MPF exam MPF Trustees question: minimum performance guarantee

Answer: A. $4.5 million

Answer: $4.5 million. Each natural-person trustee must produce a performance guarantee (Cap. 485A s 23(6)) for at least $10 million or 10% of the scheme's net asset value, whichever is less (s 23(8)): 10% of $45 million is $4.5 million, which is less than $10 million.Working:1. 10% x $45,000,000 = $4,500,0002. Compare with $10,000,000: $4,500,000 is lower, so $4.5 million applies.Why not the others:• $10 million: the minimum is the lower of 10% of NAV and $10 million, here $4.5 million.• $45 million: that is 100% of NAV; the guarantee is 10%.• $150 million: $150 million is the corporate trustee capital test, not the guarantee.Watch out: Candidates treat the $10 million figure as a fixed amount.Rule: Guarantee = at least the lower of 10% of NAV and $10 million.Source: MPF Study Notes, Tenth Edition (June 2026), 4.4(c); Cap. 485A (General Regulation) s 23(8) (version 5 Oct 2026)