Hong Kong Baptist University 1998 Superannuation Fund Investment Review – September 2004

1  Market Review & Outlook  Fund Performance  Retirement Planning  Member Services  Disclaimer  Special Offer to Members Agenda

2 Performance of Major Asset Classes in Q Source : Fidelity, June 30, Asia Pacific ex-Japan & ex-HK Equities Hong Kong Equities Japanese Equities Global Bonds HK Dollar Bonds Hong Kong 1 Month Hibor US 3-month Treasury Bill Global Equities American Equities European Equities % Change in HK$ in Q2-2004

3 Prospects for Major Stock Markets  US market  Robust economic growth and favourable corporate profit outlook  Concerns over accelerating inflation and higher interest rates  European market  Profit growth likely to improve following the US  Worries over weak consumer activity and currency strengthening  Japanese market  Positive macro-economic outlook and earnings growth prospects  Threats from slow-down in China, firming oil prices and US rate hike

4 Tightening Measures in China : Preventive In Nature Source : MS, June Q 042Q 04 % Real GDP Y-O-Y Change % CPI, Y-O-Y, % Fixed Investment (Real) YOY Change % 1993/94 Macro Austerity Measures Current Tightening

5 FAP Fund Performance

6 Your investment fund choices Source: Fidelity Investments Higher Risk Balanced Profile (FAP Stable Growth Fund) High Growth Profile (FAP Growth Fund) Growth Profile (FAP Balanced Fund) Global equitiesHong Kong equities Global bondsShort-term deposit & money market instruments Higher Return

7 High Growth Profile (FAP Growth Fund) Growth Profile (FAP Balanced Fund) Balanced Profile (FAP Stable Growth) In %FundBenchmarkFundBenchmarkFundBenchmark Equities HK Japan Other A/P US Europe Bonds Cash Asset Allocation Source: Fidelity Investments, 30 June 2004

8 Fund Performance as at 30 July 04 Cumulative Performance (in %) July 04 YTD 1/01/04 – 30/07/04 Last 1 Year 1/08/03 – 30/07/04 Since Scheme Inception 27/04/02 – 30/07/04 High Growth Profile (FAP Growth Fund) Growth Profile (FAP Balanced Fund) Balanced Profile (FAP Stable Growth) Source: Fidelity Investments, NAV to NAV

9 Cumulative Performance, In % Last QuarterYear-to-DateLast 1 Year FidelityMedianFidelityMedianFidelityMedian High Growth Profile (FAP Growth Fund) Growth Profile (FAP Balanced Fund) Balanced Profile (FAP Stable Growth) Fund Performance Vs Industry Median as at 30 June 2004 Source: Watson Wyatt, Managed Fund Report, net of management fees, in HKD * Fidelity Investments, Ordinary Class, NAV to NAV, cumulative performance in USD

10 Retirement Planning

11 1.Invest “time”/ “Age” When it comes to retirement investment,... Key things YOU should consider 2.Risk level that you are comfortable with 3.Diversify among asset classes to reduce risk

12 Member Services

13 ServicesInformation Available Fidelity’s Hotlines: Fidelity’s Website:  Fund information  Fund prices  Download marketing literatures Dedicated Phone Team Mon – Fri, 9:00am to 6:00pm Sat, 9:00am to 1:00pm Speak directly to our investment specialist who can provide you with market update and retirement planning assistance Webcast Obtain quarterly market and fund performance review via Fidelity’s website Performance Update Obtain a detailed monthly summary of fund performance and market trends Horizons Enjoy our lifestyle magazine quarterly with fund performance, market review and outlook Easy and convenient...

All views expressed in this presentation are those of Fidelity Investments and cannot be construed as an offer or recommendation. Investment involves risks. Past performance is no guarantee of future returns. Please refer to the Explanatory Memorandum of Fidelity Advantage Portfolio Fund for further details. Investment in the Fidelity Advantage Portfolio Fund is not available to the general investing public. Investment in the Fidelity Advantage Portfolio Fund is available only to ORSO and MPF retirement benefit schemes, their related Approved Pool Investment Funds, institutions, high net worth individuals, or those individuals who have recently been or still are members of an ORSO or MPF retirement benefit scheme. If you are an individual retail investor who is not a current member of an ORSO or MPF retirement benefit scheme but wish to invest your accrued benefits in Fidelity managed funds, please contact Fidelity for further details about our range of investment funds, which are available to the general public. Disclaimer

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16 Special Offer to Members

17 Special Offer Fidelity Personal Account – Retail Funds* 2% Front end fees: * Sales charge for Fidelity Funds – American Growth Fund remains at 5.25%. For details of Fidelity Funds, please refer to the relevant offering document.