How investment options re-allocation (formerly called "investment option switching") works in 1995 Scheme
- Investments in 1995 Scheme are operated on a “pooled investment funds” basis (investment funds).
- Investment funds of different objectives and strategies are set up for members to choose according to their risk tolerance level and investment horizon (investment options).
- Contributions from members and the University are pooled together and put into designated investment funds for management by investment professionals.
- 1995 Scheme investments include both segregated portfolio funds, unitized funds and fixed deposits funds. For segregated portfolio funds, investment assets are valued once a month at the month-end date.
- Under the above operation mode, a scheme member who wants to change his/her investment option is required to submit an investment options re-allocation instruction setting out the new allocation percentages for his/her portfolio. The member’s total fund balance will be reshuffled and re-allocated according to the new allocation percentages with effect from the following month. An example is set out herewith for illustration.
- Near the month-end date, with the assistance of a computer system, Finance Office will work out the net movement in value of individual investment funds, taking into account the options re-allocation instructions submitted by members, for investment managers to exercise the necessary buy and sell decisions.
Important Notes
Members who would like to submit an investment options re-allocation instruction are advised to:
- check your account information and balances via the Staff Superannuation Scheme (1995) System and study information about investment options available on 1995 Scheme website; and
- carefully consider your own risk tolerance level, investment horizon and financial circumstances before making any investment options re-allocation decision.
