Investment Objective

The Constituent Fund aims to achieve long term capital growth by investing all or substantially all of the fund assets into the Tracker Fund of Hong Kong (“TraHK”). TraHK aims to provide investment results that closely correspond to the performance of the Hang Seng Index by investing all, or substantially all, of TraHK’s assets in shares in the constituent companies of the Hang Seng Index in substantially the same weightings as they appear in the Hang Seng Index**. Please refer to the investment objective for details of the fund.

Fund Details

Latest Fund Expense Ratio: 0.77%

Launch Date(dd/mm/yyyy): 28/06/2013

Unit Price: HKD 12.273

Fund Size: HKD 1,228.11M

Fund Commentary

Chinese equities declined as a surge in the number of COVID-19 cases across the globe triggered a sharp sell-off in equity markets. Nonetheless, stocks were supported on expectations that the government will provide additional stimulus measures to mitigate the economic impact of the outbreak. In key developments, China took several substantial measures to curtail the contagion from the COVID-19 outbreak, including the imposition of large scale quarantines and travel restrictions. The government also adopted a package of policies to support the resumption of work and production, including fiscal, monetary, financial and trade policies. In particular, the People’s Bank of China lowered the seven-day reverse repo rate and the one-year loan prime rate and cut the reserve requirement ratio to inject liquidity into the banking system. The effective containment of the outbreak and the promise of policy stimulus led to Chinese stocks faring better than their regional and global peers. Factories, workshops and various parts of the economy are slowly emerging from lockdown given a decline in new COVID-19 cases in March. Sentiment towards the Hong Kong stock market weakened over fears of a virus-induced recession. In its annual budget, the government unveiled a record budget deficit, pledging cash handouts to residents and business tax breaks to soften the blow to the recession-hit economy. The Hong Kong Monetary Authority lowered its benchmark interest rate twice in March according to a pre-set formula, in line with rate cuts implemented by the US Federal Reserve (Fed).

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