Investment Objective

Achieve long-term capital growth with low volatility whilst ensuring that the ‘Guarantee’ as defined in subsection 3.4.3 (f) ‘Guarantee features’ of the MPF Scheme Brochure is met through investing in a diversified portfolio that normally comprises global bonds, equities and cash. Guaranteed Interest Rate will be determined by HSBC Life (International) Limited at the beginning of each financial year but will never be less than zero per cent in any case.

Fund Details

Latest Fund Expense Ratio: 2.04%

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

Unit Price: HKD 10.38

Fund Size: HKD 11,536.17M

Fund Commentary

Markets have been extremely volatile over the quarter as it became clear that the coronavirus disease (COVID-19) was going to cause severe economic dislocation. Forecasters have struggled to revise their projections fast enough to keep pace with the unfolding economic scenario. Policy makers have been quick to act to try to offset some of the damage, and both fiscal and monetary stimulus has been implemented globally. Against this background, stock markets sold off and government bonds returned positively against dramatically lowered interest rates.Over the quarter, the fund ended higher with the main contribution coming from global government bonds as US treasury yields fell significantly. On the other hand, Hong Kong equities returned unfavorably and weighed on the portfolio performance, offsetting part of the positive return as market sentiment turned negative amid the COVID-19 outbreak spreading globally.

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