The constituent fund aims to achieve long-term capital growth with the appropriate mix of global equities, global bonds and cash.

Latest Fund Expense Ratio: 1.68%

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

Unit Price: HKD 16.71

Fund Size: HKD 1,775.87M

Data weakened due to COVID-19 related disruptions. We expect more weakness as effects of lockdowns become visible across the globe (China is an exception, being in recovery mode). Our economists expect a deep contraction in global activity in 2Q’2020. Of our macro indicators, global manufacturing PMI index rose (China was strong) but remained in contractionary territory, the leading indicator for global industrial production remained weak, and financial conditions tightened considerably. Global Equities made their way into the cheap zone. Only US growth and large-caps remained expensive. Global Equities ended their bull market. All 40 markets dropped, with a median local currency return of -15.8%, its worst reading since the drop of -21.2% in Oct’2008. Fixed Income: PGAA’s global policy rate indicator dropped -62bps to just 1.14%, its lowest ever as central banks cut rates aggressively. Sovereign yields were down on demand for haven assets, growth concerns, collapsing oil prices and monetary policy easing. 10-yr yields didn’t move much though, barring a few markets like US and HK where they dropped sharply. Returns from spread products were very weak, in both absolute terms and relative to treasuries. The portfolios are being managed in line with their strategic asset allocation targets. The equities exposure is diversified across US, Europe and Asia, while the bond portion is invested into investment grade US corporate bonds and Hong Kong bonds. The portfolios also carry some amount of short-term investments/ cash for liquidity and risk purposes.