Prosperity V Universal Life Plan credits interest to policyowners' account at a Crediting Interest Rate which is not guaranteed and may be changed from time to time. Through the Crediting Interest Rate declaration, the policyowners participate in the investment performance of the underlying investment portfolio, after allowing for the Guaranteed Crediting Interest Rate, if any. The declared Crediting Interest Rate may also be affected by other factors, including but not limited to, market conditions, investment outlook, expenses, persistency and claims experience. The premiums deposited into the Account Value of policies of Prosperity V Universal Life Plan may be separated into different buckets with different Crediting Interest Rates, with an aim to more closely reflect the yields attained during the period of premiums deposited. To stabilize the Crediting Interest Rate, Hong Kong Life may distribute a proportion of the investment income in a particular year attributable to the policyowners, with an aim to smooth out the short-term volatility of Crediting Interest Rate over the benefit term.

The underlying investment portfolio is a dedicated fund managed by Hong Kong Life according to the investment mandate specified in the Company's internal investment guidelines. The fund's investments are mainly government bonds or corporate bonds with high credit rating and equities. Generally, the asset allocation strategy is that at least 60% of the fund's assets will be invested in bonds mainly issued in US and Hong Kong, 0% to 30% invested in Hong Kong equities, and 0% to 10% in cash. The target currency mix of the fund's investments will vary according to the currency mix of Hong Kong Life's liability. Allocation of different asset classes will be reviewed regularly with considerations of the market conditions, economic outlook and global insights in order to generate sustainable long term returns. Hong Kong Life reserves the right to change the investment strategy and shall notify policyowners for any material changes.

Based on the above, the review on Crediting Interest Rate is conducted at least annually, and is determined by the Appointed Actuary of Hong Kong Life and approved by the Board of Hong Kong Life. The Crediting Interest Rate will be declared in compliance with the relevant legislative and regulatory requirements as well as relevant actuarial standards, subject to applicable Guaranteed Crediting Interest Rate (if any).

Premier Universal Life credits interest to policyowners' account at a Crediting Interest Rate which is not guaranteed and may be changed from time to time. Through the Crediting Interest Rate declaration, the policyowners participate in the investment performance of the underlying investment portfolio, after allowing for the Minimum Guaranteed Crediting Interest Rate (if any) and First Year Crediting Interest Rate (if any). The declared Crediting Interest Rate may also be affected by other factors, including but not limited to, market conditions, investment outlook, expenses, persistency and claims experience. The premiums deposited into the Account Value of policies of Premier Universal Life may be separated into different buckets with different Crediting Interest Rates, with an aim to more closely reflect the yields attained during the period of premiums deposited. To stabilize the Crediting Interest Rate, Hong Kong Life may distribute a proportion of the investment income in a particular year attributable to the policyowners, with an aim to smooth out the short-term volatility of Crediting Interest Rate over the benefit term.

The underlying investment portfolio is a dedicated fund managed by Hong Kong Life according to the investment mandate specified in the Company's internal investment guidelines. The fund's investments are mainly government bonds or corporate bonds with high credit rating and equities. Generally, the asset allocation strategy is that at least 60% of the fund's assets will be invested in bonds mainly issued in US and Hong Kong, 0% to 30% invested in Hong Kong equities, and 0% to 10% in cash. The target currency mix of the fund's investments will vary according to the currency mix of Hong Kong Life's liability. Allocation of different asset classes will be reviewed regularly with considerations of the market conditions, economic outlook and global insights in order to generate sustainable long term returns. Hong Kong Life reserves the right to change the investment strategy and shall notify policyowners for any material changes.

Based on the above, the review on Crediting Interest Rate is conducted at least annually, and is determined by the Appointed Actuary of Hong Kong Life and approved by the Board of Hong Kong Life. The Crediting Interest Rate will be declared in compliance with the relevant legislative and regulatory requirements as well as relevant actuarial standards, subject to applicable Minimum Guaranteed Crediting Interest Rate (if any) and First Year Crediting Interest Rate (if any).