BEA China Tracker Fund
BEA (MPF) Industry Scheme
Data as of 2026-06-30
Straight talk on this fund
- Down 11.7% over the past year — last of 10 China equity MPF funds. But the 5-year record is still negative (-4.7% a year) — the rebound hasn't filled the hole yet.
- Fund expense ratio 1.19% a year — 11 bps below the median China equity fund (1.3%), middle of the range (peers: 0.88%–1.75%). 11 bps below the median — that cost edge compounds every year.
- Risk class 6, near the top of the scale. Worst calendar year on record: 2021 (-22.1%). Not everyone can stomach that ride.
- Top 10 index constituents (Tencent Holdings Ltd, China Construction Bank, Alibaba Group Holding Ltd…) are 51.8% of the index — this isn't the manager betting on favorites, it's the index itself being top-heavy. Buying this tracker means riding those heavyweight constituents up and down.
- This is an index tracker — its mandate is to mirror the Hang Seng China Enterprises Index, not beat it. The portfolio (Tencent Holdings Ltd, China Construction Bank, Alibaba Group Holding Ltd… — the index's own heavyweights) matches the job description. Expect index-like returns minus the 1.19% fee — you're paying for replication, not stock-picking.
- In its best calendar year (2024) it made 24.9%; in its worst (2021) it lost 22.1% — that range tells you what you're signing up for.
- For monthly contributors, volatility can be a friend (buy more when down). Near retirement, that ride needs a second thought. When markets are choppy, position size itself is a decision.
Manager's LensWhat the portfolio reveals about the manager's thinking
Top-10 holdings are 51.8% of the fund. Tencent Holdings at 8.2% is the largest single position. The top three together are 22.7%. This is a concentrated portfolio. High conviction — or high concentration risk, depending on your view. Within the top 10, by sector: tech and internet 18.6%, banks 16.9%, telecom 4.8%. Within the top 10, by geography: HK-listed China 27.5%, Mainland China 24.3%. 5 of the top 10 holdings overlap with peers — selective differentiation from the category.
The financials tilt in the top 10 has a rates angle. Systematic models put 10-year fair value well above current yields. If the long end stays elevated, dividend-paying banks and insurers screen relatively better than long-duration growth. Rate pressure is a tailwind for this sleeve — but it cuts the other way for any growth holdings in the mix. With this much China exposure in the top 10, China policy is the swing factor. Stimulus measures support domestic banks and consumption names, while property-sector overhang remains the drag. This portfolio rises or falls with Beijing's policy follow-through. One caveat: concentration amplifies macro moves. When funding liquidity tightens, concentrated portfolios tend to chop harder than diversified ones.
Tencent Holdings at 8.2% means one company's earnings matter more than the rest combined. It is a great company — that does not automatically make it a good stock at this weight. The manager's independent bets include China Construction Bank (7.9%), Industrial And Commercial Bank Of China (5.4%), China Mobile (4.8%) — positions most peers don't hold. These are where the manager's judgment lives or dies. The financials are cheap for identifiable reasons — property overhang for the banks, rate sensitivity for the insurers. That is not a mystery, it is the price. The question is whether the discount already reflects it.
Value and income: high-dividend banks/insurers at 20.4% of top-10; concentration 51.8%. Manager makes selective deviations from peers (5/10 top holdings overlap). Late-cycle high rates have historically favoured high-dividend value; yield remains attractive versus bonds. Note: near-term liquidity tightening amplifies concentrated-portfolio volatility. High concentration means higher volatility; longer holding periods help smooth cycle swings — best as a satellite, not a single holding.
Investment Objective
To provide investment returns that match the performance of the Hang Seng China Enterprises Index ("Index") as closely as practicable.
Trailing Returns ⓘ
| 1 Year | 3 Years | 5 Years | 10 Years | Since Launch | |
|---|---|---|---|---|---|
| Cumulative | -11.69% | +25.64% | -21.51% | +4.69% | -11.90% |
| Annualised | -11.69% | +7.90% | -4.73% | +0.46% | -0.87% |
Calendar Year Returns ⓘ
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Return (%) | +24.59% | +24.95% | -12.35% | -16.54% | -22.11% |
Returns are net of fees. Past performance is not indicative of future returns.
Fund Commentary
China’s economic recovery momentum remained weak. Retail sales fell 0.6% year-on-year in May, marking the first decline since the economic reopening. Continued declines in property prices also weighed on domestic demand and consumer confidence. In contrast, trade data remained strong, with exports and imports up 19.4% and 27.4% year-on-year respectively, serving as the main support for economic growth. AI-related sectors stood out in the first half of the year, supported by upward earnings revisions. However, economic momentum outside the AI ecosystem remained subdued, leading to clear market divergence. Disappointing fixed asset investment growth, weakening consumption momentum, and tighter cross-border capital controls all weighed on market sentiment and fund flows. Divergence between Chinese Mainland onshore and offshore markets, as well as between AI and non-AI sectors, intensified. Onshore markets continued their year-to-date uptrend, with major indices generally posting positive returns. In contrast, offshore markets declined, with losses ranging between 8% and 10%.
Portfolio Allocation
Top 10 Holdings
| # | Security name | Holdings Weight |
|---|---|---|
| 1 | Tencent Holdings Ltd | 8.22% |
| 2 | China Construction Bank | 7.92% |
| 3 | Alibaba Group Holding Ltd | 6.53% |
| 4 | Industrial and Commercial Bank of China Ltd | 5.41% |
| 5 | China Mobile Ltd | 4.84% |
| 6 | Xiaomi Corp | 4.01% |
| 7 | Meituan | 3.89% |
| 8 | Semiconductor Manufacturing International Corp | 3.83% |
| 9 | Bank of China Ltd | 3.62% |
| 10 | Ping An Insurance Group Co | 3.49% |
| Total | 51.76% |
Fees & Charges
The fund expense ratio shows the total annual cost of running this fund as a percentage of its assets. It is already reflected in the fund price and returns. When comparing similar funds, fees are one of the few factors you can control.
FER is a backward-looking figure from the fund's financial year, taken from provider fact sheets and audited annual reports. It may not yet reflect announced fee cuts.
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