The investment objective is to achieve long term capital growth.

Latest Fund Expense Ratio: 1.75%

Launch Date(dd/mm/yyyy): 01/12/2000

Unit Price: HKD 13.4305

Fund Size: HKD 884.3M

The US Federal Reserve (US Fed) executed two emergency rate cuts by lowering the federal funds rate by 1.5% to 0% to 0.25% in March and implemented an unlimited quantitative easing to prevent a depression from a great recession, and maintain a smooth functioning of US banking as well as capital market amid the global spread of the Covid-19. Later, the European Central Bank (ECB) also announced to increase the size of their quantitative easing programs “by as much as necessary and for as long as needed” to ensure a supportive financing conditions for absorbing the shock of the Covid-19 crisis. So, the deposit rates dropped and bond yields plummeted in general. In this quarter, the 3-month USD LIBOR fell 46 basis points to close at 1.45% while the 3-month HKD HIBOR slipped 49 basis points to 1.93%. And the 5-year US Treasury yield closed at 0.38%, down 131 basis points whereas the 5-year Hong Kong dollar government bond yield fell 115 basis points to close at 0.57%. The worldwide-spread Covid-19 and its containment measures, including “limitations of group gathering” regulation, “stay-at-home” orders and city lockdown, had struck a heavy blow at the global supply chain, travels, consumptions and economy as a whole. Inevitably, the global economy had faced a severe recession and most of stock markets entered a bear market. In this quarter, the Hang Seng Index dropped by 16.3%, closing at 23,603. As the US Fed and the ECB would continue to maintain a near zero interest rate as well as an unprecedented accommodative monetary and financing conditions policy, including the US and the ECB’s unlimited quantitative easing, the US’s relief measures to support the flow of credit to households and businesses, and the ECB’s abandoning the “issue limits” constraints for its purchase of the Euro country’s eligible bonds, in the Covid-19 crisis, it is expected that the Hong Kong dollar interest rates would continue to stay low, and the Hong Kong stock market would be supported at its downside despite the Covid-19 epidemic would still blow the global economy and corporate earnings in the next quarter.