March 3, 2004 Fidelity Retirement Services Investment Review

Hong Kong Baptist University 1998 Superannuation Fund 1 High Growth Profile invests in Fidelity Advantage Portfolio Fund – Growth Fund Ordinary Class 2 Growth Profile invests in Fidelity Advantage Portfolio Fund – Balanced Fund Ordinary Class 3 Balanced Profile invests in Fidelity Advantage Portfolio Fund – Stable Growth Fund Ordinary Class

High Growth Profile High Growth Profile Assets as at 31 Jan HKD 13,896, High Growth Profile invests in Fidelity Advantage Portfolio Fund – Growth Fund Ordinary Class Benchmark: A composite index consisting of 27% FTSE AW HK, 3% HSBC, 12% FTSE AW Japan, 12% FTSE AW Asia Pacific ex. Japan ex. HK, 18% FTSE AW North America, 18% FTSE AW Europe, 7% Salomon Smith Barney WGBI, and 3% 1-month HIBOR Source: Fidelity Investments, Ordinary Class, NAV to NAV, and in USD, as of Jan 31, 2004.

Growth Profile Growth Profile Assets as at 31 Jan HKD 7,062, Growth Profile invests in Fidelity Advantage Portfolio Fund – Balanced Fund Ordinary Class Benchmark: A composite index consisting of 21.6% FTSE AW HK, 2.4% HSBC, 9% FTSE AW Japan, 9% FTSE AW Asia Pacific ex. Japan ex. HK, 14% FTSE AW North America, 14% FTSE AW Europe, 25% Salomon Smith Barney WGBI, and 5% 1-month HIBOR Source: Fidelity Investments, Ordinary Class, NAV to NAV, and in USD, as of Jan 31, 2004.

Balanced Profile Balanced Profile Assets as at 31 Jan HKD 6,403, Balanced Profile invests in Fidelity Advantage Portfolio Fund – Stable Growth Fund Ordinary Class Benchmark: A composite index consisting of 15.3% FTSE AW HK, 1.7% HSBC, 6.5% FTSE AW Japan, 6.5% FTSE AW Asia Pacific ex. Japan ex. HK, 10% FTSE AW North America, 10% FTSE AW Europe, 45% Salomon Smith Barney WGBI, and 5% 1-month HIBOR Source: Fidelity Investments, Ordinary Class, NAV to NAV, and in USD, as of Jan 31, 2004.

Balanced Profile Source: Fidelity Investments, Ordinary Units, NAV to NAV, in USD, at as 31/01/2004 Benchmark – Since 30/04/02 High Growth Profile invests in Fidelity Advantage Portfolio Fund – Growth Fund Ordinary Class Growth Profile invests in Fidelity Advantage Portfolio Fund – Balanced Fund Ordinary Class Balanced Profile invests in Fidelity Advantage Portfolio Fund – Stable Growth Fund Ordinary Class Growth Profile High Growth Profile

High Growth Profile invests in Fidelity Advantage Portfolio Fund – Growth Fund Ordinary Class Median: Survey median for the growth fund category is the median representative from the Mercer Hong Kong Investment Choice Universe Source: Mercer Hong Kong Investment Choice Survey, Mercer Investment Consulting, NAV to NAV, and in HKD, as of Dec 31, 2003.

Growth Profile Growth Profile invests in Fidelity Advantage Portfolio Fund – Balanced Fund Ordinary Class Median: Survey median for the balanced fund category is the median representative from the Mercer Hong Kong Investment Choice Universe Source: Mercer Hong Kong Investment Choice Survey, Mercer Investment Consulting, NAV to NAV, and in HKD, as of Dec 31, 2003.

Balanced Profile Balanced Profile invests in Fidelity Advantage Portfolio Fund – Stable Growth Fund Ordinary Class Median: Survey median for the stable growth fund category is the median representative from the Mercer Hong Kong Investment Choice Universe Source: Mercer Hong Kong Investment Choice Survey, Mercer Investment Consulting, NAV to NAV, and in HKD, as of Dec 31, 2003.

Source: Fidelity Investments, Jan 2004 Investment Strategy Summary Asset ClassInvestment ViewMain Reasons Hong Kong EquityPositive Corporate earnings forecasts have been revised upwards. The low/declining rate environment is positive. Investor sentiment has been helped by liberalization of mainland tourists coming to Hong Kong and signing of CEPA with China. U.S. EquityNeutral Valuations appear expensive when compared to historical averages. Markets could be vulnerable to economic disappointment, currency volatility and geopolitical uncertainties. Earnings growth has been driven by cost cutting and balance sheet improvement. Japanese EquitySlightly Positive Japanese economy continues to show signs of recovery. Valuations, profit growth momentum, as well as equity demand and supply remain supportive. European EquityNeutral Continental Europe follows the global cycle with a lag. It could deliver more potential of upside surprises than other region. Improvement in both confidence and valuations should benefit the demand & supply situation. Other Asian EquityPositive Accelerating economic growth and receding deflationary pressure have been positive to regional markets. Company profit forecasts have also been upgraded. Valuations of Asian emerging markets remain attractive when compared to global peers. Global BondsSlightly Negative The market is now discounting higher interest rates in 2004, especially in the US. The investment environment has been more favorable to equities than bonds. Within the bond universe, investors might find value in the lower-rated end of the investment-grade segment and in the high-yield segment of the corporate bond market.

Contact Fidelity Investments Hotline Website

 Discount on sales charge for personal investment savings outside the Superannuation Fund  Including both lump sum and monthly savings  Free rollover arrangement when leaving the University  Keep investing in the same profile under Saving Class  Ask for a “Fidelity Rollover Pack - ORSO” Call Fidelity at Privileges for Hong Kong Baptist University Members

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.

Fidelity Advantage Portfolio Fund (FAP) – Investment Objectives Appendix Growth Fund  Mainly invested in equity funds  Geographical bias towards Hong Kong  To maximise long term returns Balanced Fund  Normally maintain a balanced, global portfolio of bond funds and equity funds  To achieve a consistent overall return than Hong Kong inflation  With lower risk and volatility of returns in the short term Stable Growth Fund  To invest in a global portfolio of bond funds, cash funds and equity funds  With a lower weighting in equities than the Balanced Fund  To achieve a consistent overall return higher than Hong Kong inflation

Geographic Allocation Asset ClassTargetCurrent Hong Kong Equities30%30.40% Japan Equities12%13.14% Other Asia Pacific Equities12%13.05% US Equities18%18.20% European Equities18%19.21% Global Bonds7%6.00% Cash & Others3%0.00% High Growth Profile High Growth Profile invests in Fidelity Advantage Portfolio Fund – Growth Fund Ordinary Class Source: Fidelity Investments as of Dec 31, 2003.

Geographic Allocation Asset ClassTargetCurrent Hong Kong Equities23%24.84% Japan Equities8%10.81% Other Asia Pacific Equities13%10.24% US Equities13%14.30% European Equities13%15.53% Global Bonds25%24.08% Cash & Others5%0.20% Growth Profile Growth Profile invests in Fidelity Advantage Portfolio Fund – Balanced Fund Ordinary Class Source: Fidelity Investments as of Dec 31, 2003.

Geographic Allocation Asset ClassTargetCurrent Hong Kong Equities15%17.92% Japan Equities5%8.16% Other Asia Pacific Equities10%7.93% US Equities10%10.57% European Equities10%11.37% Global Bonds45%44.00% Cash & Others5%0.05% Balanced Profile Balanced Profile invests in Fidelity Advantage Portfolio Fund – Stable Growth Fund Ordinary Class Source: Fidelity Investments as of Dec 31, 2003.