Investment Objective
The constituent fund aims to achieve long term capital growth by investing primarily in Hong Kong equities, including Chinese securities listed in Hong Kong.
Fund Details
Latest Fund Expense Ratio: 1.66%
Launch Date(dd/mm/yyyy): 10/01/2011
Unit Price: HKD 10.61
Fund Size: HKD 1,026.03M
Fund Commentary
In the first quarter, the Hang Seng Index was down 15.4%, and the Hong Kong Equity Portfolio returned -13.7%. Communication services, healthcare and consumer staples sectors outperformed, while industrials, energy and consumer discretionary sectors lagged during the quarter. In the first quarter, as affected by protests and coronavirus outbreak, Hong Kong’s economics activities was still weak. Hong Kong Markit PMI remain low at 34.6 in March, and retail sales continue to plummet more than 35% in the quarter. Looking ahead, imported COVID-19 cases remains a risk to overall improving domestic activity and the global infection rate remains a wild-card issue that clouds the external demand outlook. In response, the Politburo meeting on March 27 confirmed to further step up policy support, which highlighted the increase of fiscal deficit rate, issue special government bond and raise the quota of local government special bonds. Overall earnings revision remained negative in March. Our strategy overweighs sectors that are defensive and less impacted by the COVID-19 while we have reduced our position in energy and consumer related industries like oil and sportswear. In the first quarter, we increase our overweight on utilities and healthcare sector as we believe these sectors will be less impacted by the virus outbreak and global economy recession. We also increase our overweight on cement and 5g names as we are expecting more policies support. We remained bearish on Hong Kong economy and reduce our exposure in Hong Kong local shares, mostly in financials and property sector. Given the severe impact of the coronavirus and global economy recession, our strategy has become more defensive. However, we are also expecting the market sentiment to recover a little after the sheer correction.
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 |
-16.26% |
-0.68% |
N/A% |
0.64% |
-6.53 | 0.34 | 34.24 | -14.94 | 11.85 | N/A |
Fund Performance Information
Annualised return |
1 year (p.a. %) |
5 years (p.a. %) |
Since launch (p.a. %) |
-16.26% |
-0.68% |
0.64% |
Calendar year return |
2015 | 2016 | 2017 | 2018 | 2019 | YTD |
-6.53 | 0.34 | 34.24 | -14.94 | 11.85 | N/A |
Top 10 Holdings
Security name |
Holdings Weight |
TENCENT HOLDINGS LTD |
9.59% |
AIA GROUP LTD |
6.77% |
CHINA CONSTRUCTION BANK (H) |
6.03% |
HSBC HOLDINGS PLC |
5.42% |
PING AN INSURANCE GRP CO OF CHINA LTD (H) |
3.43% |
HONG KONG EXCHANGES & CLEARING LTD |
2.96% |
MEITUAN DIANPING-B |
2.69% |
SUN HUNG KAI PROPERTIES LTD |
1.96% |
INDUSTRIAL & COMM BANK OF CHINA LTD (H) |
1.73% |
SUNAC CHINA HOLDINGS LTD |
1.66% |
Total |
42.24% |
Top 10 Holdings
Security name Holdings Weight |
TENCENT HOLDINGS LTD
Holding Weight 9.59%
|
AIA GROUP LTD
Holding Weight 6.77%
|
CHINA CONSTRUCTION BANK (H)
Holding Weight 6.03%
|
HSBC HOLDINGS PLC
Holding Weight 5.42%
|
PING AN INSURANCE GRP CO OF CHINA LTD (H)
Holding Weight 3.43%
|
HONG KONG EXCHANGES & CLEARING LTD
Holding Weight 2.96%
|
MEITUAN DIANPING-B
Holding Weight 2.69%
|
SUN HUNG KAI PROPERTIES LTD
Holding Weight 1.96%
|
INDUSTRIAL & COMM BANK OF CHINA LTD (H)
Holding Weight 1.73%
|
SUNAC CHINA HOLDINGS LTD
Holding Weight 1.66%
|
Total: 42.24% |
Portfolio Allocation
- • 64.25 China Equities
- • 31.10 Hong Kong Equities
- • 0.22 Other Equities
- • 4.44 Cash & Others
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