Achieve long-term capital growth through investing in a diversified portfolio that mainly comprises European equities and equityrelated investments. It is expected that preference will be given to ITCIS(s) when making investments.

Latest Fund Expense Ratio: N/A%

Launch Date(dd/mm/yyyy): 01/07/2019

Unit Price: HKD 11.25

Fund Size: HKD 44.91M

European equities fell sharply over the period, as coronavirus disease (COVID-19) outbreak escalated in Europe’s largest economies and economic disruptions worsened. Many countries across the block implemented restrictive measures and shutdown parts of the economy to limit contagion spread, while the US declared travel ban with Europe in March, posing additional economic downside risks to the already fragile growth outlook in Europe. Italy and Spain were the countries most severely affected by virus spread. UK equities also tumbled as COVID-19 pandemic hit the domestic economic activity. In the policy news, the European Central Bank (ECB) and Bank of England (BoE) have significantly boosted their asset purchase programmes and introduced huge liquidity measures in March. The ECB stepped up its Quantitative Easing purchases by EUR120 billion until end of the year, and launched its EUR750 billion Pandemic Emergency Purchase Programme until the end of COVID-19. The BoE cut rates twice in March by a total of 65 bps, and announced an increase of GBP200 billion in asset purchases. Looking at the quarterly performance, the fund underperformed the FTSE MPF Europe Index in the first quarter. Both our allocations to European and UK equities weighed on performance.