The BOC-Prudential Asia Equity Fund is an equity fund which aims to achieve long-term capital growth by investing at least 70% of the BOC-Prudential Asia Equity Fund's noncash assets in the Asia equity sub-fund of the Umbrella Unit Trust. Under normal circumstances, the sub-fund will invest mainly in equities and equity-related securities in the various stock markets in Asia as permitted under Schedule 1 to the Regulation and the relevant codes and guidelines issued by the MPFA from time to time including but not limited to those in Australia, New Zealand, Mainland China, Hong Kong, India, South Korea, Singapore, Malaysia, Taiwan and Thailand. Access to individual markets may be made by investing in companies based in non-Asian jurisdictions but invest or operate in Asia. It is intended that the sub-fund will not invest in equities in Japan. The sub-fund may also invest in ITCIS and Other Permitted Securities. Where appropriate, cash, time deposits, money market or fixed income securities may be considered. The risk level of the BOC-Prudential Asia Equity Fund is generally regarded as high.

Latest Fund Expense Ratio: 1.70%

Launch Date(dd/mm/yyyy): 03/10/2006

Unit Price: HKD 12.1008

Fund Size: HKD 2,088.76M

Economic outlook in Asia is deteriorating as a result of intensifying global pandemic and widespread virus containment measures. The slump in Singapore's first quarter GDP was an early sign of pain Asian economies are suffering amid the Covid-19 disruptions. While production restarts have made significant progress in China, domestic and external demand are facing strong headwinds due to a sharp fall in global activities. Furthermore, a deepening rout in global equities and strains in credit markets compounded the concerns over economic outlook. Against such macro backdrop, policy makers announced unprecedented monetary and fiscal stimulus to counter the ensuing economic slowdown. Given the sharp deterioration in the global growth outlook, more measures are expected to alleviate market panic and address economic fallout from the virus outbreak. The Fund suffered losses during the quarter as successful stock selection in the Hong Kong Consumer Services sector was partially offset by stock selections in the China Technology sector. Looking ahead, the uncertainty over the extent of potential growth hit from virus infections and tightened containment measures may keep risky assets range bound. The Fund would concentrate on market neutral strategy in a volatile environment to achieve a more stable performance.