1. - 1 - Hong Kong Baptist University Seminar on INVESCO “Strategic MPF Scheme” (Cantonese ) Date:26 September 2002 (Thursday) Time:1:00pm - 2:00pm Venue:RRS905, SIR RUN RUN SHAW BLDG., HSH Campus

2. 26 September 2002 MPF Performance Review

3. - 3 - Table of Contents Page Portfolio Review 3 Performance Review5 Investment Outlook & Strategy11 Guaranteed Fund22 Investment Tips 27 Managing Your MPF Accounts31 Member Services34

4. - 4 - Portfolio Review

5. - 5 - Fund Choices INVESCO Strategic MPF Scheme (Class A) High Risk / High ReturnLow Risk / Low Return *Net contributions will receive a guarantee of capital and at least 4.5% p.a. interest over the investment period into the Guaranteed Fund if accrued benefits are withdrawn upon qualifying events. Growth Fund 100% Equities Balanced Fund 70% Equities 30% Bonds Capital Stable Fund 30% Equities 70% Bonds Guaranteed Fund* 20%-80% Equities 15%-75% Bonds 3%-20% Money Market Instruments Capital Preservation Fund 100% Money Market Instruments

6. - 6 - Performance Review

7. - 7 - Market Performance Review Source: Standard & Poor’s Micropal, Datastream

8. - 8 - Inception Date: 26 February 2001 Source: INVESCO Strategic MPF Scheme (Class A & G) Data as of 31 August 2002 (% in HKD) MPF Performance Review *Calculation is based on the assumption that a fixed amount is invested in the various constituent funds on the actual dealing dates of contributions made by Hong Kong Baptist University.

9. - 9 - MPF 1-Year Performance to 31 August 2002 Source: INVESCO Strategic MPF Scheme (Class A & G), HKIFA MPF Performance Review – 1 Year to 31 August 2002

10. - 10 - Source: INVESCO Strategic MPF Scheme (Class A & G), HKIFA MPF Performance Review – Q2 2002 MPF Q2 Performance up to 30 June 2002

11. - 11 - Source: INVESCO Strategic MPF Scheme (Class A & G), HKIFA MPF Performance Review – 6-month to 31 August 2002 MPF 6-month Performance up to 31 August 2002

12. - 12 - Investment Outlook & Strategy

13. - 13 - Global Economic Outlook nThe global economic recovery will be moderate and non-inflationary in the foreseeable future. nThe US economy and corporate earnings have bottomed but recent stock market weakness may affect the prevailing recovery. nEconomic indictors in Europe continue to slow down. It is increasingly apparent that economic and corporate woes are the reasons behind the current market malaise. nIn Hong Kong, deflation and rising unemployment rates are expected to dampen sentiment in the near term. nPick-up in domestic consumption reduces Asia’s reliance on exports.

14. - 14 - Global Equity Strategy Asia Pacific ex Japan:Overweight Japan: Underweight Weightings Relative to Benchmark Europe : Neutral US: Mildly Underweight Factors such as corporate malfeasances, weak US economic growth and corporate earnings growth will limit upside for global equities in the near term. Hong Kong : Neutral Data as of 31 August 2002

15. - 15 - Hong Kong Rising unemployment rates. Domestic consumption remains weak as consumer sentiment stays low. Asset deflation limits increase in property prices. Companies enjoy healthy cashflow after deleveraging and should be able to survive in the downturn. Value begins to emerge but growth rate remains low.

16. - 16 - US Mixed signals on the economy. Favorable  Auto sales were up again in July.  Refinancing continued to rise due to low short rates.  Core CPI deflator was up just 1.1% - no inflationary pressure. Unfavorable  GDP growth rose 5.0% in Q1 and 1.1% in Q2.  The unemployment rate edged up to 5.9%.  Corporate capital expenditure isn’t recovering as companies resize themselves for profitability.  Stocks and the USD remained weak.

17. - 17 - Europe Monetary policies remain restrictive. Recent strength of the Euro may slow down economic growth. Strong Euro vs USD may erode export competitiveness but reduce inflationary pressure. Capital expenditure rebound will be critical but high debt levels of European telcos may delay corporate capital expenditure. We remain cautious in Technology & Telecoms and prefer Cyclicals.

18. - 18 - Japan Domestic consumption is likely to stay weak. The strong Yen may erode export competitiveness. Deflationary pressure remains. Bankruptcies are still rising and will continue to hit consumer sentiment.

19. - 19 - Other Asia Asian markets are still attractively valued relative to developed markets. Pre-emptive rate hikes in Korea & Australia are favorable to a more sustainable economic upturn. Consumer balance sheet are healthy:  Nominal interest rates are at historically low levels.  Demographics are favorable. Banking sector has undergone massive consolidation and clean up, especially in Korea and Malaysia. Trimmed technology holdings and focus on domestic consumption related companies.

20. - 20 - Global Bonds Strategy Europe (ex-UK):Overweight Duration-adjusted Weightings Relative to Benchmark Hong Kong: Neutral Data as of 31 August 2002 UK: Neutral Japan: Neutral US Dollar:Overweight

21. - 21 - * Benchmark asset allocation used for INVESCO internally only. Data as of 31 December 2001 & 31 August 2002 Asset Allocation

22. - 22 - Global Equity – Sector Breakdown 31 Dec 2001 31 Aug 2002

23. - 23 - Guaranteed Fund

24. - 24 - Guaranteed Fund n Investment Objective: Provides average guaranteed return of 4.5% per year over the career of employee while seeking long- term capital appreciation n Expected Risk/Return: Low n Invests in balanced portfolio of equities, bonds and cash Global Equities Global Bonds & Cash

25. - 25 - You will be qualified for the guaranteed return if you claim your accrued benefit immediately when any one of the following reasons is met: * Termination of employment AND invested for a continuous period of at least 36 months; Early retirement; Retirement; Permanent departure from Hong Kong; Total incapacity; Death; Small balance account. * In this case, you are qualifying for the guaranteed return when you choose to transfer the accrued benefits to preserved account or other MPF account. Guaranteed Return Features of Guaranteed Fund

26. - 26 - Assumption: 1.Qualifying condition based on termination of employment only. 2.Initial contribution = $1,000. Net return = 7.5%, 1%, 3% & 8% in respective years 3.Guaranteed rate = 4.5% p.a. Each member has 2 accounts: - Normal balance (market value) & qualifying balance (guaranteed value) Features of Guaranteed Fund

27. - 27 - n Fund switching will be based on market value n 36 months of qualifying period will be recounted when there is fund switches n When the member changes his or her account from active to preserved account without meeting the qualifying events, the guaranteed interest will be reset. n No partial withdrawals is allowed Features of Guaranteed Fund

28. - 28 - Investment Tips

29. - 29 - Dollar-Cost Averaging – How Does It Work? Fund AFund BFund C  Dollar-cost averaging is a systematic approach to long-term investment.  When markets go down, your monthly contribution can buy you more units.

30. - 30 - nCut loss. nSell and buy back at lower prices. nIncrease your holdings as the market is on sale. nVery difficult to catch bottom prices. Sell “Should I Sell On Falling Prices?” Hold nShort-term trading is profitable. nLong-term investment help you meet your goals.

31. - 31 - What Should I Consider Before Making Switches? nConsider the latest fund performance? nMarket timing? nWrong investment decisions in the past? nChange of investment horizon? nIncreased/reduced financial burden? 

32. - 32 - Managing Your MPF Accounts

33. - 33 - Operating Cycle New contract  New MPF account Accrued benefits will be transferred to preserved account upon receipt of your instruction* or 3 months after the termination of contract automatically Make contributions until the termination of contract * You can also transfer the accrued benefits to other registered master trust scheme.

34. - 34 - nYou may have more than one MPF accounts with INVESCO at one time nRetain your Membership Certificates and PINs nRemember to submit “Fund Transfer Form” after the termination of contract nSynchronize PINs so that you can manage your MPF accounts easily Advices for Handling your MPF accounts Each member should only have ONE Preserved Account with INVESCO.

35. - 35 - Member Services

36. - 36 - How Are You Using Our Service? By Service Channels Cumulative Data from Scheme inception to 31 August 2002 Total Number of Hits: 3,041

37. - 37 - How Are You Using Our Service? By Functions Cumulative Data from Scheme inception to 31 August 2002 Total Number of Hits: 3,041

38. - 38 - IVRS INVESCall Hotline Member Services Factsheet, Newsletter & Member Statement INVESCO Strategic MPF Scheme 1st Quarter Report 2001 Informative, Convenient, Multi-Media INVESNet

39. - 39 - Contact Us INVESCall 2842 7878 INVESNet http://www.mpf.invesco.com.hk

41. - 41 - HOTLINES: Investment & OptionsINVESCall2842-7878 Enquiries (Finance Office)Ms Cecilia So3411-7804