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
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.