Frequently Asked Questions

1.    How to login to your HAPFS account? How to apply for new PIN when you forgot password?

You may try the following steps to access your HAPFS account online.

i. Click on “Login” and "Member" at the top right-hand corner of the Hospital Authority Designated page

ii. Enter your Login Number and the 4-digit phone PIN

Please use the 6-digit numbers in the middle of your HKID card number as your Login Number.

For example: 

You may contact Member Hotline for HA Employees: (852) 3191 8088 to apply for new PIN.

1.    Why doesn't HAPFS offer investment choices that invest in single markets, such as the Hong Kong market or the US market?

When it comes to retirement investment, diversification is the key. You don't want your savings to be too volatile. If you put all your eggs in one basket by investing in a single market, you will suffer greater losses if that particular market crashes.

2.    Why are fund prices denominated in HKD?

Since HAPFS is a retirement scheme for Hong Kong employees, it's natural to use HKD as the denominated currency. After all, our payroll is in Hong Kong dollars and we all spend in Hong Kong dollars. Since the investment choices in HAPFS all invest globally, only part of each portfolio is invested in the Hong Kong market (i.e. HKD exposure). Therefore, by diversifying your exposure internationally, the currency risk that you are facing is diversified as well.

3.    I'd like to know more about what stocks or bonds each investment choice holds so that I can decide which investment choice is the most suitable for me. Where can I obtain such information?​​​​​​​

The securities held are essentially the same across all investment choices. However, depending on each investment choice's asset allocation between equities and bonds, the holding percentage of each security inside each investment choice is different from one to another. If you are interested in knowing what stocks and bonds each investment choices holds, please refer to the Monthly Factsheet or Scheme's annual report where you will find the top 10 holdings. 

As a reminder, when you decide your long-term investment strategy, you should focus on the proportion of equities, bonds and cash, rather than the securities the investment choices actually hold. Ultimately, it is the proportion of equities, bonds and cash that decides the risk levels of the various investment choices. Being experts in the field of investment, your investment managers are responsible for selecting quality stocks and bonds for the investment choices. Being a member, you should therefore consider factors such as your investment objective, your investment horizon, your risk tolerance level and your overall financial situations, etc. before you come to your investment decision.

1.    Why are HAPFS expenses expressed as an estimated percentage range? Is there a possibility that HAPFS expenses will exceed the existing range in future?

In a sense, the operation of HAPFS is like that of a company. There are expenses that HAPFS needs to pay every month. Such expenses may include investment management fee and administration fee, etc. On a monthly basis, the actual expenses incurred in that particular month are deducted from HAPFS's assets. Since both the actual expenses and HAPFS's assets may vary from month to month, it is in practice impossible to express the expenses as a fixed percentage.

To be conservative, the estimated percentage range you see now is already on the high side. It is therefore unlikely that the actual expenses will exceed this range.

2.    How are our fees compared to the market norm?​​​​​​​

The fees under HAPFS are very competitive. The average investment management fee for retail funds is well over 1% p.a., not to mention the initial charge or bid-offer spread, etc. For MPF funds, there are fees that go up to 2% p.a. 

As you can see, the fees that you have to bear under HAPFS much lower than the market norm.

3.    Will I know what the actual scheme expenses are?​​​​​​​

Yes. The actual scheme expenses are listed in the Provident Fund Scheme Annual Report, which is published in the third quarter of every calendar year. This Annual Report contains detailed information about the HAPFS, including the HAPFS's expenses accrued over the Scheme Year. If you are interested in reading the Annual Report, you may talk to the contact person at your hospital. Alternatively, you may visit the HA intranet or INVESNet to get a soft copy.

1.    I read the newspaper everyday. How come I don't see the fund prices or performance in relation to the investment choices under HAPFS?

Fund prices or performance information that you see in newspapers are usually on funds that are available to the general public. However, the six investment choices are customized for and made available to members of HAPFS only. As they are not publicly available funds, information related to HAPFS is therefore not available in newspapers. 

As a HAPFS member, of course you have every right to obtain information such as fund prices, performance and asset allocation, etc. related to your investment choice. You may go through the member services channels that Invesco provides, or visit the HA intranet for details.

2.    When will the month-end prices be available?

The month-end prices are usually available around the middle of the following month. Currently, each of the investment choices under HAPFS is being managed by more than 20 investment managers. After the end of every month, these investment managers need to take several days to prepare and provide the Trustees with a valuation report for the investment portion they are responsible for. After receiving valuation reports from all investment managers, the Trustees will then calculate the month-end prices for each of the investment choices. In view of the complexity of the calculation process, the middle of the following month is the soonest time for the prices to become available.

3.    I came across the terms "total contribution / transferred-in asset since joining plan" and "market value" when I checked my account balance via the website. What do these terms mean?

"Total contribution / transferred-in asset since joining plan" refers to the total amount of contribution made to your account since you joined the scheme. "Total contribution / transferred-in asset since joining plan" therefore does not include any investment profits or losses. "Market value" is really your most updated account balance. It is calculated by multiplying the number of units you have in a certain fund by its latest unit price, which already reflects the investment performance.

If "market value" is higher than "total contribution / transferred-in asset since joining plan", that means you are making positive returns in your investments. On the contrary, if "market value" is lower than "total contribution / transferred-in asset since joining plan", you are making negative returns. But remember, such investment returns will change as the fund price goes up and down. Therefore, you will only realize your profits or losses the time you sell your investments.

4.    How do the Trustees monitor the funds' performance?

On a continuous basis, the Trustees compare the investment managers' performance against some predetermined benchmarks. These benchmarks are usually market indices for the respective regions for which the investment managers are responsible. If a particular investment manager's performance exceeds the respective market index, we say that he has outperformed the market. On the contrary, if the investment manager's performance is worse than the market index, we say that he has underperformed. Apart from using market indices, the Trustees also compare the investment managers' performance against their peer group average to get a more complete picture too.

It is the responsibility of the Trustees to ensure members' benefits are in good hands. Investment managers are required to provide detailed investment reports to the Trustees on a quarterly basis. Should an investment manager consistently underperforms, the Trustees have every power to terminate his service.

1.    How is the benchmark decided?

The Trustees will consider the investment objectives of the fund choices. Depending on the investment objectives (and therefore the risk/return levels) of the fund choices, the Trustees will first of all decide the split between equities and bonds. For example, more aggressive fund choices will usually have higher equity weighting.

Within the equity portion, the Trustees will first allocate 20% to the Hong Kong market since HAPFS is a Hong Kong retirement scheme. The remaining 80% will then be allocated among different regions / countries with reference to their market capitalizations.

2.    Will the Trustees adjust the benchmark weighting as the markets fluctuate?

No, the benchmark weighting will not be adjusted as a result of market volatility. However, the Trustees will realign the benchmark weighting on a yearly basis according to the prevailing market capitalization of the various stock markets.

1.    What is the arrangement of my accrued benefit when I leave Hospital Authority?

Unless you have successfully applied for membership extension, you will need to cash out your benefits under the Scheme upon cessation of your employment with Hospital Authority. Provided that adequate notice of your employment termination has been received, your fund units will be sold at the end of the month preceding your last day of service to ensure timely payment of benefits. Contributions for the last two months will be kept as cash, and will not be invested in your fund choices.

2.   What will I receive after I terminate my service with Hospital Authority?

The scheme administrator (HSBC) will arrange a payment to your designated bank account (usually is your payroll bank account). A Payment Advice will also be sent to your correspondence address upon the completion of money transfer.

3.   Can I withdraw my benefits before the end of the extension period? What fund price will be used in redemption? Is partial withdrawal allowed?

You can terminate the membership extension before expiry of the five-year extension period by giving written notice to the Cluster HR / HAHO Provident Fund Unit. You can only withdraw the entirety of the balance of your benefit (but not part of it) retained and invested in HAPFS. 

The cut-off time for giving early withdrawal request for extended members is 5 p.m. of the 23rd of each month (i.e. same cut-off time as asset switching). All early withdrawal requests made before the cut-off time of a calendar month will be executed and fund units will be sold on the last business day of that month. If the 23rd of a particular month falls on a day which is not a business day, the cut-off date for that month will be postponed to the next business day that immediately follows. If you miss the cut-off time of a particular calendar month, your instruction will be executed in the following calendar month in a likewise manner as if your instruction is received before 23rd of the following month.

4.   What is the handling charge to extend my membership? Is there any fee to pay during the extension period?

You are required to pay a one-off handling fee of HKD830 to the scheme administrator (HSBC) for the extension of membership. All other fees and expenses are deducted from the funds’ asset and are therefore borne by all members, regardless of whether they are existing employees or ex-employees.

5.   Can I still make switching during this extension period and how much do I need to pay?​​​​​​​

Members can continue to access Scheme information and perform switching through the member servicing platform operated by Invesco. They are also welcome to attend the annual member forums. Same as existing employees, extended members do not need to pay extra for making a switch.

6.   If I opt to remain in the HAPFS, how can I change my personal particulars, such as address and beneficiary in future?​​​​​​​

You can change your personal particulars through HAHO Provident Fund Unit.

1.    Are there any switching fees?

No. HAPFS offers you free monthly switching. Asset switch and investment mandate for future contribution are separate. They need not to be done at the same time.

2.    Is this the right time to switch during times of market volatility?

HAPFS is a retirement scheme and should be considered as a long-term investment. Members should not worry about the short-term volatility and are not recommended to time the market. There are several factors in helping you formulate your own investment strategy, such as your investment objective, investment horizon, risk tolerance level, overall financial situation. Besides, it is crucial that you understand the features of the investment choices so that you may choose the one that best fits your needs.

3.    Why can't we have more switching?

HAPFS is a retirement scheme which should be considered as a long-term investment. Therefore, members are not encouraged to switch very frequently. Besides, frequent switchings by members will lead to higher trading cost of underlying securities and unnecessary portfolio turnover, which will impact investment returns as a whole. After careful consideration, the Trustees have approved the launch of monthly switching, effective March 2013, to enhance flexibility for memebers.

4.    Why is there a 20% switch-in limit for the Money Market Fund? Does it mean that I could switch all my holdings from other funds to the Money Market Fund after 5 switches?

This measure is to forestall a sudden and large scale switch into the Money Market Fund, which may have a destabilising impact on other funds in the Scheme. However, there is no restriction on allocating future contributions to the Money Market Fund. 

Technically speaking, you could not switch all the holdings from other funds to the Money Market Fund after 5 switches, reason being the 20% limit applies to the remaining balance in other funds.

1.    The normal retirement age in HA is 60 whereas according to the Mandatory Provident Fund Schemes Ordinance, the retirement age is 65. If I join the HAPFS, will I have to wait till 65 to withdraw my retirement benefits when I retire from HA at 60?

If you joined the HAPFS on or before 1.12.2000, you may withdraw all your balance under the HAPFS when you retire at the age of 60. However, if you joined the HAPFS after 1.12.2000, part of your accrued balance in the HAPFS will be regarded as Minimum MPF Benefits ("MMB") and you are required to transfer your MMB to a registered MPF scheme in accordance with the Mandatory Provident Fund Schemes Ordinance. The accrued balance in excess of the MMB, however, will be paid to you in one lump sum,

2.    Will the asset size of HAPFS diminish as members leave HA?

At the moment, the amount of outflows due to member departures is less than the amount of inflows as a result of HA's contribution for existing members. In other words, the asset size of the Scheme is still growing at the moment.

3.    Within the Scheme, what are the roles of HSBC, Invesco, investment managers and the Trustees?

Within HAPFS, different parties are involved to take care of different functions. 

HSBC is the Scheme's administrator who is responsible for keeping members' records, handling monthly contributions and preparing annual member benefit statement, etc.

Invesco is the member service provider who provides hotline and website service so that members may obtain information about the Scheme, check their account balance and perform switching through the service channels provided. 

When it comes to investment, HAPFS adopts a multi-manager approach. There are currently more than twenty investment managers in the Scheme, specializing in different asset classes and equity markets. The list of investment managers with their responsible mandates is available on INVESNet. 

The trustee board is formed by twelve members, including HA's management, member representatives, and independent trustees. The name list of the trustees can be found in the HAPFS annual report as well as on INVESNet. The Trustees' role is to uphold the members' best interest. They are responsible for the Scheme's overall arrangement. For example, it is the Trustees who decide the number and types of fund choices to offer, the benchmark allocation of the fund choices, the selection of administrator, member service provider and investment managers, as well as other features of the Scheme such as whether to allow members in making voluntary contributions, etc.

1.    When am I eligible to receive the benefits under the HAPFS, will these benefits be taxed?

The vested balance that you shall receive under the provisions of the HAPFS Trust Deed and Rules will not be subject to salaries tax.