Investment Objective
The constituent fund aims to provide investment results that closely correspond to the performance of the Hang Seng Index.
Fund Details
Latest Fund Expense Ratio: 1.06%
Launch Date(dd/mm/yyyy): 03/11/2014
Unit Price: HKD 11.02
Fund Size: HKD 444.89M
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 | Year To Date |
| -16.33% |
1.28% |
N/A% |
1.81% |
-6.38 | 2.88 | 38.61 | -11.14 | 11.86 | N/A |
Fund Performance Information
| Annualised return |
1 year
(p.a. %) |
5 years
(p.a. %) |
Since Launch
(p.a. %) |
| -16.33% |
1.28% |
1.81% |
| Calendar year return |
| 2015 | 2016 | 2017 | 2018 | 2019 | Year To Date |
| -6.38 | 2.88 | 38.61 | -11.14 | 11.86 | N/A |
Top 10 Holdings
| Security name |
Holdings Weight |
| TENCENT HOLDINGS (P CHIP) |
10.59% |
| HSBC HOLDINGS |
9.23% |
| AIA GROUP LTD |
10.19% |
| CHINA CONSTRUCTION BANK (H) |
8.67% |
| CHINA MOBILE (RED CHIP) |
4.48% |
| INDUSTRIAL AND COMMERCIAL BANK OF CHINA (H) |
4.95% |
| PING AN INSURANCE (H) |
5.74% |
| HONG KONG EXCHANGES & CLEARING |
3.50% |
| BANK OF CHINA (H) |
2.98% |
| CNOOC (RED CHIP) |
1.83% |
| Total |
62.16% |
Top 10 Holdings
Security name
Holdings Weight |
| TENCENT HOLDINGS (P CHIP)
Holding Weight 10.59%
|
| HSBC HOLDINGS
Holding Weight 9.23%
|
| AIA GROUP LTD
Holding Weight 10.19%
|
| CHINA CONSTRUCTION BANK (H)
Holding Weight 8.67%
|
| CHINA MOBILE (RED CHIP)
Holding Weight 4.48%
|
| INDUSTRIAL AND COMMERCIAL BANK OF CHINA (H)
Holding Weight 4.95%
|
| PING AN INSURANCE (H)
Holding Weight 5.74%
|
| HONG KONG EXCHANGES & CLEARING
Holding Weight 3.50%
|
| BANK OF CHINA (H)
Holding Weight 2.98%
|
| CNOOC (RED CHIP)
Holding Weight 1.83%
|
| Total: 62.16% |
Portfolio Allocation
- • 98.49 Hong Kong Equities
- • 1.51 Cash & Others
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