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 3,624.36M
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.
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 | Year To Date |
0.87% |
-0.15% |
-0.11% |
0.19% |
-0.96 | -1.84 | 1.48 | -1.36 | 1.97 | 0.39 |
Fund Performance Information
Annualised return |
1 year (p.a. %) |
5 years (p.a. %) |
Since Launch (p.a. %) |
0.87% |
-0.15% |
0.19% |
Calendar year return |
2015 | 2016 | 2017 | 2018 | 2019 | Year To Date |
-0.96 | -1.84 | 1.48 | -1.36 | 1.97 | 0.39 |
Top 10 Holdings
Security name |
Holdings Weight |
Walmart Inc 2.55% 11/04/2023 |
1.9% |
Commonwealth Bank of Australia 2.16% 31/10/2024 |
1.7% |
Export-Import Bank Korea 2.0775% 25/09/2024 |
1.6% |
Eli Lilly & Co 2.35% 15/05/2022 |
1.6% |
Spic 2016 US Dollar Bond 3.00% 06/12/2021 |
1.6% |
Toyota Industries Corp 3.235% 16/03/2023 |
1.5% |
Cagamas Global Plc 3.17% 12/07/2021 |
1.4% |
Bank of Montreal 2.9275% 06/07/2021 |
1.4% |
State Grid Overseas Inv 2.70% 17/04/2024 |
1.4% |
Bank of Tokyo-Mitsub UFJ/HK 2.08% 29/08/2022 |
1.4% |
Total |
15.5% |
Top 10 Holdings
Security name Holdings Weight |
Walmart Inc 2.55% 11/04/2023
Holding Weight 1.9%
|
Commonwealth Bank of Australia 2.16% 31/10/2024
Holding Weight 1.7%
|
Export-Import Bank Korea 2.0775% 25/09/2024
Holding Weight 1.6%
|
Eli Lilly & Co 2.35% 15/05/2022
Holding Weight 1.6%
|
Spic 2016 US Dollar Bond 3.00% 06/12/2021
Holding Weight 1.6%
|
Toyota Industries Corp 3.235% 16/03/2023
Holding Weight 1.5%
|
Cagamas Global Plc 3.17% 12/07/2021
Holding Weight 1.4%
|
Bank of Montreal 2.9275% 06/07/2021
Holding Weight 1.4%
|
State Grid Overseas Inv 2.70% 17/04/2024
Holding Weight 1.4%
|
Bank of Tokyo-Mitsub UFJ/HK 2.08% 29/08/2022
Holding Weight 1.4%
|
Total: 15.5% |
Portfolio Allocation
- • 49.3 HKD Bonds
- • 38.9 USD Bonds
- • 7.0 Deposits
- • 4.5 Hong Kong Equities
- • 0.3 Cash & Others
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