Mercer July 07

8/6/2019 Mercer July 07

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Marsh & McLennan

Mercer

July 2007


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Your investment manager Allianz Global Investors

1


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Company background experienced and financially stable

Asset management arm ofAllianz Group

One of the top 3 largest* assetmanagement company globally

Managing well overUSD1.76trillion** of assets under

management (AUM)

* Sources: Pensions & Investments / Independent consultant (as at 31 December 2005)** As at 31 March 2007

A research driven investmentmanager of Allianz Global Investors

Over23 years of local experience

Well recognized retirementinvestment specialist in Hong Kong


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2

Performance and fund choices


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Your selection

Tailor-made investment

choices with different risk

vs return

Investment choices

according to individual

investment strategy

5 Lifestyle Funds

Re

turn

Risk

RCM Capital Stable Fund

RCM Balanced Fund

RCM Stable Growth Fund

30% Equity / 70% Fixed Income



90% Equity/10% Fixed Income

100% HK Dollar

RCM HK$ Liquidity Fund

RCM Growth Fund


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3 year performance RCM industry median*

% p.a. % p.a. ranking

Allianz Global Investors Choice Fund

Fund performance is calculated in HK$ on NAV-to-NAV basis, net of fees (as of end Mar 2007)Investment involves risk. Past performance is not indicative of future performance. Please refer to the prospectus for further information

RCM Growth Fund 20.9 16.9 1/8

RCM Balanced Fund 16.6 14.7 3/11

RCM Stable Growth Fund 12.7 10.7 1/8

RCM Capital Stable Fund 9.0 7.2 1/8

* Source: Mercer HK Investment Choice Survey, Mar 2007


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Source: RCM, as at 31 May, 2007

Holdings

RCM Growth Fund (Ordinary A)

Objective To provide capital growth with controlled

levels of risk through global

diversification

Suitablefor relatively high risk investors

Portfolio

Equity

90%

Bond / Cash

10%Investment involves risk. Past performance is not indicative of future performance.Please refer to the prospectus for further information.

Cumulative

performance RCM

YTD 8.48%

3 months 9.10%

1 year 26.23%

Since Feb 2001 108.76%


Hong Kong 26%

North America 23%Europe 18%

Other Asia 14%

Japan 12%

Liquidity 4%

Fixed Income 2%Others 1%


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Holdings

RCM Balanced Fund (Ordinary A)

Objective To achieve above average return by investing in

a diversified portfolio of global equities and

fixed-interest

Suitablefor above average risk investors

Equity

70%

Bond / Cash


Portfolio


Cumulative

performance RCM

YTD 6.11%

3 months 6.60%

1 year 20.32%

Since Feb 2001 90.11%


Liquidity 5%

Hong Kong 21%Europe 14%

North America 18%

Japan 10%

Other Asia 11%

Fixed Income 21%


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Holdings

Objective To achieve a stable overall return by investing

in a diversified portfolio of global equities and

fixed-interest

Suitablefor medium risk investors

Equity

50%

Bond / Cash

50%

RCM Stable Growth Fund (Ordinary A)

Investment involves risk. Past performance is not indicative of future performance.Please refer to the prospectus for further information.

Portfolio


Cumulative

performance RCM

YTD 4.70%

3 months 4.63%

1 year 15.47%

Since Feb 2001 75.18%


Liquidity 5%

Fixed Income 43%

Hong Kong 15%

Japan 7%

North America 13%

Other Asia 8%

Europe 9%


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Objective To minimize the risk of capital loss whilst

providing some opportunity for capitalgrowth by investing in a diversified portfolioof global equities and fixed-interestsecurities

Suitablefor relatively low risk investors

Holdings

RCM Capital Stable Fund (Ordinary A)

Equity

30%

Bond / Cash


Portfolio


Cumulative

performance RCM

YTD 3.29%

3 months 2.73%

1 year 10.84%

Since Feb 2001 62.72%


Hong Kong 9%

Fixed Income 63%

Japan 4%Other Asia 5%

North America 8%

Liquidity 5%

Europe 6%


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Investment involves risk. Past performance is not indicative of future performance.Please refer to the prospectus for further information.

RCM HK$ Liquidity Fund (Ordinary Class)

Objective To achieve a rate of return comparable to

the HK$ bank savings rate whilst

maintaining stability of the principal

amount invested

Suitablefor conservative investors

Cash

100%

Holdings

Portfolio


Cumulative

performance RCM

YTD 1.54%

3 months 0.93%

1 year 3.88%

Since Feb 2001 12.87%


Cash & deposits 95%

Fixed Income 5%


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3

Market review and strategy


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Bond and equity markets over the past 18

months

Source: Datastream, as at 31 May 2007

MSCI World Citigroup WGBI Unhedged

D J F M A M J J A S O N D J F M A M95

100

105

110

115

120

125

130

135


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Performance of major asset classes

Source: Datastream, as of 31 May 2007

Dow Jones Industrials Nasdaq Hang Seng Index

Nikkei 225

MSCI AC Far East

MSCI AC Europe

MSCI World

Citigroup European WGBIIndex

Citigroup US WGBI Index

Index

2006 2007 Jan May

%

(in USD terms)

%

(in USD terms)

9.34

7.83

2.91

1.51

5.02

10.13

8.98

0.64

1.06

16.29

9.52

33.79

5.91

11.80

30.33

17.95

11.80

3.12


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Global

Market outlook (May 07)

Global GDP growth will moderate in 2007 but remain solid.

Earnings reports so far have been ok, but this years earnings growth

may be adjusted down from a high to a low single digit number

We continue to look for equities to outperform other asset classes.

Our strategy is aimed at reducing risk by focusing on higher yieldingstocks with growing cash flows or turnaround situations


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Consumer demand and tentative signs of stabilization in the housingmarket should engineer a soft landing.

This backdrop, together with growing corporate profits, will prove positivefor equities.

Policy makers will look to data to decide next move. Inflation remains akey concern.

US


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Europe

European growth remains positive but will moderate along with the globaleconomy.

Equity markets remain reasonably valued and will continue to benefit fromongoing corporate restructuring.

The Bank of England will likely hike rates at least once more to fightinflation.


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Asia

US and China slowdowns will lead to some deceleration in Asianeconomies but domestic fundamentals remain strong.

We are positive on Asian stocks although valuations look less attractivethan last year.

The earnings outlook in Japan remains supportive for stocks, but is alsolikely to slow down.


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Bonds are expected to remain within a relatively tight trading.

US: Inflation concern and healthy labour market should keep the Fed onhold.

Eurozone: Expect rates to stabilize at 4.0% as renewed strength of theeuro has tightening impact on the economy.


Bond


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Investment strategy

Global equity investment

+ + +

NorthAmerica

JapanHongKong

EuropeOtherAsia

+ Overweight 0 Benchmark Neutral Underweight



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Global equity investment

+ + + + + ++

EnergyBasic

MaterialsConsumer

CyclicalIndustrial Healthcare

ConsumerNon-Cyclical

TechnologyFinancial UtilitiesTelecom-

munications

Investment strategy

+ Overweight 0 Benchmark Neutral Underweight



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Member benefits

4


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additional personal investmentno switching / subscription fee

start with minimum ofHK$500 per month orHK$1000lump sum

flexibilities

direct debit from bank account (no need to gothrough payroll)

flexible withdrawal (free withdrawal up to 4 times ayear)

Flexible and cost effective

A New Personal Investment Program for all relevantemployees

Special Voluntary Contributions (SVC)

* For further enquiry, please contactAllianz Global Investors Members Direct: 2500 1633


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PotentialR

eturn

RCM Hong KongFund

RCM Asian Fund

RCM Growth Fund

RCM Balanced Fund

RCM Stable Growth

FundRCM Capital Stable

Fund

RCM Absolute ReturnFund #

RCM CapitalPreservation Fund

8 fund choices available from -Allianz Global Investors MPF Plan

Investment involves risk. Please refer to the prospectus for further information.

# Members should be aware that whilst this Constituent Fund aims to achieve absolute positivereturns, there may be circumstances under which this is not possible. Therefore, the absolutepositive returns are not guaranteed.

PotentialR

iskmore conservative options

core funds

equity funds


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Member services

5


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Member communication

Member Briefing Investment

Centre

member briefing and consultation providing investment advice, timelymarket update & investment education


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Investment aids

Online indices display of major world markets

Comprehensive fund information

Pension Client / ORSO Funds

Timely market updates and release of articles providing investment insights

How much I need to retire? =>

Retirement calculator

Members web service www.allianzglobalinvestors.com.hk
http://www.allianzglobal/http://www.allianzglobal/


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Members web service www.allianzglobalinvestors.com.hk

Select Fund

Literature and publicationincluding fund fact sheets and

prospectuses

Summary display of YTD, 3

months, 1 year, 3 year and 5

year performance

Historical prices download up

to 5 years
http://www.allianzglobal/http://www.allianzglobal/


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Market news and investment insights

Interview with fund manager andinvestment professionals

Theme stories and case studies,

such as,

Asset reallocation strategies

Invest with a Peace of Mind

Bring home the Bacon LeveragingSVC Program

Member communication Quarterly newsletter Investor Choice

Member Update


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This material has been prepared for the personal use of the recipient or addressee for information purposes only. Every form of perusal, publication, duplication,transmission and passing on of the contents of this material by or for persons other than the intended recipients is impermissible and unauthorized. This

material has not been prepared for the purposes of and does not constitute investment, legal or tax advice.

While we believe that the information is correct at the date of this presentation, no warranty of representation is given to this effect and no responsibility can beaccepted by us to any intermediaries or end users for any action taken on the basis of this information.

Past performance is not indicative of future results. No representation is being made that any individual account will or is likely to achieve profits or lossessimilar to those shown nor is any representation being made that any individual account will or is likely to achieve the level of accuracy of past projections.


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Communication channels

Allianz Global InvestorsInvestment Hotline : 2238 8000

Email : [email protected]

Website : www.allianzglobalinvestors.com.hk

Documents

Mercer July 07