Investment Objective
The objective of the Fund is to achieve capital growth over the long-term by investing mainly in Hong Kong equity markets.
Fund Details
Latest Fund Expense Ratio: 1.71%
Launch Date(dd/mm/yyyy): 17/10/2007
Unit Price: HKD 21.5629
Fund Size: HKD 383.7M
Fund Commentary
In the first quarter, the Hang Seng Index was down 15.4%, and the Hong Kong Equity Portfolio returned -13.7%. Communication services, healthcare and consumer staples sectors outperformed, while industrials, energy and consumer discretionary sectors lagged during the quarter. In the first quarter, as affected by protests and coronavirus outbreak, Hong Kong’s economics activities was still weak. Hong Kong Markit PMI remain low at 34.6 in March, and retail sales continue to plummet more than 35% in the quarter. Looking ahead, imported COVID-19 cases remains a risk to overall improving domestic activity and the global infection rate remains a wild-card issue that clouds the external demand outlook. In response, the Political Bureau and its Standing Committee meeting on March 27 confirmed to further step up policy support, which highlighted the increase of fiscal deficit rate, issue special government bond and raise the quota of local government special bonds. Overall earnings revision remained negative in March. Our strategy overweighs sectors that are defensive and less impacted by the COVID-19 while we have reduced our position in energy and consumer related industries like oil and sportswear. In the first quarter, we increase our overweight on utilities and healthcare sector as we believe these sectors will be less impacted by the virus outbreak and global economy recession. We also increase our overweight on cement and 5g names as we are expecting more policies support. We remained bearish on Hong Kong economy and reduce our exposure in Hong Kong local shares, mostly in financials and property sector. Given the severe impact of the coronavirus and global economy recession, our strategy has become more defensive. However, we are also expecting the market sentiment to recover a little after the sheer correction.
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 |
| -15.68% |
0.96% |
3.72% |
0.61% |
-5.46 | 0.20 | 41.04 | -14.41 | 11.81 | -14.27 |
Fund Performance Information
| Annualised return |
1 year
(p.a. %) |
5 years
(p.a. %) |
Since launch
(p.a. %) |
| -15.68% |
0.96% |
0.61% |
| Calendar year return |
| 2015 | 2016 | 2017 | 2018 | 2019 | YTD |
| -5.46 | 0.20 | 41.04 | -14.41 | 11.81 | -14.27 |
Top 10 Holdings
| Security name |
Holdings Weight |
| Tencent Holdings Ltd |
9.6% |
| China Construction Bank Corp-H |
6.1% |
| AIA Group Ltd |
6.0% |
| HSBC Holdings Plc |
4.5% |
| Ping An Insurance Grp Co of China Ltd-H |
3.0% |
| Meituan Dianping-B |
2.9% |
| Hong Kong Exchanges & Clearing Ltd |
2.8% |
| Sunac China Holdings Ltd |
2.8% |
| Industrial & Comm Bank of China Ltd-H |
2.5% |
| Shimao Property Holdings Ltd |
2.3% |
| Total |
42.5% |
Top 10 Holdings
Security name
Holdings Weight |
| Tencent Holdings Ltd
Holding Weight 9.6%
|
| China Construction Bank Corp-H
Holding Weight 6.1%
|
| AIA Group Ltd
Holding Weight 6.0%
|
| HSBC Holdings Plc
Holding Weight 4.5%
|
| Ping An Insurance Grp Co of China Ltd-H
Holding Weight 3.0%
|
| Meituan Dianping-B
Holding Weight 2.9%
|
| Hong Kong Exchanges & Clearing Ltd
Holding Weight 2.8%
|
| Sunac China Holdings Ltd
Holding Weight 2.8%
|
| Industrial & Comm Bank of China Ltd-H
Holding Weight 2.5%
|
| Shimao Property Holdings Ltd
Holding Weight 2.3%
|
| Total: 42.5% |
Portfolio Allocation
- • 3.2 Cash & Time Deposits
- • 13.7 Communication Services
- • 11.6 Consumer Discretionary
- • 1.9 Consumer Staples
- • 1.2 Energy
- • 33.2 Financials
- • 4.7 Health Care
- • 6.7 Industrials
- • 4.1 Information Technology
- • 3.5 Materials
- • 10.7 Real Estate
- • 5.4 Utilities
- • 0.1 Others
The materials provided are for information only and do not constitute as an offer. For investment advice, please consult professional advisors. The information contained in this website has been compiled with considerable care to ensure its accuracy at the date of publication. However, no representation or warranty, express or implied, is made to its accuracy or completeness. MPF.HK shall not be responsible for any consequential effect, nor be liable for any direct, consequential, incidental, indirect loss or damage, howsoever caused, arising from the use of, inability to use or reliance upon any information or materials provided on this website, whether or not such loss or damage is caused by MPF.HK. Links to third party sites are provided for your information only. The content and software of these sites have been issued by third parties. As such, MPF.HK cannot be responsible for the accuracy of information contained in these sites, nor be held liable for any loss or damage arising from or related to their use.