| Holdings | Weightings |
| EUROFIMA 4.18% EMTN 8JUN2015 | 2.10 % |
| HK (GOVT OF) 05Y1312 1.67% 19DEC2013 | 1.79 % |
| HK (GOVT OF) 05Y1412 1.69% 22DEC2014 | 2.99 % |
| HK GOVERNMENT 4.49% 26NOV2012 7211 | 2.82 % |
| HK GOVERNMENT BOND 1412 3.51% 8DEC2014 | 0.45 % |
| HK GOVERNMENT BOND 3.56% 25JUN2018 | 1.73 % |
| HK GOVERNMENT BOND 3.63% 19DEC2011 5112 | 1.06 % |
| HK GOVERNMENT BOND 3.78% 6DEC2016 1612 | 1.02 % |
| HK GOVERNMENT BOND 3.97% 19SEP2011 5109 | 1.95 % |
| HK GOVERNMENT BOND 4.13% 22FEB2013 7302 | 1.90 % |
| HK GOVERNMENT BOND 4.33% 7DEC2015 1512 | 0.57 % |
| HK GOVERNMENT BOND 4.53% 18JUN2012 | 5.08 % |
| HK GOVERNMENT BOND 4.57% 13JUN2011 5106 | 4.09 % |
| HK GOVERNMENT BOND 4.83% 7JUN2016 1606 | 0.75 % |
| HK GOVERNMENT BOND 7108 3.93% 26AUG2011 | 2.71 % |
| HK GOVERNMENT BOND 7111 3.12% 25NOV2011 | 2.14 % |
| HK GOVERNMENT BOND 7202 3.14% 24FEB2012 | 3.21 % |
| HK GOVERNMENT BOND 7205 3.61% 28MAY2012 | 0.08 % |
| HK GOVERNMENT EX FD NT 1106 6.13%20JUN11 | 3.06 % |
| HK GOVERNMENT EX FD NT 1112 5.92% 5DEC11 | 3.16 % |
| HK GOVERNMENT EX FD NT 1206 5.8% 19JUN12 | 4.36 % |
| HK GOVERNMENT EX FD NT 1212 4.5% 4DEC12 | 3.04 % |
| HK GOVERNMENT EX FD NT 1306 3.73% 5JUN13 | 2.53 % |
| HK GOVERNMENT EX FD NT 1312 4.32% 2DEC13 | 1.70 % |
| HK GOVERNMENT EX FD NT 1406 4.82% 2JUN14 | 2.70 % |
| HK GOVERNMENT EX FD NT 7105 4.5% 27MAY11 | 4.29 % |
| HK GOVERNMENT SER 1506 3.5% 22JUN2015 | 2.17 % |
| HK GOVERNMENT SER 7208 4% 27AUG2012 | 2.66 % |
| HK MORTGAGE CORP EMTN 3.8% 6APR2011 | 0.04 % |
| HKSAR GOVERNMENT 5.125% 23JUL2019 | 0.62 % |
| HONG KONG (GOVT OF) 0.43% 17AUG2011 | 1.11 % |
| HONG KONG (GOVT OF) 0.92% 5SEP2011 | 0.72 % |
| HONG KONG (GOVT OF) 1.61% 10DEC2018 | 1.64 % |
| HONG KONG (GOVT OF) 1.73% 20FEB2024 | 0.92 % |
| HONG KONG (GOVT OF) 2.07% 3NOV2014 | 2.68 % |
| HONG KONG (GOVT OF) 2.16% 9DEC2019 | 1.81 % |
| HONG KONG (GOVT OF) 2.64% 10JUN2019 | 0.84 % |
| HONG KONG (GOVT OF) 2.71% 20FEB2023 | 0.96 % |
| HONG KONG (GOVT OF) 2.93% 13JAN2020 | 1.48 % |
| HONG KONG (GOVT OF) 3.52% 5DEC2017 | 1.47 % |
| HONG KONG (GOVT OF) 3.83% 22NOV2013 | 1.19 % |
| HONG KONG (GOVT OF) 4.04% 30MAY2014 | 2.42 % |
| HONG KONG (GOVT OF) 4.65% 29AUG2022 | 2.09 % |
| HONG KONG (GOVT OF) 4.85% 27JUN2017 | 0.64 % |
| HONG KONG MTG CORP 3.6% 10JAN2011 MTN | 1.60 % |
| HONG KONG MTG CORP 3.8% 6APR2011 | 1.41 % |
| HONG KONG MTG CORP 4.1% 9JAN2012 MTN | 0.24 % |
| INTER-AMERICAN DEV BANK 4.2% 24MAR2014 | 1.87 % |
| KOWLOON-CANTON RAILWAY 4.65% 10JUN2013 | 0.45 % |
| MTR CORP (C.I.) 4.28% 6JUL2020 EMTN | 0.35 % |
| MTR CORP (C.I.) 4.5% 11MAY2015 | 1.54 % |
| MTR CORP (C.I.) 4.6% 3JUN2013 | 1.17 % |
| MTR CORP (C.I.) 4.75% 11MAY2020 | 3.06 % |
| MTR CORP (C.I.) 4.9% 25JUN2018 | 0.33 % |
| MTR CORP (C.I.) 5.25% 21MAY2013 | 0.02 % |
| Other Net Assets | 1.22 % |
Weekly Indicative Average Portfolio Yield and Indicative Portfolio Coupon Rate (as of 15/03/2010)
Dividend History
| Month |
Dividend amount^ |
Annualised yield^ |
| Jul-09 |
HKD 1.94 |
3.8% |
| Jan-09 |
HKD 1.99 |
3.8% |
| Jul-08 |
HKD 2.14 |
4.2% |
| Jan-08 |
HKD 1.76 |
3.4% |
| Jul-07 |
HKD 2.1 |
4.4% |
| Jan-07 |
HKD 1.98 |
4.1% |
| Jul-06 |
HKD 2.12 |
4.4% |
| Jan-06 |
HKD 2.37 |
4.9% |
^ Annualised yield = Dividend amount/ NAV as of reported date x 2. A positive yield does not imply a positive return. Dividend of the Fund is not guaranteed and is subject to the Fund manager's discretion.
Fund Document
Market Commentary (Feb 2010)
Market Review
- US Fed raised the discount rate by 25bps to 0.75% to normalise it to the 50bps spread over Fed Funds; a further unwind of emergency funding measures that have lost significance given the recovery in financial markets.
- HK EFNs outperformed US Treasuries in Feb. after underperforming for most of 2009.
- HKD EFNs curve flattened with 2Y rose 6bps and 10Y down 12bps.
- HK swap yields outperformed government bond yields by 11-17bps with the short end being the better performer.
Market Outlook
- Fundamentally, we expect HK inflation to be on a slight upward trend based on supply side factors such as rising food and energy prices. Market consensus is around 1.7% for 2010. Any sharp moves above 2% could trigger monetary tightening.
- Expect 2010 GDP to be around 4% y-o-y driven by capital inflows, household spending and recovery in exports.
- Short end HK rates would be driven by equity capital flows / short end liquidity and any moves up in short end US Treasuries as the Fed continues to unwind the excess liquidity in the US market. We do not expect any increase in the Fed Funds rate in 2010 given the benign US inflation outlook, the unemployment scenario and the continued weakness in the housing market. However, if inflation starts to pick up locally, it might force the HKMA to move on normalising rates like other Asian central banks.
Portfolio Activity*
In February, the Fund returned 0.52% while the iBoxx index return was 0.51%. During the month, there was one basket subscription.
Performance Review*
| As at 26 Feb 2010 |
Monthly average modified duration (year)3 |
Monthly indicative average yield (%)4 |
Total return6 |
| 1 month(%) |
Year-to-date(%) |
| Benchmark |
3.58 |
1.31 |
0.51 |
0.69 |
| Actual portfolio |
3.58 |
1.33 |
0.52 |
0.59 |
Investor should be aware that the Fund differs from a typical unit trust. Investor should refer to the offering document for details of these differences and the fees and expenses involved in investing in the Fund. Investor should note that the market price of the Fund’s unit on the exchange may be different from the net asset value per unit of the Fund and the units may be delisted from the stock exchange.
| 1. | | iBoxx is a registered trade mark of International Index Company Limited ("IIC") and has been licensed for the use by the Manager and the Trustee. IIC does not approve, endorse or recommend the Manager, the Trustee or the Fund. The Fund is not sponsored, endorsed or sold by IIC and IIC makes no representation regarding the suitability of investing in the Fund. |
| 2. | | These indicative values should not be viewed as "real time" updates of the NAV per unit of the Fund. The indicative NAV per unit of the Fund and the actual NAV per unit of the Fund (to published on the following dealing day) may differ. |
| 3. | | Average modified duration is a measure of the interest rate sensitivity of a bond’s price which considers a bond’s yield, coupon and time to maturity. It is the weighted average maturity of the security’s cash flow using the present value of those cash flows. |
| 4. | | The indicative weighted average portfolio yield is for reference only and does not represent the performance or distribution of the Fund. The figure would change over time in response to market movements. The figure is calculated by averaging the underlying holdings’ annualised yields weighted by their market values. Should cash exist in the portfolio, it will be included in the calculation. A positive yield does not imply a positive return. |
| 5. | | The indicative average portfolio coupon rate is for reference only and does not represent the performance of the Fund. The figure would alter when there are changes in the underlying portfolio holdings of the Fund. The figure is calculated by averaging the underlying holdings' coupon rate weighted by their market values. Should cash exist in the portfolio, it will be included in the calculation. |
| 6. | | Source: HSBC Global Asset Management. Fund returns are calculated in NAV-to-NAV basis with dividend reinvested. The benchmark returns are also stated on a total return basis. Unlike the Fund, the benchmark returns do not include the impact of Fund expenses and Fund transaction costs. |
| * | | Please refer to the Fund Factsheet for the minimum performance information. |
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