Investment Objective

Achieve long-term capital growth through investing in a portfolio of carefully selected shares traded on any of the eligible markets in the United Kingdom and in other continental European countries.

Fund Details

Latest Fund Expense Ratio: 1.37%

Launch Date(dd/mm/yyyy): 01/12/2000

Unit Price: HKD 10.34

Fund Size: HKD 1,922.15M

Fund Commentary

European equities fell sharply over the period, as coronavirus disease (COVID-19) outbreak escalated in Europe’s largest economies and economic disruptions worsened. The fund underperformed over the quarter impacted by our Value/pro-cyclical bias which did not help in this risk off environment as the market has been pricing a severe growth shock impact.During the first quarter, country allocation is negative. Our underweight in Switzerland and Denmark detracted on performance. Our exposure to France and Austria which underperformed significantly was also a drag. On the other hand, we slightly benefited from our selected exposure to UK (notably in the Consumer Staples space). In a falling market, our cash position has logically added.Sector allocation is negative. Our underweight in Consumer Discretionary (notably the Luxury Goods segment) and exposure to Utilities added over the quarter. Our cyclical exposure logically detracted on performance, led by our overweight in Financials (Banks/Insurance) massively impacted by the risk off environment, the bond yields collapse and the political pressure across Europe to cut dividends.

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