Investment Objective

The investment objective of the constituent fund is to provide capital preservation in the long-term and offer to enhance return with limited exposure to global equities, while also providing a guaranteed return.

Fund Details

Latest Fund Expense Ratio: 2.52%

Launch Date(dd/mm/yyyy): 01/10/2007

Unit Price: HKD 15.0

Fund Size: HKD 616.79M

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%.

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