1. It is intended that the Sun Life MPF Income Fund will provide a stable income by distributing dividend to members’ MPF account on a monthly basis. It is intended that the Sun Life MPF Income Fund will start distributing dividend on the seventh month (or any other month as advised by the Sun Life Asset Management (HK) Limited (Investment Manager) if the Trustee or the Investment Manager considers appropriate) after the launch date of 17 February 2025. Despite the above, dividends will be allocated to members’ investment. Please refer to the MPF Scheme Brochure for further details including risk factors.
Dividends will be automatically invested in the designated fund based on the ages of the members. If members are below the age of 60 on the Record Date, dividends will be reinvested in the Sun Life MPF Income Fund, which in turn invests in the accumulation class of Invesco APIF. If members are 60 years of age or above on the Record Date, dividends will be reinvested in the Sun Life MPF Conservative Fund, which will be subject to relevant risks such as general investment risks as well as fees and charges applicable to the Sun Life MPF Conservative Fund.
The Sun Life MPF Income Fund does not provide any guarantee on the capital or investment return or dividend amount/yield. There is no assurance on the dividend distribution frequency and the amount of dividends, and the dividend amount/yield may fluctuate. Dividends may be paid out of the realized capital gains, capital and/or gross income while charging/paying all or part of the fees, charges and expenses to/out of the capital, resulting in an increase in distributable income available for dividend distribution, and therefore, Sun Life MPF Income Fund may effectively pay dividend out of capital. Subject to prior approval of the Authority and the SFC, the Trustee may amend this dividend distribution policy by giving one (1) month’s prior notice to members of the Scheme. Payment of dividends out of capital and/or effectively out of capital amounts to a withdrawal of part of the original investment or from any capital gains attributable to that original investment. Distribution of dividends will result in an immediate decrease or adjustment in the net asset value per unit of the Sun Life MPF Income Fund on the Ex-Dividend Date. Despite the above, dividends will be allocated to members' accounts for investment as mentioned above. Please read the MPF Scheme Brochure for further details, including risk factors.
Members should note that the regular and frequent distribution of dividends and reinvestment of such dividends into the Sun Life MPF Income Fund (for members below age 60) or the Sun Life MPF Conservative Fund (for members aged 60 or above) will inevitably involve an investment time-lag (i.e. up to 10 business days from the Ex-Dividend Date) during which dividends are not reinvested. The dividends are hence subject to out-of-market risk on a recurring (monthly) basis. The return of the Sun Life MPF Income Fund (for members below age 60) or the Sun Life MPF Conservative Fund (for members aged 60 or above) may be impacted negatively or positively due to the dividend distribution arrangement, as its net asset value per unit may have increased or decreased at the time when dividends are reinvested. Therefore such return may deviate from that of a constituent fund with similar investment portfolio without such dividend distribution arrangement and may not always be advantageous to these members. Members are advised to carefully assess the suitability of the Sun Life MPF Income Fund for their individual circumstances and consult independent professional advice where necessary.
