Luen Fung Hang Life Pension Fund Growth Fund Investment Objective and Policy The Growth Fund will be actively managed to take advantage of both

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2018 3 聯豐亨人壽退休基金 Luen Fung Hang Life Pension Fund Management Company Luen Fung Hang Life Limited Advisory Body BOCI-Prudential Asset Management Limited Currency HKD # 9 25 2018 2020 4 10 17 0.

1 聯豐亨人壽退休基金 Luen Fung Hang Life Pension Fund Management Company Luen Fung Hang Life Limited Advisory Body BOCI-Prudential Asset Management Limited Currency HKD # % % % Market Commentary # During the quarter, US Treasury was mostly driven by external factors. The shift in market expectations for Bank of Japan to fine tune the monetary policy led the selloff in US Treasury, but ongoing trade disputes and Turkish turmoil lent support to US Treasury. Later on, US Treasury traded weaker amid strong US economic data and US Fed s decision to raise policy rate. US economic data remained upbeat, continuously supported by strong US labor market. Not only the number of new job creation was higher than expected, but also the wage growth quickened. The expectation of faster inflation prompted the sell-off of US Treasury as market turned cautious about the pace of rate hike. In September, the Fed raised policy rate by 25bps as widely expected and the rate projection for 2018 out to 2020 remain unchanged. In the Eurozone, bond yields across markets surged on both domestic and external factors. During the quarter, economic indicators were largely in line with expectations. Inflation, meanwhile, approached ECB s target. As such, ECB President Draghi announced to halve the size of monthly purchase in fourth quarter and concluded the program at the end of this year. Continued policy normalization alongside with higher US Treasury yield weighed on the bond markets. 10-Year German bund yield rallied 17 basis points to 0.47%. In peripheral space, concern over political tension between Eurozone and Italian government mounted as Italy s budget for 2019 remained in the spotlight. Italian government came up with an agreement just before deadline and set the budget deficit at 2.4%, which was higher than Eurozone s target and market expectations. Italian bond market sold off as debt sustainability and credit ratings were at risk. As such, 10-year Italian bond yield rallied 47 basis points to 3.15%. Global equity markets rebounded during the third quarter of 2018, thanks to US stock market. Trade tensions remained in the spotlight, as tariffs on China imports were implemented and more tariffs would likely come. However, strong economic data and positive earnings supported equity markets around the world. # # The market commentary and manager s comment above solely reflects the opinion, view and interpretation of the fund managers as of the date of issuance of this document. Investors should not solely rely on such information to make any Investment involves risks and the Sub-Funds are subject to market and exchange rate fluctuations and to the risks inherent in all investments. Past performance is not indicative of future performance. Price of units and the income from The information herein is based on sources believed to be reliable and the opinions contained herein are for reference only. Fund performance is calculated in HK$ on NAV-to-NAV basis with gross dividend reinvested.

2 Luen Fung Hang Life Pension Fund Growth Fund Investment Objective and Policy The Growth Fund will be actively managed to take advantage of both short-term market opportunities and long-term growth potential that exist around the world. Under normal circumstances, the Fund will invest a substantial portion in global equities. The balance will be invested in global debt securities. The risk profile of the Growth Fund is generally regarded as high. Manager s Comment # The Fund posted a positive return over the quarter. Equity investments in US outperformed. Global fixed income posted a decline driven by a rise in global government bond yields and adverse currency effect against US dollar. At the asset allocation level, we maintained an underweight position in fixed income and overweight exposure in equities. Within equities, the overweight position in US, Asia Pacific ex Japan including Hong Kong/China was kept during the period. In the near term, we expect volatility in markets to remain elevated due to the gradual withdrawal of monetary accommodation by developed markets central banks and global trade tensions due to rising US protectionism. Fund Information As of 28 / 09 / 2018 Fund Size (Million) HK$ Inception Date 17 / 01 / 2003 Management Fee (p.a.) % NAV per unit HK$ Composition As of 28 / 09 / 2018 Unit Trust 1.7% 18.2% Bond 12.3% Renminbi Bond 0.1% Japanese Yen Bond 0.3% Euro Dollar Bond 0.6% US Dollar Bond 9.3% UK Sterling Bond 0.1% Norwegian Krone Bond 0.1% Hong Kong Dollar Bond 1.8% Equities 67.8% Japan 7.1% Asia (ex Japan ex HK ex China) 6.7% North America 15.4% Europe (ex UK) 8.6% United Kingdom 5.3% Hong Kong and China 23.5% Others 1.2% Performance in HK$ As of 28 / 09 / % -1.33% 3.19% 24.10% 21.29% % Calendar Year Performance in HK$ As of 28 / 09 / Luen Fung Hang Life Pension Fund Balanced Fund Investment Objective and Policy The Balanced Fund will be actively managed to take advantage of both short-term market opportunities and long-term growth potential that exist around the world. The Fund will seek to achieve a long-term capital growth. Under normal circumstances, the Fund will invest in global equities and global debt securities in a balanced manner. The risk profile of the Balanced Fund is generally regarded as moderate to high. Manager s Comment # The Fund posted a positive return over the quarter. Equity investments in US outperformed. Global fixed income posted a decline driven by a rise in global government bond yields and adverse currency effect against US dollar. At the asset allocation level, we maintained an underweight position in fixed income and overweight exposure in equities. Within equities, the overweight position in US, Asia Pacific ex Japan including Hong Kong/China was kept during the period. In the near term, we expect volatility in markets to remain elevated due to the gradual withdrawal of monetary accommodation by developed markets central banks and global trade tensions due to rising US protectionism. Fund Information As of 28 / 09 / 2018 Fund Size (Million) HK$ Inception Date 17 / 01 / 2003 Management Fee (p.a.) % NAV per unit HK$ Composition As of 28 / 09 / 2018 Unit Trust 1.3% 23.3% Bond 17.6% Australian Dollar Bond 0.1% Renminbi Bond 0.1% Euro Dollar Bond 1.1% UK Sterling Bond 0.2% Hong Kong Dollar Bond 2.5% Japanese Yen Bond 0.5% US Dollar Bond 13.0% Norwegian Krone Bond 0.1% Equities 57.8% Japan 5.8% Asia (ex Japan ex HK ex China) 5.4% North America 16.0% Europe (ex UK) 7.3% United Kingdom 4.3% Hong Kong and China 18.0% Others 1.0% Performance in HK$ As of 28 / 09 / % -0.80% 2.97% 19.19% 17.83% % Calendar Year Performance in HK$ As of 28 / 09 / % 0.71% -2.45% 1.26% 15.92% # The Inception Date stated herein is defined by the Manager for the purpose of fund performance calculation % 1.50% 1.50% 1.25% The standard annual management fee of 1.80% was reduced to 1.50% starting from 1 January The standard annual management fee of 1.50% was further reduced to 1.25% starting from 1 January 2018.

3 Luen Fung Hang Life Pension Fund Stable Fund Investment Objective and Policy The Stable Fund will be actively managed to take advantage of both short-term market opportunities and long-term growth potential that exist around the world. The Fund will be invested in a conservative manner to reduce the risk of capital losses while attempting to achieve a reasonable level of capital gains. Under normal circumstances, the Fund will invest a substantial portion in global debt securities. The balance will be invested in global equities. The risk profile of the Stable Fund is generally regarded as low to moderate. Manager s Comment # The Fund posted a positive return over the quarter. Equity investments in US outperformed. Global fixed income posted a decline driven by a rise in global government bond yields and adverse currency effect against US dollar. At the asset allocation level, we maintained an underweight position in fixed income and overweight exposure in equities. Within equities, the overweight position in US, Asia Pacific ex Japan including Hong Kong/China was kept during the period. In the near term, we expect volatility in markets to remain elevated due to the gradual withdrawal of monetary accommodation by developed markets central banks and global trade tensions due to rising US protectionism. Fund Information As of 28 / 09 / 2018 Fund Size (Million) HK$ 1, Inception Date 17 / 01 / 2003 Management Fee (p.a.) % NAV per unit HK$ Composition As of 28 / 09 / 2018 Unit Trust 1.0% 30.1% Bond 30.5% Australian Dollar Bond 0.3% Hong Kong Dollar Bond 2.5% Canadian Dollar Bond 0.2% Japanese Yen Bond 1.4% Renminbi Bond 0.4% Singapore Dollar Bond 0.1% Euro Dollar Bond 3.1% US Dollar Bond 21.6% UK Sterling Bond 0.6% Norwegian Krone Bond 0.3% Equities 38.4% Japan 3.6% Asia (ex Japan ex HK ex China) 3.3% North America 12.1% Europe (ex UK) 4.4% United Kingdom 2.6% Hong Kong and China 11.6% Others 0.8% Performance in HK$ As of 28 / 09 / % -0.39% 2.19% 12.34% 11.03% 86.88% Calendar Year Performance in HK$ As of 28 / 09 / % 0.45% -2.24% 0.63% 10.65% Luen Fung Hang Life Pension Fund China Equity Fund Investment Objective and Policy The China Equity Fund aims to provide investors with long-term capital growth through investment mainly in the listed equities and equity related securities (including convertible securities) of companies whose activities are closely related to the economic development and growth of the economy of the People s Republic of China. The risk profile of the China Equity Fund is generally regarded as very high. Manager s Comment # (i) (ii) (iii) (iv) (v) (vi) Mainland equities were caught in the crossfire of tariffs in the third quarter, after U.S. and China imposed enlarged tariffs upon each other on July 6th and September 24th respectively. PBoC s liquidity enhancement measures, the re-introduction of counter-cyclical factor to RMB s daily reference rate, and Premier Li Keqiang s reiteration of stable currency and appropriate use of economic stimulus only seemed to soothe the market, but insufficient to reverse the downdraft. Hence, major mainland equity indices continued to refresh their multi-year closing low by end- September. The Fund also reported a negative return in the third quarter, mainly due to the Health Care & Pharmaceuticals related exposure after the sector was battered by a high profile vaccine scandal and an array of negative news during the quarter. In the coming quarters, the Fund would focus on sectors with high beneficial likelihood from government stimulus and SOE reform, and would also closely monitor: (i) the impact of interest rate differential on RMB with reference to the latest trajectory of US rate hike cycle; (ii) China s latest economic releases; (iii) evolvement of the Sino-US relationship and related geo-political issues; (iv) potential changes of fund flows and/or stock preference corresponding to the Shanghai and Shenzhen-Hong Kong Stock Connect; (v) unintended market impact of debt de-leveraging and property market policies in China; and (vi) market impact of the Brexit negotiation and the political development of major Eurozone member states. Fund Information As of 28 / 09 / 2018 Fund Size (Million) HK$ Inception Date 01 / 04 / 2008 Management Fee (p.a.) % NAV per unit HK$ Composition** As of 28 / 09 / 2018 Unit Trust 0.2% Bond 8.8% 22.4% Consumption related 0.3% Financial Services 5.9% Government 2.3% Equities 68.6% Basic Materials 2.3% Consumption related 5.5% Energy related 5.9% Financial Services 17.2% Health Care & Pharmaceuticals 3.4% Industrials 2.8% Utilities 0.1% Property 0.2% Information Technology 19.8% Property 5.2% Telecom 2.2% Utilities 3.2% Others 1.1% ** ** With effect from 1 September 2012, new sector classification methodology is applied. As a result, the following changes are made in the Sector Allocation. Financials was divided into Financial Services and Property; Materials was changed to Basic Materials Consumer Discretionary and Consumer Staple were grouped together as Consumption related ; Energy was changed to Energy related ; Health Care was changed to Health Care & Pharmaceuticals. (i) (ii)ab Equity exposure can include: (i) other China related securities listed or quoted outside mainland China and Hong Kong and (ii) A shares and/or B shares. Performance in HK$ As of 28 / 09 / % -5.92% -1.52% 24.12% 22.42% 11.67% Calendar Year Performance in HK$ As of 28 / 09 / % 3.39% # The Inception Date stated herein is defined by the Manager for the purpose of fund performance calculation % 1.50% 1.50% 1.25% The standard annual management fee of 1.80% was reduced to 1.50% starting from 1 January The standard annual management fee of 1.50% was further reduced to 1.25% starting from 1 January % 1.25% The standard annual management fee of 1.50% was reduced to 1.25% starting from 1 January 2018.

4 Luen Fung Hang Life Pension Fund 70 European Index Tracker 70 Fund Investment Objective and Policy The European Index Tracker 70 Fund seeks to achieve long term capital growth by investing primarily in one or more underlying index fund(s), which in turn invest(s) in portfolio of securities traded on the stock exchanges in the United Kingdom and in other continental European countries. The Fund may also invest, directly or indirectly, in cash, time deposits and money market instruments. The risk profile of the European Index Tracker 70 Fund is generally regarded as high. Manager s Comment # 3 (GDP) 2 0.4% % 8.1% (PMI) The European Union started to explore what contingency plans it may need to take without the UK s cooperation in the case of a no-deal Brexit. German Deputy Finance Minister urged insurers to prepare for a no-deal Brexit and added that the German government was very interested in attracting financial service providers looking to leave Britain due to Brexit. Theresa May and U.S. President Donald Trump discussed the trade deal, which is seen as an important way to help offset the economic impact of Britain s withdrawal from Eurozone next March. Concerning Gross Domestic Product (GDP), the Eurozone GDP expanded 0.4% in the second quarter. Unemployment rate fell to 8.1% in August from 8.2% in July. With respect to Purchasing Managers Index (PMI), the Eurozone PMI reached an average of 54.3 over the third quarter, falling from 55.5 in the second quarter. In the third quarter, the Fund reported a positive return. ^ 4/5/2015 Fund Performance is calculated from 4/5/2015, the inception of the Fund. Fund Information As of 28 / 09 / 2018 Fund Size HK$ 470, Inception Date 04 / 05 / 2015 Management Fee (p.a.) 1.00% NAV per unit HK$ Composition As of 28 / 09 / % Bond 6.8% Hong Kong Dollar Bond 6.2% US Dollar Bond 0.6% Equities 67.8% Belgium 1.2% Denmark 2.1% Finland 1.6% France 12.5% Germany 10.0% Italy 2.5% Netherlands 3.2% Norway 0.9% Spain 3.1% Sweden 3.2% Switzerland 8.8% United Kingdom 18.7% ^ Performance^ in HK$ As of 28 / 09 / % -0.41% 1.21% 18.85% 9.74% ^ Calendar Year Performance^ in HK$ As of 28 / 09 / % 0.08% 16.29% Luen Fung Hang Life Pension Fund 70 North America Index Tracker 70 Fund Investment Objective and Policy The North America Index Tracker 70 Fund seeks to achieve long term capital growth by investing primarily in one or more underlying index fund(s), which in turn invest(s) in portfolio of securities traded on the stock exchanges in North America. The Fund may also invest, directly or indirectly, in cash, time deposits and money market instruments. The risk profile of the North America Index Tracker 70 Fund is generally regarded as high. Manager s Comment # ,000 10% % 3 2, % 2%-2.25% 3% % 2.7% US commenced to levy new tariffs of 10 percent on about US$200 billion of Chinese product on September 24, with the tariff rising to 25 percent by the end of Trump announced that if China takes retaliatory action against US farmers or industries, US will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports. Federal Reserve increased the target for the bank s benchmark rate by 0.25%, to a range of 2% % despite trade war concerns. Fed indicated that it expects the economy to grow by more than 3% this year, saying growth and job gains have been strong, as have spending and corporate investment. Fund Information As of 28 / 09 / 2018 Fund Size (Million) HK$ 2.42 Inception Date 04 / 05 / 2015 Management Fee (p.a.) 1.00% NAV per unit HK$ Composition As of 28 / 09 / % Bond 8.0% Hong Kong Dollar Bond 5.8% US Dollar Bond 2.2% Equities 73.2% Canada 3.6% United States 69.6% ^ Performance^ in HK$ As of 28 / 09 / % 8.10% 12.67% 38.67% 30.63% ^ Calendar Year Performance^ in HK$ As of 28 / 09 / % 7.67% 14.44% On the data front, U.S. inflation rose slightly in third quarter with year-on-year inflation rate at 2.7% in August and 2.9% in July. Manufacturing Purchasing Managers Index rose to 55.6 in September from 54.7 in August and 55.3 in July. In the third quarter, the Fund reported a positive return. ^ 4/5/2015 Fund Performance is calculated from 4/5/2015, the inception of the Fund. # The Inception Date stated herein is defined by the Manager for the purpose of fund performance calculation.

5 Luen Fung Hang Life Pension Fund Great Wall Fund Investment Objective and Policy The Great Wall Fund seeks to provide investors with long-term capital appreciation through investing in a diversified portfolio consisting of Renminbi denominated and settled debt instruments and a minor portion of debt instruments denominated and settled in other currencies, cash, term deposits with authorized financial institutions in Hong Kong or Macau or other money market instruments. The risk profile of the Great Wall Fund is generally regarded as low to moderate. Fund Information As of 28 / 09 / 2018 Fund Size (Million) HK$ 1.86 Inception Date 15 / 08 / 2014 Management Fee (p.a.) 0.80% NAV per unit HK$ Composition As of 28 / 09 / % Bond 69.5% Renminbi Bond 62.5% Hong Kong Dollar Bond 7.0% Manager s Comment # 3 3% Despite relatively stable return of Dim Sum Bonds, the Fund registered a negative return in the third quarter amid currency weakness. CNY recorded more than 3% loss during the quarter on continuous trade friction between US and China. Going forward, the Fund would remain defensive by maintaining a relative short duration and add only quality Dim Sum Bond in a way to optimize yield and enhance return. ^ Performance^ in HK$ As of 28 / 09 / % -1.38% 0.47% 4.03% 2.80% ^ Calendar Year Performance^ in HK$ As of 28 / 09 / % -2.20% -1.18% 8.27% ^ 15/8/2014 Fund Performance is calculated from 15/8/2014, the inception of the Fund. Luen Fung Hang Life Pension Fund Maintenance Fund Investment Objective and Policy The Maintenance Fund mainly invests in deposits and debt securities. The risk profile of the Maintenance Fund is generally regarded as very low. Manager s Comment # 3 The Fund posted a small positive return in the third quarter as bonds and deposits generated stable income. Going forward, the Fund would maintain the current maturity profile in rising interest rate environment. Fund Information As of 28 / 09 / 2018 Fund Size (Million) HK$ Inception Date 17 / 01 / 2003 Management Fee (p.a.) % NAV per unit HK$ Composition As of 28 / 09 / 2018 Bond 25.8% Hong Kong Dollar Bond 25.8% 74.2% Performance in HK$ As of 28 / 09 / % 0.84% 0.98% 2.09% 3.74% 21.39% Calendar Year Performance in HK$ As of 28 / 09 / % 0.98% 0.51% 0.47% 0.67% # The Inception Date stated herein is defined by the Manager for the purpose of fund performance calculation % 0.80% The standard annual management fee of 1.00% was reduced to 0.80% starting from 1 January 2007.

2018 3 Luen Fung Hang Life Pension Fund Conservative Fund Investment Objective and Policy The main objective of the Conservative Fund is to preserve capital, and seek to achieve stable capital growth

6 Luen Fung Hang Life Pension Fund Conservative Fund Investment Objective and Policy The main objective of the Conservative Fund is to preserve capital, and seek to achieve stable capital growth by systematically utilizing assets of the Fund. The Fund will adopt a medium to long-term investment policy. The Fund is a managed fund where assets of the Fund will be invested either directly or indirectly through investment funds (unit trusts, mutual funds or pooled investment portfolios) in a diversified portfolio that may consist of debt securities including those of the governments, corporate and financial institutions, deposit, money market instrument or other investment vehicles. Under normal circumstances, the Fund will mainly invest in underlying fund which seeks to preserve capital. The risk profile of the Conservative Fund is generally regarded as relatively low. Fund Information As of 28 / 09 / 2018 Fund Size (Million) HK$ Inception Date 28 / 06 / 2013 Management Fee (p.a.) 1.00% NAV per unit HK$ Note: Commencing from 19 November 2014, the performance fee has been waived. Composition As of 28 / 09 / % * BOCIP Global Balanced Fund 99.7% Manager s Comment # 3 The Fund registered a positive return in the third quarter as bonds and deposits generated stable income. Going forward, the Fund would remain defensive in rising interest rate environment. It would continue to seek for relative value in credit market as a way to add value. * BOCIP Global Balanced Fund ^ 28/06/2013 Fund performance is calculated from 28/06/2013, the inception of the Fund. ^ Performance^ in HK$ As of 28 / 09 / % 0.73% 0.97% 3.21% 5.20% 5.46% ^ Calendar Year Performance^ in HK$ As of 28 / 09 / % 1.02% 0.81% 0.97% 1.28% The Inception Date stated herein is defined by the Manager for the purpose of fund performance calculation. Luen Fung Hang Life Limited pfund@luenfunghang.com Website Hotline (853) or (853) Business hours: Monday to Friday 9:00am - 7:00pm Saturday 9:00am - 1:00pm (Closed on Sundays and Bank holidays)

Luen Fung Hang Life Pension Fund Growth Fund Investment Objective and Policy The Growth Fund will be actively managed to take advantage of both

2016 2 聯豐亨人壽退休基金 Luen Fung Hang Life Pension Fund Management Company Luen Fung Hang Life Limited Advisory Body BOCI-Prudential Asset Management Limited Currency HKD # 2 4 10 1.94% 4 6 6 5 10 1.4% 2012