Investment Objective

Match as closely as practicable the performance of the Hang Seng Index by investing directly in an ITCIS (Hang Seng Index ETF) with a similar investment objective. Whilst the investment objective of the Hang Seng Index Tracking Fund and the underlying ITCIS is to track the Hang Seng Index, there can be no assurance that the performance of the Hang Seng Index Tracking Fund and the underlying ITCIS will at any time be identical to the performance of the Hang Seng Index

Fund Details

Latest Fund Expense Ratio: 0.79%

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

Unit Price: HKD 23.69

Fund Size: HKD 32,476.10M

Fund Commentary

Hang Sang Index decreased by 16.27% in the first quarter of 2020, the return of the Hang Seng Index Tracking Fund is -15.96%, and that of benchmark Hang Seng Index Net Total Return Index is -15.88%. The tracking difference of the fund in this quarter is -0.08%. The market is volatile due to multiple situations, including coronavirus disease (COVID-19) pandemic, rising concern on global economic recession, crashing of oil prices, and increased risk from asset bubbles. Hong Kong’s unemployment rate rose to 4.2% in the first quarter of 2020, the highest in more than 9 years as the situations continue to weigh on the economy and may persist for the next two quarters. However, the market is given lots of space for rebound, currently the market has priced in most of the pandemic’s negative effect and the economic downturn. With worldwide quantitative easing and lowering of interest rate, the positive effect may be observed after two to three quarters. In terms of sectors, we prefer to overweight in Consumption, Medical Care, and Property Management. We are neutral about the Hong Kong and China market. Hang Seng Index is expected to trade at around 23,000 – 26,000 in the second quarter of 2020.

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