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Fund Objective
Fund Basic
Daily Pricing and NAV
Holdings of the Fund
Fund Document
Market Commentary
Portfolio
ABF Hong Kong Bond Index Fund Print Friendly Version

Fund Objective

This Fund seeks to provide investment results that correspond closely to the total return of the iBoxx ABF Hong Kong Index1, before fees and expenses.

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Fund Basic

Stock code 2819
Benchmark name iBoxx ABF Hong Kong Index
Inception date 17/06/2005
Trading board lot 100 units
Trading currency HKD
Hong Kong Stock Exchange http://www.hkex.com.hk/

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Daily Pricing and NAV

Actual data as of 28/11/2008

Previous
NAV per unit		Current date
NAV per unit		NAV per unit
change %
106.9714106.6833-0.27 %

Previous market
closing price		Current date
market closing price		Market price
change %		Premium (Discount)
to NAV%
103.00103.000.00 % -3.45 %

Indicative NAV per unit2

Indicative intra-day NAV
per unit		As of
(around 1:00p.m.)		Indicative end of day NAV
per unit		As of
(around 6:00p.m.)
106.410001/12/2008106.400001/12/2008

Market capitalisation and index level

Market capitalization value of iBoxx1
ABF Hong Kong Index's constituents
(Hong Kong dollar)		iBoxx1 ABF Hong Kong Index level
72,298,789,687.3227120.5695


Holdings of the Fund

As of 28/11/2008 (Weekly update)

HoldingsWeightings
ASIA DEVELOPMENT BK 4.28% 21SEP2009 EMTN1.19 %
EUROFIMA 4.18% EMTN 8JUN20152.42 %
HK GOVERNMENT 4.49% 26NOV2012 72112.66 %
HK GOVERNMENT BOND 1012 7.01% 6DEC20101.37 %
HK GOVERNMENT BOND 1412 3.51% 8DEC20141.60 %
HK GOVERNMENT BOND 3.56% 25JUN20182.04 %
HK GOVERNMENT BOND 3.63% 19DEC2011 51121.00 %
HK GOVERNMENT BOND 3.78% 6DEC2016 16120.99 %
HK GOVERNMENT BOND 3.97% 19SEP2011 51091.85 %
HK GOVERNMENT BOND 4.13% 22FEB2013 73021.79 %
HK GOVERNMENT BOND 4.33% 7DEC2015 15121.24 %
HK GOVERNMENT BOND 4.83% 7JUN2016 16060.95 %
HK GOVERNMENT BOND 5003 3.52% 22MAR20100.20 %
HK GOVERNMENT BOND 5012 4.26% 20DEC20101.72 %
HK GOVERNMENT BOND 5909 3.18% 28SEP20092.04 %
HK GOVERNMENT BOND 5912 2.69% 21DEC20090.54 %
HK GOVERNMENT BOND 7002 3.8% 26FEB20102.67 %
HK GOVERNMENT BOND 7008 3.92% 20AUG20102.82 %
HK GOVERNMENT BOND 7108 3.93% 26AUG20112.04 %
HK GOVERNMENT BOND 7111 3.12% 25NOV20110.56 %
HK GOVERNMENT BOND 7202 3.14% 24FEB20123.01 %
HK GOVERNMENT BOND 7205 3.61% 28MAY20120.32 %
HK GOVERNMENT EX FD NT 1006 7.31%21JUN101.04 %
HK GOVERNMENT EX FD NT 1106 6.13%20JUN112.98 %
HK GOVERNMENT EX FD NT 1112 5.92% 5DEC113.05 %
HK GOVERNMENT EX FD NT 1206 5.8% 19JUN124.82 %
HK GOVERNMENT EX FD NT 1212 4.5% 4DEC122.87 %
HK GOVERNMENT EX FD NT 1306 3.73% 5JUN132.59 %
HK GOVERNMENT EX FD NT 1312 4.32% 2DEC131.92 %
HK GOVERNMENT EX FD NT 1406 4.82% 2JUN140.75 %
HK GOVERNMENT EX FD NT 1906 7.21% 9JUN091.89 %
HK GOVERNMENT EX FD NT 7005 3.19%28MAY101.16 %
HK GOVERNMENT EX FD NT 7011 3.95%26NOV102.30 %
HK GOVERNMENT EX FD NT 7102 3.27%25FEB113.49 %
HK GOVERNMENT EX FD NT 7105 4.5% 27MAY114.11 %
HK GOVERNMENT EX FD NT 7911 3.96%30NOV090.41 %
HK GOVERNMENT NOTE 1912 7.47% 8DEC20091.90 %
HK GOVERNMENT SER 1506 3.5% 22JUN20151.49 %
HK GOVERNMENT SER 5009 3.79% 20SEP20101.67 %
HK GOVERNMENT SER 7208 4% 27AUG20121.71 %
HK MORTGAGE CORP EMTN 3.8% 6APR20110.04 %
HKSAR GOVERNMENT 5.125% 23JUL20190.61 %
HONG KONG (GOVT OF) 1.77% 17MAY20100.59 %
HONG KONG (GOVT OF) 2.71% 20FEB20231.02 %
HONG KONG (GOVT OF) 3.52% 5DEC20171.17 %
HONG KONG (GOVT OF) 4.65% 29AUG20221.75 %
HONG KONG (GOVT OF) 4.85% 27JUN20170.63 %
HONG KONG MTG CORP 3.53% 23JUL20091.85 %
HONG KONG MTG CORP 3.8% 6APR20111.31 %
HONG KONG MTG CORP 4.1% 9JAN2012 MTN0.22 %
INTER-AMERICAN DEV BANK 4.2% 24MAR20141.62 %
INTL FINANCE CORP 4.45% 1SEP20090.59 %
KOWLOON-CANTON RAILWAY 4.65% 10JUN20130.50 %
MTR CORP (C.I) 4.15% 13NOV2009 EMTN1.51 %
MTR CORP (C.I.) 4.28% 6JUL2020 EMTN0.45 %
MTR CORP (C.I.) 4.5% 11MAY20151.45 %
MTR CORP (C.I.) 4.6% 3JUN20131.08 %
MTR CORP (C.I.) 4.75% 11MAY20203.60 %
MTR CORP (C.I.) 5.25% 21MAY20130.02 %
NORDIC INVESTMENT BANK 3.77% 12JUL20102.96 %
Other Net Assets1.86 %

Weekly Indicative Average Portfolio Yield and Indicative Portfolio Coupon Rate (as of 28/11/2008)

The weekly indicative average portfolio yield4 and indicative portfolio coupon rate5 are 1.41% and 4.38% respectively.


Fund Document

Fact Sheet          Annual Report          Announcement

Prospectus          Interim Report
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Market Commentary (October 2008)

Market Review
  • The Hong Kong interest rate market continued to affect by the tight liquidity condition. The HKMA followed the U.S. which eased the Base Rates from 3.5% to 2% on 8th October and again from 2% to 1.5% on 30 October.

  • The HKMA amended the calculation method on the Base Rate which adjusted from U.S. Federal Fund Rate (FFR) plus 150 basis points (bps) to FFR plus 50 basis points. The adjustment has made the Base Rate eased for an additional 100 bps.

  • As the HKMA eased rates aggressively, the short end of the government curve moved sharply lower by 55 basis points on the 2 year Exchange Fund Notes (EFN) and 78 basis points lower on the 3 year EFN. That was supported by the risk aversion from investors into these kinds of safety of government instruments.

  • The curve bullishly steepened on the 3/10s part of the maturities. The 3-year and 10-year spread rose 26 basis points to 116 bps. The 10 year EFN yields fell by 52bps to 2.38%.

  • Despite inter-banks activities are yet to be normalized, the HIBOR rates improved from the recent high levels. The 1-month HIBOR retrieved from 4.99% on 10th Oct to 2.11%, which declined 288bps after the HKMA implementation of the Liquidity Assistance Measures, and revised the Deposit Protection Scheme has boost confidence. The 3-month HIBOR moved to 3.34% which declined 110 bps from Oct peak.

Market Outlook
  • The HKMA’s new policy measures and investor’s confidence recovery would ensure the interest rates to keep at low trading ranges. The negative interest rates would help to revive the H.K. economy and could prevent the free falling in the asset markets.

  • The HKD liquidity should gradually return to normal from tight lending condition. This would allow small and medium enterprise to access into funding at more reasonable interest premium.
  • Despite banks need to re-capitalize their balance sheets, the mortgage rate would need to be self adjusted in order to maintain their businesses viable. The mortgage rate should start re-adjusting itself according to this tight liquidity environment.


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Portfolio Activity*

In October, the Fund returned 2.00% while the iBoxx index's return was 2.00%.During the month, no baskets were created or were redeemed.


Performance Review*

As at 31 October 2008 Monthly average modified duration (year)3 Monthly indicative average yield (%)4 Total return6
1 month(%) Year-to-date(%)
Benchmark 3.52 1.74 2.00 6.95
Actual portfolio 3.51 1.86 2.00 6.70


Important Notes:

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.