Investment Objective
To provide a competitive overall rate of return for members who hold a conservative investment view. Invests mainly in Hong Kong Dollar denominated Permitted Deposits and Debt Securities (in a range of portfolio remaining maturity periods) issued by the government of Hong Kong or any government, central bank or multilateral international agency.
Fund Details
Latest Fund Expense Ratio: 1.28%
Launch Date(dd/mm/yyyy): 01/12/2000
Unit Price: HKD 15.182
Fund Size: HKD 3,262.5M
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% |
2.29% |
2.08% |
2.18% |
1.62 | -0.44 | 3.25 | 0.68 | 4.43 | N/A |
Fund Performance Information
| Annualised return |
1 year
(p.a. %) |
5 years
(p.a. %) |
Since Launch
(p.a. %) |
| N/A% |
2.29% |
2.18% |
| Calendar year return |
| 2015 | 2016 | 2017 | 2018 | 2019 | YTD |
| 1.62 | -0.44 | 3.25 | 0.68 | 4.43 | N/A |
Top 10 Holdings
| Security name |
Holdings Weight |
| Hong Kong Government Bond 3.32% 25/02/2026 |
1.64% |
| Bank of Communications (HK) Ltd. 2.85% 21/03/2024 |
1.54% |
| State Grid Overseas Development Ltd. 2.7% 17/04/2024 |
1.45% |
| AIA Group Ltd. 3.68% 16/01/2031 |
1.38% |
| Korea Hydro & Nuclear Power Co., Ltd. 3.35% 13/03/2028 |
1.38% |
| Hong Kong Government Bond 1.97% 17/01/2029 |
1.32% |
| Hong Kong Electric Finance Ltd. 2.4% 08/03/2030 |
1.28% |
| Wharf REIC Finance (BVI) Ltd. 3.3% 17/04/2028 |
1.20% |
| Hong Kong Government Bond 1.25% 29/06/2027 |
1.15% |
| ICBC 2.2% 16/09/2021 |
1.14% |
| Total |
13.48% |
Top 10 Holdings
Security name
Holdings Weight |
| Hong Kong Government Bond 3.32% 25/02/2026
Holding Weight 1.64%
|
| Bank of Communications (HK) Ltd. 2.85% 21/03/2024
Holding Weight 1.54%
|
| State Grid Overseas Development Ltd. 2.7% 17/04/2024
Holding Weight 1.45%
|
| AIA Group Ltd. 3.68% 16/01/2031
Holding Weight 1.38%
|
| Korea Hydro & Nuclear Power Co., Ltd. 3.35% 13/03/2028
Holding Weight 1.38%
|
| Hong Kong Government Bond 1.97% 17/01/2029
Holding Weight 1.32%
|
| Hong Kong Electric Finance Ltd. 2.4% 08/03/2030
Holding Weight 1.28%
|
| Wharf REIC Finance (BVI) Ltd. 3.3% 17/04/2028
Holding Weight 1.20%
|
| Hong Kong Government Bond 1.25% 29/06/2027
Holding Weight 1.15%
|
| ICBC 2.2% 16/09/2021
Holding Weight 1.14%
|
| Total: 13.48% |
Portfolio Allocation
- • 80.0 HKD Bonds
- • 19.0 USD Bonds
- • 0.9 Cash
- • 0.1 Others
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