Investment Objective
Aims to provide a rate of return to match the prescribed savings rate published by the MPFA but with NO guarantee of capital or interest. Mandated by the MPF Schemes Ordinance. Invests in Hong Kong dollar fixed income instruments. Investment in the Conservative Fund is not the same as placing funds on deposit with a bank or deposit taking company and that there is no obligation on the part of the Trustee to redeem the investment at the subscription value.
Fund Details
Latest Fund Expense Ratio: 0.75%
Launch Date(dd/mm/yyyy): 01/12/2000
Unit Price: HKD 11.292
Fund Size: HKD 11,928.9M
Fund Commentary
Looking ahead, we expect HK dollar rates to be mostly influenced by market sentiment in the short-term, with the US dollar liquidity situation driving short-end rates while global risk sentiment driving longer-end rates. It is likely the low interest rate environment will be prolonged in the current environment. We believe the Hong Kong Monetary Authority (HKMA) will monitor the market situation closely and provide liquidity to the market if any systemic stress is observed. So far, the HK dollar liquidity situation has been very manageable in the circumstances and we expect this to continue. The US dollar-HK dollar has managed to avoid going higher mainly because of the significant interest rate differential mentioned earlier. As the tight liquidity around US dollar demand is also expected to gradually ease, this should help support the strength of the HK dollar within the currency band. Finally, given the unprecedented weakness in Hong Kong macroeconomic data, we do not expect the HKMA to allow HK dollar liquidity to tighten further from here.
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 | YTD |
N/A% |
0.61% |
0.33% |
0.63% |
0.05 | 0.02 | 0.19 | 0.92 | 1.50 | N/A |
Fund Performance Information
Annualised return |
1 year (p.a. %) |
5 years (p.a. %) |
Since Launch (p.a. %) |
N/A% |
0.61% |
0.63% |
Calendar year return |
2015 | 2016 | 2017 | 2018 | 2019 | YTD |
0.05 | 0.02 | 0.19 | 0.92 | 1.50 | N/A |
Top 10 Holdings
Security name |
Holdings Weight |
ICBC (Macau) 2.09% 24/09/2020 |
2.09% |
ICBC (Macau) 0.0% 30/06/2020 |
1.87% |
Bank of China (Hong Kong) Ltd. 2.31% 15/05/2020 |
1.70% |
OCBC Wing Hang Bank Ltd. 0.0% 13/05/2020 |
1.68% |
China Development Bank Corp. (HK) 1.1% 16/06/2020 |
1.67% |
Taipei Fubon Commercial Bank Co. Ltd. 0.0% 26/05/2020 |
1.67% |
DBS Bank (Hong Kong) Ltd. 0.0% 21/08/2020 |
1.66% |
Bank of China (Sydney) 0.0% 06/07/2020 |
1.49% |
China Development Bank Corp. (HK) 3.91% 18/05/2020 |
1.32% |
China Construction Bank (Macau) 2% 07/09/2020 |
1.27% |
Total |
16.42% |
Top 10 Holdings
Security name Holdings Weight |
ICBC (Macau) 2.09% 24/09/2020
Holding Weight 2.09%
|
ICBC (Macau) 0.0% 30/06/2020
Holding Weight 1.87%
|
Bank of China (Hong Kong) Ltd. 2.31% 15/05/2020
Holding Weight 1.70%
|
OCBC Wing Hang Bank Ltd. 0.0% 13/05/2020
Holding Weight 1.68%
|
China Development Bank Corp. (HK) 1.1% 16/06/2020
Holding Weight 1.67%
|
Taipei Fubon Commercial Bank Co. Ltd. 0.0% 26/05/2020
Holding Weight 1.67%
|
DBS Bank (Hong Kong) Ltd. 0.0% 21/08/2020
Holding Weight 1.66%
|
Bank of China (Sydney) 0.0% 06/07/2020
Holding Weight 1.49%
|
China Development Bank Corp. (HK) 3.91% 18/05/2020
Holding Weight 1.32%
|
China Construction Bank (Macau) 2% 07/09/2020
Holding Weight 1.27%
|
Total: 16.42% |
Portfolio Allocation
- • 66.4 Cash& Deposits
- • 33.6 HKD Bonds
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