating social unrest in Hong Kong, the US and Euro equities market performed markedly well with S&P 500 Index and EURO STOXX 50 Index jumping 28.9% and 24.8% respectively whereas the HK Hang Seng Index increased by 9.1% only. HK’s social unrest triggered some capital outflow, causing bond yields in Hong Kong dollar declined less than the US’s across the board. The Fund had remained overweight in fixed coupon bonds of short-to-medium tenor, denominated in Hong Kong dollar and Renminbi (on average around 66% of NAV) plus equities of HK and China (on average around 17% of NAV), thus underperforming the peers this year.


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Trustee's Commentary (continued)


Launch BCOM Stable Growth (CF) Fund

Launch date: 10/01/2006 11.61 3.25 3.62 3.82


Deviation from the benchmark / performance target Note 2 0.03 - 0.16 N/A


The performance of the fund for 1 year and 10 years were above the performance target and the performance of the fund for 5 years met the performance target.

According to the investment manager, the fund entered 2019 against the backdrop of tightening monetary policy, slowing economic growth and a US-China trade war that had shown signs of significantly impacting global activity, all of which contributed to a challenging year. The start of the year saw equity markets rebounding from a weak end in 2018. Over the year, global central banks remained largely dovish, with the US Federal Reserve cutting rates for 3 times and the European Central Bank restarting its quantitative easing program. Such continuous liquidity provision has proved to provide a cure for short-term noises from geopolitics, as there were several bouts of sell-offs in the year amid concerns over US-China trade tensions and Brexit, as well as a global recession. Overall, market weakness were less pronounced and short-lived given supportive policies, and the equity markets delivered strong returns over the course of 2019. In fixed income, both government and corporate bonds advanced in 2019 in a more supportive policy environment, with the latter outperforming.

Government bond yields fell markedly over the year, reflecting the expectation of continued central bank dovishness among policy makers. Bond yields fell further in Q3 as US-China trade tensions re-escalated, with investors reaching for risk-reducing assets. In particular, the 10-year US Treasury yield dipped lower than the 2-year yield in August, i.e. yield curve inversion, indicating significant economic pessimism among bond investors at the time. Overall, the US 10-year yield fell by 76 bps to 1.92% by the end of December.

The Fund was able to benefit from the balanced allocation between fixed income and equities, where both asset classes delivered positive return for the Fund. For instance, the allocation to developed market fixed income, where both US and European bonds yields fell considerably, was positive. In addition, the double digit return from equities also supported the Fund’s return over the performance target .


Launch date: 10/01/2006 14.66 4.46 4.73 4.68


Deviation from the benchmark / performance target Note 2 0.15 0.03 0.49 N/A


The performance of the fund for 1 year, 5 years, 10 years were consistently above the performance target.

According to the investment manager, the fund entered 2019 against the backdrop of tightening monetary policy, slowing economic growth and a US-China trade war that had shown signs of significantly impacting global activity, all of which contributed to a challenging year. The start of the year saw equity markets rebounding from a weak end in 2018. Over the year, global central banks remained largely dovish, with the US Federal Reserve cutting rates for 3 times and the European Central Bank restarting its quantitative easing program. Such continuous liquidity provision has proved to provide a cure for short-term noises from geopolitics, as there were several bouts of sell-offs in the year amid concerns over US-China trade tensions and Brexit, as well as a global recession. Overall, market weakness were less pronounced and short-lived given supportive policies, and the equity markets delivered strong returns over the course of 2019. In fixed income, both government and corporate bonds advanced in 2019 in a more supportive policy environment, with the latter outperforming.

Government bond yields fell markedly over the year, reflecting the expectation of continued central bank dovishness among policy makers. Bond yields fell further in Q3 as US-China trade tensions re-escalated, with investors reaching for risk-reducing assets. In particular, the 10-year US Treasury yield dipped lower than the 2-year yield in August, i.e. yield curve inversion, indicating significant economic pessimism among bond investors at the time. Overall, the US 10-year yield fell by 76 bps to 1.92% by the end of December.

Over the one-year period, the Fund outperformed the performance target mainly driven by the strong performance form the equity market. Within equities, given the higher allocation in Hong Kong equities, the asset class was the major performance contributor for the Fund. In addition, given the strong earnings result and robust economy in the US, US equities also contributed positively to the Fund’s return. Last but not least, fixed income registered positive return given easing monetary policies globally.


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Launch BCOM Dynamic Growth (CF) Fund

Launch date: 25/10/2006 15.92 3.71 3.97 3.28


Deviation from the benchmark / performance target Note 2 -1.72 -1.42 -0.87 N/A


The performance of the fund for 1 year, 5 years and 10 years were below the performance target.

According to the investment manager, global equities delivered robust gains over 2019. Central bank monetary policy U-turns and better-than-expected corporate earnings fuelled the rally, as did optimism over improved U.S./China trade relations, although trade-war flare ups and fears of a severe global slowdown caused significant stock market corrections in May and August, respectively. In general, developed markets outperformed developing ones. The fund underperformed the performance target amid this environment. Overall, US and European equities were key detractors as value style suffered, while this was partly offset by positive attributions from stock selection in Asia Pacific ex Japan ex HK/China, especially Taiwan IT sector. The investment manager has taken necessary measures including adjusting the relative performance target positions relative to sectors at the portfolio level and focus on stock selection as the source of alpha.

BCOM Asian Dynamic Equity (CF) Fund

Launch date: 25/10/2006 13.56 3.95 4.35 4.46





According to the investment manager, the fund slightly underperformed the reference performance target return in 2019. Stock selection in communication services and financial sectors which dragged the performance negatively. Top contributors came from China, Taiwan and Australia. Stock picking in real estate and industrials sectors were the main contributors to the return.

BCOM Hong Kong Dynamic Equity (CF) Fund

Launch date: 17/10/2007 11.81 5.04 5.42 1.90


Deviation from the benchmark / performance target Note 2 -2.59 -0.32 1.23 N/A


The performance of the fund for 10 years was above the performance target and the performance of the fund for 1 year and 5 years were below the performance target.

According to the investment manager, stock selection in utilities, energy, and consumer staples sectors lagged which detracted the fund performance negatively. Materials and Information Technology contributed positively in both asset allocation and stock selection, providing some relief to overall performance.


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Launch BCOM China Dynamic Equity (CF) Fund

Launch date: 01/06/2008 15.94 5.15 4.06 3.75


Deviation from the benchmark / performance target Note 2 - 1.49 -0.12 N/A


The performance of the fund for 1 year met the performance target, the performance of the fund for 5 years was above the performance target and the performance of the fund for 10 years was below the performance target.

According to the investment manager, stock selection in real estate, consumer discretionary and health care sectors generated positive alpha to the fund. While stock selection in financials, information technology and materials sectors lagged on a relative basis.

BCOM HSI Tracking (CF) Fund

Launch date: 30/09/2009 11.86 6.05 4.54 4.92





Following the investment objective, the Fund invested solely in an approved index-tracking collective investment scheme, Tracker Fund of Hong Kong, and so tracked the benchmark / performance target in performance closely.

BCOM Global Bond (CF) Fund

Launch date: 15/11/2010 5.37 1.44 N/A 1.62


Deviation from the benchmark / performance target Note 2 0.32 0.59 N/A N/A


The performance of the fund for 1 year and 5 years were consistently above the performance target.

According to the investment manager, the following factors added to the performance of the fund in 2019:

• Duration and Yield Curve

• Country Spread

• Currency Positioning

• Credit Spread


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Launch BCOM Greater China Equity (CF) Fund

Launch date: 15/11/2010 20.37 4.05 N/A 3.28


Deviation from the benchmark / performance target Note 2 -0.81 -2.13 N/A N/A


The performance of the fund for 1 year and 5 years were below the performance target.

According to the investment manager, Greater China equities posted robust gains over the past year. Chinese share surged in the first quarter of the year, boosted by further stimulus measures from the People’s Bank of China as well by news that index provider MSCI was to increase China’s weighting in its widely-used emerging markets index. However, shares weakened in the second and third quarter as the impact of China’s trade war with the US started to bite. However, sentiment improved as data strengthened in the fourth quarter, raising hopes that the slowdown in China’s economy may have bottomed out. Elsewhere in the region, Taiwan surged, helped by robust returns from semiconductor manufacturers, whilst Hong Kong was impacted by ongoing political unrest from June onwards which has continued to limit any gains. The fund underperformed the performance target amid this environment. On a country level, positive stock selection in Taiwan and Hong Kong somewhat offset by their overweight position in Hong Kong and weak stock selection in China. Going forward, the portfolio continues to be focused towards stocks with earnings visibility and/or a defensive earnings stream.

BCOM Core Accumulation Fund

Launch date: 01/04/2017 15.87 N/A N/A 6.24

Benchmark / Performance Target Note 3 17.03 N/A N/A 7.17

Deviation from the benchmark / performance target Note 3 -1.16 N/A N/A -0.93


The performance of the fund for 1 year was below the performance target.

According to the investment manager, the deviation of the 1-year performance in respect of the financial period ended 31 December 2019 was mainly due to underperformance of its underlying global equity and global bond component.

BCOM Age 65 Plus Fund

Launch date: 01/04/2017 9.06 N/A N/A 3.62

Benchmark / Performance Target Note 3 9.63 N/A N/A 4.18

Deviation from the benchmark / performance target Note 3 -0.57 N/A N/A -0.56


The performance of the fund for 1 year was below the performance target.

According to the investment manager, the deviation of the 1-year performance in respect of the financial period ended 31 December 2019 was mainly due to underperformance of its underlying global equity and global bond component.


45


Note 1: Benchmark / Performance Target is Prescribed Savings Rate published by MPFA. Note 2: Benchmark / Performance Target is the market median of MPF Performance Table as at 31 December 2019. Note 3: Benchmark / Performance Target is MPF DIS reference portfolio as at 31 December 2019.

B. Supporting information in relation to trustee’s assessment framework for deriving its commentary and trustee’s action, if any, to address its concerns raised in its commentary in Section A.

In order to exercise the fiduciary duty of trustee, we have set up relevant fund performance monitoring procedures. Generally, we will use the Return Rate & Ranking retrieved from published report as a benchmark / performance target for assisting MPF fund performance monitoring process. Designated Department is responsible for collecting data, preparing reports and identifying any underperformance fund according to pre-determined criteria. An Observation List of MPF Funds is specifically designed to maintain records of MPF funds in special monitoring status together with all related assessment information. Designated Department will report their findings to the Board on a monthly basis and present in the Board Meetings held on a quarterly basis. The Board of Trustee is ultimately responsible for fund investment performance monitoring of MPF funds under BCOM Joyful Retirement MPF Scheme. Below are Trustee’s actions in relation to fund performance monitoring during the financial year: Request Investment Manager to provide action plan on performance improvement when needed Monitor Investment Manager to implement their performance improvement plan Review of effectiveness on fund performance monitoring mechanism Review of fee charged by services providers

BCOM Joyful Retirement MPF Scheme Investment Report for the year ended 31 December 2019 ________________________________________________________________________________________________________________________

46

Investment income and performance record for the year ended 31 December 2019

BCOM BCOM BCOM BCOM BCOM BCOM MPF Guaranteed Stable Growth Balanced Dynamic Asian Dynamic

Conservative (CF) (CF) (CF) Growth (CF) Equity (CF) Fund Fund Fund Fund Fund Fund HK$ HK$ HK$ HK$ HK$ HK$

Deposit interest 22,576,942 2,237,558 1,860 1,438 857 1,603 Interest on interest bearing securities - 13,831,910 - - - - Dividend income - 5,030,791 - - - - Other income - 709,625 137,847 109,404 242,236 -

Net income excluding net appreciation/depreciation of investment 22,576,942

21,809,884

139,707

110,842

243,093

1,603

Net appreciation/(depreciation) of investment

realized and unrealized (including exchange gain/loss) -

16,904,420

63,768,197

62,056,694

39,700,112

63,353,683 Net asset value per unit 13.4756 13.5846 16.8752 18.9511 30.5940 35.5434 Net assets available for benefits 1,155,405,730 900,880,184 577,512,729 459,659,981 279,169,043 468,346,880 Transaction costs N/A 68,633 N/A N/A N/A N/A Fund expenses ratio 0.93% 1.77% 1.70% 1.71% 1.74% 1.75% Highest issue price per unit 13.4756 13.7893 16.8839 18.9670 30.6802 36.1747 Lowest redemption price per unit 13.2009 13.2056 15.0201 16.3357 25.9196 30.2802 Net annualised investment return/ (%)1 [Actual net investment return]

1.19%2

2.54%

11.61%

14.66%

15.92%

13.56%

1. The net annualised investment return of each unitized constituent fund is calculated based on the ratio of the unit price at the year end to the unit price at the preceding year end. 2. The net annualised investment return is calculated by comparing the net asset value per unit at the year end against the net asset value per unit at the preceding year end plus taken into consideration

of any adjusted unit expenses.


47

Investment income and performance record for the year ended 31 December 2019 (continued)

BCOM Hong Kong

BCOM China

BCOM HSI

BCOM Global

BCOM Greater

BCOM

BCOM

Dynamic Dynamic Tracking Bond China Core Age 65 Equity (CF) Equity (CF) (CF) (CF) Equity (CF) Accumulation Plus

Fund Fund Fund Fund Fund Fund Fund HK$ HK$ HK$ HK$ HK$ HK$ HK$

Deposit interest 1,801 1,760 1,994 562 807 783 225 Interest on interest bearing securities - - - - - - - Dividend income - - 17,811,795 - - - - Other income 2,793,786 3,459,083 - - 204,591 - -


3,460,843

17,813,789

562

205,398

783

225


realized and unrealized (including exchange gain/loss) 49,045,922

70,367,217

43,392,322

8,994,955

45,413,499

24,051,252

5,494,792 Net asset value per unit 25.1531 30.6248 32.7153 23.1549 26.8402 23.6208 22.0552 Net assets available for benefits 444,576,211 499,966,359 569,181,430 170,357,251 264,547,790 223,366,293 84,254,869 Transaction costs N/A N/A 178,177 N/A N/A N/A N/A Fund expenses ratio 1.72% 1.72% 0.95% 1.21% 1.75% 0.83% 0.83%

Highest issue price per unit 26.4486 31.0911 34.1043 23.6089 26.9822 23.6884 22.1200 Lowest redemption price per unit 21.7746 25.5079 28.2924 22.0280 21.5620 20.2267 20.2364 Net annualised investment return/ (%)1 [Actual net investment return]

11.81%

15.94%

11.86%

5.37%

20.37%

15.87% 9.06%

1. The net annualised investment return of each unitized constituent fund is calculated based on the ratio of the unit price at the year end to the unit price at the preceding year end.


48




Deposit interest 15,021,825 1,529,351 561 394 264 485 Interest on interest bearing securities - 9,560,797 - - - - Dividend income - 5,282,499 - - - - Other income - 738,032 - - 98,878 -


17,110,679

561

394

99,142

485


realized and unrealized (including exchange gain/loss) -

(26,391,299)

(38,835,056)

(40,868,156)

(36,903,755)

(91,769,132) Net asset value per unit 13.1994 13.2481 15.1202 16.5284 26.3917 31.3005 Net assets available for benefits 1,016,432,464 866,206,314 500,789,756 390,766,054 225,386,162 406,971,174 Transaction costs N/A 67,399 N/A N/A N/A N/A Fund expenses ratio 0.92% 1.75% 1.67% 1.69% 1.71% 1.74% Highest issue price per unit 13.1994 14.0068 17.2949 19.6941 33.7037 42.3312 Lowest redemption price per unit 12.9954 13.0354 14.9249 16.2618 25.9902 30.8188 Net annualised investment return/ (%)1 [Actual net investment return]

0.70%2

-2.88%

-8.12%

-10.43%

-15.32%

-19.86%




49


BCOM Hong Kong

BCOM China

BCOM HSI

BCOM Global

BCOM Greater

BCOM

BCOM



Deposit interest 506 532 606 147 236 172 32 Interest on interest bearing securities - - - - - - - Dividend income - - 15,769,265 - - - - Other income 2,899,170 3,669,141 - - 45,619 - -


3,669,673

15,769,871

147

45,855

172

32


realized and unrealized (including exchange gain/loss) (63,575,660)

(61,936,397)

(65,749,307)

(1,925,396)

(46,026,323)

(7,742,440)

(454,020) Net asset value per unit 22.4971 26.4147 29.2476 21.9752 22.2974 20.3862 20.2221

Net assets available for benefits 398,991,028

424,129,023

461,209,571

131,918,765

202,638,038

119,094,675

47,961,864

Transaction costs N/A N/A 152,818 N/A N/A N/A N/A Fund expenses ratio 1.71% 1.71% 0.93% 1.20% 1.72% 0.85% 0.85%


-14.41%

-13.37%

-11.11%

-2.64%

-19.92%

-6.63% -1.67%

1. The net annualised investment return of each unitized constituent fund is calculated based on the ratio of the unit price at the year end to the unit price at the preceding year end.


50




Deposit interest 8,110,154 1,556,880 174 128 77 180 Interest on interest bearing securities - 12,466,536 - - - - Dividend income - 5,255,632 - - - - Other income - 858,506 - - 51,298 -


20,137,554

174

128

51,375

180


realised and unrealized (including exchange gain/loss) -

57,764,665

75,845,457

72,778,591

56,511,745

160,583,747 Net asset value per unit 12.9946 13.6413 16.4571 18.4540 31.1674 39.0593 Net assets available for benefits 929,875,961 862,180,647 523,625,101 420,385,606 254,503,716 519,192,033 Transaction costs N/A 87,062 N/A N/A N/A N/A Fund expenses ratio 0.94% 1.77% 1.73% 1.73% 1.74% 1.76% Highest issue price per unit 12.9939 13.6973 16.4579 18.4549 31.1693 39.1207 Lowest redemption price per unit 12.8657 12.6419 14.1816 15.3016 24.3839 27.8797 Net annualised investment return/ (%)1 [Actual net investment return]

0.17%2

8.02%

16.09%

20.99%

28.20%

41.21%




51


BCOM Hong Kong

BCOM China

BCOM HSI

BCOM Global

BCOM Greater

BCOM

BCOM



Deposit interest 171 176 178 35 75 14 3 Interest on interest bearing securities - - - - - - - Dividend income - - 13,919,730 - - - - Other income 2,634,648 3,220,253 - - 43,007 - -


3,220,429

13,919,908

35

43,082

14

3


realized and unrealized (including exchange gain/loss) 136,892,149

141,022,307

114,298,230

5,674,312

58,439,782

3,721,205

390,399 Net asset value per unit 26.2838 30.4908 32.9028 22.5701 27.8436 21.8334 20.5665 Net assets available for benefits 470,891,624 496,515,129 479,387,879 116,192,694 235,095,190 66,775,875 21,239,865 Transaction costs N/A N/A 164,682 N/A N/A N/A N/A Fund expenses ratio 1.72% 1.71% 0.95% 1.23% 1.78% 0.66%3 0.63%3


41.04%

39.28%

38.96%

5.19%

32.90%

9.17%2 2.83%2

1. The net annualised investment return of each unitized constituent fund is calculated based on the ratio of the unit price at the year end to the unit price at the preceding year end. 2. The net investment return is calculated by comparing the net asset value per unit at the year end against the net asset value per unit at the preceding year end except for the first year where the initial

offer price (HK$20.00 per unit) is used and the relevant period for the first year is 1 April 2017 to 31 December 2017. 3. The fund expenses ratio is calculated for the period of 1 April 2017 to 31 December 2017.


52

Performance record



Highest issue price per unit 2019 13.4756 13.7893 16.8839 18.9670 30.6802 36.1747 2018 13.1994 14.0068 17.2949 19.6941 33.7037 42.3312 2017 12.9939 13.6973 16.4579 18.4549 31.1693 39.1207 2016 12.8644 13.0809 14.8533 15.8194 25.3747 30.2590 2015 12.7588 13.6346 15.2105 16.4858 28.6670 33.7798 2014 12.6396 13.0758 14.7997 15.8071 26.9375 31.9792 2013 12.4791 13.0247 14.2410 15.0537 26.4731 30.8357 2012 12.3560 12.8622 13.5515 13.8657 22.8182 29.0488 2011 12.1865 12.8285 13.3173 13.7836 23.8855 29.4478 2010 12.0716 12.9844 13.0310 13.3053 23.1328 27.7771 Lowest redemption price per unit 2019 13.2009 13.2056 15.0201 16.3357 25.9196 30.2802 2018 12.9954 13.0354 14.9249 16.2618 25.9902 30.8188 2017 12.8657 12.6419 14.1816 15.3016 24.3839 27.8797 2016 12.7599 12.2609 13.3210 13.6763 20.9523 23.3876 2015 12.6404 12.5859 13.6746 14.2513 22.9920 25.4237 2014 12.4798 12.5294 13.8125 14.3999 24.2826 27.0564 2013 12.3568 12.4586 13.1868 13.5506 21.9571 26.1734 2012 12.1886 12.2976 12.2377 12.2007 19.4607 23.4959 2011 12.0724 12.0402 11.5707 11.2812 17.5770 20.8765 2010 12.0259 12.4749 11.4608 11.3120 18.3370 21.0729


53

Performance record (continued)


Conservative (CF) (CF) (CF) Growth (CF) Equity (CF) Fund2 Fund Fund Fund Fund Fund

Net annualised investment return (%)1 2019 1.19% 2.54% 11.61% 14.66% 15.92% 13.56% 2018 0.70% -2.88% -8.12% -10.43% -15.32% -19.86% 2017 0.17% 8.02% 16.09% 20.99% 28.20% 41.21% 2016 0.11% -0.77% 0.91% 2.46% 0.56% 4.33% 2015 0.09% -1.72% -2.30% -2.28% -5.19% -9.47% 2014 0.14% 0.33% 0.96% 1.20% -3.67% -0.42% 2013 0.08% 0.35% 5.18% 8.72% 16.18% 1.25% 2012 0.14% 4.63% 11.03% 14.11% 16.98% 24.32% 2011 0.09% -3.66% -5.15% -8.02% -15.49% -14.74% 2010 0.03% 1.54% 8.75% 10.54% 11.20% 18.07% 1. The net annualised investment return of each unitized constituent fund is calculated based on the ratio of the unit price at the year end to the unit price at the preceding year end. 2. The net annualised investment return is calculated by comparing the net asset value per unit at the year end against the net asset value per unit at the preceding year end plus taken into

consideration of any adjusted unit expenses.


54


BCOM Hong Kong

BCOM China

BCOM HSI

BCOM Global

BCOM Greater BCOM

BCOM



Highest issue price per unit 2019 26.4486 31.0911 34.1043 23.6089 26.9822 23.6884 22.1200 2018 29.0673 35.2371 36.4958 22.7578 31.0085 22.7722 20.7788 2017 26.4925 31.1718 33.0850 22.8798 28.3095 21.8496 20.6065 2016 20.7022 24.1865 25.9441 22.9603 22.4966 N/A N/A 2015 23.9923 29.6359 29.3782 21.8058 27.6153 N/A N/A 2014 20.8550 24.8308 26.0220 21.8332 22.9667 N/A N/A 2013 19.5784 22.9299 24.1932 21.4728 21.3263 N/A N/A 2012 17.5951 21.0426 22.4012 21.6300 18.9495 N/A N/A 2011 18.1953 23.7328 23.3669 21.2432 21.0333 N/A N/A 2010 18.5864 24.4217 23.8984 20.0662 20.3884 N/A N/A Lowest redemption price per unit 2019 21.7746 25.5079 28.2924 22.0280 21.5620 20.2267 20.2364 2018 21.3423 25.8292 27.9196 21.5630 21.4290 19.8664 20.0294 2017 18.7343 21.9265 23.8356 21.3616 21.0271 19.9875 19.9542 2016 15.5725 17.8764 19.3775 21.3121 17.1126 N/A N/A 2015 17.4876 20.2836 21.7677 21.1392 19.0263 N/A N/A 2014 17.8209 20.2586 21.3245 20.9608 19.3777 N/A N/A 2013 16.4156 18.0887 19.8790 20.5065 16.9533 N/A N/A 2012 14.1679 17.2380 17.8755 20.5620 15.7873 N/A N/A 2011 12.3432 15.0533 15.8983 19.8083 14.1658 N/A N/A 2010 13.5531 18.5641 18.7890 19.7300 19.7665 N/A N/A


55


BCOM Hong Kong

BCOM China

BCOM HSI

BCOM Global

BCOM Greater BCOM

BCOM


Fund Fund Fund Fund Fund Fund Fund

Net annualised investment return (%)1 2019 11.81% 15.94% 11.86% 5.37% 20.37% 15.87% 9.06% 2018 -14.41% -13.37% -11.11% -2.64% -19.92% -6.63% -1.67% 2017 41.04% 39.28% 38.96% 5.19% 32.90% 9.17%2 2.83%2

2016 0.20% 0.64% 2.48% 0.60% 2.21% N/A N/A 2015 -5.46% -8.71% -5.28% -1.07% -6.85% N/A N/A 2014 2.24% 7.69% 3.94% 2.71% 3.17% N/A N/A 2013 9.46% 5.15% 4.99% -2.50% 13.68% N/A N/A 2012 24.64% 19.81% 24.41% 4.43% 15.63% N/A N/A 2011 -18.46% -21.29% -18.54% 2.98% -19.99% N/A N/A 2010 16.60% 8.51% 5.05% 0.10%3 1.39%3 N/A N/A 1. The net annualised investment return of each unitized constituent fund is calculated based on the ratio of the unit price at the year end to the unit price at the preceding year end. 2. The net investment return is calculated by comparing the net asset value per unit at the year end against the net asset value per unit at the preceding year end except for the first year where the initial

offer price (HK$20.00 per unit) is used and the relevant period for the first year is 1 April 2017 to 31 December 2017. 3. The net investment return is calculated by comparing the net asset value per unit at the year end against the net asset value per unit at the preceding year end except for the first year where the initial

offer price (HK$20.00 per unit) is used and the relevant period for the first year is 15 November 2010 to 31 December 2010.

BCOM Joyful Retirement MPF Scheme Investment Report for the year ended 31 December 2019

56

Investment portfolio at 31 December 2019 BCOM MPF Conservative Fund

Country/Territory

Market value Cost

Net asset

value

Investment (HK$) (HK$) (%)

Fixed deposits

Denominated in HKD

Agricultural Bank of China Ltd. 2.23% 09 Jan 2020 3,167,410 3,167,410 0.27








Agricultural Bank of China Ltd. 2.48% 10 Feb 2020 5,270,395 5,270,395 0.46








Agricultural Bank of China Ltd. 2.30% 23 Mar 2020 2,206,779 2,206,779 0.19

Agricultural Bank of China Ltd. 2.30% 14 Apr 2020 2,122,456 2,122,456 0.18

Bank of Communications Co., Ltd. 1.9736% 02 Jan 2020 6,000,000 6,000,000 0.52














57

Investment portfolio at 31 December 2019 BCOM MPF Conservative Fund (continued)

Country/Territory

Market value Cost

Net

asset

value


Fixed deposits

Denominated in HKD



China CITIC Bank International Ltd. 2.35% 15 Jan 2020 7,286,853 7,286,853 0.63

China CITIC Bank International Ltd. 2.40% 14 Feb 2020 4,128,423 4,128,423 0.36





China CITIC Bank International Ltd. 2.40% 02 Mar 2020 8,000,000 8,000,000 0.69

China CITIC Bank International Ltd. 2.40% 14 Apr 2020 8,224,211 8,224,211 0.71

China CITIC Bank International Ltd. 2.50% 24 Jun 2020 10,109,822 10,109,822 0.88

China Construction Bank Corporation 2.15% 05 Feb 2020 5,210,267 5,210,267 0.45



China Construction Bank Corporation 2.18% 12 Mar 2020 4,078,905 4,078,905 0.35



China Construction Bank Corporation 2.23% 14 Apr 2020 16,826,363 16,826,363 1.46

China Construction Bank Corporation 2.05% 22 Apr 2020 8,192,753 8,192,753 0.71

China Everbright Bank Co., Ltd. 2.75% 15 Jan 2020 8,761,355 8,761,355 0.75




China Everbright Bank Co., Ltd. 2.85% 19 Feb 2020 6,298,890 6,298,890 0.55




China Everbright Bank Co., Ltd. 2.65% 10 Mar 2020 5,901,036 5,901,036 0.51





58


Country/Territory

Market value Cost

Net asset

value


Fixed deposits

Denominated in HKD

China Everbright Bank Co., Ltd. 2.45% 02 Apr 2020 3,529,364 3,529,364 0.31

China Everbright Bank Co., Ltd. 2.66% 26 May 2020 3,051,794 3,051,794 0.26



China Merchants Bank Co., Ltd. 2.43% 09 Jan 2020 4,167,507 4,167,507 0.36






China Merchants Bank Co., Ltd. 2.25% 03 Feb 2020 3,388,060 3,388,060 0.29





China Merchants Bank Co., Ltd. 2.53% 23 Mar 2020 5,272,182 5,272,182 0.46

China Merchants Bank Co., Ltd. 2.43% 09 Apr 2020 5,295,625 5,295,625 0.46

China Merchants Bank Co., Ltd. 2.43% 14 Apr 2020 3,387,698 3,387,698 0.29

Chiyu Banking Corporation Ltd. 2.55% 06 Jan 2020 8,325,003 8,325,003 0.72

Chiyu Banking Corporation Ltd. 2.35% 20 Jan 2020 9,088,989 9,088,989 0.79

Chiyu Banking Corporation Ltd. 2.50% 03 Feb 2020 8,043,152 8,043,152 0.70





Chiyu Banking Corporation Ltd. 2.60% 11 Mar 2020 10,386,956 10,386,956 0.90

Chiyu Banking Corporation Ltd. 2.68% 14 Apr 2020 8,437,839 8,437,839 0.73

Chiyu Banking Corporation Ltd. 2.70% 27 Apr 2020 10,503,084 10,503,084 0.91

Chiyu Banking Corporation Ltd. 2.53% 20 May 2020 12,401,813 12,401,813 1.06

Chiyu Banking Corporation Ltd. 2.70% 29 Jun 2020 5,062,902 5,062,902 0.44

Chong Hing Bank Ltd. 2.40% 02 Jan 2020 2,173,612 2,173,612 0.19


59


Country/Territory

Market value Cost

Net asset

value


Fixed deposits

Denominated in HKD





Chong Hing Bank Ltd. 2.35% 04 Feb 2020 3,281,372 3,281,372 0.28






Chong Hing Bank Ltd. 2.50% 13 Mar 2020 4,425,845 4,425,845 0.38





CMB Wing Lung Bank Ltd. 2.41% 16 Jan 2020 7,193,332 7,193,332 0.62


CMB Wing Lung Bank Ltd. 2.35% 05 Feb 2020 6,246,084 6,246,084 0.54




CMB Wing Lung Bank Ltd. 2.60% 12 Mar 2020 8,342,008 8,342,008 0.72






CMB Wing Lung Bank Ltd. 2.54% 21 May 2020 4,139,892 4,139,892 0.36

CMB Wing Lung Bank Ltd. 2.48% 27 May 2020 5,166,601 5,166,601 0.45

DBS Bank (Hong Kong) Ltd. 1.98% 13 Jan 2020 4,037,098 4,037,098 0.35

DBS Bank (Hong Kong) Ltd. 2.41% 20 Jan 2020 3,039,203 3,039,203 0.26


60


Country/Territory

Market value Cost

Net asset

value


Fixed deposits

Denominated in HKD

DBS Bank (Hong Kong) Ltd. 2.09% 25 Feb 2020 5,055,940 5,055,940 0.44

Fubon Bank (Hong Kong) Ltd. 2.15% 21 Jan 2020 5,404,551 5,404,551 0.47

Fubon Bank (Hong Kong) Ltd. 2.25% 24 Jan 2020 9,260,065 9,260,065 0.80

Fubon Bank (Hong Kong) Ltd. 2.10% 03 Feb 2020 5,193,379 5,193,379 0.45

Fubon Bank (Hong Kong) Ltd. 2.60% 27 Feb 2020 2,029,172 2,029,172 0.18

Fubon Bank (Hong Kong) Ltd. 2.30% 21 Apr 2020 8,000,000 8,000,000 0.69

Fubon Bank (Hong Kong) Ltd. 2.40% 07 May 2020 5,259,227 5,259,227 0.46




Fubon Bank (Hong Kong) Ltd. 2.60% 11 Jun 2020 5,190,452 5,190,452 0.45

Fubon Bank (Hong Kong) Ltd. 2.60% 29 Jun 2020 8,471,106 8,471,106 0.73

Industrial and Commercial Bank of China (Asia) Ltd. 2.30% 03 Jan 2020 6,686,804 6,686,804 0.58







Industrial and Commercial Bank of China (Asia) Ltd. 2.50% 20 Mar 2020 8,445,777 8,445,777 0.73

Industrial and Commercial Bank of China (Asia) Ltd. 2.45% 27 Mar 2020 5,221,624 5,221,624 0.45

Industrial and Commercial Bank of China (Asia) Ltd. 2.35% 15 Apr 2020 4,137,516 4,137,516 0.36

Industrial and Commercial Bank of China (Asia) Ltd. 2.20% 08 May 2020 4,150,093 4,150,093 0.36




Nanyang Commercial Bank Ltd. 2.00% 13 Jan 2020 6,251,328 6,251,328 0.54


61


Country/Territory

Market value Cost

Net asset

value


Fixed deposits

Denominated in HKD

Nanyang Commercial Bank Ltd. 2.30% 20 Feb 2020 4,122,291 4,122,291 0.36




Nanyang Commercial Bank Ltd. 2.40% 02 Mar 2020 12,604,054 12,604,054 1.09

Nanyang Commercial Bank Ltd. 2.20% 14 Apr 2020 3,091,354 3,091,354 0.27

Nanyang Commercial Bank Ltd. 2.10% 21 Apr 2020 5,029,616 5,029,616 0.44

Nanyang Commercial Bank Ltd. 2.35% 30 Jun 2020 3,129,849 3,129,849 0.27

OCBC Wing Hang Bank Ltd. 2.03% 08 Jan 2020 11,643,795 11,643,795 1.01



OCBC Wing Hang Bank Ltd. 2.09% 03 Feb 2020 5,227,331 5,227,331 0.45

OCBC Wing Hang Bank Ltd. 2.09% 03 Feb 2020 13,770,709 13,770,709 1.19

OCBC Wing Hang Bank Ltd. 2.40% 02 Mar 2020 5,000,000 5,000,000 0.43



Public Bank (Hong Kong) Ltd. 2.35% 02 Jan 2020 11,573,340 11,573,340 1.00



Public Bank (Hong Kong) Ltd. 2.30% 05 Feb 2020 8,253,316 8,253,316 0.71

Public Bank (Hong Kong) Ltd. 2.55% 21 Feb 2020 10,323,756 10,323,756 0.89

Public Bank (Hong Kong) Ltd. 2.50% 03 Mar 2020 14,768,091 14,768,091 1.28






Public Bank (Hong Kong) Ltd. 2.45% 26 May 2020 7,577,448 7,577,448 0.66

Shanghai Commercial Bank Ltd. 2.20% 22 Jan 2020 6,161,094 6,161,094 0.53




62


Country/Territory

Market value Cost

Net asset

value


Fixed deposits

Denominated in HKD

Shanghai Commercial Bank Ltd. 2.00% 13 Feb 2020 5,138,826 5,138,826 0.44



Shanghai Commercial Bank Ltd. 2.40% 10 Mar 2020 5,219,834 5,219,834 0.45

Shanghai Commercial Bank Ltd. 2.40% 13 Mar 2020 6,420,988 6,420,988 0.56

The Bank of East Asia Ltd. 2.38% 17 Jan 2020 7,463,371 7,463,371 0.65

The Bank of East Asia Ltd. 2.10% 24 Jan 2020 3,355,740 3,355,740 0.29

The Bank of East Asia Ltd. 2.30% 03 Feb 2020 5,162,268 5,162,268 0.45






The Bank of East Asia Ltd. 2.11% 02 Mar 2020 4,205,972 4,205,972 0.36

The Bank of East Asia Ltd. 2.20% 08 May 2020 2,235,826 2,235,826 0.19

Fixed deposits 1,130,731,431 1,130,731,431 97.86

Net current assets 24,674,299 24,674,299 2.14

Net assets 1,155,405,730 1,155,405,730 100.00

(Note: Investments are accounted for on a trade date basis.)


63

Investment portfolio at 31 December 2019 BCOM Guaranteed (CF) Fund

Market

Net

asset

Country/Territory

Investment

Holdings of Value

(HK$)

Cost

(HK$)

value

(%) Units/Shares

Bonds

(Denominated currency)

HKD Australia and New Zealand Banking Group Ltd. 2.25% 25/01/21

9,000,000 8,974,359 8,963,100 1.00

BMW Finance NV 2.18% 19/04/21 10,000,000 9,932,221 10,052,000 1.10

Commonwealth Bank of Australia 1.74% 30/10/20

8,000,000 7,948,900 7,913,440 0.88


7,000,000 6,975,507 7,124,600 0.77

Export Import Bank of Korea 2.28% 13/04/22

29,000,000 28,784,092 28,884,580 3.20

HK Government 1.06% 05/02/20 15,000,000 14,967,450 14,868,000 1.66

HK Government 2.22% 07/08/24 29,000,000 29,554,190 29,942,500 3.28

HK Government 2.46% 04/08/21 25,000,000 25,210,250 26,570,000 2.80

HK Government 2.53% 22/06/20 36,000,000 36,073,080 38,320,000 4.00

HK Government 2.93% 13/01/20 32,000,000 31,974,720 33,986,400 3.55

HKCG Finance Ltd. 3.20% 27/07/22 1,000,000 1,016,581 1,048,500 0.11

HKCG Finance Ltd. 3.40% 07/02/22 3,000,000 3,051,837 3,175,110 0.34

Hongkong Mortgage Corporation Ltd 2.31% 12/04/21

25,000,000 24,984,750 24,796,500 2.77

Hongkong Land Company Ltd 3.95% 08/06/20

3,000,000 3,012,905 3,252,000 0.33


10,000,000 10,653,892 10,588,400 1.18


20,000,000 20,047,173 21,193,600 2.23

ICBC ASIA LTD 3.00% 21/06/20 20,000,000 20,038,805 20,070,000 2.22

Korea National Oil Corp 2.18% 29/01/20 15,000,000 14,983,740 14,868,000 1.66

Link Finance Cayman 2009 2.40% 10/02/22

35,000,000 34,824,984 34,711,550 3.87


8,000,000 8,001,868 8,172,560 0.89


14,000,000 14,043,428 14,141,960 1.56


3,000,000 3,027,110 3,073,230 0.34

MTR Corporation (C.I.) 1.92% 26/10/22 39,000,000 38,667,152 38,963,510 4.30

National Australia Bank Ltd. 2.05% 29/05/20

6,000,000 5,984,561 6,046,200 0.66


64

Investment portfolio at 31 December 2019 BCOM Guaranteed (CF) Fund (continued)

Country/Territory

Investment

Holdings of

Units/Shares

Market

value

(HK$)

Cost

(HK$)

Net

asset

value

(%)

Bonds


HKD Province of Quebec 1.95% 05/05/21 13,000,000 12,934,870 13,032,500 1.44

Royal Bank of Canada 2.555% 18/03/22 15,000,000 15,002,069 15,114,000 1.67

Sun Hung Kai Prop (CAP) 2.50% 05/09/24 20,000,000 19,718,348 19,918,000 2.19





Swire Propert Mtn Fin 3.00% 07/04/27 8,000,000 8,065,632 7,963,040 0.90

Swire Propert Mtn Fin 3.55% 17/07/24 10,000,000 10,372,090 10,889,500 1.15

Toyota Motor Finance BV 2.64% 21/02/24 25,000,000 25,053,813 25,043,250 2.78

UBS AG London 3.15% 13/08/21 20,000,000 20,102,615 20,040,000 2.23

Urban Renewal Authority 2.18% 17/01/23 19,000,000 18,955,787 18,761,550 2.10

Westpac Banking Corp 4.55% 22/01/20 7,000,000 7,001,021 7,546,700 0.78

569,488,386 579,306,800 63.21


RMB China Goverment Bond 3.09% 29/06/20 9,500,000 10,617,429 11,491,555 1.18

China Goverment Bond 3.10% 29/06/22 5,500,000 6,179,632 6,828,582 0.69

Ind & Comm Bank of China 3.95% 23/09/21

7,000,000 7,909,414 8,815,011 0.88

24,706,475 27,135,148 2.75


65


Country/Territory

Investment

Holdings of

Units/Shares

Market

value

(HK$)

Cost

(HK$)

Net

asset

value

(%)

Equities

HK

AIA Group Ltd 100,000 8,180,000 7,549,897 0.91

Bank of China Hong Kong Holdings Ltd 80,000 2,160,000 2,479,036 0.24

Bank of Communications Co., Ltd.-H 79,320 439,433 425,155 0.05

Boshiwa International Holding Ltd 25,000 - 44,000 0.00

China Construction Bank-H 1,810,700 12,186,011 10,001,025 1.35

China Galaxy Securities Co., Ltd.- H 140,000 639,800 1,008,943 0.07

China Huiyuan Juice Group 721,500 1,457,430 2,127,188 0.16

China Life Insurance Co Ltd.-H 280,000 6,048,000 6,439,810 0.67

China Literature Ltd 53 1,723 2,944 0.00

China Merchants Bank-H 40,073 1,604,924 640,240 0.18

China Mobile Ltd 157,500 10,308,375 10,999,905 1.14

China Overseas Land & Investment Ltd. 70,000 2,121,000 1,252,020 0.24

China Overseas Property Holding Ltd. 423,333 2,074,332 518,530 0.23

China Petroleum & Chemical-H 389,000 1,820,520 2,299,373 0.20

China Unicom Hong Kong Ltd. 300,320 2,204,349 3,699,384 0.24

CITIC Ltd 63,000 655,200 905,480 0.07

CK Asset Holdings Ltd 28,676 1,611,591 1,452,163 0.18

CK Hutchison Holdings Ltd 37,676 2,799,327 3,283,523 0.31

CNOOC Ltd. 250,000 3,235,000 3,217,099 0.36

Esprit Holdings Ltd. 210,000 327,600 1,612,279 0.04

Fresh Express Delivery Holdings Group Co., Ltd

624,000 43,056 1,639,578 0.00

Guangdong Yueyun Transportation Co Ltd.-H

102,000 283,560 236,050 0.03

Hang Lung Properties Ltd. 288,000 4,924,800 5,697,269 0.55

Hang Seng Bank Ltd. 20,000 3,220,000 2,469,200 0.36

Hong Kong & China Gas 83,894 1,276,867 655,190 0.14

Hong Kong Exchanges & Clear 26,000 6,572,800 4,951,063 0.73

HSBC Holdings PLC 225,873 13,733,077 14,505,417 1.52


66


Country/Territory

Investment

Holdings of

Units/Shares

Market

value

(HK$)

Cost

(HK$)

Net

asset

value

(%)

Equities

HK

I-Cable Communications Ltd. 16,814 1,059 3,365 0.00

Ind & Comm Bank of China-H 1,368,750 8,212,500 6,816,685 0.91

Kunlun Energy Co Ltd. 194,000 1,334,720 1,529,666 0.15

Metallurglcal Corporation of China Ltd - H 665,000 1,157,100 1,204,089 0.13

Petrochina Co Ltd.-H 170,000 663,000 1,572,500 0.07

Ping An Insurance (Group) Co of China Ltd.-H

165,000 15,196,500 5,488,504 1.69

Razer INC 1,062,000 1,338,120 1,859,254 0.15

Samsonite International SA 84,000 1,569,120 1,916,853 0.17

Shui On Land Ltd 840,000 1,428,000 1,800,204 0.16

Solomon Systech (Intl) Ltd. 800,000 122,400 158,400 0.01

Sun Hung Kai Properties Ltd. 33,000 3,933,600 3,498,000 0.44

Swire Pacific Ltd. “A” 18,000 1,303,200 1,702,800 0.14

Tencent Holdings Ltd. 54,900 20,620,440 7,573,053 2.30

Vestate Group Holdings Ltd 420,000 327,600 184,800 0.04

Vinda International Holdings Ltd. 110,000 1,559,800 1,286,008 0.17

Zhongan Online P&C Insurance-H 100,000 2,805,000 4,074,000 0.31

ZTE Corp-H 142,000 3,386,700 2,212,651 0.38

154,887,634 132,992,593 17.19


67


Country/Territory

Market value Cost

Net asset

value


Fixed deposits

Denominated in HKD








75,403,158 75,403,158 8.36

Denominated in RMB


Denominated in USD

Bank of Communications Co., Ltd. 2.0705% 05 Feb 2020 198,913 200,016 0.02

Total Investments 749,082,495 739,434,541 83.15

Fixed deposits 90,626,411 90,512,761 10.05

Net current assets 61,171,278 55,592,415 6.80

Net assets 900,880,184 885,539,717 100.00



68

Investment portfolio at 31 December 2019 BCOM Stable Growth (CF) Fund

Country/Territory

Investment

Holdings of

Units/Shares

Market value

(HK$)

Cost

(HK$)

Net

asset value

(%)

Approved Pooled Investment Fund

HK Schroder MPF Stable Growth Fund

(Class A) 23,982,481 577,977,786 438,154,563 100.08

Total investments 577,977,786 438,154,563 100.08

Net current liabilities (465,057) (465,057) (0.08)

Net assets 577,512,729 437,689,506 100.00



69

Investment portfolio at 31 December 2019 BCOM Balanced (CF) Fund

Country/Territory

Investment

Holdings of

Units/Shares

Market value

(HK$)

Cost

(HK$)

Net

asset value

(%)


HK Schroder MPF Balanced Investment Fund (Class A) 17,048,493 459,968,328 316,728,948 100.07



Net assets 459,659,981 316,420,601 100.00



70

Investment portfolio at 31 December 2019 BCOM Dynamic Growth (CF) Fund

Country/Territory

Investment

Holdings of

Units/Shares

Market value

(HK$)

Cost

(HK$)

Net asset

value

(%)


HK Allianz Choice Growth Fund (Ord. A) 9,418,373 279,348,949 211,041,787 100.06



Net assets 279,169,043 210,861,881 100.00



71

Investment portfolio at 31 December 2019 BCOM Asian Dynamic Equity (CF) Fund

Country/Territory

Investment

Holdings of

Units/Shares

Market value

(HK$)

Cost

(HK$)

Net

asset value

(%)


HK Principal Asian Equity Fund (Pension Class) 14,628,455 469,825,020 337,257,584 100.32


Net current liabilities (1,478,140) (1,478,140) (0.32)

Net assets 468,346,880 335,779,444 100.00



72

Investment portfolio at 31 December 2019 BCOM Hong Kong Dynamic Equity (CF) Fund

Country/Territory

Investment

Holdings of

Units/Shares

Market value

(HK$)

Cost

(HK$)

Net

asset value

(%)


HK Principal Hong Kong Equity Fund 12,057,333 444,252,420 332,937,149 99.93


Net current assets 323,791 323,791 0.07

Net assets 444,576,211 333,260,940 100.00



73

Investment portfolio at 31 December 2019 BCOM China Dynamic Equity (CF) Fund

Country/Territory

Investment

Holdings of

Units/Shares

Market value

(HK$)

Cost

(HK$)

Net

asset value

(%)


HK Principal China Equity Fund 30,281,573 497,429,351 357,107,827

99.49


Net current assets

Net assets

2,537,008 2,537,008

0.51

499,966,359 359,644,835 100.00



74

Investment portfolio at 31 December 2019 BCOM HSI Tracking (CF) Fund

Country/Territory

Investment

Holdings of

Units/Shares

Market value

(HK$)

Cost

(HK$)

Net

asset value

(%)

Index tracking collective investment schemes

HK Tracker Fund of Hong Kong 20,076,000 570,158,400 504,365,673 100.17



Net assets 569,181,430 503,388,703 100.00



75

Investment portfolio at 31 December 2019 BCOM Global Bond (CF) Fund

Country/Territory

Investment

Holdings of

Units/Shares

Market value

(HK$)

Cost

(HK$)

Net

asset value

(%)


HK Invesco Pooled Investment Fund

- MPF Bond Fund (Class B) 7,205,268 170,543,649 159,343,129 100.11



Net assets 170,357,251 159,156,731 100.00



76

Investment portfolio at 31 December 2019 BCOM Greater China Equity (CF) Fund

Country/Territory

Investment

Holdings of

Units/Shares

Market value

(HK$)

Cost

(HK$)

Net

asset value

(%)


HK Allianz Choice Greater China Fund (Ord A) 15,204,316 264,555,098 206,695,056 100.00



Net assets 264,547,790 206,687,748 100.00



77

Investment portfolio at 31 December 2019 BCOM Core Accumulation Fund

Country/Territory

Investment

Holdings of

Units/Shares

Market value

(HK$)

Cost

(HK$)

Net

asset value

(%)


HK Invesco Pooled Investment Fund 18,434,963 222,502,628 202,779,550 99.61

Core Accumulation Fund (Class A)



Net assets 223,366,293 203,643,215 100.00



78

Investment portfolio at 31 December 2019 BCOM Age 65 Plus Fund

Country/Territory

Investment

Holdings of

Units/Shares

Market value

(HK$)

Cost

(HK$)

Net

asset value

(%)



7,411,801 83,737,048 78,599,951 99.39

Age 65 Plus Fund (Class A)



Net assets 84,254,869 79,117,772 100.00



79

Statement of movement in portfolio holdings BCOM MPF Conservative Fund

Nominal Nominal Country/Territory value as at value as at Fixed deposits 31/12/18 Additions Disposals 31/12/19

(Denominated currency) HK$ HK$ HK$ HK$

HKD

Agricultural Bank of China Ltd. 2.20% 09 Jan 2019 3,077,544 0 (3,077,544) 0


Agricultural Bank of China Ltd. 2.20% 08 Feb 2019 5,131,116 0 (5,131,116) 0







Agricultural Bank of China Ltd. 2.50% 11 Mar 2019 5,313,802 0 (5,313,802) 0

Agricultural Bank of China Ltd. 2.45% 20 Mar 2019 6,021,195 0 (6,021,195) 0

Agricultural Bank of China Ltd. 2.50% 12 Apr 2019 2,072,746 0 (2,072,746) 0

Agricultural Bank of China Ltd. 1.75% 15 Apr 2019 0 3,000,000 (3,000,000) 0

Agricultural Bank of China Ltd. 1.95% 24 Apr 2019 0 3,495,977 (3,495,977) 0

Agricultural Bank of China Ltd. 2.50% 24 Apr 2019 2,711,796 0 (2,711,796) 0

Agricultural Bank of China Ltd. 2.40% 09 May 2019 3,283,524 0 (3,283,524) 0

Agricultural Bank of China Ltd. 1.70% 14 May 2019 0 5,571,295 (5,571,295) 0









Agricultural Bank of China Ltd. 1.85% 11 Jun 2019 0 5,380,042 (5,380,042) 0

Agricultural Bank of China Ltd. 2.70% 17 Jun 2019 5,149,402 0 (5,149,402) 0


Agricultural Bank of China Ltd. 2.05% 20 Jun 2019 0 6,094,348 (6,094,348) 0


Agricultural Bank of China Ltd. 2.25% 09 Jul 2019 0 3,111,675 (3,111,675) 0



80

Statement of movement in portfolio holdings BCOM MPF Conservative Fund (continued)



HKD




Agricultural Bank of China Ltd. 1.97% 08 Aug 2019 0 5,188,022 (5,188,022) 0










Agricultural Bank of China Ltd. 2.25% 11 Sep 2019 0 5,405,130 (5,405,130) 0



Agricultural Bank of China Ltd. 2.65% 09 Oct 2019 0 3,146,394 (3,146,394) 0



Agricultural Bank of China Ltd. 2.40% 08 Nov 2019 0 5,238,704 (5,238,704) 0







Agricultural Bank of China Ltd. 2.30% 11 Dec 2019 0 5,435,783 (5,435,783) 0

Agricultural Bank of China Ltd. 2.25% 20 Dec 2019 0 6,165,212 (6,165,212) 0

Agricultural Bank of China Ltd. 2.23% 09 Jan 2020 0 3,167,410 0 3,167,410





81




HKD





Agricultural Bank of China Ltd. 2.48% 10 Feb 2020 0 5,270,395 0 5,270,395








Agricultural Bank of China Ltd. 2.30% 23 Mar 2020 0 2,206,779 0 2,206,779

Agricultural Bank of China Ltd. 2.30% 14 Apr 2020 0 2,122,456 0 2,122,456

Bank of Communications Co., Ltd. 1.6375% 02 Jan 2019 1,500,000 0 (1,500,000) 0


















82




HKD










Bank of Communications Co., Ltd. 1.6508% 04 Feb 2019 0 2,000,000 (2,000,000) 0















Bank of Communications Co., Ltd. 0.8732% 01 Mar 2019 0 2,000,000 (2,000,000) 0










83




HKD





Bank of Communications Co., Ltd. 0.8378% 01 Apr 2019 0 2,500,000 (2,500,000) 0

















Bank of Communications Co., Ltd. 1.4335% 02 May 2019 0 2,000,000 (2,000,000) 0







Bank of Communications Co., Ltd. 1.5353% 10 Jun 2019 0 4,000,000 (4,000,000) 0




84




HKD


Bank of Communications Co., Ltd. 2.6125% 13 Jun 2019 1,000,000 0 (1,000,000) 0











Bank of Communications Co., Ltd. 1.7439% 02 Jul 2019 0 2,000,000 (2,000,000) 0


















Bank of Communications Co., Ltd. 2.4884% 05 Aug 2019 0 5,000,000 (5,000,000) 0



85




HKD












Bank of Communications Co., Ltd. 1.6323% 02 Sep 2019 0 1,000,000 (1,000,000) 0

















Bank of Communications Co., Ltd. 1.7255% 02 Oct 2019 0 2,000,000 (2,000,000) 0





86




HKD













Bank of Communications Co., Ltd. 1.671% 04 Nov 2019 0 3,000,000 (3,000,000) 0












Bank of Communications Co., Ltd. 1.5314% 02 Dec 2019 0 4,000,000 (4,000,000) 0








87




HKD






Bank of Communications Co., Ltd. 1.9736% 02 Jan 2020 0 6,000,000 0 6,000,000















China CITIC Bank International Ltd. 2.24% 11 Jan 2019 5,116,909 0 (5,116,909) 0

China CITIC Bank International Ltd. 2.09% 14 Feb 2019 4,027,876 0 (4,027,876) 0

China CITIC Bank International Ltd. 1.90% 21 Feb 2019 8,219,619 0 (8,219,619) 0

China CITIC Bank International Ltd. 2.10% 21 May 2019 6,000,000 0 (6,000,000) 0

China CITIC Bank International Ltd. 2.14% 23 May 2019 3,035,700 0 (3,035,700) 0

China CITIC Bank International Ltd. 2.00% 11 Jul 2019 0 5,145,799 (5,145,799) 0

China CITIC Bank International Ltd. 1.70% 14 Aug 2019 0 4,070,314 (4,070,314) 0




China CITIC Bank International Ltd. 2.09% 11 Oct 2019 0 5,196,834 (5,196,834) 0


88




HKD

China CITIC Bank International Ltd. 2.30% 14 Nov 2019 0 4,104,627 (4,104,627) 0




China CITIC Bank International Ltd. 2.28% 24 Dec 2019 0 10,052,679 (10,052,679) 0

China CITIC Bank International Ltd. 2.35% 15 Jan 2020 0 7,286,853 0 7,286,853

China CITIC Bank International Ltd. 2.40% 14 Feb 2020 0 4,128,423 0 4,128,423





China CITIC Bank International Ltd. 2.40% 02 Mar 2020 0 8,000,000 0 8,000,000

China CITIC Bank International Ltd. 2.40% 14 Apr 2020 0 8,224,211 0 8,224,211

China CITIC Bank International Ltd. 2.50% 24 Jun 2020 0 10,109,822 0 10,109,822

China Construction Bank Corporation 2.18% 11 Jan 2019 16,459,674 0 (16,459,674) 0





China Construction Bank Corporation 2.16% 04 Feb 2019 5,130,029 0 (5,130,029) 0



China Construction Bank Corporation 2.14% 12 Mar 2019 4,000,000 0 (4,000,000) 0



China Construction Bank Corporation 2.26% 16 May 2019 3,062,870 0 (3,062,870) 0

China Construction Bank Corporation 1.60% 28 May 2019 0 4,184,056 (4,184,056) 0

China Construction Bank Corporation 2.30% 30 May 2019 4,000,000 0 (4,000,000) 0

China Construction Bank Corporation 1.65% 12 Jun 2019 0 4,042,448 (4,042,448) 0




89




HKD

China Construction Bank Corporation 2.22% 11 Jul 2019 0 16,550,118 (16,550,118) 0





China Construction Bank Corporation 2.01% 05 Aug 2019 0 5,158,566 (5,158,566) 0





China Construction Bank Corporation 1.92% 12 Sep 2019 0 4,059,260 (4,059,260) 0




China Construction Bank Corporation 2.23% 11 Oct 2019 0 16,732,314 (16,732,314) 0



China Construction Bank Corporation 2.10% 13 Nov 2019 0 4,081,622 (4,081,622) 0

China Construction Bank Corporation 2.20% 18 Nov 2019 0 3,111,404 (3,111,404) 0

China Construction Bank Corporation 2.15% 05 Feb 2020 0 5,210,267 0 5,210,267



China Construction Bank Corporation 2.18% 12 Mar 2020 0 4,078,905 0 4,078,905



China Construction Bank Corporation 2.23% 14 Apr 2020 0 16,826,363 0 16,826,363

China Construction Bank Corporation 2.05% 22 Apr 2020 0 8,192,753 0 8,192,753

China Everbright Bank Co., Ltd. 2.38% 15 Feb 2019 4,526,990 0 (4,526,990) 0





90




HKD



China Everbright Bank Co., Ltd. 2.65% 07 Mar 2019 5,727,787 0 (5,727,787) 0



China Everbright Bank Co., Ltd. 2.78% 02 Apr 2019 3,442,141 0 (3,442,141) 0





China Everbright Bank Co., Ltd. 1.86% 15 May 2019 0 4,581,304 (4,581,304) 0

China Everbright Bank Co., Ltd. 2.57% 15 May 2019 4,000,000 0 (4,000,000) 0


China Everbright Bank Co., Ltd. 1.80% 10 Jun 2019 0 5,803,056 (5,803,056) 0




China Everbright Bank Co., Ltd. 1.93% 02 Jul 2019 0 3,489,856 (3,489,856) 0



China Everbright Bank Co., Ltd. 2.20% 15 Aug 2019 0 4,602,082 (4,602,082) 0







China Everbright Bank Co., Ltd. 2.33% 10 Sep 2019 0 5,830,243 (5,830,243) 0





91




HKD

China Everbright Bank Co., Ltd. 2.57% 02 Oct 2019 0 3,506,648 (3,506,648) 0



China Everbright Bank Co., Ltd. 2.75% 15 Nov 2019 0 4,073,441 (4,073,441) 0






China Everbright Bank Co., Ltd. 2.50% 10 Dec 2019 0 5,864,484 (5,864,484) 0





China Everbright Bank Co., Ltd. 2.75% 15 Jan 2020 0 8,761,355 0 8,761,355




China Everbright Bank Co., Ltd. 2.85% 19 Feb 2020 0 6,298,890 0 6,298,890




China Everbright Bank Co., Ltd. 2.65% 10 Mar 2020 0 5,901,036 0 5,901,036




China Everbright Bank Co., Ltd. 2.45% 02 Apr 2020 0 3,529,364 0 3,529,364

China Everbright Bank Co., Ltd. 2.66% 26 May 2020 0 3,051,794 0 3,051,794



China Merchants Bank Co., Ltd. 2.23% 02 Jan 2019 4,739,395 0 (4,739,395) 0


92




HKD






China Merchants Bank Co., Ltd. 2.10% 01 Feb 2019 3,318,342 0 (3,318,342) 0

China Merchants Bank Co., Ltd. 2.05% 08 Feb 2019 3,068,721 0 (3,068,721) 0

China Merchants Bank Co., Ltd. 2.02% 04 Mar 2019 0 4,766,034 (4,766,034) 0

China Merchants Bank Co., Ltd. 2.18% 07 Mar 2019 4,085,554 0 (4,085,554) 0



China Merchants Bank Co., Ltd. 2.03% 04 Apr 2019 0 5,189,460 (5,189,460) 0

China Merchants Bank Co., Ltd. 2.30% 04 Apr 2019 3,184,409 0 (3,184,409) 0

China Merchants Bank Co., Ltd. 2.30% 25 Apr 2019 4,093,681 0 (4,093,681) 0

China Merchants Bank Co., Ltd. 1.63% 06 May 2019 0 5,191,480 (5,191,480) 0

China Merchants Bank Co., Ltd. 1.63% 06 May 2019 0 3,220,929 (3,220,929) 0

China Merchants Bank Co., Ltd. 2.23% 21 May 2019 5,214,186 0 (5,214,186) 0

China Merchants Bank Co., Ltd. 2.23% 22 May 2019 6,616,505 0 (6,616,505) 0

China Merchants Bank Co., Ltd. 2.30% 09 Jul 2019 0 5,202,469 (5,202,469) 0





China Merchants Bank Co., Ltd. 2.08% 01 Aug 2019 0 3,353,471 (3,353,471) 0




China Merchants Bank Co., Ltd. 1.80% 04 Sep 2019 0 4,783,557 (4,783,557) 0



China Merchants Bank Co., Ltd. 2.55% 09 Oct 2019 0 5,261,805 (5,261,805) 0


93




HKD



China Merchants Bank Co., Ltd. 2.23% 06 Nov 2019 0 8,467,961 (8,467,961) 0




China Merchants Bank Co., Ltd. 2.30% 04 Dec 2019 0 4,826,963 (4,826,963) 0



China Merchants Bank Co., Ltd. 2.43% 09 Jan 2020 0 4,167,507 0 4,167,507






China Merchants Bank Co., Ltd. 2.25% 03 Feb 2020 0 3,388,060 0 3,388,060





China Merchants Bank Co., Ltd. 2.53% 23 Mar 2020 0 5,272,182 0 5,272,182

China Merchants Bank Co., Ltd. 2.43% 09 Apr 2020 0 5,295,625 0 5,295,625

China Merchants Bank Co., Ltd. 2.43% 14 Apr 2020 0 3,387,698 0 3,387,698

Chiyu Banking Corporation Ltd. 2.32% 04 Jan 2019 8,176,159 0 (8,176,159) 0

Chiyu Banking Corporation Ltd. 2.12% 08 Feb 2019 4,981,255 0 (4,981,255) 0




Chiyu Banking Corporation Ltd. 2.10% 04 Mar 2019 10,173,254 0 (10,173,254) 0




94




HKD

Chiyu Banking Corporation Ltd. 2.38% 18 Apr 2019 6,961,281 0 (6,961,281) 0

Chiyu Banking Corporation Ltd. 2.30% 14 May 2019 6,034,980 0 (6,034,980) 0

Chiyu Banking Corporation Ltd. 2.32% 21 May 2019 3,318,489 0 (3,318,489) 0

Chiyu Banking Corporation Ltd. 2.36% 05 Jun 2019 8,247,898 0 (8,247,898) 0

Chiyu Banking Corporation Ltd. 2.40% 04 Jul 2019 0 8,227,089 (8,227,089) 0

Chiyu Banking Corporation Ltd. 2.00% 18 Jul 2019 0 9,043,893 (9,043,893) 0

Chiyu Banking Corporation Ltd. 2.12% 08 Aug 2019 0 7,229,431 (7,229,431) 0




Chiyu Banking Corporation Ltd. 1.95% 04 Sep 2019 0 10,225,932 (10,225,932) 0




Chiyu Banking Corporation Ltd. 2.30% 14 Nov 2019 0 12,330,332 (12,330,332) 0

Chiyu Banking Corporation Ltd. 2.10% 21 Nov 2019 0 3,356,667 (3,356,667) 0

Chiyu Banking Corporation Ltd. 2.35% 04 Dec 2019 0 10,326,455 (10,326,455) 0




Chiyu Banking Corporation Ltd. 2.55% 06 Jan 2020 0 8,325,003 0 8,325,003

Chiyu Banking Corporation Ltd. 2.35% 20 Jan 2020 0 9,088,989 0 9,088,989

Chiyu Banking Corporation Ltd. 2.50% 03 Feb 2020 0 8,043,152 0 8,043,152





Chiyu Banking Corporation Ltd. 2.60% 11 Mar 2020 0 10,386,956 0 10,386,956

Chiyu Banking Corporation Ltd. 2.68% 14 Apr 2020 0 8,437,839 0 8,437,839

Chiyu Banking Corporation Ltd. 2.70% 27 Apr 2020 0 10,503,084 0 10,503,084

Chiyu Banking Corporation Ltd. 2.53% 20 May 2020 0 12,401,813 0 12,401,813


95




HKD

Chiyu Banking Corporation Ltd. 2.70% 29 Jun 2020 0 5,062,902 0 5,062,902

Chong Hing Bank Ltd. 2.05% 11 Jan 2019 2,776,308 0 (2,776,308) 0

Chong Hing Bank Ltd. 2.05% 31 Jan 2019 6,393,710 0 (6,393,710) 0

Chong Hing Bank Ltd. 2.05% 21 Feb 2019 5,623,932 0 (5,623,932) 0



Chong Hing Bank Ltd. 2.35% 13 Mar 2019 4,333,758 0 (4,333,758) 0




Chong Hing Bank Ltd. 2.25% 09 Apr 2019 3,114,550 0 (3,114,550) 0

Chong Hing Bank Ltd. 2.25% 18 Apr 2019 5,802,517 0 (5,802,517) 0

Chong Hing Bank Ltd. 2.30% 02 May 2019 3,210,826 0 (3,210,826) 0


Chong Hing Bank Ltd. 1.60% 27 May 2019 0 5,114,101 (5,114,101) 0


Chong Hing Bank Ltd. 1.80% 21 Jun 2019 0 5,168,213 (5,168,213) 0

Chong Hing Bank Ltd. 2.45% 02 Jul 2019 2,147,237 0 (2,147,237) 0

Chong Hing Bank Ltd. 1.75% 09 Jul 2019 0 3,149,492 (3,149,492) 0




Chong Hing Bank Ltd. 2.00% 16 Aug 2019 0 8,340,307 (8,340,307) 0





Chong Hing Bank Ltd. 1.85% 13 Sep 2019 0 4,358,870 (4,358,870) 0





96




HKD

Chong Hing Bank Ltd. 2.30% 18 Oct 2019 0 5,894,680 (5,894,680) 0

Chong Hing Bank Ltd. 2.30% 31 Oct 2019 0 6,488,893 (6,488,893) 0

Chong Hing Bank Ltd. 2.05% 04 Nov 2019 0 3,247,447 (3,247,447) 0





Chong Hing Bank Ltd. 2.40% 13 Dec 2019 0 4,399,520 (4,399,520) 0





Chong Hing Bank Ltd. 2.40% 02 Jan 2020 0 2,173,612 0 2,173,612





Chong Hing Bank Ltd. 2.35% 04 Feb 2020 0 3,281,372 0 3,281,372






Chong Hing Bank Ltd. 2.50% 13 Mar 2020 0 4,425,845 0 4,425,845





CMB Wing Lung Bank Ltd. 2.15% 16 Jan 2019 2,147,980 0 (2,147,980) 0




97




HKD

CMB Wing Lung Bank Ltd. 2.25% 04 Feb 2019 6,115,814 0 (6,115,814) 0




CMB Wing Lung Bank Ltd. 2.05% 12 Mar 2019 8,137,200 0 (8,137,200) 0





CMB Wing Lung Bank Ltd. 1.95% 21 May 2019 4,059,316 0 (4,059,316) 0

CMB Wing Lung Bank Ltd. 1.55% 27 May 2019 0 5,095,771 (5,095,771) 0

CMB Wing Lung Bank Ltd. 1.50% 12 Jun 2019 0 8,219,921 (8,219,921) 0

CMB Wing Lung Bank Ltd. 1.50% 28 Jun 2019 0 5,115,562 (5,115,562) 0

CMB Wing Lung Bank Ltd. 2.05% 16 Jul 2019 0 2,171,260 (2,171,260) 0



CMB Wing Lung Bank Ltd. 1.95% 05 Aug 2019 0 6,185,936 (6,185,936) 0



CMB Wing Lung Bank Ltd. 1.80% 20 Sep 2019 0 2,185,129 (2,185,129) 0





CMB Wing Lung Bank Ltd. 2.30% 18 Oct 2019 0 9,303,950 (9,303,950) 0

CMB Wing Lung Bank Ltd. 2.20% 24 Oct 2019 0 5,370,598 (5,370,598) 0

CMB Wing Lung Bank Ltd. 2.00% 21 Nov 2019 0 4,098,569 (4,098,569) 0

CMB Wing Lung Bank Ltd. 2.00% 27 Nov 2019 0 5,115,030 (5,115,030) 0

CMB Wing Lung Bank Ltd. 2.20% 12 Dec 2019 0 8,250,999 (8,250,999) 0




98




HKD




CMB Wing Lung Bank Ltd. 2.41% 16 Jan 2020 0 7,193,332 0 7,193,332


CMB Wing Lung Bank Ltd. 2.35% 05 Feb 2020 0 6,246,084 0 6,246,084




CMB Wing Lung Bank Ltd. 2.60% 12 Mar 2020 0 8,342,008 0 8,342,008






CMB Wing Lung Bank Ltd. 2.54% 21 May 2020 0 4,139,892 0 4,139,892

CMB Wing Lung Bank Ltd. 2.48% 27 May 2020 0 5,166,601 0 5,166,601

DBS Bank (Hong Kong) Ltd. 1.79% 28 Feb 2019 4,030,647 0 (4,030,647) 0

DBS Bank (Hong Kong) Ltd. 2.06% 18 Apr 2019 5,058,510 0 (5,058,510) 0

DBS Bank (Hong Kong) Ltd. 1.22% 29 Apr 2019 0 4,067,019 (4,067,019) 0

DBS Bank (Hong Kong) Ltd. 1.46% 14 May 2019 0 4,092,563 (4,092,563) 0

DBS Bank (Hong Kong) Ltd. 1.74% 20 May 2019 0 5,110,470 (5,110,470) 0

DBS Bank (Hong Kong) Ltd. 1.74% 18 Jun 2019 0 3,000,000 (3,000,000) 0

DBS Bank (Hong Kong) Ltd. 1.75% 24 Jun 2019 0 5,000,000 (5,000,000) 0

DBS Bank (Hong Kong) Ltd. 1.72% 15 Jul 2019 0 4,102,712 (4,102,712) 0



DBS Bank (Hong Kong) Ltd. 1.74% 20 Aug 2019 0 5,118,266 (5,118,266) 0

DBS Bank (Hong Kong) Ltd. 1.89% 30 Aug 2019 0 4,000,000 (4,000,000) 0

DBS Bank (Hong Kong) Ltd. 2.10% 18 Sep 2019 0 3,008,724 (3,008,724) 0



99




HKD


DBS Bank (Hong Kong) Ltd. 2.02% 21 Oct 2019 0 5,140,713 (5,140,713) 0

DBS Bank (Hong Kong) Ltd. 1.82% 11 Nov 2019 0 4,000,000 (4,000,000) 0

DBS Bank (Hong Kong) Ltd. 1.74% 25 Nov 2019 0 5,041,040 (5,041,040) 0

DBS Bank (Hong Kong) Ltd. 1.93% 18 Dec 2019 0 3,024,649 (3,024,649) 0

DBS Bank (Hong Kong) Ltd. 1.98% 13 Jan 2020 0 4,037,098 0 4,037,098

DBS Bank (Hong Kong) Ltd. 2.41% 20 Jan 2020 0 3,039,203 0 3,039,203

DBS Bank (Hong Kong) Ltd. 2.09% 25 Feb 2020 0 5,055,940 0 5,055,940

Fubon Bank (Hong Kong) Ltd. 2.20% 18 Jan 2019 13,129,926 0 (13,129,926) 0




Fubon Bank (Hong Kong) Ltd. 2.00% 11 Mar 2019 3,098,998 0 (3,098,998) 0

Fubon Bank (Hong Kong) Ltd. 2.00% 27 Mar 2019 8,293,695 0 (8,293,695) 0

Fubon Bank (Hong Kong) Ltd. 2.30% 02 May 2019 5,110,340 0 (5,110,340) 0

Fubon Bank (Hong Kong) Ltd. 2.30% 07 May 2019 5,147,887 0 (5,147,887) 0

Fubon Bank (Hong Kong) Ltd. 2.00% 20 May 2019 0 13,202,735 (13,202,735) 0





Fubon Bank (Hong Kong) Ltd. 2.00% 27 Jun 2019 0 8,334,595 (8,334,595) 0

Fubon Bank (Hong Kong) Ltd. 2.15% 24 Jul 2019 0 9,178,329 (9,178,329) 0

Fubon Bank (Hong Kong) Ltd. 1.90% 02 Aug 2019 0 5,168,626 (5,168,626) 0







Fubon Bank (Hong Kong) Ltd. 1.80% 11 Sep 2019 0 5,114,450 (5,114,450) 0


100




HKD

Fubon Bank (Hong Kong) Ltd. 2.20% 21 Oct 2019 0 13,354,645 (13,354,645) 0

Fubon Bank (Hong Kong) Ltd. 2.10% 24 Oct 2019 0 9,211,309 (9,211,309) 0

Fubon Bank (Hong Kong) Ltd. 2.10% 07 Nov 2019 0 5,231,536 (5,231,536) 0




Fubon Bank (Hong Kong) Ltd. 2.30% 11 Dec 2019 0 5,160,859 (5,160,859) 0

Fubon Bank (Hong Kong) Ltd. 2.25% 27 Dec 2019 0 8,376,611 (8,376,611) 0

Fubon Bank (Hong Kong) Ltd. 2.15% 21 Jan 2020 0 5,404,551 0 5,404,551

Fubon Bank (Hong Kong) Ltd. 2.25% 24 Jan 2020 0 9,260,065 0 9,260,065

Fubon Bank (Hong Kong) Ltd. 2.10% 03 Feb 2020 0 5,193,379 0 5,193,379

Fubon Bank (Hong Kong) Ltd. 2.60% 27 Feb 2020 0 2,029,172 0 2,029,172

Fubon Bank (Hong Kong) Ltd. 2.30% 21 Apr 2020 0 8,000,000 0 8,000,000

Fubon Bank (Hong Kong) Ltd. 2.40% 07 May 2020 0 5,259,227 0 5,259,227




Fubon Bank (Hong Kong) Ltd. 2.60% 11 Jun 2020 0 5,190,452 0 5,190,452

Fubon Bank (Hong Kong) Ltd. 2.60% 29 Jun 2020 0 8,471,106 0 8,471,106

Industrial and Commercial Bank of China (Asia) Ltd. 2.05% 03 Jan 2019

5,290,119 0 (5,290,119) 0


6,580,638 0 (6,580,638) 0


3,000,000 0 (3,000,000) 0


3,051,573 0 (3,051,573) 0


4,251,692 0 (4,251,692) 0


11,047,143 0 (11,047,143) 0

Industrial and Commercial Bank of China (Asia) Ltd. 2.00% 08 Feb 2019

4,071,914 0 (4,071,914) 0


5,560,480 0 (5,560,480) 0


6,028,257 0 (6,028,257) 0


5,749,322 0 (5,749,322) 0


101




HKD

Industrial and Commercial Bank of China (Asia) Ltd. 2.10% 20 Mar 2019

8,263,861 0 (8,263,861) 0


5,109,794 0 (5,109,794) 0

Industrial and Commercial Bank of China (Asia) Ltd. 2.10% 03 Apr 2019

0 8,360,290 (8,360,290) 0


3,232,616 0 (3,232,616) 0

Industrial and Commercial Bank of China (Asia) Ltd. 1.80% 08 May 2019

0 4,092,664 (4,092,664) 0


0 5,590,552 (5,590,552) 0


0 5,779,754 (5,779,754) 0

Industrial and Commercial Bank of China (Asia) Ltd. 1.75% 20 Jun 2019

0 8,306,652 (8,306,652) 0

Industrial and Commercial Bank of China (Asia) Ltd. 1.70% 27 Jun 2019

0 5,136,253 (5,136,253) 0

Industrial and Commercial Bank of China (Asia) Ltd. 1.70% 03 Jul 2019

0 8,403,580 (8,403,580) 0


0 6,614,641 (6,614,641) 0


0 3,067,341 (3,067,341) 0


0 3,265,660 (3,265,660) 0


0 1,500,000 (1,500,000) 0


0 4,273,126 (4,273,126) 0


0 11,105,617 (11,105,617) 0

Industrial and Commercial Bank of China (Asia) Ltd. 1.75% 08 Aug 2019

0 4,110,627 (4,110,627) 0

Industrial and Commercial Bank of China (Asia) Ltd. 1.90% 26 Aug 2019

0 6,060,165 (6,060,165) 0

Industrial and Commercial Bank of China (Asia) Ltd. 2.25% 03 Oct 2019

0 8,439,197 (8,439,197) 0


0 4,114,699 (4,114,699) 0


0 3,279,094 (3,279,094) 0


0 1,515,249 (1,515,249) 0


0 4,317,625 (4,317,625) 0


0 11,224,021 (11,224,021) 0

Industrial and Commercial Bank of China (Asia) Ltd. 2.05% 08 Nov 2019

0 4,128,759 (4,128,759) 0


0 6,117,264 (6,117,264) 0


102




HKD


0 5,617,034 (5,617,034) 0


0 5,804,417 (5,804,417) 0

Industrial and Commercial Bank of China (Asia) Ltd. 2.45% 20 Dec 2019

0 8,343,292 (8,343,292) 0

Industrial and Commercial Bank of China (Asia) Ltd. 2.45% 27 Dec 2019

0 5,158,262 (5,158,262) 0


0 6,686,804 0 6,686,804


0 8,487,057 0 8,487,057


0 3,098,523 0 3,098,523


0 4,341,023 0 4,341,023


0 1,523,460 0 1,523,460


0 3,296,864 0 3,296,864


0 11,283,431 0 11,283,431


0 8,445,777 0 8,445,777


0 5,221,624 0 5,221,624


0 4,137,516 0 4,137,516


0 4,150,093 0 4,150,093


0 6,153,498 0 6,153,498


0 5,675,082 0 5,675,082


0 5,864,401 0 5,864,401

Nanyang Commercial Bank Ltd. 2.00% 13 Feb 2019 3,015,621 0 (3,015,621) 0

Nanyang Commercial Bank Ltd. 2.00% 20 Feb 2019 4,041,066 0 (4,041,066) 0

Nanyang Commercial Bank Ltd. 2.20% 28 Mar 2019 3,063,195 0 (3,063,195) 0

Nanyang Commercial Bank Ltd. 2.00% 11 Apr 2019 6,131,802 0 (6,131,802) 0

Nanyang Commercial Bank Ltd. 2.30% 24 Apr 2019 4,058,955 0 (4,058,955) 0

Nanyang Commercial Bank Ltd. 1.70% 28 Jun 2019 0 3,079,812 (3,079,812) 0

Nanyang Commercial Bank Ltd. 1.75% 11 Jul 2019 0 6,192,952 (6,192,952) 0

Nanyang Commercial Bank Ltd. 2.00% 13 Aug 2019 0 3,046,025 (3,046,025) 0

Nanyang Commercial Bank Ltd. 2.00% 20 Aug 2019 0 4,081,809 (4,081,809) 0

Nanyang Commercial Bank Ltd. 2.00% 11 Oct 2019 0 6,219,972 (6,219,972) 0


103




HKD




Nanyang Commercial Bank Ltd. 1.95% 13 Nov 2019 0 3,076,235 (3,076,235) 0

Nanyang Commercial Bank Ltd. 2.35% 30 Dec 2019 0 3,093,008 (3,093,008) 0

Nanyang Commercial Bank Ltd. 2.00% 13 Jan 2020 0 6,251,328 0 6,251,328

Nanyang Commercial Bank Ltd. 2.30% 20 Feb 2020 0 4,122,291 0 4,122,291




Nanyang Commercial Bank Ltd. 2.40% 02 Mar 2020 0 12,604,054 0 12,604,054

Nanyang Commercial Bank Ltd. 2.20% 14 Apr 2020 0 3,091,354 0 3,091,354

Nanyang Commercial Bank Ltd. 2.10% 21 Apr 2020 0 5,029,616 0 5,029,616

Nanyang Commercial Bank Ltd. 2.35% 30 Jun 2020 0 3,129,849 0 3,129,849

OCBC Wing Hang Bank Ltd. 1.90% 18 Jan 2019 3,921,481 0 (3,921,481) 0




OCBC Wing Hang Bank Ltd. 1.90% 01 Feb 2019 5,120,901 0 (5,120,901) 0

OCBC Wing Hang Bank Ltd. 1.80% 21 Feb 2019 8,141,457 0 (8,141,457) 0

OCBC Wing Hang Bank Ltd. 2.20% 28 Mar 2019 9,420,412 0 (9,420,412) 0

OCBC Wing Hang Bank Ltd. 2.20% 28 Mar 2019 4,095,210 0 (4,095,210) 0

OCBC Wing Hang Bank Ltd. 2.10% 01 Apr 2019 5,458,280 0 (5,458,280) 0



OCBC Wing Hang Bank Ltd. 1.70% 23 Apr 2019 0 8,168,559 (8,168,559) 0





OCBC Wing Hang Bank Ltd. 1.54% 02 May 2019 0 5,486,857 (5,486,857) 0


104




HKD









OCBC Wing Hang Bank Ltd. 1.99% 03 Jun 2019 0 6,047,806 (6,047,806) 0

OCBC Wing Hang Bank Ltd. 1.99% 03 Jun 2019 0 5,494,034 (5,494,034) 0

OCBC Wing Hang Bank Ltd. 1.79% 02 Jul 2019 0 4,129,984 (4,129,984) 0








OCBC Wing Hang Bank Ltd. 1.85% 01 Aug 2019 0 5,145,425 (5,145,425) 0




OCBC Wing Hang Bank Ltd. 1.85% 18 Sep 2019 0 3,979,340 (3,979,340) 0

OCBC Wing Hang Bank Ltd. 1.91% 23 Sep 2019 0 8,233,453 (8,233,453) 0

OCBC Wing Hang Bank Ltd. 1.94% 02 Oct 2019 0 13,680,479 (13,680,479) 0




OCBC Wing Hang Bank Ltd. 2.00% 18 Nov 2019 0 3,991,845 (3,991,845) 0

OCBC Wing Hang Bank Ltd. 1.93% 25 Nov 2019 0 8,260,596 (8,260,596) 0

OCBC Wing Hang Bank Ltd. 2.00% 02 Dec 2019 0 13,724,834 (13,724,834) 0


105




HKD



OCBC Wing Hang Bank Ltd. 2.03% 08 Jan 2020 0 11,643,795 0 11,643,795



OCBC Wing Hang Bank Ltd. 2.09% 03 Feb 2020 0 5,227,331 0 5,227,331

OCBC Wing Hang Bank Ltd. 2.09% 03 Feb 2020 0 13,770,709 0 13,770,709

OCBC Wing Hang Bank Ltd. 2.40% 02 Mar 2020 0 5,000,000 0 5,000,000



Public Bank (Hong Kong) Ltd. 2.00% 04 Feb 2019 8,088,123 0 (8,088,123) 0




Public Bank (Hong Kong) Ltd. 2.10% 01 Mar 2019 11,467,376 0 (11,467,376) 0






Public Bank (Hong Kong) Ltd. 2.15% 02 Apr 2019 11,396,598 0 (11,396,598) 0



Public Bank (Hong Kong) Ltd. 1.75% 03 Jun 2019 0 11,528,075 (11,528,075) 0



Public Bank (Hong Kong) Ltd. 1.90% 02 Jul 2019 0 11,518,776 (11,518,776) 0

Public Bank (Hong Kong) Ltd. 1.75% 11 Jul 2019 0 3,177,434 (3,177,434) 0

Public Bank (Hong Kong) Ltd. 1.95% 05 Aug 2019 0 8,129,782 (8,129,782) 0




106




HKD

Public Bank (Hong Kong) Ltd. 1.95% 03 Sep 2019 0 11,580,030 (11,580,030) 0





Public Bank (Hong Kong) Ltd. 1.90% 23 Oct 2019 0 4,064,210 (4,064,210) 0

Public Bank (Hong Kong) Ltd. 2.15% 05 Nov 2019 0 8,208,831 (8,208,831) 0



Public Bank (Hong Kong) Ltd. 2.35% 03 Dec 2019 0 14,682,072 (14,682,072) 0





Public Bank (Hong Kong) Ltd. 2.35% 02 Jan 2020 0 11,573,340 0 11,573,340



Public Bank (Hong Kong) Ltd. 2.30% 05 Feb 2020 0 8,253,316 0 8,253,316

Public Bank (Hong Kong) Ltd. 2.55% 21 Feb 2020 0 10,323,756 0 10,323,756

Public Bank (Hong Kong) Ltd. 2.50% 03 Mar 2020 0 14,768,091 0 14,768,091






Public Bank (Hong Kong) Ltd. 2.45% 26 May 2020 0 7,577,448 0 7,577,448

Shanghai Commercial Bank Ltd. 2.10% 21 Jan 2019 3,021,965 0 (3,021,965) 0






107




HKD

Shanghai Commercial Bank Ltd. 1.80% 13 Feb 2019 5,077,837 0 (5,077,837) 0

Shanghai Commercial Bank Ltd. 2.00% 18 Apr 2019 2,059,076 0 (2,059,076) 0

Shanghai Commercial Bank Ltd. 2.00% 29 Apr 2019 4,049,369 0 (4,049,369) 0

Shanghai Commercial Bank Ltd. 1.90% 21 May 2019 5,072,745 0 (5,072,745) 0

Shanghai Commercial Bank Ltd. 2.10% 10 Jun 2019 5,114,854 0 (5,114,854) 0

Shanghai Commercial Bank Ltd. 2.10% 13 Jun 2019 6,291,987 0 (6,291,987) 0

Shanghai Commercial Bank Ltd. 2.00% 22 Jul 2019 0 6,100,258 (6,100,258) 0



Shanghai Commercial Bank Ltd. 1.80% 13 Aug 2019 0 5,093,362 (5,093,362) 0

Shanghai Commercial Bank Ltd. 2.10% 21 Nov 2019 0 5,120,540 (5,120,540) 0

Shanghai Commercial Bank Ltd. 2.05% 22 Nov 2019 0 4,000,000 (4,000,000) 0

Shanghai Commercial Bank Ltd. 1.95% 10 Dec 2019 0 5,169,296 (5,169,296) 0

Shanghai Commercial Bank Ltd. 1.98% 13 Dec 2019 0 6,357,872 (6,357,872) 0

Shanghai Commercial Bank Ltd. 2.20% 22 Jan 2020 0 6,161,094 0 6,161,094



Shanghai Commercial Bank Ltd. 2.00% 13 Feb 2020 0 5,138,826 0 5,138,826



Shanghai Commercial Bank Ltd. 2.40% 10 Mar 2020 0 5,219,834 0 5,219,834

Shanghai Commercial Bank Ltd. 2.40% 13 Mar 2020 0 6,420,988 0 6,420,988

The Bank of East Asia Ltd. 2.15% 24 Jan 2019 3,305,849 0 (3,305,849) 0

The Bank of East Asia Ltd. 2.18% 01 Feb 2019 5,031,985 0 (5,031,985) 0




The Bank of East Asia Ltd. 2.08% 04 Mar 2019 2,106,199 0 (2,106,199) 0





108




HKD




The Bank of East Asia Ltd. 2.30% 16 Apr 2019 7,280,844 0 (7,280,844) 0

The Bank of East Asia Ltd. 2.25% 23 Apr 2019 7,187,787 0 (7,187,787) 0

The Bank of East Asia Ltd. 1.26% 06 May 2019 0 3,016,792 (3,016,792) 0

The Bank of East Asia Ltd. 1.70% 23 May 2019 0 7,270,201 (7,270,201) 0

The Bank of East Asia Ltd. 1.70% 17 Jun 2019 0 7,364,344 (7,364,344) 0

The Bank of East Asia Ltd. 1.60% 28 Jun 2019 0 4,146,606 (4,146,606) 0

The Bank of East Asia Ltd. 1.94% 24 Jul 2019 0 3,323,764 (3,323,764) 0

The Bank of East Asia Ltd. 1.90% 01 Aug 2019 0 5,087,284 (5,087,284) 0






The Bank of East Asia Ltd. 1.72% 04 Sep 2019 0 2,128,043 (2,128,043) 0




The Bank of East Asia Ltd. 2.09% 01 Nov 2019 0 5,135,216 (5,135,216) 0





The Bank of East Asia Ltd. 2.15% 04 Dec 2019 0 2,146,495 (2,146,495) 0





The Bank of East Asia Ltd. 2.38% 17 Jan 2020 0 7,463,371 0 7,463,371


109




HKD

The Bank of East Asia Ltd. 2.10% 24 Jan 2020 0 3,355,740 0 3,355,740

The Bank of East Asia Ltd. 2.30% 03 Feb 2020 0 5,162,268 0 5,162,268






The Bank of East Asia Ltd. 2.11% 02 Mar 2020 0 4,205,972 0 4,205,972

The Bank of East Asia Ltd. 2.20% 08 May 2020 0 2,235,826 0 2,235,826


110

Statement of movement in portfolio holdings BCOM Guaranteed (CF) Fund

Number of units as at

Number of units Number of Country/Territory units as at Investment

31/12/18 Additions Disposals Bonus/ Splits 31/12/19 Bonds


HKD

Australia and New Zealand Banking Group Ltd. 2.25% 25/01/21

9,000,000

0 0

0 9,000,000

Australia and New Zealand Banking Group Ltd. 4.06% 23/12/19

5,000,000 0

(5,000,000)

0 0

BMW Finance NV 2.18% 19/04/21 10,000,000 0 0 0 10,000,000


8,000,000

0

0 0 8,000,000


7,000,000 0 0 0 7,000,000


29,000,000 0 0 0 29,000,000


15,000,000 0 (15,000,000) 0 0

HK Government 1.06% 05/02/20 15,000,000 0 0 0 15,000,000

HK Government 1.47% 20/02/19 41,000,000 0 (41,000,000) 0 0

HK Government 2.22% 07/08/24 0 29,000,000 0 0 29,000,000

HK Government 2.46% 04/08/21 25,000,000 0 0 0 25,000,000

HK Government 2.53% 22/06/20 36,000,000 0 0 0 36,000,000

HK Government 2.93% 13/01/20 32,000,000 0 0 0 32,000,000

HK Government 5.125% 23/07/19 20,000,000 0 (20,000,000) 0 0

HKCG Finance Ltd. 3.20% 27/07/22 1,000,000 0 0 0 1,000,000

HKCG Finance Ltd. 3.40% 07/02/22 3,000,000 0 0 0 3,000,000

Hong Kong Mortgage Corporation Ltd 2.31% 12/04/21

25,000,000 0 0 0 25,000,000


3,000,000 0 0 0 3,000,000


0 10,000,000 0 0 10,000,000


20,000,000 0 0 0 20,000,000

ICBC ASIA LTD 3.00% 21/06/20 20,000,000 0 0 0 20,000,000

Korea National Oil Corp 2.18% 29/01/20 15,000,000 0 0 0 15,000,000


35,000,000 0 0 0 35,000,000


8,000,000 0 0 0 8,000,000


111

Statement of movement in portfolio holdings BCOM Guaranteed (CF) Fund (continued)

Number of units as at

Number of units Number of Country/Territory units as at Investment

31/12/18 Additions Disposals Bonus/ Splits 31/12/19 Bonds


HKD Link Finance Cayman 2009 2.80% 27/12/22

14,000,000 0 0 0 14,000,000


3,000,000 0 0 0 3,000,000

MTR Corporation (C.I.) 1.92% 26/10/22 39,000,000 0 0 0 39,000,000

National Australia Bank Ltd. 2.05% 29/05/20

6,000,000 0 0 0 6,000,000

Province of Quebec 1.95% 05/05/21 13,000,000 0 0 0 13,000,000

Royal Bank of Canada 2.555% 18/03/22 0 15,000,000 0 0 15,000,000

Sun Hung Kai Prop (CAP) 2.50% 05/09/24 20,000,000 0 0 0 20,000,000


Sun Hung Kai Prop (CAP) 3.78% 30/09/19 2,000,000 0 (2,000,000) 0 0




Swire Propert Mtn Fin 3.00% 07/04/27 0 8,000,000 0 0 8,000,000

Swire Propert Mtn Fin 3.55% 17/07/24 10,000,000 0 0 0 10,000,000

Toyota Motor Finance BV 2.64% 21/02/24 0 25,000,000 0 0 25,000,000

UBS AG London 3.15% 13/08/21 20,000,000 0 0 0 20,000,000

Urban Renewal Authority 2.18% 17/01/23 19,000,000 0 0 0 19,000,000

Westpac Banking Corp 4.55% 22/01/20 7,000,000 0 0 0 7,000,000

RMB

China Government Bond 3.09% 29/06/20 9,500,000 0 0 0 9,500,000

China Government Bond 3.10% 29/06/22 5,500,000 0 0 0 5,500,000

Export Import Bank Korea 3.625% 27/01/19

9,000,000 0 (9,000,000) 0 0


2,500,000 0 (2,500,000) 0 0


7,000,000 0 0 0 7,000,000


112


Number of Number of units Number of Country/Territory units as at units as at Investment

31/12/18 Additions Disposals Bonus/

Splits 31/12/19

Equities

HK

AIA Group Ltd

0 100,000 0 0 100,000

Bank of China Hong Kong Holdings Ltd 40,000 40,000 0 0 80,000

Bank of Communications Co., Ltd.-H 79,320 0 0 0 79,320

Boshiwa International Holding Ltd 25,000 0 0 0 25,000

China Construction Bank-H 1,560,700 250,000 0 0 1,810,700

China Galaxy Securities Co., Ltd.-H 140,000 0 0 0 140,000

China Huiyuan Juice Group 721,500 0 0 0 721,500

China Life Insurance Co Ltd.-H 360,000 0 (80,000) 0 280,000

China Literature Ltd 53 0 0 0 53

China Merchants Bank-H 180,073 0 (140,000) 0 40,073

China Mobile Ltd 157,500 0 0 0 157,500

China Overseas Land & Investment Ltd. 70,000 0 0 0 70,000

China Overseas Property Holding Ltd. 623,333 0 (200,000) 0 423,333

China Petroleum & Chemical-H 389,000 0 0 0 389,000

China Unicom Hong Kong Ltd. 300,320 0 0 0 300,320

CITIC Ltd 63,000 0 0 0 63,000

CK Asset Holdings Ltd 28,676 0 0 0 28,676

CK Hutchison Holdings Ltd. 37,676 0 0 0 37,676

CNOOC Ltd. 320,000 0 (70,000) 0 250,000

Esprit Holdings Ltd. 210,000 0 0 0 210,000

Fresh Express Delivery Holdings Group Co,. Ltd

624,000 0 0 0 624,000

Guangdong Yueyun Transportation Co Ltd.-H 102,000 0 0 0 102,000

Hang Lung Properties Ltd. 288,000 0 0 0 288,000

Hang Seng Bank Ltd. 20,000 0 0 0 20,000

Hong Kong & China Gas 76,268 0 0 7,626 83,894

Hong Kong Exchanges & Clear 30,000 0 (4,000) 0 26,000


113




Splits 31/12/19

Equities

HK

HSBC Holdings PLC 225,873 0 0 0 225,873

I-Cable Communications Ltd. 16,814 0 0 0 16,814

Ind & Comm Bank of China-H 1,368,750 0 0 0 1,368,750

Kingdee Int'l Software Group Co Ltd. 80,000 0 (80,000) 0 0

Kunlun Energy Co Ltd. 494,000 0 (300,000) 0 194,000

Metallurglcal Corporation of China Ltd.-H 665,000 0 0 0 665,000

Petrochina Co Ltd.-H 170,000 0 0 0 170,000

Ping An Insurance (Group) Co of China Ltd.-H

239,000 0 (74,000) 0 165,000

Razer INC 1,062,000 0 0 0 1,062,000

Samsonite International SA 33,000 51,000 0 0 84,000

Shui On Land Ltd 840,000 0 0 0 840,000

Solomon Systech (Intl) Ltd. 800,000 0 0 0 800,000

Sun Hung Kai Properties Ltd. 33,000 0 0 0 33,000

Swire Pacific Ltd. “A” 18,000 0 0 0 18,000

Tencent Holdings Ltd. 54,900 0 0 0 54,900

Vestate Group Holdings Ltd 420,000 0 0 0 420,000

Vinda International Holdings Ltd. 110,000 0 0 0 110,000

Zhongan Online P&C Insurance-H 50,000 50,000 0 0 100,000

ZTE Corp-H 142,000 0 0 0 142,000


114




Splits 31/12/19

Option Contracts HK Put Option Hang Seng Index 23400 Nov 2019 0 25 (25) 0 0


115




HKD








Agricultural Bank of China Ltd. 2.85% 03 Sep 2019 4,261,516 0 (4,261,516) 0













China Everbright Bank Co., Ltd. 2.55% 03 Jan 2019 10,209,900 0 (10,209,900) 0













116




RMB

China Everbright Bank Co., Ltd. 3.96% 21 Jan 2019 14,889,181 0 (14,889,181) 0

China Everbright Bank Co., Ltd. 3.05% 21 Mar 2019 0 14,699,706 (14,699,706) 0

China Everbright Bank Co., Ltd. 2.40% 23 Apr 2019 0 14,773,184 (14,773,184) 0





USD

Bank of Communications Co., Ltd. 2.513% 02 Aug 2019 0 197,644 (197,644) 0

Bank of Communications Co., Ltd. 2.0705% 05 Feb 2020 0 198,913 0 198,913


117

Statement of movement in portfolio holdings BCOM Stable Growth (CF) fund

Number of Number of units Number of Country/Territory units as at units as at Investment 31/12/18 Additions Disposals 31/12/19 Approved Pooled Investment Fund

HK Schroder MPF Stable Growth Fund

(Class A)

23,419,234

2,104,120

(1,540,873)

23,982,481


118

Statement of movement in portfolio holdings BCOM Balanced (CF) Fund


HK Schroder MPF Balanced Investment Fund

(Class A) 16,769,477 1,414,056 (1,135,040) 17,048,493


119

Statement of movement in portfolio holdings BCOM Dynamic Growth (CF) Fund


HK Allianz Choice Growth Fund (Ord. A) 8,912,669 1,134,339 (628,635) 9,418,373


120

Statement of movement in portfolio holdings BCOM Asian Dynamic Equity (CF) Fund


HK Principal Asian Equity Fund (Pension

Class) 14,686,481 1,195,965 (1,253,991) 14,628,455


121

Statement of movement in portfolio holdings BCOM Hong Kong Dynamic Equity (CF) Fund


HK Principal Hong Kong Equity Fund 12,165,794 1,308,208 (1,416,669) 12,057,333


122

Statement of movement in portfolio holdings BCOM China Dynamic Equity (CF) Fund


HK Principal China Equity Fund 30,060,614 3,134,418 (2,913,459) 30,281,573


123

Statement of movement in portfolio holdings BCOM HSI Tracking (CF) Fund

Number of Number of units Number of Country/Territory units as at units as at Investment 31/12/18 Additions Disposals 31/12/19 Index tracking collective investment schemes

HK Tracker Fund of Hong Kong 17,686,000 4,464,500 (2,074,500) 20,076,000


124

Statement of movement in portfolio holdings BCOM Global Bond (CF) Fund



- MPF Bond Fund (Class B) 5,928,348 1,993,912 (716,992) 7,205,268


125

Statement of movement in portfolio holdings BCOM Greater China Equity (CF) Fund


HK Allianz Choice Greater China Fund (Ord A) 14,183,037 1,846,391 (825,112) 15,204,316


126

Statement of movement in portfolio holdings BCOM Core Accumulation Fund



Core Accumulation Fund (Class A) 11,503,821 7,289,060 (357,918) 18,434,963


127

Statement of movement in portfolio holdings BCOM 65 Age Plus Fund



Age 65 Plus Fund (Class A) 4,658,524 3,250,999 (497,722) 7,411,801

BCOM JOYFUL RETIREMENT MPF SCHEME REPORTS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019

BCOM JOYFUL RETIREMENT MPF SCHEME REPORTS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Contents Pages Independent auditor’s report 1 - 4 Scheme

Statement of net assets available for benefits 5 Statement of changes in net assets available for benefits 6 - 7 Statement of cash flows 8

Constituent funds

Statement of net assets 9 - 10 Statement of comprehensive income 11 - 12 Statement of changes in net assets attributable to members 13 - 14

Statement of cash flows 15 - 16

Notes to the financial statements 17 - 72

- 1 -

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEE OF BCOM JOYFUL RETIREMENT MPF SCHEME (THE “SCHEME”) Report on the Audit of the Financial Statements Opinion What we have audited The financial statements of the Scheme and each of its constituent funds set out on pages 5 to 72, which comprise: the statement of net assets available for benefits of the Scheme and the statement of net

assets of each of its constituent funds as at 31 December 2019; the statement of comprehensive income of each of the constituent funds for the year then

ended; the statement of changes in net assets available for benefits of the Scheme and the statement

of changes in net assets attributable to members of each of its constituent funds for the year then ended;

the statement of cash flows of the Scheme and each of its constituent funds for the year then ended; and

the notes to the financial statements, which include a summary of significant accounting policies.

Our opinion In our opinion, the financial statements give a true and fair view of the financial position of the Scheme and each of its constituent funds as at 31 December 2019, and of their 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 (the "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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Scheme and each of its constituent funds in accordance with the HKICPA's Code of Ethics for Professional Accountants (the “Code"), and we have fulfilled our other ethical responsibilities in accordance with the Code.

Other Information The Trustee is responsible for the other information. The other information comprises all of the information included in the annual report other than the financial statements and our auditor’s report thereon.

- 2 -

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEE OF BCOM JOYFUL RETIREMENT MPF SCHEME (THE “SCHEME”) (CONTINUED) Other Information (Continued) 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 that fact. We have nothing to report in this regard. Responsibilities of the Trustee for the Financial Statements The Trustee is responsible for the preparation of 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 and each of its constituent funds’ 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 and its constituent funds 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 Hong Kong 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. We report our opinion 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 and each of its constituent funds have been properly prepared, in all material respects, in accordance with sections 80, 81, 83 and 84 of the General Regulation.

- 3 -

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEE OF BCOM JOYFUL RETIREMENT MPF SCHEME (THE “SCHEME”) (CONTINUED) Auditor’s Responsibilities for the Audit of the Financial Statements (Continued) As part of an audit in accordance with HKSAs, we exercise professional judgment and maintain professional skepticism 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 and its constituent funds’ internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustee.

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 and its constituent funds’ 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 its constituent funds to cease to continue as a going concern.

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.

- 4 -

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEE OF BCOM JOYFUL RETIREMENT MPF SCHEME (THE “SCHEME”) (CONTINUED) Auditor’s Responsibilities for the Audit of the Financial Statements (Continued) 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. Report on Matters under the General Regulation (a) In our opinion, the financial statements of the Scheme and each of its constituent funds

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.

PricewaterhouseCoopers Certified Public Accountants Hong Kong, 26 June 2020

- 5 -

BCOM JOYFUL RETIREMENT MPF SCHEME STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS - SCHEME AS AT 31 DECEMBER 2019 Note 2019 2018 HK$ HK$ Assets Investments in constituent funds 10 6,097,224,750 5,192,494,888 Contributions receivable

From employers 25,874,498 20,506,322 From members 22,405,130 17,526,317

Bank balances 7(f) 20,495,397 13,207,985 ─────────── ─────────── Total assets 6,165,999,775 5,243,735,512 -------------------- -------------------- Liabilities Benefits payable 33,750,383 28,837,295 Accruals and other payables 3,842,840 3,587,396

─────────── ─────────── Total liabilities 37,593,223 32,424,691 -------------------- -------------------- Net assets available for benefits attributable to members 6,128,406,552 5,211,310,821

═══════════ ═══════════ For and on behalf of Bank of Communications Trustee Limited (the “Trustee”)

The notes on pages 17 to 72 are an integral part of the financial statements.

- 6 -

BCOM JOYFUL RETIREMENT MPF SCHEME STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS - SCHEME FOR THE YEAR ENDED 31 DECEMBER 2019 Note 2019 2018 HK$ HK$ Income Net gain/(loss) on investments in constituent funds 494,684,457 (491,141,187)

───────── ───────── Net income/(loss) 494,684,457 (491,141,187) ---------------- ---------------- Contributions received and receivable 8 From employers

Mandatory 256,137,142 232,603,629 Additional voluntary 67,511,938 57,768,183

From members Mandatory 250,199,423 227,940,546 Additional voluntary 13,296,807 14,175,143

────────── ────────── 587,145,310 532,487,501 ------------------ ------------------ Contribution surcharge 621,136 565,172 ------------------ ------------------ Transfers in Group transfers in from other schemes 176,582,438 136,202,033 Individual transfers in from other schemes 280,875,966 282,427,808

────────── ────────── 457,458,404 418,629,841 ------------------ ------------------ Special contributions From other trustees 8 - - ------------------ ------------------ 1,045,224,850 951,682,514 ------------------ ------------------ Benefits paid and payable 9 Retirement/early retirement 115,863,810 103,738,084 Death 5,483,638 6,056,319 Permanent departure 23,617,676 25,790,885 Resignation/dismissal 2,489,580 2,542,917 Total incapacity 2,254,788 3,043,879 Small balance 4,826 1,931 Terminal illness 1,216,986 891,767 Refund of additional voluntary contributions to

leavers 19,411,376 113,097,653 ────────── ────────── 170,342,680 255,163,435 ------------------ ------------------


- 7 -

BCOM JOYFUL RETIREMENT MPF SCHEME STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS - SCHEME (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2019 2019 2018 HK$ HK$ Transfers out Group transfers out to other schemes 66,055,218 70,726,855 Individual transfers out to other schemes 340,016,427 308,842,745

────────── ────────── 406,071,645 379,569,600 ------------------ ------------------ Forfeitures 7,580,291 10,777,883 ---------------- ---------------- Long service payments and severance payments 37,981,464 27,675,038 ---------------- ---------------- Refund of contributions overpaid 837,496 770,323 ---------------- ---------------- 622,813,576 673,956,279 ------------------ ------------------ Changes in net assets available for benefits attributable to members 917,095,731 (213,414,952)

Net assets available for benefits attributable to members at the beginning of the year - Members’ accounts 5,211,310,821 5,424,725,773

────────── ────────── Net assets available for benefits attributable to members at the end of the year - Members’ accounts 6,128,406,552 5,211,310,821

══════════ ══════════ The notes on pages 17 to 72 are an integral part of the financial statements.

- 8 -

BCOM JOYFUL RETIREMENT MPF SCHEME STATEMENT OF CASH FLOWS - SCHEME FOR THE YEAR ENDED 31 DECEMBER 2019 2019 2018 HK$ HK$ Cash flows from operating activities Net income/(loss) 494,684,457 (491,141,187) Net (increase)/decrease in investments in constituent funds (904,729,862) 203,366,432 Increase/(decrease) in accruals and other payables 255,444 (2,647,879) ────────── ────────── Net cash used in operating activities (409,789,961) (290,422,634) ------------------- ------------------- Cash flows from financing activities Contributions, contribution surcharge and transfers in received

1,034,977,861

958,701,367

Benefits, transfers out, long service payments, severance payments and forfeitures paid (617,900,488) (671,592,099)

────────── ────────── Net cash generated from financing activities 417,077,373 287,109,268 ------------------ ------------------ Net increase/(decrease) in cash and cash equivalents 7,287,412 (3,313,366) Cash and cash equivalents at the beginning of the year 13,207,985 16,521,351 ───────── ───────── Cash and cash equivalents at the end of the year 20,495,397 13,207,985 ══════════ ══════════ Analysis of balance of cash and cash equivalents: Bank balances 20,495,397 13,207,985 ══════════ ══════════


- 9 -

BCOM JOYFUL RETIREMENT MPF SCHEME STATEMENT OF NET ASSETS - CONSTITUENT FUNDS AS AT 31 DECEMBER 2019

2019

Note

BCOM

Guaranteed

(CF) Fund

BCOM MPF

Conservative

Fund

BCOM Stable

Growth (CF)

Fund

BCOM

Balanced (CF)

Fund

BCOM

Dynamic

Growth (CF)

Fund

BCOM Asian

Dynamic

Equity (CF)

Fund

BCOM Hong

Kong Dynamic

Equity (CF)

Fund

BCOM China

Dynamic

Equity (CF)

Fund

BCOM HSI

Tracking

(CF) Fund

BCOM

Global Bond

(CF) Fund

BCOM

Greater

China Equity

(CF) Fund

BCOM Core

Accumulation

Fund

BCOM

Age 65 Plus

Fund Total

HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$

Assets

Investments 10 749,082,495 - 577,977,786 459,968,328 279,348,949 469,825,020 444,252,420 497,429,351 570,158,400 170,543,649 264,555,098 222,502,628 83,737,048 4,789,381,172

Interest receivable 5,907,512 4,527,292 - - - - - - - - - - - 10,434,804

Amounts receivable on sale of

investments

-

-

444,872

1,176,754

252,613

549,977

1,146,458

938,419

2,053,816

83,529

48,267

30,500

536,200

7,261,405

Amounts receivable on subscription 1,975,002 4,309,395 206,337 11,032 43,668 - 486,943 2,772,087 843,854 236,249 393,856 1,571,261 964,634 13,814,318

Prepayments and other receivables - - 42,564 33,719 80,753 - 698,860 889,271 - - 74,499 - - 1,819,666

Bank deposits with maturity over

three months

7(f)

22,736,698

513,522,998

-

-

-

-

-

-

-

-

-

-

-

536,259,696

Cash and cash equivalents 7(f) 123,932,358 641,285,083 538,781 273,037 105,414 411,627 120,782 169,791 2,575,822 53,779 61,577 221,261 191,362 769,940,674

───────── ────────── ───────── ───────── ───────── ───────── ──────── ───────── ───────── ───────── ───────── ───────── ───────── ───────────

Total assets 903,634,065 1,163,644,768 579,210,340 461,462,870 279,831,397 470,786,624 446,705,463 502,198,919 575,631,892 170,917,206 265,133,297 224,325,650 85,429,244 6,128,911,735

---------------- ----------------- ---------------- ---------------- --------------- ---------------- --------------- ---------------- --------------- --------------- ---------------- --------------- ---------------- -----------------

Liabilities

Amounts payable on redemption 1,418,832 8,239,038 1,247,534 1,445,485 388,281 939,969 1,708,135 1,722,732 6,037,742 284,839 332,973 851,414 1,132,518 25,749,492

Accruals and other payables 1,335,049 - 450,077 357,404 274,073 1,499,775 421,117 509,828 412,720 275,116 252,534 107,943 41,857 5,937,493

───────── ────────── ───────── ───────── ───────- ───────── ───────── ───────── ────────- ───────── ────────- ───────── ───────── ──────────-

Total liabilities 2,753,881 8,239,038 1,697,611 1,802,889 662,354 2,439,744 2,129,252 2,232,560 6,450,462 559,955 585,507 959,357 1,174,375 31,686,985

--------------- ----------------- --------------- --------------- --------------- --------------- ---------------- --------------- --------------- --------------- --------------- --------------- --------------- -----------------

Net assets attributable to members 3 900,880,184 1,155,405,730 577,512,729 459,659,981 279,169,043 468,346,880 444,576,211 499,966,359 569,181,430 170,357,251 264,547,790 223,366,293 84,254,869 6,097,224,750

═════════ ══════════ ═════════ ═════════ ═════════ ═════════ ═════════ ═════════ ═════════ ═════════ ═════════ ═════════ ═════════ ══════════

On behalf of Bank of Communications Trustee Limited


- 10 -

BCOM JOYFUL RETIREMENT MPF SCHEME STATEMENT OF NET ASSETS - CONSTITUENT FUNDS (CONTINUED) AS AT 31 DECEMBER 2019

2018

Note

BCOM

Guaranteed

(CF) Fund

BCOM MPF

Conservative

Fund

BCOM Stable

Growth (CF)

Fund

BCOM

Balanced (CF)

Fund

BCOM

Dynamic

Growth (CF)

Fund

BCOM Asian

Dynamic

Equity (CF)

Fund

BCOM Hong

Kong Dynamic

Equity (CF)

Fund

BCOM China

Dynamic

Equity (CF)

Fund

BCOM HSI

Tracking

(CF) Fund

BCOM

Global Bond

(CF) Fund

BCOM

Greater

China Equity

(CF) Fund

BCOM Core

Accumulation

Fund

BCOM

Age 65 Plus

Fund Total


Assets

Investments 10 748,158,262 - 501,171,603 391,064,209 225,579,665 408,400,200 398,904,228 423,749,450 460,720,300 131,774,726 202,817,422 119,038,087 47,932,953 4,059,311,105

Interest receivable 5,532,710 4,283,411 - - - - - - - - - - - 9,816,121

Dividend receivable 1,416 - - - - - - - - - - - - 1,416

Amounts receivable on sale of

investments

-

-

-

29,887

149,514

448,171

1,243,511

490,491

76,875

40,158

395,845

216,480

-

3,090,932

Amounts receivable on subscription 567,404 927,037 - - - - 248,116 196,233 1,134,398 387,511 - 253,778 204,231 3,918,708

Prepayments and other receivables - - - - 23,354 - 656,109 821,841 - - 10,333 - - 1,511,637

Bank deposits with maturity over

three months

7(f)

44,165,843

542,464,150

-

-

-

-

-

-

-

-

-

-

-

586,629,993

Cash and cash equivalents 7(f) 71,233,527 473,787,302 435,459 344,960 203,635 212,040 198,262 322,630 772,630 141,265 84,859 572,551 81,859 548,390,979

───────── ────────── ────────── ───────── ───────── ───────── ──────── ───────── ───────── ───────── ───────── ───────── ───────── ───────────

Total assets 869,659,162 1,021,461,900 501,607,062 391,439,056 225,956,168 409,060,411 401,250,226 425,580,645 462,704,203 132,343,660 203,308,459 120,080,896 48,219,043 5,212,670,891

---------------- ----------------- ---------------- ---------------- --------------- ---------------- --------------- ---------------- --------------- --------------- ---------------- --------------- ---------------- -----------------

Liabilities

Amounts payable on purchase of

investments

-

-

-

-

-

-

-

-

351,493

-

-

-

-

351,493

Amounts payable on redemption 2,171,167 5,029,436 425,120 364,686 342,382 649,849 1,870,406 998,728 802,460 217,278 468,996 926,756 233,696 14,500,960

Accruals and other payables 1,281,681 - 392,186 308,316 227,624 1,439,388 388,792 452,894 340,679 207,617 201,425 59,465 23,483 5,323,550

───────── ────────── ───────── ───────── ───────- ───────── ───────── ───────── ────────- ───────── ────────- ───────── ───────── ──────────-

Total liabilities 3,452,848 5,029,436 817,306 673,002 570,006 2,089,237 2,259,198 1,451,622 1,494,632 424,895 670,421 986,221 257,179 20,176,003

--------------- ----------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- -----------------

Net assets attributable to members 3 866,206,314 1,016,432,464 500,789,756 390,766,054 225,386,162 406,971,174 398,991,028 424,129,023 461,209,571 131,918,765 202,638,038 119,094,675 47,961,864 5,192,494,888

═════════ ══════════ ═════════ ═════════ ═════════ ═════════ ═════════ ═════════ ═════════ ═════════ ═════════ ═════════ ═════════ ══════════

On behalf of Bank of Communications Trustee Limited


- 11 -

BCOM JOYFUL RETIREMENT MPF SCHEME STATEMENT OF COMPREHENSIVE INCOME - CONSTITUENT FUNDS FOR THE YEAR ENDED 31 DECEMBER 2019

2019

Note

BCOM

Guaranteed

(CF) Fund

BCOM MPF

Conservative

Fund

BCOM Stable

Growth (CF)

Fund

BCOM

Balanced

(CF) Fund

BCOM

Dynamic

Growth (CF)

Fund

BCOM Asian

Dynamic

Equity (CF)

Fund

BCOM Hong

Kong Dynamic

Equity (CF)

Fund

BCOM China

Dynamic

Equity (CF)

Fund

BCOM HSI

Tracking

(CF) Fund

BCOM

Global Bond

(CF) Fund

BCOM

Greater China

Equity (CF)

Fund

BCOM Core

Accumulation

Fund

BCOM

Age 65 Plus

Fund Total


Income

Net gain on investments 6 17,821,284 - 63,768,197 62,056,694 39,700,112 63,353,683 49,045,922 70,367,217 43,392,322 8,994,955 45,413,499 24,051,252 5,494,792 493,459,929

Interest income 16,069,468 22,576,942 1,860 1,438 857 1,603 1,801 1,760 1,994 562 807 783 225 38,660,100

Dividend income 5,030,791 - - - - - - - 17,811,795 - - - - 22,842,586

Exchange loss (916,864) - - - - - - - - - - - - (916,864)

Other income 17 709,625 - 137,847 109,404 242,236 - 2,793,786 3,459,083 - - 204,591 - - 7,656,572

──────── ──────── ───────── ───────── ───────── ────────── ────────── ────────── ────────── ────────── ────────── ───────── ──────── ──────────

Total investment income 38,714,304 22,576,942 63,907,904 62,167,536 39,943,205 63,355,286 51,841,509 73,828,060 61,206,111 8,995,517 45,618,897 24,052,035 5,495,017 561,702,323

--------------- ---------------- ----------------- ----------------- ---------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------- --------------- ----------------

Expenses

Investment management fee 7(c) 3,347,624 1,912,493 - - - 1,999,156 - - - 682,180 - - - 7,941,453

Trustee fee 7(a) 4,463,499 5,312,480 2,715,130 2,157,189 1,281,039 2,216,343 2,161,776 2,318,549 2,625,667 757,978 1,161,782 833,601 326,594 28,331,627

Sub-custodian fee 115,632 - - - - - - - 131,657 - - - - 247,289

Administration fee 7(b) 6,137,311 2,310,929 2,036,347 1,617,892 1,601,299 3,125,043 2,529,278 3,176,412 1,312,834 60,638 1,405,757 150,046 58,785 25,522,571

Professional indemnity insurance 85,956 99,411 50,596 40,124 23,429 41,831 40,480 44,200 46,520 13,006 20,941 12,610 4,833 523,937

Legal and other professional fees 104,619 120,346 63,700 50,682 30,087 51,910 50,869 54,384 61,753 17,926 27,280 - - 633,556

Audit fee 42,979 48,718 25,092 19,694 11,474 21,294 20,516 21,762 23,061 6,402 10,376 5,411 2,124 258,903

Bank charges 5,845 14,400 6,650 6,300 6,800 5,250 6,750 5,650 3,550 8,000 6,450 - - 75,645

Guarantor fee 7(e) 1,205,145 - - - - - - - - - - - - 1,205,145

Printing and postage expenses 274,182 337,139 165,373 131,019 77,453 133,847 130,674 138,959 158,312 45,898 69,268 49,430 19,412 1,730,966

Fund price publication expenses 8,988 9,024 8,988 8,988 8,988 8,988 8,988 8,988 8,988 8,988 8,988 8,988 8,988 116,880

Miscellaneous expenses 10,277 9,508 2,463 1,923 1,107 1,994 1,951 2,073 133,527 650 988 588 238 167,287

────────── ────────── ───────── ───────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ──────────

Total expenses 15,802,057 10,174,448 5,074,339 4,033,811 3,041,676 7,605,656 4,951,282 5,770,977 4,505,869 1,601,666 2,711,830 1,060,674 420,974 66,755,259

--------------- ---------------- ----------------- ----------------- ---------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------- --------------- ---------------

Withholding tax 15 262,607 - - - - - - - - - - - - 262,607

------------------ ---------------- ----------------- ----------------- ---------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------- --------------- ---------------

Total comprehensive income 22,649,640 12,402,494 58,833,565 58,133,725 36,901,529 55,749,630 46,890,227 68,057,083 56,700,242 7,393,851 42,907,067 22,991,361 5,074,043 494,684,457

══════════ ═════════ ═════════ ═════════ ═════════ ═════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════


- 12 -

BCOM JOYFUL RETIREMENT MPF SCHEME STATEMENT OF COMPREHENSIVE INCOME - CONSTITUENT FUNDS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2019 2018

Note

BCOM

Guaranteed

(CF) Fund

BCOM MPF

Conservative

Fund

BCOM Stable

Growth (CF)

Fund

BCOM

Balanced (CF)

Fund

BCOM

Dynamic

Growth (CF)

Fund

BCOM Asian

Dynamic

Equity (CF)

Fund

BCOM Hong

Kong Dynamic

Equity (CF)

Fund

BCOM China

Dynamic

Equity (CF)

Fund

BCOM HSI

Tracking (CF)

Fund

BCOM Global

Bond (CF)

Fund

BCOM Greater

China Equity

(CF) Fund

BCOM Core

Accumulation

Fund

BCOM

Age 65 Plus

Fund Total


Income

Net loss on investments 6 (26,153,690) - (38,835,056) (40,868,156) (36,903,755) (91,769,132) (63,575,660) (61,936,397) (65,749,307) (1,925,396) (46,026,323) (7,742,440) (454,020) (481,939,332)

Interest income 11,090,148 15,021,825 561 394 264 485 506 532 606 147 236 172 32 26,115,908

Dividend income 5,282,499 - - - - - - - 15,769,265 - - - - 21,051,764

Exchange loss (237,609) - - - - - - - - - - - - (237,609)

Other income 17 738,032 - - - 98,878 - 2,899,170 3,669,141 - - 45,619 - - 7,450,840

──────── ──────── ───────── ───────── ───────── ────────── ──────────- ─────────- ──────────- ────────── ──────────- ───────── ───────── ──────────

Total investment (loss)/income (9,280,620) 15,021,825 (38,834,495) (40,867,762) (36,804,613) (91,768,647) (60,675,984) (58,266,724) (49,979,436) (1,925,249) (45,980,468) (7,742,268) (453,988) (427,558,429)

---------------- ----------------- ----------------- ----------------- ----------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------

Expenses

Investment management fee 7(c) 3,260,449 1,692,667 - - - 2,156,919 - - - 549,490 - - - 7,659,525

Trustee fee 7(a) 4,347,265 4,701,854 2,602,373 2,070,702 1,235,393 2,393,936 2,238,419 2,455,338 2,378,463 610,544 1,139,869 477,913 172,704 26,824,773

Sub-custodian fee 116,644 - - - - - - - 127,432 - - - - 244,076

Administration fee 7(b) 5,977,489 2,045,306 1,951,780 1,553,027 1,544,241 3,375,449 2,618,951 3,363,813 1,189,231 48,844 1,379,241 86,022 31,085 25,164,479

Professional indemnity insurance 84,814 88,524 50,732 40,579 24,343 49,165 45,068 48,078 45,441 11,370 22,368 6,524 2,087 519,093

Legal and other professional fees - 7,304 - - - - - - - - - - - 7,304

Audit fee 26,963 33,620 16,320 13,014 7,864 16,032 14,514 15,331 14,712 3,578 7,245 1,957 622 171,772

Bank charges 6,162 13,880 12,370 11,880 10,300 8,830 10,640 10,290 5,930 14,370 11,920 - - 116,572

Guarantor fee 7(e) 1,173,762 - - - - - - - - - - - - 1,173,762

Printing and postage expenses 184,971 193,319 111,201 88,561 53,017 105,147 97,812 107,270 100,628 25,357 48,801 19,155 6,769 1,142,008

Fund price publication expenses 8,987 9,024 8,987 8,987 8,987 8,987 8,987 8,987 8,987 8,987 8,987 8,239 8,239 115,372

Miscellaneous expenses 11,448 5,796 727 584 354 723 660 704 121,120 562 1,053 92 29 143,852

────────── ────────── ────────── ────────── ────────── ────────── ────────── ───────── ────────── ────────── ────────── ────────── ────────── ──────────

Total expenses 15,198,954 8,791,294 4,754,490 3,787,334 2,884,499 8,115,188 5,035,051 6,009,811 3,991,944 1,273,102 2,619,484 599,902 221,535 63,282,588

---------------- ----------------- ----------------- ----------------- ----------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------

Withholding tax 15 300,170 - - - - - - - - - - - - 300,170

------------------ ----------------- ------------------ ------------------ ----------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------

Total comprehensive (loss)/income

(24,779,744)

6,230,531

(43,588,985)

(44,655,096)

(39,689,112)

(99,883,835)

(65,711,035)

(64,276,535)

(53,971,380)

(3,198,351)

(48,599,952)

(8,342,170)

(675,523)

(491,141,187)

══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ═════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════


- 13 -

BCOM JOYFUL RETIREMENT MPF SCHEME STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO MEMBERS - CONSTITUENT FUNDS FOR THE YEAR ENDED 31 DECEMBER 2019 2019

Note

BCOM

Guaranteed

(CF) Fund

BCOM MPF

Conservative

Fund

BCOM Stable

Growth (CF)

Fund

BCOM

Balanced (CF)

Fund

BCOM

Dynamic

Growth (CF)

Fund

BCOM Asian

Dynamic

Equity (CF)

Fund

BCOM Hong

Kong Dynamic

Equity (CF)

Fund

BCOM China

Dynamic

Equity (CF)

Fund

BCOM HSI

Tracking (CF)

Fund

BCOM Global

Bond (CF)

Fund

BCOM Greater

China Equity

(CF) Fund

BCOM Core

Accumulation

Fund

BCOM

Age 65 Plus

Fund Total


Balance at the beginning of the

year

866,206,314

1,016,432,464

500,789,756

390,766,054

225,386,162

406,971,174

398,991,028

424,129,023

461,209,571

131,918,765

202,638,038

119,094,675

47,961,864

5,192,494,888

-------------------- -------------------- ------------------- ------------------- ------------------- ------------------- ------------------- -------------------- ------------------- ------------------- ------------------- ------------------- ------------------- --------------------

Proceeds from subscription of

units 3

131,306,860

438,211,413

94,019,762

69,799,588

54,914,847

67,146,585

104,128,685

96,400,357

227,650,670

72,739,542

53,104,061

122,105,318

57,395,560

1,588,923,248

Payments on redemption of units 3 (119,282,630) (311,640,641) (76,130,354) (59,039,386) (38,033,495) (61,520,509) (105,433,729) (88,620,104) (176,379,053) (41,694,907) (34,101,376) (40,825,061) (26,176,598) (1,178,877,843)

────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ──────────

Net subscription/(redemption) 12,024,230 126,570,772 17,889,408 10,760,202 16,881,352 5,626,076 (1,305,044) 7,780,253 51,271,617 31,044,635 19,002,685 81,280,257 31,218,962 410,045,405

------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------

Total comprehensive income 22,649,640 12,402,494 58,833,565 58,133,725 36,901,529 55,749,630 46,890,227 68,057,083 56,700,242 7,393,851 42,907,067 22,991,361 5,074,043 494,684,457

------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------

Balance at the end of the year 900,880,184 1,155,405,730 577,512,729 459,659,981 279,169,043 468,346,880 444,576,211 499,966,359 569,181,430 170,357,251 264,547,790 223,366,293 84,254,869 6,097,224,750

══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════


- 14 -

BCOM JOYFUL RETIREMENT MPF SCHEME STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO MEMBERS - CONSTITUENT FUNDS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2019 2018

Note

BCOM

Guaranteed

(CF) Fund

BCOM MPF

Conservative

Fund

BCOM Stable

Growth (CF)

Fund

BCOM

Balanced (CF)

Fund

BCOM

Dynamic

Growth (CF)

Fund

BCOM Asian

Dynamic

Equity (CF)

Fund

BCOM Hong

Kong Dynamic

Equity (CF)

Fund

BCOM China

Dynamic

Equity (CF)

Fund

BCOM HSI

Tracking (CF)

Fund

BCOM Global

Bond (CF)

Fund

BCOM Greater

China Equity

(CF) Fund

BCOM Core

Accumulation

Fund

BCOM

Age 65 Plus

Fund Total


Balance at the beginning of the

year 862,180,647 929,875,961 523,625,101 420,385,606 254,503,716 519,192,033 470,891,624 496,515,129 479,387,879 116,192,694 235,095,190 66,775,875 21,239,865 5,395,861,320

-------------------- -------------------- ------------------- ------------------- ------------------- ------------------- ------------------ ------------------- ------------------- ------------------- ------------------- ------------------- ------------------- -------------------

Proceeds from subscription of

units 3

145,809,285

433,554,422

94,337,283

68,773,183

53,442,293

69,068,362

113,463,444

104,469,713

202,740,723

63,221,598

56,318,707

85,946,810

40,873,561

1,532,019,384

Payments on redemption of units 3 (117,003,874) (353,228,450) (73,583,643) (53,737,639) (42,870,735) (81,405,386) (119,653,005) (112,579,284) (166,947,651) (44,297,176) (40,175,907) (25,285,840) (13,476,039) (1,244,244,629)

────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ──────────

Net subscription/(redemption) 28,805,411 80,325,972 20,753,640 15,035,544 10,571,558 (12,337,024) (6,189,561) (8,109,571) 35,793,072 18,924,422 16,142,800 60,660,970 27,397,522 287,774,755

------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------

Total comprehensive (loss)/

income (24,779,744) 6,230,531 (43,588,985) (44,655,096) (39,689,112) (99,883,835) (65,711,035) (64,276,535) (53,971,380) (3,198,351) (48,599,952) (8,342,170) (675,523) (491,141,187)

------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------

Balance at the end of the year

866,206,314

1,016,432,464

500,789,756

390,766,054

225,386,162

406,971,174

398,991,028

424,129,023

461,209,571

131,918,765

202,638,038

119,094,675

47,961,864

5,192,494,888

══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════


- 15 -

BCOM JOYFUL RETIREMENT MPF SCHEME STATEMENT OF CASH FLOWS - CONSTITUENT FUNDS FOR THE YEAR ENDED 31 DECEMBER 2019 2019

BCOM Guaranteed

(CF) Fund

BCOM MPF Conservative

Fund

BCOM Stable Growth (CF)

Fund

BCOM Balanced (CF)

Fund

BCOM Dynamic

Growth (CF) Fund

BCOM Asian Dynamic

Equity (CF) Fund

BCOM Hong Kong Dynamic

Equity (CF) Fund

BCOM China Dynamic Equity

(CF) Fund

BCOM HSI Tracking (CF)

Fund

BCOM Global Bond (CF)

Fund

BCOM Greater China

Equity (CF) Fund

BCOM Core

Accumulation

Fund

BCOM

Age 65 Plus

Fund Total

HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ Cash flows from operating activities Total comprehensive income 22,649,640 12,402,494 58,833,565 58,133,725 36,901,529 55,749,630 46,890,227 68,057,083 56,700,242 7,393,851 42,907,067 22,991,361 5,074,043 494,684,457 Adjustments for: Interest income (16,069,468) (22,576,942) (1,860) (1,438) (857) (1,603) (1,801) (1,760) (1,994) (562) (807) (783) (225) (38,660,100) Dividend income (5,030,791) - - - - - - - (17,811,795) - - - - (22,842,586) ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ───────── ────────── ────────── ────────── ────────── Operating profit/(loss) before changes in

working capital 1,549,381 (10,174,448) 58,831,705 58,132,287 36,900,672 55,748,027 46,888,426 68,055,323 38,886,453 7,393,289 42,906,260 22,990,578 5,073,818 433,181,771 Increase in investments (924,233) - (76,806,183) (68,904,119) (53,769,284) (61,424,820) (45,348,192) (73,679,901) (109,438,100) (38,768,923) (61,737,676) (103,464,541) (35,804,095) (730,070,067) (Increase)/decrease in amounts receivable on

sale of investments - - (444,872) (1,146,867) (103,099) (101,806) 97,053 (447,928) (1,976,941) (43,371) 347,578 185,980 (536,200) (4,170,473) Increase in prepayments and other receivables - - (42,564) (33,719) (57,399) - (42,751) (67,430) - - (64,166) - - (308,029) Decrease in bank deposits with maturity over

three months 21,429,145 28,941,152 - - - - - - - - - - - 50,370,297 Decrease in amounts payable on purchase of

investments - - - - - - - - (351,493) - - - - (351,493) Increase in accruals and other payables 53,368 - 57,891 49,088 46,449 60,387 32,325 56,934 72,041 67,499 51,109 48,478 18,374 613,943 Interest received 15,694,666 22,333,061 1,860 1,438 857 1,603 1,801 1,760 1,994 562 807 783 225 38,041,417 Dividend received 5,032,207 - - - - - - - 17,811,795 - - - - 22,844,002 ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ───────── ────────── ────────── ────────── ────────── Net cash generated from/(used in)

operating activities 42,834,534 41,099,765 (18,402,163) (11,901,892) (16,981,804) (5,716,609) 1,628,662 (6,081,242) (54,994,251) (31,350,944) (18,496,088) (80,238,722) (31,247,878) (189,848,632) ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- --------─--------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Cash flows from financing activities Proceeds from subscriptions received 129,899,262 434,829,055 93,813,425 69,788,556 54,871,179 67,146,585 103,889,858 93,824,503 227,941,214 72,890,804 52,710,205 120,787,835 56,635,157 1,579,027,638 Payments for redemptions paid (120,034,965) (308,431,039) (75,307,940) (57,958,587) (37,987,596) (61,230,389) (105,596,000) (87,896,100) (171,143,771) (41,627,346) (34,237,399) (40,900,403) (25,277,776) (1,167,629,311) ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ───────── ────────── ────────── ────────── ────────── Net cash generated from/(used in)

financing activities 9,864,297 126,398,016 18,505,485 11,829,969 16,883,583 5,916,196 (1,706,142) 5,928,403 56,797,443 31,263,458 18,472,806 79,887,432 31,357,381 411,398,327 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Net increase/(decrease) in cash and cash

equivalents 52,698,831 167,497,781 103,322 (71,923) (98,221) 199,587 (77,480) (152,839) 1,803,192 (87,486) (23,282) (351,290) 109,503 221,549,695 Cash and cash equivalents at the beginning of

the year 71,233,527 473,787,302 435,459 344,960 203,635 212,040 198,262 322,630 772,630 141,265 84,859 572,551 81,859 548,390,979 ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ───────── ────────── ────────── ────────── ────────── Cash and cash equivalents at the end of the

year 123,932,358 641,285,083 538,781 273,037 105,414 411,627 120,782 169,791 2,575,822 53,779 61,577 221,261 191,362 769,940,674 ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ═════════ ══════════ ══════════ ══════════ ══════════ Analysis of balance of cash and cash

equivalents: Bank balances 123,932,358 641,285,083 538,781 273,037 105,414 411,627 120,782 169,791 2,575,822 53,779 61,577 221,261 191,362 769,940,674 ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ═════════ ══════════ ══════════ ══════════ ══════════


- 16 -

BCOM JOYFUL RETIREMENT MPF SCHEME STATEMENT OF CASH FLOWS - CONSTITUENT FUNDS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2019 2018

BCOM Guaranteed

(CF) Fund

BCOM MPF Conservative

Fund

BCOM Stable Growth (CF)

Fund

BCOM Balanced (CF)

Fund

BCOM Dynamic

Growth (CF) Fund

BCOM Asian Dynamic

Equity (CF) Fund

BCOM Hong Kong Dynamic

Equity (CF) Fund

BCOM China Dynamic Equity

(CF) Fund

BCOM HSI Tracking (CF)

Fund

BCOM Global Bond (CF)

Fund

BCOM Greater China

Equity (CF) Fund

BCOM Core

Accumulation

Fund

BCOM

Age 65 Plus

Fund Total

HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ Cash flows from operating activities Total comprehensive (loss)/income (24,779,744) 6,230,531 (43,588,985) (44,655,096) (39,689,112) (99,883,835) (65,711,035) (64,276,535) (53,971,380) (3,198,351) (48,599,952) (8,342,170) (675,523) (491,141,187) Adjustments for: Interest income (11,090,148) (15,021,825) (561) (394) (264) (485) (506) (532) (606) (147) (236) (172) (32) (26,115,908) Dividend income (5,282,499) - - - - - - - (15,769,265) - - - - (21,051,764) ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ───────── ────────── ────────── ────────── ────────── Operating loss before changes in working

capital (41,152,391) (8,791,294) (43,589,546) (44,655,490) (39,689,376) (99,884,320) (65,711,541) (64,277,067) (69,741,251) (3,198,498) (48,600,188) (8,342,342) (675,555) (538,308,859) (Increase)/decrease in investments (68,600,874) - 22,610,633 29,431,172 28,006,342 111,945,411 71,668,912 72,646,548 19,598,900 (15,478,850) 32,502,785 (52,260,899) (26,751,024) 225,319,056 Decrease/(increase) in amounts receivable on

sale of investments - - 245,816 690,667 70,482 542,877 (911,461) 387,140 253,352 (12,897) (95,276) (167,380) - 1,003,320 Decrease in prepayments and other

receivables - - - - 1,417 - 96,246 100,157 - - 1,222 - - 199,042 Decrease in margin accounts 588,758 - - - - - - - - - - - - 588,758 Decrease/(increase) in bank deposits with

maturity over three months 76,165,845 (69,111,069) - - - - - - - - - - - 7,054,776 Increase in amounts payable on purchase of

investments - - - - - - - - 246,390 - - - - 246,390 (Decrease)/increase in accruals and other

payables (89,005) - (70,668) (59,286) (46,128) 274,076 (100,204) (105,670) (47,330) 13,120 (46,017) 27,093 13,320 (236,699) Interest received 10,716,476 12,371,248 561 394 264 485 506 532 606 147 236 172 32 23,091,659 Dividend received 5,281,083 - - - - - - - 15,769,265 - - - - 21,050,348 ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ───────── ────────── ────────── ────────── ────────── Net cash (used in)/generated from

operating activities (17,090,108) (65,531,115) (20,803,204) (14,592,543) (11,656,999) 12,878,529 5,042,458 8,751,640 (33,920,068) (18,676,978) (16,237,238) (60,743,356) (27,413,227) (259,992,209) ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- --------─--------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Cash flows from financing activities Proceeds from subscriptions received 145,740,071 435,706,252 94,702,149 69,073,276 54,639,359 69,180,862 113,350,482 104,491,786 202,285,819 62,914,712 56,323,157 85,811,935 40,846,171 1,535,066,031 Payments for redemptions paid (116,587,205) (352,190,490) (73,736,462) (54,314,159) (42,890,149) (82,199,721) (118,742,379) (113,187,228) (168,760,745) (44,313,576) (40,211,408) (24,548,902) (13,362,023) (1,245,044,447) ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ───────── ────────── ────────── ────────── ────────── Net cash generated from/(used in)

financing activities 29,152,866 83,515,762 20,965,687 14,759,117 11,749,210 (13,018,859) (5,391,897) (8,695,442) 33,525,074 18,601,136 16,111,749 61,263,033 27,484,148 290,021,584 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Net increase/(decrease) in cash and cash

equivalents 12,062,758 17,984,647 162,483 166,574 92,211 (140,330) (349,439) 56,198 (394,994) (75,842) (125,489) 519,677 70,921 30,029,375 Cash and cash equivalents at the beginning of

the year 59,170,769 455,802,655 272,976 178,386 111,424 352,370 547,701 266,432 1,167,624 217,107 210,348 52,874 10,938 518,361,604 ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ────────── ───────── ────────── ────────── ────────── ────────── Cash and cash equivalents at the end of the

year 71,233,527 473,787,302 435,459 344,960 203,635 212,040 198,262 322,630 772,630 141,265 84,859 572,551 81,859 548,390,979 ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ═════════ ══════════ ══════════ ══════════ ══════════ Analysis of balance of cash and cash

equivalents: Bank balances 71,233,527 473,787,302 435,459 344,960 203,635 212,040 198,262 322,630 772,630 141,265 84,859 572,551 81,859 548,390,979 ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ══════════ ═════════ ══════════ ══════════ ══════════ ══════════


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BCOM JOYFUL RETIREMENT MPF SCHEME NOTES TO THE FINANCIAL STATEMENTS

1 The Scheme

BCOM Joyful Retirement MPF Scheme (the “Scheme”) is established and governed by its Trust Deed dated 26 January 2000, as amended. The Scheme is registered under section 21 of the Hong Kong Mandatory Provident Fund Schemes Ordinance (the “MPF Ordinance”) and is required to comply with the MPF Ordinance and the relevant regulations, guidelines and codes issued by the Mandatory Provident Fund Schemes Authority (the “MPFA”). The Scheme comprises 13 constituent funds throughout the reporting period. Each of the constituent funds is approved by the MPFA and has its own investment policy and predetermined fees and charges. Contributions and benefits are dealt with at the scheme level whereas underlying investments are dealt with at the constituent funds level. The financial information of the Scheme comprises (i) the statement of net assets available for benefits as at 31 December 2019, and the statement of changes in net assets available for benefits and statement of cash flows for the year ended 31 December 2019 of the Scheme on a standalone basis; and (ii) the statement of net assets as at 31 December 2019, and the statement of comprehensive income, statement of changes in net assets attributable to members and statement of cash flows for the year ended 31 December 2019 of each of its constituent funds.

2 Summary of significant accounting policies

The principal accounting policies adopted in the preparation of the financial statements of the Scheme and its constituent funds are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

(a) Basis of preparation The financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”) issued by the Hong Kong Institute of Certified Public Accountants. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets and liabilities (including derivative financial instruments) held at fair value through profit or loss. The preparation of financial statements in conformity with HKFRSs requires the Trustee to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 4. All references to net assets throughout the financial statements refer to net assets attributable to members unless otherwise stated. All the assets and liabilities are held for the purpose of being traded or are expected to be realised within one year.

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2 Summary of significant accounting policies (continued) (a) Basis of preparation (continued)

Standards and amendments to existing standards effective 1 January 2019 There are no standards, amendments to standards or interpretations that are effective for annual periods beginning on 1 January 2019 that have a material effect on the financial statements of the Scheme. New standards, amendments and interpretations effective after 1 January 2019 and have not been early adopted

A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 January 2019, and have not been early adopted in preparing these financial statements. None of these are expected to have a material effect on the financial statements of the Scheme.

(b) Investments

All investments have been classified by the Trustee as financial assets at fair value through profit or loss. Purchases and sales of investments are accounted for on the trade date basis. Investments are initially recognised at fair value, excluding transaction costs which are expensed as incurred, and are subsequently re-measured at fair value. Realised and unrealised gains and losses on investments are included in the statement of changes in net assets available for benefits for the Scheme and the statement of comprehensive income for the constituent funds in the period in which they arise. Investments are derecognised when the rights to receive cash flows from the investments have expired or have been transferred and the Scheme or its constituent funds have transferred substantially all risks and rewards of ownership. 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 of financial assets and liabilities traded in active markets (such as publicly traded derivatives and trading securities) is based on quoted market prices at the close of trading on the reporting date. The Scheme and its constituent funds utilise the quoted bid price and quoted ask price as fair valuation input for financial assets and liabilities respectively. Investments which are not listed on an exchange or are thinly traded are valued by using quotes from brokers. Investments in constituent funds and approved pooled investment funds are valued at their respective closing net asset value per unit.

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2 Summary of significant accounting policies (continued) (c) Structured entities

A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements. A structured entity often has some or all of the following features or attributes: (i) restricted activities; (ii) a narrow and well-defined objective, such as to provide investment opportunities for investors by passing on risks and rewards associated with the assets of the structured entity to investors; (iii) insufficient equity to permit the structured entity to finance its activities without subordinated financial support; and (iv) financing in the form of multiple contractually linked instruments to investors that create concentrations of credit or other risks (tranches).

The Scheme and its constituent funds consider their investments in underlying funds to be investments in unconsolidated structured entities. The underlying funds apply different investment strategies to accomplish their respective investment objectives. The underlying funds finance their operations by issuing redeemable units which are puttable at the holder’s option and entitle the holder to a proportional stake in the respective funds’ net assets. The Scheme and its constituent funds hold redeemable units in the underlying funds.

The change in fair value of the underlying funds is presented in the statement of changes in net assets available for benefits for the Scheme and the statement of comprehensive income for the constituent funds within net gain/(loss) on investments in constituent funds and net gain/(loss) on investments respectively.

(d) Derivative financial instruments

Derivative financial instruments are recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at their fair value. Fair value is obtained from quoted market prices in active markets and valuation techniques, as appropriate. All derivatives are carried as assets when fair value is positive, and as liabilities when fair value is negative. The best evidence of the fair value of a derivative at initial recognition is the transaction price. Subsequent changes in the fair value of any derivatives are recognised immediately in the statement of comprehensive income of the constituent funds.

(e) Amounts receivable on sale and payable on purchase of investments Amounts receivable on sale and payable on purchase of investments represent receivables for investments sold and payables for investments purchased that have been contracted for but not yet settled or delivered by the reporting date.

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2 Summary of significant accounting policies (continued)

(f) Translation of foreign currencies

Functional and presentation currency

Items included in the financial statements of the Scheme and its constituent funds are measured using the currency of the primary economic environment in which they operate (the “functional currency”). The financial statements are presented in Hong Kong dollars, which is the functional and presentation currency of the Scheme and its constituent funds. Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign currency assets and liabilities are translated into the functional currency using the exchange rates prevailing at the reporting date.

Foreign exchange gains and losses arising from translation are included in the statement of changes in net assets available for benefits for the Scheme and the statement of comprehensive income for the constituent funds.

Foreign exchange gains and losses relating to cash and cash equivalents are presented in the statement of changes in net assets available for benefits for the Scheme and the statement of comprehensive income for the constituent funds within exchange gain/(loss).

Foreign exchange gains and losses relating to the financial assets and liabilities carried at fair value through profit or loss are presented in the statement of changes in net assets available for benefits for the Scheme and the statement of comprehensive income for the constituent funds within net gain/(loss) on investments in constituent funds and net gain/(loss) on investments respectively.

(g) Income and expenses Interest income is recognised on a time-proportion basis using the effective interest method. Dividend income is recognised on the ex-dividend date with the corresponding foreign withholding taxes presented separately. Other income and expenses are accounted for on an accruals basis.

(h) Contributions and benefits Contributions and benefits are accounted for on an accruals basis.

(i) Transfers in/out Transfer-in amounts are recognised when the right to receive payment is established. Transfer-out amounts are accounted for when the obligation to make payment is established.

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2 Summary of significant accounting policies (continued) (j) Forfeitures

If a member ceases to be a member, the part of the employer’s voluntary balance not otherwise disposed of in accordance with the rules of the Scheme may be applied in reducing the future contributions of the employer, or in such other manner as the Trustee may determine, having consulted the employer (including payment to the employer). Forfeitures arising from such cases which have not been designated for the benefit of existing members and which have not been returned to the employers would be treated as liabilities of the Scheme.

(k) Redeemable units The constituent funds issue redeemable units, which are redeemable at the members’ option and are classified as equity. Should the redeemable units’ terms or conditions change such that they do not comply with the strict criteria for classification as equity, the redeemable units would be reclassified to a financial liability from the date the instrument ceases to meet the criteria. The financial liability would be measured at the instrument’s fair value at the date of reclassification. Any difference between the carrying amount of the instrument classified as equity and the fair value of the instrument classified as a financial liability on the date of reclassification would be recognised in equity. Redeemable units are issued or redeemed at the members’ option at prices based on the respective constituent funds’ net asset value per unit as at the close of business on the relevant dealing day. The net asset value per unit of the respective constituent funds is calculated by dividing the net assets attributable to members with the total number of outstanding units of the respective constituent funds. Proceeds and payments for units subscribed and redeemed are included in the statement of changes in net assets attributable to members of the constituent funds.

(l) Cash and cash equivalents

For the purpose of the statement of cash flows, cash and cash equivalents comprise bank deposits with original maturities of three months or less from the date of placement net of bank overdrafts, if any.

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3 Number of units in issue and net assets attributable to members per unit

The net assets attributable to members per unit are calculated by dividing the net assets attributable to members by the number of units in issue at the reporting date. The movement of the number of units in issue during the period and the net assets attributable to members per unit at the reporting date are as follows: Number of units in issue

2019 2018 Units Units BCOM Guaranteed (CF) Fund Balance at the beginning of the year 65,383,339.572 63,203,805.528 Units issued 9,685,905.581 10,809,935.108 Units redeemed (8,753,102.297) (8,630,401.064) ─────────── ─────────── Balance at the end of the year 66,316,142.856 65,383,339.572 ═══════════ ═══════════ BCOM MPF Conservative Fund Balance at the beginning of the year 77,006,001.373 71,558,405.088 Units issued 32,863,008.468 33,156,034.520 Units redeemed (24,128,723.168) (27,708,438.235) ─────────── ─────────── Balance at the end of the year 85,740,286.673 77,006,001.373 ═══════════ ═══════════ BCOM Stable Growth (CF) Fund Balance at the beginning of the year 33,120,601.003 31,817,569.241 Units issued 5,827,467.673 5,850,870.216 Units redeemed (4,725,473.165) (4,547,838.454) ─────────── ─────────── Balance at the end of the year 34,222,595.511 33,120,601.003 ═══════════ ═══════════ BCOM Balanced (CF) Fund Balance at the beginning of the year 23,642,051.227 22,780,199.813 Units issued 3,908,122.889 3,811,384.451 Units redeemed (3,295,072.771) (2,949,533.037) ─────────── ─────────── Balance at the end of the year 24,255,101.345 23,642,051.227 ═══════════ ═══════════

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(continued) Number of units in issue (continued)

2019 2018 Units Units BCOM Dynamic Growth (CF) Fund Balance at the beginning of the year 8,540,051.330 8,165,708.786 Units issued 1,905,585.012 1,787,500.271 Units redeemed (1,320,671.749) (1,413,157.727) ─────────── ─────────── Balance at the end of the year 9,124,964.593 8,540,051.330 ═══════════ ═══════════ BCOM Asian Dynamic Equity (CF) Fund Balance at the beginning of the year 13,002,047.702 13,292,398.731 Units issued 1,999,181.041 1,876,910.213 Units redeemed (1,824,485.704) (2,167,261.242) ─────────── ─────────── Balance at the end of the year 13,176,743.039 13,002,047.702 ═══════════ ═══════════ BCOM Hong Kong Dynamic Equity (CF) Fund Balance at the beginning of the year 17,735,241.835 17,915,685.566 Units issued 4,266,302.561 4,437,399.658 Units redeemed (4,326,731.710) (4,617,843.389) ─────────── ─────────── Balance at the end of the year 17,674,812.686 17,735,241.835 ═══════════ ═══════════ BCOM China Dynamic Equity (CF) Fund Balance at the beginning of the year 16,056,533.006 16,284,107.859 Units issued 3,367,883.746 3,401,437.272 Units redeemed (3,098,868.844) (3,629,012.125) ─────────── ─────────── Balance at the end of the year 16,325,547.908 16,056,533.006 ═══════════ ═══════════ BCOM HSI Tracking (CF) Fund Balance at the beginning of the year 15,769,132.999 14,569,832.887 Units issued 7,217,220.113 6,338,880.833 Units redeemed (5,588,313.372) (5,139,580.721) ─────────── ─────────── Balance at the end of the year 17,398,039.740 15,769,132.999 ═══════════ ═══════════

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(continued) Number of units in issue (continued)

2019 2018 Units Units BCOM Global Bond (CF) Fund Balance at the beginning of the year 6,003,063.243 5,148,081.179 Units issued 3,173,012.561 2,843,397.619 Units redeemed (1,818,794.601) (1,988,415.555) ─────────── ─────────── Balance at the end of the year 7,357,281.203 6,003,063.243 ═══════════ ═══════════ BCOM Greater China Equity (CF) Fund Balance at the beginning of the year 9,087,981.694 8,443,424.154 Units issued 2,155,927.403 2,139,899.077 Units redeemed (1,387,510.360) (1,495,341.537) ─────────── ─────────── Balance at the end of the year 9,856,398.737 9,087,981.694 ═══════════ ═══════════ BCOM Core Accumulation Fund Balance at the beginning of the year 5,841,918.265 3,058,423.853 Units issued 5,438,900.310 3,951,618.265 Units redeemed (1,824,473.148) (1,168,123.853) ─────────── ─────────── Balance at the end of the year 9,456,345.427 5,841,918.265 ═══════════ ═══════════ BCOM Age 65 Plus Fund Balance at the beginning of the year 2,371,760.019 1,032,742.209 Units issued 2,662,044.118 1,999,984.490 Units redeemed (1,213,623.713) (660,966.680) ─────────── ─────────── Balance at the end of the year 3,820,180.424 2,371,760.019 ═══════════ ═══════════

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(continued) Net assets attributable to members

2019 2018 HK$ HK$ BCOM Guaranteed (CF) Fund 900,880,184 866,206,314 ═════════ ═════════ BCOM MPF Conservative Fund 1,155,405,730 1,016,432,464 ═════════ ═════════ BCOM Stable Growth (CF) Fund 577,512,729 500,789,756 ═════════ ═════════ BCOM Balanced (CF) Fund 459,659,981 390,766,054 ═════════ ═════════ BCOM Dynamic Growth (CF) Fund 279,169,043 225,386,162 ═════════ ═════════ BCOM Asian Dynamic Equity (CF) Fund 468,346,880 406,971,174 ═════════ ═════════ BCOM Hong Kong Dynamic Equity (CF) Fund 444,576,211 398,991,028 ═════════ ═════════ BCOM China Dynamic Equity (CF) Fund 499,966,359 424,129,023 ═════════ ═════════ BCOM HSI Tracking (CF) Fund 569,181,430 461,209,571 ═════════ ═════════ BCOM Global Bond (CF) Fund 170,357,251 131,918,765 ═════════ ═════════ BCOM Greater China Equity (CF) Fund 264,547,790 202,638,038 ═════════ ═════════ BCOM Core Accumulation Fund 223,366,293 119,094,675 ═════════ ═════════ BCOM Age 65 Plus Fund 84,254,869 47,961,864 ═════════ ═════════

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(continued) Net assets attributable to members per unit

2019 2018 HK$ HK$ BCOM Guaranteed (CF) Fund 13.5846 13.2481 ═════════ ═════════ BCOM MPF Conservative Fund 13.4756 13.1994 ═════════ ═════════ BCOM Stable Growth (CF) Fund 16.8752 15.1202 ═════════ ═════════ BCOM Balanced (CF) Fund 18.9511 16.5284 ═════════ ═════════ BCOM Dynamic Growth (CF) Fund 30.5940 26.3917 ═════════ ═════════ BCOM Asian Dynamic Equity (CF) Fund 35.5434 31.3005 ═════════ ═════════ BCOM Hong Kong Dynamic Equity (CF) Fund 25.1531 22.4971 ═════════ ═════════ BCOM China Dynamic Equity (CF) Fund 30.6248 26.4147 ═════════ ═════════ BCOM HSI Tracking (CF) Fund 32.7153 29.2476 ═════════ ═════════ BCOM Global Bond (CF) Fund 23.1549 21.9752 ═════════ ═════════ BCOM Greater China Equity (CF) Fund 26.8402 22.2974 ═════════ ═════════ BCOM Core Accumulation Fund 23.6208 20.3862 ═════════ ═════════ BCOM Age 65 Plus Fund 22.0552 20.2221 ═════════ ═════════

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4 Critical accounting estimates and assumptions

The Trustee makes estimates and assumptions concerning the future. The resulting accounting estimates may not equal the related actual results. Estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are outlined below. Fair value of investments BCOM Guaranteed (CF) Fund holds a number of unlisted debt securities that are valued by reference to broker quotes. In determining the fair value of such investments, the Trustee exercises judgments on the sources of brokers and the quantity and quality of quotes used. Such quotes adopted to fair value the investments may be indicative and not executable or legally binding. Actual transacted prices may differ from the quotes provided by the brokers. The Trustee considers that in the absence of any other reliable market sources, the broker quotes available reflect the best estimate of fair value.

5 Financial risk management (a) Strategy in using financial instruments

The investment objective of BCOM Guaranteed (CF) Fund is to achieve long-term capital growth. The constituent fund seeks to achieve its investment objective through a diversified portfolio comprising certificates of deposit, bank deposits, debt securities, equity securities and unit trusts with an attempt to limit risk through prudent diversification in various asset classes and geographic exposures. The constituent fund is expected to provide a return in excess of the guaranteed rate of return as declared by Bank of Communications Co., Ltd., Hong Kong Branch (the “Guarantor”) from time to time. The investment objective of BCOM MPF Conservative Fund is to obtain a return that is higher than the prescribed savings rate through a diversified portfolio comprising certificates of deposit, bank deposits and debt securities. The constituent fund is expected to provide a return in excess of the prescribed savings rate as declared monthly by the MPFA. The investment objective of BCOM Stable Growth (CF) Fund is to achieve a long-term return in excess of the Hong Kong price inflation by investing in an approved pooled investment fund that invests in global bonds, equities and cash. The investment objective of BCOM Balanced (CF) Fund is to achieve a long-term return in excess of salary inflation in Hong Kong (as indicated by the Hong Kong Monthly Digest of Statistics as published by the Census and Statistics Department of the Government of the Hong Kong Special Administrative Region) by investing in an approved pooled investment fund that invests in global bonds, equities and cash. The investment objective of BCOM Dynamic Growth (CF) Fund is to maximise long-term overall returns by investing in an approved pooled investment fund that invests primarily in global equities.

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5 Financial risk management (continued) (a) Strategy in using financial instruments (continued)

The investment objective of BCOM Asian Dynamic Equity (CF) Fund is to achieve capital growth over the long term by investing in an approved pooled investment fund that invests in Asian equity markets. The investment objective of BCOM Hong Kong Dynamic Equity (CF) Fund is to achieve capital growth over the long term by investing in an approved pooled investment fund that invests mainly in Hong Kong equity markets. The investment objective of BCOM China Dynamic Equity (CF) Fund is to achieve capital growth over the long term by investing in an approved pooled investment fund that invests mainly in China related equities. The investment objective of BCOM HSI Tracking (CF) Fund is to provide investment results that closely correspond to the performance of the Hang Seng Index. The investment objective of BCOM Global Bond (CF) Fund is to achieve steady growth over the long term by investing in an approved pooled investment fund that invests mainly in global bonds. The investment objective of BCOM Greater China Equity (CF) Fund is to achieve long-term capital growth by investing in an approved pooled investment fund that invests mainly in Greater China related equities. The investment objectives of BCOM Core Accumulation Fund and BCOM Age 65 Plus Fund are to provide capital growth by investing in an approved pooled investment fund that invests in a globally diversified manner.

The Scheme and its constituent funds are exposed to market price risk, interest rate risk, credit and custody risk, liquidity risk and currency risk. The risks and the respective risk management policies employed by the Scheme and its constituent funds to manage these risks are discussed below.

(b) Market price risk

Market price risk is the risk that the value of a financial instrument will fluctuate due to changes in market prices, whether those changes are caused by factors specific to the individual instrument or factors affecting all instruments in the market. All securities investments present a risk of loss of capital. The constituent funds’ market price risk is managed through (i) deliberate securities selection, and (ii) diversification of the investment portfolio or the underlying investment portfolio of the approved pooled investment funds held. Options and futures contracts on equity indices are used from time to time to reduce market price risk on investments in equity securities. The constituent funds’ investments in underlying funds are subject to the terms and conditions of the respective funds’ offering documents and are susceptible to market price risk arising from uncertainties about future values of those funds.

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5 Financial risk management (continued) (b) Market price risk (continued)

For BCOM Guaranteed (CF) Fund and BCOM MPF Conservative Fund, BCOM Finance (Hong Kong) Limited was appointed as the Investment Manager (the “Investment Manager”). Other constituent funds invest into underlying funds managed by the underlying fund managers (the “Underlying Fund Managers”). The Trustee, with the assistance of the Investment Manager and the Underlying Fund Managers, monitors the constituent funds’ market risk position on a daily basis. In addition, the overall market positions might be lowered when the market moved largely unfavorable to the constituent funds. At the reporting date, the overall market exposures of the constituent funds are as follows:

2019 2018 Fair value % of net assets Fair value % of net assets HK$ HK$ BCOM Guaranteed (CF) Fund Debt securities 594,194,861 65.96 601,245,131 69.41 Equity securities 154,887,634 17.19 146,913,131 16.96 ────────── ────────── ────────── ────────── 749,082,495 83.15 748,158,262 86.37 ══════════ ══════════ ══════════ ══════════ BCOM Stable Growth (CF) Fund Approved pooled investment funds 577,977,786 100.08 501,171,603 100.08 ══════════ ══════════ ══════════ ══════════ BCOM Balanced (CF) Fund Approved pooled investment funds 459,968,328 100.07 391,064,209 100.08 ══════════ ══════════ ══════════ ══════════ BCOM Dynamic Growth (CF)

Fund Approved pooled investment funds 279,348,949 100.06 225,579,665 100.09 ══════════ ══════════ ══════════ ══════════ BCOM Asian Dynamic Equity

(CF) Fund Approved pooled investment funds 469,825,020 100.32 408,400,200 100.35 ══════════ ══════════ ══════════ ══════════ BCOM Hong Kong Dynamic

Equity (CF) Fund Approved pooled investment funds 444,252,420 99.93 398,904,228 99.98 ══════════ ══════════ ══════════ ══════════ BCOM China Dynamic Equity

(CF) Fund Approved pooled investment funds 497,429,351 99.49 423,749,450 99.91 ══════════ ══════════ ══════════ ══════════

- 30 -


5 Financial risk management (continued) (b) Market price risk (continued) 2019 2018 Fair value % of net assets Fair value % of net assets HK$ HK$ BCOM HSI Tracking (CF) Fund Index tracking collective

investment schemes 570,158,400 100.17 460,720,300 99.89 ══════════ ══════════ ══════════ ══════════ BCOM Global Bond (CF) Fund Approved pooled investment funds 170,543,649 100.11 131,774,726 99.89 ══════════ ══════════ ══════════ ══════════ BCOM Greater China Equity

(CF) Fund Approved pooled investment funds 264,555,098 100.00 202,817,422 100.09 ══════════ ══════════ ══════════ ══════════ BCOM Core Accumulation Fund Approved pooled investment funds 222,502,628 99.61 119,038,087 99.95 ══════════ ══════════ ══════════ ══════════ BCOM Age 65 Plus Fund Approved pooled investment funds 83,737,048 99.39 47,932,953 99.94 ══════════ ══════════ ══════════ ══════════

- 31 -



BCOM Guaranteed (CF) Fund The table below shows the net market exposure BCOM Guaranteed (CF) Fund has to various markets, incorporating the underlying market risk through all financial assets and liabilities held by the constituent fund.

2019 2018 HK$ HK$ Australia 36,884,348 41,911,325 Canada 27,936,939 12,825,020 China 124,235,317 125,036,897 Germany 9,932,221 9,854,857 Hong Kong 434,189,334 448,642,641 Japan 25,053,813 - South Korea 43,767,833 68,523,121 Sweden 1,559,800 160,000 Switzerland 20,102,615 20,078,244 United Kingdom 21,055,605 19,626,977 United States 2,907,240 1,457,430 Virgin Islands, British 1,457,430 41,750 ────────── ────────── 749,082,495 748,158,262 ══════════ ═════════

The net exposures to sectors at the reporting date are as follows:

2019 2018 % % Communications 4.88 4.50 Consumer - Cyclical 4.97 1.87 Consumer - Non cyclical 0.41 0.04 Diversified 0.55 0.58 Energy 2.94 3.45 Financial 51.26 45.40 Government 28.74 36.39 Industrial 5.35 6.19 Technology 0.19 0.87 Utilities 0.71 0.71 ───────── ───────── 100.00 100.00 ═════════ ═════════

Other than those securities issued or guaranteed by the government and other bodies permitted by the MPFA, there were no individual investments with fair value exceeding 10% of the constituent fund’s net asset value at 31 December 2019 and 2018.

- 32 -



BCOM Guaranteed (CF) Fund There were no individual investments with fair value exceeding 10% of the constituent fund’s net asset value at 31 December 2019 and 2018. BCOM MPF Conservative Fund, BCOM Stable Growth (CF) Fund, BCOM Balanced (CF) Fund, BCOM Dynamic Growth (CF) Fund, BCOM Asian Dynamic Equity (CF) Fund, BCOM Hong Kong Dynamic Equity (CF) Fund, BCOM China Dynamic Equity (CF) Fund, BCOM HSI Tracking (CF) Fund, BCOM Global Bond (CF) Fund, BCOM Greater China Equity (CF) Fund, BCOM Core Accumulation Fund and BCOM Age 65 Plus Fund For BCOM MPF Conservative Fund, no market exposures and sector exposures are disclosed as it solely invests in bank deposits in 2019 and 2018. For BCOM Stable Growth (CF) Fund, BCOM Balanced (CF) Fund, BCOM Dynamic Growth (CF) Fund, BCOM Asian Dynamic Equity (CF) Fund, BCOM Hong Kong Dynamic Equity (CF) Fund, BCOM China Dynamic Equity (CF) Fund, BCOM HSI Tracking (CF) Fund, BCOM Global Bond (CF) Fund, BCOM Greater China Equity (CF) Fund, BCOM Core Accumulation Fund and BCOM Age 65 Plus Fund, no market exposures and sector exposures are disclosed as each of these constituent funds solely invests in one approved pooled investment fund or index tracking collective investment scheme. BCOM Guaranteed (CF) Fund If the relevant benchmark1 of the constituent fund’s equity investments at 31 December 2019 had increased/decreased by 3% with all other variables held constant, this would have increased/decreased net assets attributable to members by approximately 0.53% or HK$4,786,000 (2018: 0.52% or HK$4,496,000).

BCOM MPF Conservative Fund BCOM MPF Conservative Fund mainly invests in short-term bank deposits with an average portfolio remaining maturity period of not more than 90 days. The price sensitivity of the investments would therefore mainly be driven by interest rate movements. For details of interest rate sensitivity analysis, please refer to note 5(c). BCOM Stable Growth (CF) Fund If the relevant benchmark2 of the constituent fund at 31 December 2019 had increased/decreased by 3% with all other variables held constant, this would have increased/decreased net assets attributable to members by approximately 2.77% or HK$16,025,000 (2018: 2.76% or HK$13,837,000).

The following benchmark indices are consistent for 2019 and 2018 unless otherwise stated:

1 Benchmark: 100% Hang Seng Index

2 Benchmark: 17% FTSE MPF Hong Kong + 6.5% FTSE MPF Asia Pacific ex Japan ex HK + 10% FTSE N. America + 10% FTSE Europe + 6.5% FTSE

Japan + 11.25% Citi WGBI MPF (100% hedged to HKD) + 33.75% Citigroup World Government Bond + 5% MPFA Prescribed Savings Rate

- 33 -



BCOM Balanced (CF) Fund If the relevant benchmark3 of the constituent fund at 31 December 2019 had increased/decreased by 3% with all other variables held constant, this would have increased/decreased net assets attributable to members by approximately 2.80% or HK$12,892,000 (2018: 2.79% or HK$10,907,000). BCOM Dynamic Growth (CF) Fund If the relevant benchmark4 of the constituent fund at 31 December 2019 had increased/decreased by 3% with all other variables held constant, this would have increased/decreased net assets attributable to members by approximately 2.77% or HK$7,726,000 (2018: 2.64% or HK$5,942,000). BCOM Asian Dynamic Equity (CF) Fund If the relevant benchmark5 of the constituent fund at 31 December 2019 had increased/decreased by 3% with all other variables held constant, this would have increased/decreased net assets attributable to members by approximately 2.93% or HK$13,717,000 (2018: 2.92% or HK$11,887,000). BCOM Hong Kong Dynamic Equity (CF) Fund If the relevant benchmark6 of the constituent fund at 31 December 2019 had increased/decreased by 3% with all other variables held constant, this would have increased/decreased net assets attributable to members by approximately 3.03% or HK$13,482,000 (2018: 3.03% or HK$12,103,000). BCOM China Dynamic Equity (CF) Fund If the relevant benchmark7 of the constituent fund at 31 December 2019 had increased/decreased by 3% with all other variables held constant, this would have increased/decreased net assets attributable to members by approximately 2.92% or HK$14,602,000 (2018: 2.93% or HK$12,411,000).

3 Benchmark: 24% FTSE MPF Hong Kong + 9% FTSE MPF Asia Pacific ex Japan ex HK + 14% FTSE N. America + 14% FTSE Europe + 9% FTSE Japan +

6.25% Citi WGBI MPF (100% hedged to HKD) + 18.75% Citigroup World Government Bond + 5% MPFA Prescribed Savings Rate

4 Benchmark: The benchmark has changed from 30% FTSE MPF Hong Kong + 18% FTSE AW N. America + 18% FTSE AW Europe + 12% FTSE Japan + 12%

FTSE AW Asia Pac ex Japan ex HK + 5.25% Citi WGBI All Maturities (US$) + 3% MPFA Prescribed Savings Rate + 1.75% Citi WGBI All Maturities (US$

Hedged) to 30% FTSE MPF Hong Kong + 18% FTSE AW N. America + 18% FTSE AW Europe + 12% FTSE Japan + 12% FTSE AW Asia Pac ex Japan, HK

& China + 7% Citigroup WGBI, 25% HK$ hedged + 3% MPFA Prescribed Savings Rate

5 Benchmark: Internal composite benchmark

6 Benchmark: 46% BMI China + 46% BMI HK + 8% HSBC

7 Benchmark: 100% MSCI MPF China Net Return Index

- 34 -



BCOM HSI Tracking (CF) Fund If the relevant benchmark8 of the constituent fund at 31 December 2019 had increased/decreased by 3% with all other variables held constant, this would have increased/decreased net assets attributable to members by approximately 2.93% or HK$16,673,000 (2018: 2.93% or HK$13,517,000). BCOM Global Bond (CF) Fund If the relevant benchmark9 of the constituent fund at 31 December 2019 had increased/decreased by 3% with all other variables held constant, this would have increased/decreased net assets attributable to members by approximately 2.48% or HK$4,230,000 (2018: 2.40% or HK$3,170,000). BCOM Greater China Equity (CF) Fund If the relevant benchmark10 of the constituent fund at 31 December 2019 had increased/decreased by 3% with all other variables held constant, this would have increased/decreased net assets attributable to members by approximately 2.77% or HK$7,326,000 (2018: 2.98% or HK$6,037,000). BCOM Core Accumulation Fund If the relevant benchmark11 of the constituent fund at 31 December 2019 had increased/decreased by 3% with all other variables held constant, this would have increased/decreased net assets attributable to members by approximately 2.98% or HK$6,657,000 (2018: 2.88% or HK$3,426,000).

8 Benchmark: 100% Hang Seng Index

9 Benchmark: 70% Barclays Capital Global Aggregate (Unhedged) + 30% Markit iBoxx ALBI Hong Kong

10 Benchmark: 100% MSCI Golden Dragon

11 Benchmark: 60% FTSE MPF All-World Index (Version: unhedged, total return) + 37% Citi MPF WGBI Index (Version: hedged to HKD, total return) + 3% MPF

Prescribed Savings Rate

- 35 -



BCOM Age 65 Plus Fund If the relevant benchmark12 of the constituent fund at 31 December 2019 had increased/decreased by 3% with all other variables held constant, this would have increased/decreased net assets attributable to members by approximately 2.86% or HK$2,407,000 (2018: 2.63% or HK$1,261,000). The Trustee, with the assistance of the Investment Manager and the Underlying Fund Managers, has used its view of what would be a reasonably possible shift in each key market to estimate the change for use in the market price sensitivity analysis above. Disclosures above are shown in absolute terms, changes and impacts could be positive or negative. Changes in market index % are revised annually depending on the Trustee’s current view of market volatility and other relevant factors with the assistance of the Investment Manager and the Underlying Fund Managers.

12 Benchmark: 20% FTSE MPF All-World Index (Version: unhedged, total return) + 77% Citi MPF WGBI Index (Version: hedged to HKD, total return) + 3% MPF

Prescribed Savings Rate

- 36 -


5 Financial risk management (continued)

(c) Interest rate risk Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. The Scheme and its constituent funds had bank balances of HK$20,495,397 (2018: HK$13,207,985) and HK$1,306,200,370 (2018: HK$1,135,020,972) respectively at 31 December 2019 which were invested at short-term market interest rates and were therefore exposed to minimal interest rate risk on these bank balances. The majority of the constituent funds’ financial assets and liabilities are non-interest bearing, other than BCOM Guaranteed (CF) Fund and BCOM MPF Conservative Fund as described below. As a result, the constituent funds, other than BCOM Guaranteed (CF) Fund and BCOM MPF Conservative Fund, are not subject to significant amounts of risk due to fluctuations in the prevailing levels of market interest rates on their financial positions and cash flows. The tables below summarise the exposures to interest rate risk of BCOM Guaranteed (CF) Fund and BCOM MPF Conservative Fund. They include the constituent funds’ assets and liabilities, categorised by the earlier of contractual re-pricing and maturity dates. BCOM Guaranteed (CF) Fund

Up to 1 year 1 - 5 years Over 5 years

Non-interest

bearing Total

HK$ HK$ HK$ HK$ HK$

At 31 December 2019

Assets

Investments 172,649,782 402,825,555 18,719,524 154,887,634 749,082,495

Bank balances 146,669,056 - - - 146,669,056

Other assets - - - 7,882,514 7,882,514

───────── ───────── ───────── ───────── ─────────

319,318,838 402,825,555 18,719,524 162,770,148 903,634,065

Liabilities

Other liabilities - - - (2,753,881) (2,753,881)

───────── ───────── ─────────

Total interest sensitivity gap 319,318,838 402,825,555 18,719,524

═════════ ═════════ ═════════

At 31 December 2018

Assets

Investments 96,443,095 475,117,493 29,684,543 146,913,131 748,158,262

Bank balances 115,399,370 - - - 115,399,370

Other assets - - - 6,101,530 6,101,530

───────── ───────── ───────── ───────── ─────────

211,842,465 475,117,493 29,684,543 153,014,661 869,659,162

Liabilities


───────── ───────── ─────────


═════════ ═════════ ═════════

- 37 -



(c) Interest rate risk (continued) BCOM Guaranteed (CF) Fund (continued) The Trustee, with the assistance of the Investment Manager, monitors BCOM Guaranteed (CF) Fund’s overall interest rate sensitivity on a daily basis by reviewing the average maturity of the debt securities held. At 31 December 2019, should interest rates have lowered/risen by 50 basis points with all other variables held constant, the increase/decrease in net assets attributable to members would amount to approximately HK$5,609,000 (2018: HK$6,317,000), arising substantially from the increase/decrease in fair value of debt securities. BCOM MPF Conservative Fund

Up to 1

month 1 - 3 months 3 - 12 months

Non-interest

bearing Total

HK$ HK$ HK$ HK$ HK$

At 31 December 2019

Assets

Bank balances 375,453,413 559,475,116 219,879,552 - 1,154,808,081

Other assets - - - 8,836,687 8,836,687

───────── ───────── ───────── ───────── ──────────

375,453,413 559,475,116 219,879,552 8,836,687 1,163,644,768

Liabilities


───────── ───────── ─────────


═════════ ═════════ ═════════

At 31 December 2018

Assets

Bank balances 299,054,300 493,497,474 223,699,678 - 1,016,251,452

Other assets - - - 5,210,448 5,210,448

───────── ───────── ───────── ───────── ──────────

299,054,300 493,497,474 223,699,678 5,210,448 1,021,461,900

Liabilities


───────── ───────── ─────────


═════════ ═════════ ═════════

At 31 December 2019 and 2018, BCOM MPF Conservative Fund was not subject to fair value interest rate risk on debt securities since it did not hold any debt securities.

- 38 -



(d) Credit and custody risk Credit risk is the risk that an issuer or a counterparty will be unable or unwilling to pay amounts in full when due. Certain transactions entered into by the constituent funds may expose them to risks associated with counterparties not able to fulfill their obligations. To mitigate this risk, the constituent funds only buy and sell through brokers who have been approved as an acceptable counterparty according to the Trustee’s internal counterparty credit review procedures, with the assistance of the Investment Manager and the Underlying Fund Managers. The Scheme’s financial assets which are potentially subject to credit risk consist principally of bank balances of HK$20,495,397 (2018: HK$13,207,985) which are placed with Bank of Communications Co., Ltd., Hong Kong Branch with credit rating at 31 December 2019 of A2 (2018: A2) issued by Moody’s. The constituent funds’ financial assets which are potentially subject to credit risk consist principally of bank balances and assets held with the custodian. The tables below summarise the assets placed with banks and the custodian at the reporting date which individually exceeds 1% of net assets.

BCOM Guaranteed (CF) Fund

HK$

Credit rating

Source of credit rating

At 31 December 2019 Custodian Citibank, N.A. 749,082,495 Aa3 Moody’s

Banks

Agricultural Bank of China Limited, Hong Kong Branch

48,143,995

A1

Moody’s

Bank of Communications Co., Ltd., Hong Kong Branch

36,015,812

A2

Moody’s


30,283,503

Baa2

Moody’s

Citibank, N.A. 20,225,746 Aa3 Moody’s CMB Wing Lung Bank Ltd. 12,000,000 A3 Moody’s

- 39 -



(d) Credit and custody risk (continued)

BCOM Guaranteed (CF) Fund (continued)

HK$

Credit rating


At 31 December 2018 Custodian Citibank, N.A. 748,158,262 Aa3 Moody’s

Banks

Agricultural Bank of China Limited, Hong Kong Branch

14,507,081

A1

Moody’s

Bank of Communications Co., Ltd., Hong Kong Branch

30,893,459

A2

Moody’s


53,757,843

Baa2

Moody’s

Citibank, N.A. 16,240,987 Aa3 Moody’s As BCOM Guaranteed (CF) Fund holds debt securities, it is also exposed to the risk that the issuers may not be able to repay the principal amount at maturity and interest. The credit risk is mitigated as the debt securities held are subject to the requirements of (i) minimum credit rating, and (ii) maximum holding of 10% of net asset value for any single issuer other than those issued or guaranteed by the government and other bodies permitted by the MPFA. The table below summarises the credit rating of the portfolio of debt securities of BCOM Guaranteed (CF) Fund by S&P/Moody’s.

2019 2018 % % Aa1/AA+ 32.89 34.39 Aa2/AA 13.75 21.07 Aa3/AA- 10.42 6.97 A1/A+ 21.56 22.11 A2/A 21.38 15.46 ─────── ─────── 100.00 100.00 ═══════ ═══════

- 40 -



(d) Credit and custody risk (continued)

BCOM MPF Conservative Fund

HK$

Credit rating


At 31 December 2019

Banks Agricultural Bank of China Limited,

Hong Kong Branch

88,455,568

A1

Moody’s Bank of Communications Co., Ltd.,

Hong Kong Branch

86,985,284

A2

Moody’s China CITIC Bank International Ltd. 59,575,438 Baa2 Moody’s China Construction Bank Corporation,

Hong Kong Branch

55,208,793

A1

Moody’s China Everbright Bank,

Hong Kong Branch

88,684,806

Baa2

Moody’s China Merchants Bank Co., Ltd.,

Hong Kong Branch

67,137,872

A3

Moody’s Chiyu Banking Corporation Limited 90,691,777 Baa1 Moody’s Chong Hing Bank Limited 84,844,843 Baa1 Moody’s CMB Wing Lung Bank Ltd. 71,186,486 A3 Moody’s DBS Bank (Hong Kong) Limited 12,132,241 A1 Moody’s Fubon Bank (Hong Kong) Limited 82,791,841 BBB+ S&P Industrial and Commercial Bank of

China (Asia) Limited

78,365,153

A1

Moody’s Nanyang Commercial Bank Ltd. 50,914,591 A3 Moody’s OCBC Wing Hang Bank Ltd. 62,010,919 A1 Moody’s Public Bank (Hong Kong) Limited 79,025,054 A3 Moody’s Shanghai Commercial Bank Limited 41,472,486 A2 Moody’s The Bank of East Asia Ltd. 55,233,563 A3 Moody’s

- 41 -



(d) Credit and custody risk (continued) BCOM MPF Conservative Fund (continued)

HK$

Credit rating


At 31 December 2018

Banks Agricultural Bank of China Limited,

Hong Kong Branch

75,490,726

A1

Moody’s Bank of Communications Co., Ltd.,

Hong Kong Branch

78,702,654

A2

Moody’s China CITIC Bank International Ltd. 26,400,104 Baa2 Moody’s China Construction Bank Corporation,

Hong Kong Branch

69,357,651

A1

Moody’s China Everbright Bank,

Hong Kong Branch

75,471,499

Baa2

Moody’s China Merchants Bank Co., Ltd.,

Hong Kong Branch

65,649,117

A3

Moody’s Chiyu Banking Corporation Limited 71,975,717 Baa1 Moody’s Chong Hing Bank Limited 73,228,371 Baa1 Moody’s CMB Wing Lung Bank Ltd. 65,883,500 A3 Moody’s Fubon Bank (Hong Kong) Limited 59,885,482 BBB+ S&P Industrial and Commercial Bank of

China (Asia) Limited

71,237,409

A1

Moody’s Nanyang Commercial Bank Ltd. 20,310,639 A3 Moody’s OCBC Wing Hang Bank Ltd. 67,732,380 A1 Moody’s Public Bank (Hong Kong) Limited 72,331,621 A3 Moody’s Shanghai Commercial Bank Limited 42,936,074 A2 Moody’s The Bank of East Asia Ltd. 70,477,986 A3 Moody’s

- 42 -



(d) Credit and custody risk (continued) At 31 December 2019 and 2018, the constituent funds, other than BCOM Guaranteed (CF) Fund and BCOM MPF Conservative Fund, invested in approved pooled investment funds or index tracking collective investment schemes established by reputable fund managers. Their bank balances did not exceed 1% of the respective net assets. As such, these constituent funds were not exposed to significant credit risk. The Trustee, with the assistance of the Investment Manager and the Underlying Fund Managers, monitors the constituent funds’ credit position on a daily basis by reviewing any changes in credit ratings for the securities held and counterparties. The Scheme and its constituent funds measure credit risk and expected credit losses using probability of default, exposure at default and loss given default. Management considers both historical analysis and forward looking information in determining any expected credit losses. Management considers the probability of default to be insignificant as the counterparties generally have a strong capacity to meet their contractual obligations in the near term. As a result, no loss allowance has been recognised based on 12-month expected credit losses as any such impairment would be wholly insignificant to the Scheme and its constituent funds. The maximum exposure to credit risk at the reporting date is the carrying amounts of the financial assets as shown in the statement of net assets available for benefits for the Scheme and the statement of net assets for the constituent funds. None of the assets is impaired nor past due but not impaired.

- 43 -



(e) Liquidity risk Liquidity risk is the risk that an entity will encounter difficulty in settling its liabilities, including a redemption request. The constituent funds are exposed to daily cash redemption of units in the constituent funds. The constituent funds invest in debt securities, equity securities, approved pooled investment funds and index tracking collective investment schemes that are traded in an active market and can be readily disposed of. The majority of the financial liabilities of the Scheme and its constituent funds are due within 1 month based on the remaining period at the reporting date to the contractual maturity date. Balances due within 12 months equal their carrying amounts, as the impact of discounting is not significant. Units are redeemable at the members’ option. At 31 December 2019 and 2018, no individual member held more than 10% of each constituent fund’s units. The Trustee, with the assistance of the Investment Manager and the Underlying Fund Managers, manages the constituent funds’ liquidity risk on a daily basis by investing predominantly in investments that it expects to be able to realise within 7 days or less. The tables below illustrate the expected liquidity of assets held.

Less than

7 days 7 days to 1 month

HK$ HK$ BCOM Guaranteed (CF) Fund At 31 December 2019 Total assets 903,634,065 - ═════════ ═════════ At 31 December 2018 Total assets 869,659,162 - ═════════ ═════════

BCOM MPF Conservative Fund

At 31 December 2019 Total assets 1,163,644,768 - ═════════ ═════════ At 31 December 2018 Total assets 1,021,461,900 - ═════════ ═════════

- 44 -



(e) Liquidity risk (Continued)

Less than 7 days

7 days to 1 month

HK$ HK$

BCOM Stable Growth (CF) Fund

At 31 December 2019 Total assets 579,210,340 - ═════════ ═════════ At 31 December 2018 Total assets 501,607,062 - ═════════ ═════════

BCOM Balanced (CF) Fund At 31 December 2019 Total assets 461,462,870 - ═════════ ═════════ At 31 December 2018 Total assets 391,439,056 - ═════════ ═════════

BCOM Dynamic Growth (CF) Fund At 31 December 2019 Total assets 279,831,397 - ═════════ ═════════ At 31 December 2018 Total assets 225,956,168 - ═════════ ═════════

BCOM Asian Dynamic Equity (CF) Fund At 31 December 2019 Total assets 470,786,624 - ═════════ ═════════ At 31 December 2018 Total assets 409,060,411 - ═════════ ═════════

- 45 -



(e) Liquidity risk (continued)

Less than 7 days

7 days to 1 month

HK$ HK$ BCOM Hong Kong Dynamic Equity (CF) Fund At 31 December 2019 Total assets 446,705,463 - ═════════ ═════════ At 31 December 2018 Total assets 401,250,226 - ═════════ ═════════

BCOM China Dynamic Equity (CF) Fund At 31 December 2019 Total assets 502,198,919 - ═════════ ═════════ At 31 December 2018 Total assets 425,580,645 - ═════════ ═════════

BCOM HSI Tracking (CF) Fund At 31 December 2019 Total assets 575,631,892 - ═════════ ═════════ At 31 December 2018 Total assets 462,704,203 - ═════════ ═════════

BCOM Global Bond (CF) Fund At 31 December 2019 Total assets 170,917,206 - ═════════ ═════════ At 31 December 2018 Total assets 132,343,660 - ═════════ ═════════

- 46 -



(e) Liquidity risk (continued)

Less than 7 days

7 days to 1 month

HK$ HK$ BCOM Greater China Equity (CF) Fund At 31 December 2019 Total assets 265,133,297 - ═════════ ═════════ At 31 December 2018 Total assets 203,308,459 - ═════════ ═════════

BCOM Core Accumulation Fund At 31 December 2019 Total assets 224,325,650 - ═════════ ═════════ At 31 December 2018 Total assets 120,080,896 - ═════════ ═════════

BCOM Age 65 Plus Fund At 31 December 2019 Total assets 85,429,244 - ═════════ ═════════ At 31 December 2018 Total assets 48,219,043 - ═════════ ═════════

(f) Currency risk

Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. The Scheme and its constituent funds have assets and liabilities which are mainly denominated in the Hong Kong dollar, the functional and presentation currency, and the United States dollar which is currently linked to the Hong Kong dollar within a narrow range. As such, there is no significant exposure to currency risk. For BCOM Guaranteed (CF) Fund, there were also offshore Renminbi bonds of HK$24,796,502 (2018: HK$38,179,460) and deposits of HK$43,014,464 (2018: HK$29,038,882) placed with banks in Hong Kong at 31 December 2019. Should the RMB/HKD exchange rate have appreciated/depreciated by 3% with all other variables held constant, the increase/decrease in net assets attributable to members would amount to approximately HK$2,034,000 (2018: HK$2,017,000).

- 47 -


5 Financial risk management (continued) (g) Fair value estimation

The constituent funds classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1). Inputs other than quoted prices included within level 1 that are observable for the asset

or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2).

Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).

The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability. The determination of what constitutes observable requires significant judgement by the constituent funds. The constituent funds consider observable data to be such market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.

The tables below analyse within the fair value hierarchy the constituent funds’ financial assets (by class) measured at fair value at the reporting date.

Level 1 Level 2 Total

HK$ HK$ HK$ BCOM Guaranteed (CF) Fund At 31 December 2019 Assets Debt securities 192,457,190 401,737,671 594,194,861 Equity securities 153,430,204 1,457,430 154,887,634 ───────── ───────── ───────── 345,887,394 403,195,101 749,082,495 ═════════ ═════════ ═════════ At 31 December 2018 Assets Debt securities 238,067,277 363,177,854 601,245,131 Equity securities 146,871,381 41,750 146,913,131 ───────── ───────── ───────── 384,938,658 363,219,604 748,158,262 ═════════ ═════════ ═════════

- 48 -


5 Financial risk management (continued) (g) Fair value estimation (continued)

Level 1 Level 2 Total

HK$ HK$ HK$ BCOM Stable Growth (CF) Fund At 31 December 2019 Assets Approved pooled investment funds 577,977,786 - 577,977,786 ═════════ ═════════ ═════════ At 31 December 2018 Assets Approved pooled investment funds 501,171,603 - 501,171,603 ═════════ ═════════ ═════════

BCOM Balanced (CF) Fund At 31 December 2019 Assets Approved pooled investment funds 459,968,328 - 459,968,328 ═════════ ═════════ ═════════ At 31 December 2018 Assets Approved pooled investment funds 391,064,209 - 391,064,209 ═════════ ═════════ ═════════

BCOM Dynamic Growth (CF) Fund At 31 December 2019 Assets Approved pooled investment funds 279,348,949 - 279,348,949 ═════════ ═════════ ═════════ At 31 December 2018 Assets Approved pooled investment funds 225,579,665 - 225,579,665 ═════════ ═════════ ═════════

- 49 -


5 Financial risk management (continued) (g) Fair value estimation (continued) Level 1 Level 2 Total HK$ HK$ HK$

BCOM Asian Dynamic Equity (CF) Fund At 31 December 2019 Assets Approved pooled investment funds 469,825,020 - 469,825,020 ═════════ ═════════ ═════════ At 31 December 2018 Assets Approved pooled investment funds 408,400,200 - 408,400,200 ═════════ ═════════ ═════════

BCOM Hong Kong Dynamic Equity (CF) Fund At 31 December 2019 Assets Approved pooled investment funds 444,252,420 - 444,252,420 ═════════ ═════════ ═════════ At 31 December 2018 Assets Approved pooled investment funds 398,904,228 - 398,904,228 ═════════ ═════════ ═════════

BCOM China Dynamic Equity (CF) Fund At 31 December 2019 Assets Approved pooled investment funds 497,429,351 - 497,429,351 ═════════ ═════════ ═════════ At 31 December 2018 Assets Approved pooled investment funds 423,749,450 - 423,749,450 ═════════ ═════════ ═════════

- 50 -



(g) Fair value estimation (continued) Level 1 Level 2 Total HK$ HK$ HK$ BCOM HSI Tracking (CF) Fund At 31 December 2019 Assets

Index tracking collective investment schemes 570,158,400 - 570,158,400

═════════ ═════════ ═════════ At 31 December 2018 Assets

Index tracking collective investment schemes 460,720,300 - 460,720,300

═════════ ═════════ ═════════

BCOM Global Bond (CF) Fund At 31 December 2019 Assets Approved pooled investment funds 170,543,649 - 170,543,649 ═════════ ═════════ ═════════ At 31 December 2018 Assets Approved pooled investment funds 131,774,726 - 131,774,726 ═════════ ═════════ ═════════

BCOM Greater China Equity (CF) Fund At 31 December 2019 Assets Approved pooled investment funds 264,555,098 - 264,555,098 ═════════ ═════════ ═════════ At 31 December 2018 Assets Approved pooled investment funds 202,817,422 - 202,817,422 ═════════ ═════════ ═════════

- 51 -



(g) Fair value estimation (continued) Level 1 Level 2 Total HK$ HK$ HK$ BCOM Core Accumulation Fund At 31 December 2019 Assets Approved pooled investment funds 222,502,628 - 222,502,628 ═════════ ═════════ ═════════ At 31 December 2018 Assets Approved pooled investment funds 119,038,087 - 119,038,087 ═════════ ═════════ ═════════

BCOM Age 65 Plus Fund At 31 December 2019 Assets Approved pooled investment funds 83,737,048 - 83,737,048 ═════════ ═════════ ═════════ At 31 December 2018 Assets Approved pooled investment funds 47,932,953 - 47,932,953 ═════════ ═════════ ═════════

There were no transfer of investments between levels in 2019 and 2018. Investments whose values are based on quoted market prices in active markets are classified within level 1. The constituent funds do not adjust the quoted prices for these investments. Investments that trade in markets that are not considered to be active and are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs are classified within level 2. Investments classified within level 3 have significant unobservable inputs, as they trade infrequently. At 31 December 2019 and 2018, the constituent funds did not hold any investments classified within level 3. The assets and liabilities in the statement of net assets available for benefits for the Scheme and the statement of net assets for the constituent funds, other than investments in constituent funds and investments (including derivative financial instruments), at 31 December 2019 and 2018 are carried at amortised cost; their carrying amounts are a reasonable approximation of fair value.

- 52 -



(h) Capital risk management The capital of the constituent funds is represented by the units in the constituent funds, and shown as net assets attributable to members in the statement of net assets. The amount of net assets attributable to members for each constituent fund can change significantly on a daily basis as the constituent funds are subject to daily subscriptions and redemptions at the discretion of members. Subscription and redemption of units during the period are shown in the statement of changes in net assets attributable to members. The constituent funds’ objective when managing capital is to safeguard the constituent funds’ ability to continue as a going concern in order to provide retirement benefits to members. In order to achieve the investment objectives, the constituent funds endeavour to invest their capital in accordance with the investment policies as outlined in note 5(a), whilst maintaining sufficient liquidity to meet redemption requests. Such liquidity is augmented by the holding of liquid investments. The Trustee, with the assistance of the Investment Manager and the Underlying Fund Managers, monitors capital on the basis of the value of net assets attributable to members.

6 Net gain/(loss) on investments

2019 2018 HK$ HK$ BCOM Guaranteed (CF) Fund Unrealised gain/(loss) on investments (excluding

derivative financial instruments) 14,146,429 (33,475,619) Realised gain on investments (excluding derivative

financial instruments) 4,206,105 5,572,329 Unrealised gain on derivative financial instruments - 95,500 Realised (loss)/gain on derivative financial instruments (531,250) 1,654,100 ───────── ───────── Net gain/(loss) on investments 17,821,284 (26,153,690) ═════════ ═════════

BCOM Stable Growth (CF) Fund

Unrealised gain/(loss) on investments 56,377,451 (44,738,544) Realised gain on investments 7,390,746 5,903,488 ───────── ───────── Net gain/(loss) on investments 63,768,197 (38,835,056) ═════════ ═════════



- 53 -


6 Net gain/(loss) on investments (continued)

2019 2018 HK$ HK$ BCOM Dynamic Growth (CF) Fund Unrealised gain/(loss) on investments 36,185,023 (42,782,032) Realised gain on investments 3,515,089 5,878,277 ───────── ───────── Net gain/(loss) on investments 39,700,112 (36,903,755) ═════════ ═════════

BCOM Asian Dynamic Equity (CF) Fund


BCOM Hong Kong Dynamic Equity (CF) Fund


BCOM China Dynamic Equity (CF) Fund


BCOM HSI Tracking (CF) Fund


BCOM Global Bond (CF) Fund Unrealised gain/(loss) on investments 7,957,556 (2,644,058) Realised gain on investments 1,037,399 718,662 ───────── ───────── Net gain/(loss) on investments 8,994,955 (1,925,396) ═════════ ═════════

- 54 -


6 Net gain/(loss) on investments (continued)

2019 2018 HK$ HK$

BCOM Greater China Equity (CF) Fund


BCOM Core Accumulation Fund

Unrealised gain/(loss) on investments 23,883,856 (7,838,429) Realised gain on investments 167,396 95,989 ───────── ───────── Net gain/(loss) on investments 24,051,252 (7,742,440) ═════════ ═════════

BCOM Age 65 Plus Fund

Unrealised gain/(loss) on investments 5,208,471 (455,012) Realised gain on investments 286,321 992 ───────── ───────── Net gain/(loss) on investments 5,494,792 (454,020) ═════════ ═════════

7 Transactions with related parties

Other than as disclosed below, the Scheme and its constituent funds did not have any transactions and balances with related parties, including the Trustee, the Investment Manager and their associates or delegates during the period. All transactions were entered into in the ordinary course of business and on normal commercial terms.

(a) Trustee fee The Trustee is entitled to receive a fee equal to 0.5% per annum of the net asset value of the respective constituent funds with a permitted maximum of 0.75% per annum. The trustee fee for BCOM MPF Conservative Fund is deducted in accordance with section 37 of the Hong Kong Mandatory Provident Fund Schemes (General) Regulation (the “General Regulation”). The trustee fee is calculated and accrued daily and payable monthly in arrears.

- 55 -


7 Transactions with related parties (continued)

(a) Trustee fee (continued) The trustee fee for each constituent fund incurred during the years ended 31 December 2019 and 2018 is disclosed in the statement of comprehensive income of the constituent funds. The trustee fee payable at the reporting date is as follows:

2019 2018 HK$ HK$

BCOM Guaranteed (CF) Fund 380,598 367,766 ═════════ ═════════ BCOM MPF Conservative Fund - - ═════════ ═════════ BCOM Stable Growth (CF) Fund 242,598 212,536 ═════════ ═════════ BCOM Balanced (CF) Fund 192,721 166,830 ═════════ ═════════

BCOM Dynamic Growth (CF) Fund 116,465 96,664 ═════════ ═════════ BCOM Asian Dynamic Equity (CF) Fund 195,341 174,089 ═════════ ═════════ BCOM Hong Kong Dynamic Equity (CF) Fund 184,725 170,924 ═════════ ═════════ BCOM China Dynamic Equity (CF) Fund 205,994 183,101 ═════════ ═════════ BCOM HSI Tracking (CF) Fund 236,582 195,670 ═════════ ═════════ BCOM Global Bond (CF) Fund 71,792 55,173 ═════════ ═════════ BCOM Greater China Equity (CF) Fund 109,323 86,910 ═════════ ═════════ BCOM Core Accumulation Fund 91,477 50,394 ═════════ ═════════ BCOM Age 65 Plus Fund 35,472 19,901 ═════════ ═════════

- 56 -


7 Transactions with related parties (continued) (b) Administration fee

The administrator, Bank of Communications Trustee Limited, is entitled to receive a fee at the following percentage per annum of the net asset value of the respective constituent funds.

Fee rate

Permitted maximum

BCOM Guaranteed (CF) Fund 0.6875% 1.25% BCOM MPF Conservative Fund 0.2175% 1.25% BCOM Stable Growth (CF) Fund 0.3750% 0.75% BCOM Balanced (CF) Fund 0.3750% 0.75% BCOM Dynamic Growth (CF) Fund 0.6250% 1.00% BCOM Asian Dynamic Equity (CF) Fund 0.7050% 1.00% BCOM Hong Kong Dynamic Equity (CF) Fund 0.5850% 1.00% BCOM China Dynamic Equity (CF) Fund 0.6850% 1.00% BCOM HSI Tracking (CF) Fund 0.2500% 1.00% BCOM Global Bond (CF) Fund 0.0400% 1.00% BCOM Greater China Equity (CF) Fund 0.6050% 1.00% BCOM Core Accumulation Fund 0.0900% N/A BCOM Age 65 Plus Fund 0.0900% N/A

- 57 -


7 Transactions with related parties (continued) (b) Administration fee (continued)

The administration fee for BCOM MPF Conservative Fund is deducted in accordance with section 37 of the General Regulation. The administration fee is calculated and accrued daily and payable monthly in arrears. The administration fee for each constituent fund incurred during the years ended 31 December 2019 and 2018 is disclosed in the statement of comprehensive income of the constituent funds. The administration fee payable at the reporting date is as follows:

2019 2018 HK$ HK$ BCOM Guaranteed (CF) Fund 523,322 505,678 ═════════ ═════════ BCOM MPF Conservative Fund - - ═════════ ═════════ BCOM Stable Growth (CF) Fund 181,948 159,402 ═════════ ═════════ BCOM Balanced (CF) Fund 144,541 125,123 ═════════ ═════════ BCOM Dynamic Growth (CF) Fund 145,581 120,830 ═════════ ═════════ BCOM Asian Dynamic Equity (CF) Fund 275,431 245,466 ═════════ ═════════ BCOM Hong Kong Dynamic Equity (CF) Fund 216,128 199,981 ═════════ ═════════ BCOM China Dynamic Equity (CF) Fund 282,212 250,849 ═════════ ═════════ BCOM HSI Tracking (CF) Fund 118,291 97,835 ═════════ ═════════ BCOM Global Bond (CF) Fund 5,743 4,414 ═════════ ═════════ BCOM Greater China Equity (CF) Fund 132,281 105,161 ═════════ ═════════ BCOM Core Accumulation Fund 16,466 9,071 ═════════ ═════════ BCOM Age 65 Plus Fund 6,385 3,582 ═════════ ═════════

- 58 -


7 Transactions with related parties (continued) (c) Investment management fee

The Investment Manager is entitled to receive a fee at the following percentage per annum of the net asset value of the respective constituent funds with a permitted maximum of 0.75% per annum. BCOM Finance (Hong Kong) Limited acts as the investment manager of BCOM Guaranteed (CF) Fund and BCOM MPF Conservative Fund.

2019 2018 BCOM Guaranteed (CF) Fund 0.375% 0.375% ═════════ ═════════ BCOM MPF Conservative Fund 0.18% 0.18% ═════════ ═════════

The investment management fee is calculated and accrued daily and payable monthly in arrears. The investment management fee for each constituent fund incurred during the years ended 31 December 2019 and 2018 is disclosed in the statement of comprehensive income of the constituent funds. The investment management fee payable at the reporting date is as follows:

2019 2018 HK$ HK$ BCOM Guaranteed (CF) Fund 285,448 275,825 ═════════ ═════════ BCOM MPF Conservative Fund - - ═════════ ═════════

(d) Custodian fee

No custodian fee is charged by the custodian for all constituent funds.

- 59 -


7 Transactions with related parties (continued) (e) Guarantor fee

BCOM Guaranteed (CF) Fund is guaranteed by Bank of Communications Co., Ltd., Hong Kong Branch which receives a fee for providing the guarantee. This fee is determined to be 0.135% per annum of the net asset value of the constituent fund. The guarantor fee is calculated and accrued daily and payable monthly in arrears. The guarantor fee incurred during the years ended 31 December 2019 and 2018 is disclosed in the statement of comprehensive income of BCOM Guaranteed (CF) Fund. The guarantor fee payable at 31 December 2019 amounted to HK$102,761 (2018: HK$99,297).

(f) Bank balances At 31 December 2019, the Scheme and its constituent funds had bank balances of HK$20,495,397 (2018: HK$13,207,985) and HK$125,150,218 (2018: HK$112,686,200) respectively with Bank of Communications Co., Ltd., Hong Kong Branch, the immediate holding company of the Trustee. For the year ended 31 December 2019, interest income of HK$1,096,829 (2018: HK$789,352) was earned on these bank balances for the constituent funds.

Interest income earned on the Scheme’s bank balances will be distributed to the constituent funds half-yearly in proportion to the net asset value of the constituent funds.

(g) Investments At the reporting date, BCOM Guaranteed (CF) Fund held shares issued by Bank of Communications Co., Ltd., the ultimate holding company of the Trustee, as follows:

2019 2018 Holdings Fair value Holdings Fair value HK$ HK$ Bank of Communications

Co., Ltd. - H-shares 79,320 439,433 79,320 483,059 ═══════ ═══════ ═══════ ═══════

- 60 -


7 Transactions with related parties (continued) (h) Brokerage commission

Investment transactions of BCOM Guaranteed (CF) Fund effected through BOCOM International Securities Limited (the “Broker”), a fellow subsidiary of the Trustee and the Investment Manager, are as follows:

2019 2018 Total aggregate value of equities transactions

effected through the Broker HK$11,436,286 HK$3,701,534 Total aggregate notional value of derivative financial

instruments* transactions effected through the Broker HK$531,250 HK$80,367,100 % of such transactions in value to total transactions in

value 8.39% 30.77% Total brokerage commission paid to the Broker for

equities transactions HK$11,455 HK$3,709 Total brokerage commission paid to the Broker for

derivative financial instruments* transactions HK$1,514

HK$5,755 Total brokerage commission paid (including third party

brokers) HK$33,348

HK$35,561 Average rate of commission for equities transactions

effected through the Broker 0.10% 0.10% Average rate of commission for derivative financial

instruments* transactions effected through the Broker 0.28% 0.01% ══════════ ══════════

*Derivative financial instruments for 2019 and 2018 were put options and futures respectively. Investment transactions of BCOM HSI Tracking (CF) Fund effected through the Broker are as follows:

2019 2018 Total aggregate value of transactions effected

through the Broker HK$29,238,063 HK$13,247,130 % of such transactions in value to total transactions

in value 16.03% 8.47% Total brokerage commission paid to the Broker HK$26,289 HK$11,911 Total brokerage commission paid (including third

party brokers) HK$164,134

HK$140,774 Average rate of commission effected through the

Broker 0.09% 0.09% ══════════ ══════════

- 61 -


8 Contributions Mandatory contributions for both employers and employee/self-employed members are 5% of the employee/self-employed members’ relevant income, subject to the minimum and maximum relevant income levels as described below: With effect from 1 June 2012 and prior to 1 November 2013 Each employee member with monthly relevant income of HK$6,500 or more; and self-employed member with monthly relevant income of HK$6,500 or more or yearly relevant income of HK$78,000 or more would be required to pay mandatory contributions up to the maximum monthly relevant income of HK$25,000 or yearly relevant income of HK$300,000. With effect from 1 November 2013 and prior to 1 June 2014 Each employee member with monthly relevant income of HK$7,100 or more; and self-employed member with monthly relevant income of HK$7,100 or more or yearly relevant income of HK$85,200 or more would be required to pay mandatory contributions up to the maximum monthly relevant income of HK$25,000 or yearly relevant income of HK$300,000. With effect from 1 June 2014 Each employee member with monthly relevant income of HK$7,100 or more; and self-employed member with monthly relevant income of HK$7,100 or more or yearly relevant income of HK$85,200 or more would be required to pay mandatory contributions up to the maximum monthly relevant income of HK$30,000 or yearly relevant income of HK$360,000. Any contributions made to the Scheme by the employers or employee/self-employed members in excess of their mandatory contributions are voluntary contributions. Special contributions During the year, the movements of the Scheme in relation to the Government’s Injection of Contributions are as follows: (a) Total amount of special contributions that had been received from:

the MPFA - Nil (2018: Nil) other trustees - Nil (2018: Nil)

(b) There was no special contribution that had been allocated to eligible members’

accounts or paid by cheque to eligible members (2018: Nil).

(c) There was no special contribution that was pending allocation to eligible members’ accounts or payment by cheque to eligible members (2018: Nil).

(d) Total amount of special contributions that could not be allocated to eligible

members’ accounts or paid by cheque to eligible members, and hence had been paid back or transferred to:


- 62 -


8 Contributions (continued) Special contributions (continued) (e) Total amount of special contributions that could not be allocated to eligible

members’ accounts or paid by cheque to eligible members, and hence was payable to:


(f) There were no accrued benefits arising from the injection which had been

withdrawn from members’ accounts and paid back to the MPFA (2018: Nil). (g) There were no accrued benefits that had been withdrawn and to be returned to the

MPFA (2018: Nil).

9 Benefits Members will become entitled to benefits in respect of mandatory contributions to the Scheme in the circumstances set out in the MPF Ordinance. Currently, these circumstances include where the members (a) reach the age of 65; (b) permanently cease employment, after reaching the age of 60 or as a result of permanent incapacity; (c) permanently depart from Hong Kong; (d) die; (e) have the right to claim a small balance pursuant to the MPF Ordinance; or (f) suffer from terminal illness. Members will become entitled to benefits in respect of voluntary contributions to the Scheme in the circumstances set out in the Trust Deed and the relevant participation agreement.

10 Investments The Scheme

2019 2018 HK$ HK$ Investments in constituent funds BCOM Guaranteed (CF) Fund 900,880,184 866,206,314 BCOM MPF Conservative Fund 1,155,405,730 1,016,432,464 BCOM Stable Growth (CF) Fund 577,512,729 500,789,756 BCOM Balanced (CF) Fund 459,659,981 390,766,054 BCOM Dynamic Growth (CF) Fund 279,169,043 225,386,162 BCOM Asian Dynamic Equity (CF) Fund 468,346,880 406,971,174 BCOM Hong Kong Dynamic Equity (CF) Fund 444,576,211 398,991,028 BCOM China Dynamic Equity (CF) Fund 499,966,359 424,129,023 BCOM HSI Tracking (CF) Fund 569,181,430 461,209,571 BCOM Global Bond (CF) Fund 170,357,251 131,918,765 BCOM Greater China Equity (CF) Fund 264,547,790 202,638,038 BCOM Core Accumulation Fund 223,366,293 119,094,675 BCOM Age 65 Plus Fund 84,254,869 47,961,864 ────────── ────────── Investments at fair value 6,097,224,750 5,192,494,888 ══════════ ══════════

- 63 -


10 Investments (continued) Constituent funds

2019 2018 HK$ HK$ BCOM Guaranteed (CF) Fund Debt securities 594,194,861 601,245,131 Equity securities 154,887,634 146,913,131 ───────── ───────── Investments at fair value 749,082,495 748,158,262 ═════════ ═════════ Investments at cost 739,434,541 750,032,831 ═════════ ═════════

BCOM Stable Growth (CF) Fund Approved pooled investment funds - Schroder MPF Stable Growth Fund 577,977,786 501,171,603 ───────── ───────── Investments at fair value 577,977,786 501,171,603 ═════════ ═════════ Investments at cost 438,154,563 417,725,831 ═════════ ═════════ BCOM Balanced (CF) Fund Approved pooled investment funds - Schroder MPF Balanced Investment Fund 459,968,328 391,064,209 ───────── ───────── Investments at fair value 459,968,328 391,064,209 ═════════ ═════════ Investments at cost 316,728,948 301,873,684 ═════════ ═════════

- 64 -


10 Investments (continued) Constituent funds (continued)

2019 2018 HK$ HK$ BCOM Dynamic Growth (CF) Fund Approved pooled investment funds - Allianz Choice Growth Fund 279,348,949 225,579,665 ───────── ───────── Investments at fair value 279,348,949 225,579,665 ═════════ ═════════ Investments at cost 211,041,787 193,457,526 ═════════ ═════════ BCOM Asian Dynamic Equity (CF) Fund Approved pooled investment funds - Principal Asian Equity Fund 469,825,020 408,400,200 ───────── ───────── Investments at fair value 469,825,020 408,400,200 ═════════ ═════════ Investments at cost 337,257,584 329,761,895 ═════════ ═════════

BCOM Hong Konq Dynamic Equity (CF) Fund Approved pooled investment funds - Principal Hong Kong Equity Fund 444,252,420 398,904,228 ───────── ───────── Investments at fair value 444,252,420 398,904,228 ═════════ ═════════ Investments at cost 332,937,149 324,598,526 ═════════ ═════════ BCOM China Dynamic Equity (CF) Fund Approved pooled investment funds - Principal China Equity Fund 497,429,351 423,749,450 ───────── ───────── Investments at fair value 497,429,351 423,749,450 ═════════ ═════════ Investments at cost 357,107,827 343,002,647 ═════════ ═════════

- 65 -



2019 2018 HK$ HK$ BCOM HSI Tracking (CF) Fund Index tracking collective investment schemes - Tracker Fund of Hong Kong 570,158,400 460,720,300 ───────── ───────── Investments at fair value 570,158,400 460,720,300 ═════════ ═════════ Investments at cost 504,365,673 431,643,292 ═════════ ═════════ BCOM Global Bond (CF) Fund Approved pooled investment funds - Invesco MPF Bond Fund 170,543,649 131,774,726 ───────── ───────── Investments at fair value 170,543,649 131,774,726 ═════════ ═════════ Investments at cost 159,343,129 128,531,762 ═════════ ═════════

BCOM Greater China Equity (CF) Fund Approved pooled investment funds - Allianz Choice Greater China Fund 264,555,098 202,817,422 ───────── ───────── Investments at fair value 264,555,098 202,817,422 ═════════ ═════════ Investments at cost 206,695,056 188,439,145 ═════════ ═════════

- 66 -



2019 2018 HK$ HK$ BCOM Core Accumulation Fund Approved pooled investment funds - Invesco Core Accumulation Fund 222,502,628 119,038,087 ───────── ───────── Investments at fair value 222,502,628 119,038,087 ═════════ ═════════ Investments at cost 202,779,550 123,198,865 ═════════ ═════════ BCOM Age 65 Plus Fund Approved pooled investment funds - Invesco Age 65 Plus Fund 83,737,048 47,932,953 ───────── ───────── Investments at fair value 83,737,048 47,932,953 ═════════ ═════════ Investments at cost 78,599,951 48,004,327 ═════════ ═════════

The maximum exposure to loss from these investment funds is equal to their total carrying amounts.

- 67 -


11 Derivative financial instruments

The Scheme and its constituent funds did not have any derivative financial instruments at 31 December 2019 and 2018.

12 Margin accounts

The Scheme and its constituent funds did not have any margin accounts at 31 December 2019 and 2018.

13 Bank loans, overdrafts and other borrowings The Scheme and its constituent funds did not have any bank loans, overdrafts and other borrowings at 31 December 2019 and 2018.

14 Accrued benefits of the Scheme The total accrued benefits vested in the members’ accounts amounted to HK$6,047,310,741 (2018: HK$5,169,823,670) at 31 December 2019.

15 Taxation The Scheme is not subject to Hong Kong profits tax as it is considered as a recognised retirement scheme and not carrying on a business in Hong Kong according to the Inland Revenue Department Practice Note No. 23. Certain constituent funds invest in shares of companies in the People’s Republic of China (“PRC”) listed on the Hong Kong Stock Exchange (“H-shares”). Under the PRC Corporate Income Tax Law, these constituent funds may be liable to pay PRC tax on the capital gains realised in the trading of H-shares. However, no provision was made for taxation from such gains in the financial statements as the Trustee believes that the constituent funds can sustain a position for not filing a tax return based on the existing tax regulations and that the enforcement of PRC tax on capital gains is not probable. Withholding tax was charged on dividend income received from H-shares during the period and presented gross in the statement of comprehensive income of the constituent funds.

- 68 -


16 Payments charged to Capital Preservation Fund and Default Investment Strategy

Capital Preservation Fund In accordance with the MPF Ordinance, if funds attributable to a scheme member form part of the capital preservation fund; and the amount of income and profits derived from the investment of those funds for a particular month exceeds the amount of interest that would be earned if those funds had been placed on deposit in a Hong Kong dollar savings account at the prescribed savings rate, an amount not exceeding the excess may be deducted from the member’s accrued benefits as administrative expenses for that month. The administrative expenses for the year ended 31 December 2019 for BCOM MPF Conservative Fund deducted by the Trustee were HK$10,174,448 (2018: HK$8,791,294) and there were no deductible administrative expenses at 31 December 2019 (2018: Nil).

Default Investment Strategy

In accordance with the MPF Ordinance, the aggregate of the payments for services for BCOM Core Accumulation Fund and BCOM Age 65 Plus Fund (each a DIS fund) must not, in a single day, exceed a daily rate, being 0.75% per annum of the net asset value (“NAV”) of each of these two constituent funds divided by the number of days in the year. The above aggregate payments for services include, but are not limited to, the fees paid or payable for the services provided by the Trustee and the Administrator of the Scheme and any of their delegates and the proportionate underlying fund fees of BCOM Core Accumulation Fund and BCOM Age 65 Plus Fund, and such fees are calculated as a percentage of the NAV of each of these two constituent funds and its underlying fund(s), but does not include any out-of-pocket expenses incurred by each constituent fund and its underlying fund(s).

In addition, in accordance with the MPF Ordinance, the total amount of all payments that are charged to or imposed on each of BCOM Core Accumulation Fund and BCOM Age 65 Plus Fund or members who invest in BCOM Core Accumulation Fund and/or BCOM Age 65 Plus Fund for out-of-pocket expenses incurred by the Trustee on a recurrent basis in the discharge of its duties to provide services in relation to each of BCOM Core Accumulation Fund and BCOM Age 65 Plus Fund shall not, in a single year, exceed 0.2% of the NAV of each of BCOM Core Accumulation Fund and BCOM Age 65 Plus Fund. For this purpose, out-of-pocket expenses include 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 NAV, transaction costs incurred by each of BCOM Core Accumulation Fund and BCOM Age 65 Plus Fund in connection with recurrent acquisition of investments for each of BCOM Core Accumulation Fund and BCOM Age 65 Plus Fund (such as costs incurred in acquiring underlying funds) and annual statutory expenses of each of BCOM Core Accumulation Fund and BCOM Age 65 Plus Fund (such as compensation fund levy where relevant). Out-of-pocket expenses that are not incurred on a recurrent basis may still be charged to or imposed on BCOM Core Accumulation Fund and BCOM Age 65 Plus Fund.

- 69 -


16 Payments charged to Capital Preservation Fund and Default Investment Strategy (continued)

Default Investment Strategy (continued) Payments for services, out-of-pocket expenses and other payments charged to or imposed on BCOM Core Accumulation Fund and BCOM Age 65 Plus Fund or members who invest in the constituent funds are disclosed below.

For the year ended 31 December 2019

BCOM Core Accumulation Fund BCOM Age 65 Plus Fund

Charged to or imposed on

the constituent fund HK$

Charged to or imposed

on members

HK$




on members

HK$ (a) Payments for services

- Trustee fee - Administration fee

833,601 150,046

- -

326,594 58,785

- -

─────── ──────── ──────── ──────── 983,647 - 385,379 -

═══════ ════════ ════════ ════════

Total payments for services for each DIS fund*

0.59%

-

0.59%

-

Proportionate underlying fund fee for each DIS fund**

0.16%

-

0.16%

-

──────── ──────── ──────── ──────── Total payments for services

expressed as a percentage of net asset value of the DIS fund

0.75%

-

0.75%

- ════════ ════════ ════════ ════════

(b) Out-of-pocket expenses - Professional indemnity

insurance - Audit fee - Printing and postage expenses - Fund price publication expenses - Miscellaneous expenses

12,610

5,411 49,430

8,988 588

- - - - -

4,833 2,124

19,412 8,988

238

- - - - -

──────── ──────── ──────── ──────── 77,027 - 35,595 -

════════ ════════ ════════ ════════

(c) Payments other than (a) and (b) - - - - ════════ ════════ ════════ ════════

(d) Out-of-pocket expenses expressed as a percentage of average net asset value at the last dealing day of each month of the constituent fund 0.05% - 0.05% -

════════ ════════ ════════ ════════

- 70 -


16 Payments charged to Capital Preservation Fund and Default Investment Strategy

(continued)

Default Investment Strategy (continued) For the year ended 31 December 2018

BCOM Core Accumulation Fund BCOM Age 65 Plus Fund




on members

HK$




on members

HK$ (a) Payments for services

- Trustee fee - Administration fee

477,913 86,022

- -

172,704 31,085

- -

──────── ──────── ──────── ──────── 563,935 - 203,789 -

════════ ════════ ════════ ════════

Total payments for services for each DIS fund*

0.59%

-

0.59%

-

Proportionate underlying fund fee for each DIS fund**

0.16%

-

0.16%

-

──────── ──────── ──────── ──────── Total payments for services

expressed as a percentage of net asset value of the DIS fund

0.75%

-

0.75%

- ════════ ════════ ════════ ════════ (b) Out-of-pocket expenses

- Professional indemnity insurance

- Audit fee - Printing and postage expenses - Fund price publication expenses - Miscellaneous expenses

6,524 1,957

19,155 8,239

92

- - -

- -

2,087

622 6,769 8,239

29

- - -

- -

──────── ──────── ──────── ──────── 35,967 - 17,746 - ════════ ════════ ════════ ════════ (c) Payments other than (a) and (b) - - - - ════════ ════════ ════════ ════════ (d) Out-of-pocket expenses

expressed as a percentage of average net asset value at the last dealing day of each month of the constituent fund 0.04%

-

0.05%

-

════════ ════════ ════════ ════════

- 71 -


16 Payments charged to Capital Preservation Fund and Default Investment Strategy (continued)

Default Investment Strategy (continued) *The payments for services fee of 0.59%, which represents daily payments for services of each DIS fund as a percentage of daily NAV, is the maximum fee rate allowed to charge to each DIS fund on a daily basis.

**The proportionate underlying fund fee rate paid to the specified person as disclosed in the prospectus of the underlying funds.

17 Other income

2019 2018 HK$ HK$ Guaranteed amount from guarantor BCOM Guaranteed (CF) Fund 709,625 738,032 Investment management fee received from

underlying approved pooled investment funds

BCOM Stable Growth (CF) Fund 137,847 - BCOM Balanced (CF) Fund 109,404 - BCOM Dynamic Growth (CF) Fund 242,236 98,878 BCOM Hong Kong Dynamic Equity (CF) Fund 2,793,786 2,899,170 BCOM China Dynamic Equity (CF) Fund 3,459,083 3,669,141 BCOM Greater China Equity (CF) Fund 204,591 45,619 ──────── ──────── 7,656,572 7,450,840 ════════ ════════

18 Soft commission arrangements During the years ended 31 December 2019 and 2018, the Investment Manager and its associates did not enter into any soft commission arrangements with brokers relating to dealings in the assets of the Scheme and its constituent funds.

19 Security lending arrangements

During the years ended 31 December 2019 and 2018, the Scheme and its constituent funds did not enter into any security lending arrangements.

20 Negotiability of assets At 31 December 2019 and 2018, there were no statutory or contractual requirements restricting the negotiability of the assets of the Scheme and its constituent funds.

21 Commitments The Scheme and its constituent funds did not have any commitments at 31 December 2019 and 2018.

- 72 -


22 Contingent liabilities The Scheme and its constituent funds did not have any contingent liabilities at 31 December 2019 and 2018.

23 Marketing expenses

There have been no advertising expenses, promotional expenses or commissions, or brokerage fees paid and payable to the MPF intermediaries deducted from the Scheme or its constituent funds during the years ended 31 December 2019 and 2018.

24 Approval of financial statements

The financial statements were approved by the Trustee on 26 June 2020.

PricewaterhouseCoopers, 22/F Prince's Building, Central, Hong Kong T: +852 2289 8888, F: +852 2810 9888, www.pwchk.com

1

INDEPENDENT AUDITOR’S ASSURANCE REPORT TO THE TRUSTEE OF BCOM JOYFUL RETIREMENT MPF SCHEME (THE “SCHEME”)

We have audited the financial statements of the Scheme and each of its constituent funds (hereafter referred to as the “Scheme”) for the year ended 31 December 2019 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 (the “HKICPA”), and have issued an unqualified auditor’s report thereon dated 26 June 2020.

Pursuant to section 102 of the Hong Kong Mandatory Provident Fund Schemes (General) Regulation (the “General Regulation”), we are required to report whether the Scheme complied with certain requirements of the Hong Kong Mandatory Provident Fund Schemes Ordinance (the “Ordinance”) 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 Ordinance 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 Ordinance 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 issued by the HKICPA 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.

INDEPENDENT AUDITOR’S ASSURANCE REPORT TO THE TRUSTEE OF BCOM JOYFUL RETIREMENT MPF SCHEME (THE “SCHEME”) (CONTINUED)

2

Auditor’s Responsibility

Our responsibility is to report solely to Bank of Communications Trustee Limited (the “Trustee”), in accordance with section 102 of the General Regulation, on the Scheme’s compliance with the above requirements based on the results of the procedures performed by us, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report. 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. We have planned and performed such procedures as we considered necessary with reference to the procedures recommended in PN 860.1 (Revised), 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:

(a) in our opinion:

(i) proper accounting and other records have been kept during the year ended 31 December 2019 in respect of the constituent funds of the Scheme, the Scheme assets and all financial transactions entered into in relation to the Scheme;

(ii) the requirements specified in the guidelines made by the MPFA under section 28 of the Ordinance 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 December 2019, 31 August 2019 and 30 April 2019;

(iii) the requirements specified in the Ordinance 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 BCOM Core Accumulation Fund and BCOM Age 65 Plus Fund have been complied with, in all material respects, as at 31 December 2019, 31 August 2019 and 30 April 2019; and

(iv) the requirements specified in section 34DD(4)(b) of the Ordinance with respect to the control of out-of-pocket expenses of BCOM Core Accumulation Fund and BCOM Age 65 Plus Fund have been complied with, in all material respects, as at 31 December 2019.

(b) as at 31 December 2019, the Scheme assets were not subject to any encumbrance, otherwise than as permitted by the General Regulation.

INDEPENDENT AUDITOR’S ASSURANCE REPORT TO THE TRUSTEE OF BCOM JOYFUL RETIREMENT MPF SCHEME (THE “SCHEME”) (CONTINUED)

3

Other Matter The requirements specified in the Ordinance under sections 34DI(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 BCOM Core Accumulation Fund and BCOM Age 65 Plus Fund of the Scheme are not applicable to the Trustee during the year ended 31 December 2019 as the Trustee has completed the relevant transitional provisions and the default investment arrangement of the Scheme prior to 1 April 2017 was not guaranteed funds. 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. PricewaterhouseCoopers Certified Public Accountants Hong Kong, 26 June 2020

cone joyful 2018 - mpfa · shou fugang 20 pedder street, central, hong kong. liu wang kit, alan 20...

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