Investment Objective
The investment objective of the constituent fund is to provide a return that is above the guarantee rate 60.56% of return to participants.
Fund Details
Latest Fund Expense Ratio: 1.93%
Launch Date(dd/mm/yyyy): 01/12/2000
Unit Price: HKD 14.7
Fund Size: HKD 1,495.99M
Fund Commentary
HSI has collapsed in the first quarter, shedding about 6,500 points or 23% at one point, and closed at 23,603, dropping 16.3% over the quarter. Covid-19 is the biggest contributor to this downward spiral, hindering business activities therefore lowering global economic outlook and investor expectations. US market performed even worse, with S&P 500 shedding over 1,000 points or 31% at one point and closing the quarter with a 20.0% drop. The Fed has surprised the market with two emergency rate cuts which lowered the Fed fund rate to 0.00%-0.25%, basically bringing US into a zero rate environment. US treasury surged, with short ends rising more than long ends, steepening the curve, with the 2-10 year spread widening by 17 bps. Credit spread widened, especially for high yield bonds. For example, the J.P. Morgan Asia Credit Index (JACI) Investment Grade index returned -0.88% while the JACI High Yield index returned -12.00%.
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 |
| -2.27% |
0.62% |
1.49% |
2.01% |
3.89 | 0.04 | 0.20 | -1.34 | 3.56 | N/A |
Fund Performance Information
| Annualised return |
1 year
(p.a. %) |
5 years
(p.a. %) |
Since launch
(p.a. %) |
| -2.27% |
0.62% |
2.01% |
| Calendar year return |
| 2015 | 2016 | 2017 | 2018 | 2019 | YTD |
| 3.89 | 0.04 | 0.20 | -1.34 | 3.56 | N/A |
Top 10 Holdings
| Security name |
Holdings Weight |
| JPMORGAN CHASE & CO 4.35% S/A 15/8/2021 |
5.15% |
| CHINA MERCHANTS BANK-HKD 2/4/2020 |
4.51% |
| CMB WING LUNG BANK TIME DEPOSIT-HKD 13/5/2020 |
4.41% |
| HSBC HLDGS PLC 3.4% S/A 8/3/2021 |
4.16% |
| CNAC HK FINBRIDGE CO LTD 4.125% S/A 14/3/2021 |
3.46% |
| BLUESTAR FINANCE HLDGS LTD 4.375% S/A 11/6/2020 |
3.12% |
| CITIC LTD 6.375% S/A 10/4/2020 |
3.12% |
| MCC HLDG HONG KONG CORP LTD 2.95% S/A 31/5/2020 |
3.12% |
| DBS GROUP HLDGS LTD 3M L+0.62% Q 25/7/2022 |
3.11% |
| AT&T INC 3M L+0.95% Q 15/7/2021 |
3.03% |
| Total |
37.19% |
Top 10 Holdings
Security name
Holdings Weight |
| JPMORGAN CHASE & CO 4.35% S/A 15/8/2021
Holding Weight 5.15%
|
| CHINA MERCHANTS BANK-HKD 2/4/2020
Holding Weight 4.51%
|
| CMB WING LUNG BANK TIME DEPOSIT-HKD 13/5/2020
Holding Weight 4.41%
|
| HSBC HLDGS PLC 3.4% S/A 8/3/2021
Holding Weight 4.16%
|
| CNAC HK FINBRIDGE CO LTD 4.125% S/A 14/3/2021
Holding Weight 3.46%
|
| BLUESTAR FINANCE HLDGS LTD 4.375% S/A 11/6/2020
Holding Weight 3.12%
|
| CITIC LTD 6.375% S/A 10/4/2020
Holding Weight 3.12%
|
| MCC HLDG HONG KONG CORP LTD 2.95% S/A 31/5/2020
Holding Weight 3.12%
|
| DBS GROUP HLDGS LTD 3M L+0.62% Q 25/7/2022
Holding Weight 3.11%
|
| AT&T INC 3M L+0.95% Q 15/7/2021
Holding Weight 3.03%
|
| Total: 37.19% |
Portfolio Allocation
- • 12.29 Global Equities
- • 60.56 Fixed Income Securities
- • 22.73 Bank Deposit
- • 4.42 Cash & Others
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