Investment Objective
To provide a convenient and easily realisable medium of investment for investors who require a level of income combined with a high degree of capital protection by investing in HK dollar denominated bank deposits and other high quality HK dollar denominated fixed-interest and other monetary instruments. Fees and charges of an MPF conservative fund can be deducted from either (i) the assets of the fund or (ii) members’ account by way of unit deduction. The Allianz MPF Conservative Fund uses method (i) and, therefore, its unit prices/NAV/ fund performance quoted have incorporated the impact of fees and charges.
Fund Details
Latest Fund Expense Ratio: 1.08%
Launch Date(dd/mm/yyyy): 01/02/2001
Unit Price: HKD 16.8456
Fund Size: HKD 1,127.69M
Fund Commentary
At the start of 2020, short term HK rates declined in the first two months of the year with looser liquidity, while increased once again in March reflecting tighter liquidity towards quarter-end. In January, Moody’s downgraded Hong Kong sovereign rating from Aa2 to Aa3, citing ongoing protests and uncertainty caused by closer integration with Chinese mainland. Economic data has also been weaker. In March, with disruptions globally caused by the COVID-19 pandemic, HKMA followed the Federal Reserve to cut the base rate and also cut Countercyclical Capital buffer in an attempt to allow banks to withstand stressed situations. In Q2, USDHKD touched the strong end of the peg of 7.75 in mid-April and HKMA injected liquidity into the system to defend the peg. In addition, HKMA has announced plans to reduce the issuance size of Exchange Fund Bills by up to HKD 20 billion to increase overall HKD liquidity in the interbank market. Overall, Aggregate Balance increased from HKD 54 billion at the end of March to HKD 132 billion at the end of June. As a result of the increased liquidity in the system, short term Hong Kong interest rates declined over the quarter. HK’s economy has been dragged by the local social unrest in second half of 2019, and further by the outbreak of coronavirus. HK’s Q1 GDP contracted 8.9% yoy, marking the third straight quarter of contraction; unemployment rate rose to 5.9% and retail sales volume recorded a 33.9% decline yoy in May.
Fund Performance Information
| Annualised return |
Calendar year return |
1 year
(p.a. %) |
5 years
(p.a. %) |
10 years
(p.a. %) |
Since launch
(p.a. %) |
2015 | 2016 | 2017 | 2018 | 2019 | YTD |
| 0.97% |
0.37% |
0.19% |
0.60% |
0.01 | 0.01 | 0.01 | 0.39 | 1.03 | 0.40 |
Fund Performance Information
| Annualised return |
1 year
(p.a. %) |
5 years
(p.a. %) |
Since launch
(p.a. %) |
| 0.97% |
0.37% |
0.60% |
| Calendar year return |
| 2015 | 2016 | 2017 | 2018 | 2019 | YTD |
| 0.01 | 0.01 | 0.01 | 0.39 | 1.03 | 0.40 |
Top 10 Holdings
| Security name |
Holdings Weight |
| OVERSEA CHINESE BANKING CORP LTD 0.19% 02/07/2020 |
6.95% |
| INDUSTRIAL AND COMMERCIAL BANK OF CHINA (ASIA) LIMITED 0.90% 24/09/2020 |
3.74% |
| INDUSTRIAL AND COMMERCIAL BANK OF CHINA (ASIA) LIMITED 0.30% 02/07/2020 |
3.43% |
| DAH SING BANK LTD. 0.37% 07/07/2020 |
2.85% |
| THE BANK OF EAST ASIA LTD, HKG 1.50% 11/12/2020 |
2.63% |
| DAH SING BANK LTD. 0.67% 10/07/2020 |
2.49% |
| CMB WING LUNG BANK, HONG KONG 2.25% 03/07/2020 |
2.38% |
| THE BANK OF EAST ASIA LTD, HKG 1.50% 11/08/2020 |
2.34% |
| FUBON BANK (HONG KONG) LIMITED 2.60% 14/07/2020 |
2.29% |
| SHANGHAI COMMERCIAL BANK GROUP 2.10% 13/08/2020 |
1.94% |
| Total |
31.04% |
Top 10 Holdings
Security name
Holdings Weight |
| OVERSEA CHINESE BANKING CORP LTD 0.19% 02/07/2020
Holding Weight 6.95%
|
| INDUSTRIAL AND COMMERCIAL BANK OF CHINA (ASIA) LIMITED 0.90% 24/09/2020
Holding Weight 3.74%
|
| INDUSTRIAL AND COMMERCIAL BANK OF CHINA (ASIA) LIMITED 0.30% 02/07/2020
Holding Weight 3.43%
|
| DAH SING BANK LTD. 0.37% 07/07/2020
Holding Weight 2.85%
|
| THE BANK OF EAST ASIA LTD, HKG 1.50% 11/12/2020
Holding Weight 2.63%
|
| DAH SING BANK LTD. 0.67% 10/07/2020
Holding Weight 2.49%
|
| CMB WING LUNG BANK, HONG KONG 2.25% 03/07/2020
Holding Weight 2.38%
|
| THE BANK OF EAST ASIA LTD, HKG 1.50% 11/08/2020
Holding Weight 2.34%
|
| FUBON BANK (HONG KONG) LIMITED 2.60% 14/07/2020
Holding Weight 2.29%
|
| SHANGHAI COMMERCIAL BANK GROUP 2.10% 13/08/2020
Holding Weight 1.94%
|
| Total: 31.04% |
Portfolio Allocation
- • 13 Cash and Others
- • 1 Fixed Income
- • 86 Fixed Deposits
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