FTSE MONTHLY REPORT - December 18 FTSE MPF INDEX SERIES Data as at: 31 December 18 FTSE MPF INDEX SERIES INTRODUCTION The Mandatory Provident Fund (MPF) system aims to provide a cost-effective system of retirement protection for the working population of Hong Kong. The Mandatory Provident Fund Schemes Authority (MPFA) was established in September 1998 to regulate and supervise the operations of provident fund schemes, with the MPF system implemented on 1st December,. To provide a means of comparison with MPF investment funds, Willis Towers Watson and the Hong Kong Investment Funds Association (HKIFA) selected FTSE to calculate a series of MPF benchmarks that were launched in April 1. The FTSE All-World Index Series was used as the base universe for a range of MPF country and regional equity indices. On 1 January, 5, the FTSE MPF Index series was rebranded and officially launched after conducting the first market consultation in 4. The enhanced series provides the most precise benchmarks for the Hong Kong market by accurately reflecting regulatory requirements, permitted investment markets and asset classes as well as accounting for any dividend withholding tax rates and investment restrictions applied to the MPF system. At present, the FTSE MPF Index Series comprises 24 indices on a hedged and unhedged basis covering the various investment opportunities allowable under the Hong Kong MPF system. FTSE MPF INDEX SERIES COMMENTARY 1-Month Performance of Selected FTSE MPF Indices FTSE MPF Hong Kong FTSE MPF All-World * FTSE MPF Asia Pacific ex * FTSE MPF Emerging Markets * FTSE MPF Europe * FTSE MPF Greater China FTSE MPF Japan * FTSE MPF North America *-9.2-7.98-7.12-4.71-2.94-2.5-2.43 -.48-1. -5. 1-Month HKD Performance * Indicates the performance of corresponding hedged indices Year To Date Performance of Selected FTSE MPF Indices FTSE MPF Hong Kong FTSE MPF All-World * FTSE MPF Asia Pacific ex Japan *-12. FTSE MPF Emerging Markets * -12.75 FTSE MPF Europe * -12.61 FTSE MPF Greater China FTSE MPF Japan -13.59 * FTSE MPF North America * -11.87-8.76-8.18-5.74-15. -1. -5. HKD Performance * Indicates the performance of corresponding hedged indices The FTSE MPF Hong Kong Index finished the month in negative territory, down 2.94 per cent in December. Domestic Hong Kong companies outperformed P Chip, Red Chip and H Share companies that are included in the FTSE MPF China Index by 3.84 per cent, although seeing a negative performance of.78 per cent on the month. Year to date the FTSE MPF Hong Kong Index is down 12.75 per cent, with the FTSE MPF Domestic Hong Kong Index and the FTSE MPF China Index down 11.18 per cent and down 13.38 per cent respectively. Compared to Hong Kong, the Asia Pacific ex Japan region saw slightly stronger performance in December, with the FTSE MPF Asia Pacific ex Japan Hedged Index down 2.5 per cent. The FTSE MPF Japan Hedged Index finished the month down 7.98 per cent. Against other regions Asia Pacific ex Japan outperformed both Europe and North America, with the FTSE MPF Europe Hedged Index down 4.71 per cent, and the FTSE MPF North America Hedged Index down 9.2 per cent. Global markets fell 7.12 per cent in December, with the FTSE MPF All-World Hedged Index performance continuing to fall year-to-date by 8.76 per cent. Emerging markets also saw negative performance in December, with the FTSE MPF Emerging Markets Hedged Index down.48 per cent. TABLE OF CONTENTS Introduction & Index Series Overview 1 FTSE MPF Hong Kong Index 5 FTSE MPF Domestic Hong Kong Index 6 FTSE MPF China Index 7 FTSE MPF Greater China Index 8 FTSE MPF All-World Index 9 FTSE MPF Asia Pacific ex Japan Index 1 FTSE MPF Asia Pacific ex JP ex AU ex NZ Index 11 FTSE MPF Asia Pacific ex JP & HK Index 12 FTSE MPF Asia Pacific ex JP incl. HSBC Index 13 FTSE MPF Emerging Markets Index 14 FTSE MPF Europe Index 15 FTSE MPF Japan Index 16 FTSE MPF North America Index 17 FTSE MPF USA Index 18 Monthly Summary and Appendix 19 FEATURES Objective The FTSE MPF Index Series has been designed for the creation of index tracker funds and ETFs, and as a tool to enable performance comparisons with the many MPF funds currently available in Hong Kong Universe The FTSE MPF Index Series is based on the FTSE All-World Index Series which includes global large and mid-cap companies Tax Adjusted The total return indices are calculated using the actual withholding tax rates applicable to MPF funds Capping The indices are subject to a 9 per cent limit on the size of constituents included in an index on a monthly basis Eligibile Securities The indices only include eligible securities listed on stock exchanges approved by the MPFA. Securities not fully permissible under the MPFA Guidelines, such as Stapled securities, REITs which are not authorised by Hong Kong s Securities and Futures Commission (SFC), Unit Trusts, Receipts or Certificates with unlisted underlying shares etc., are not eligible for inclusion Currency Hedging The MPF regulations stipulate that at least 3 per cent of a fund s exposure must be to Hong Kong dollar risk assets. The currency hedged index series will hedge non-hong Kong dollar currency exposure in excess of 65 per cent to ensure they stay 1 of 19
FTSE MPF Index Series Data as at: 31 December 18 FTSE MPF INDEX SERIES INTRODUCTION 9% 98% Index Review Universe Exclusions Large Cap Mid Cap Small Cap INDEX METHODOLOGY OVERVIEW FTSE MPF All-World Index EUROPE Austria Belgium / Luxembourg Denmark Finland France Germany Greece Ireland Italy Netherlands Norway Portugal Spain Sweden Switzerland UK MIDDLE EAST & AFRICA Israel NORTH AMERICA Canada LATIN AMERICA Brazil* ASIA PACIFIC China (Red, P, S Chips & H, N Shares) Hong Kong Australia India* Japan** Malaysia* New Zealand Philippines* FTSE MPF Greater China Index FTSE MPF Hong Kong Index FTSE MPF Domestic Hong Kong Index FTSE MPF China Index South Africa* USA** Mexico* HEDGED INDICES Hong Kong Listed HSBC Red Chips H Shares Hong Kong Companies Taiwan Companies P Chips * Markets included in the FTSE MPF Emerging Markets Index ** FTSE MPF Country Indices available Eligible Securities Each constituent of the FTSE MPF Indices must be a current constituent of FTSE All-World Index. The FTSE All- World Index contains global large and mid cap companies and covers 9 per cent of the investable market capitalisation universe. To ensure the FTSE All-World Index is investable, eligible securities are subject to three screens: size, liquidity and free float (including foreign ownership restrictions). After the initial index screening of the eligible constituents, those falling into any one of the following categories will NOT be eligible to be included in the FTSE MPF Index Series: 1. Securities listed on a stock exchange not currently a MPFA approved stock exchange (see Appendix A for details). 2. Stapled securities, which is an arrangement under which different securities are quoted jointly 3. Real Estate Investment Trusts (REITs) which are not authorised by Hong Kong s Securities and Futures Commission (SFC) 4. Unit Trusts, Receipts or Certificates with unlisted underlying shares and all other securities which are not fully permissible under the MPFA Guidelines Index Review The FTSE MPF Index Series is reviewed semi-annually in March and September as part of the reviews of the FTSE All-World Index on the same dates. Changes are implemented after the close of business on the third Friday in the same month. Review month Regions Under Review Data Taken as of March / September Asia Pacific ex Japan Last Business Day in December / June Latin America Emerging Europe Middle East & Africa Developed Europe Japan North America New Issues A stock will be added outside a review when its full market capitalisation (its price multiplied by its shares) is greater than the Fast Entry Level for the relevant region. The Fast Entry level for each region will be set at the time of the review and published by FTSE. The addition of a new security to the index will be implemented after the close of business on the fifth day of trading. UNHEDGED INDICES INFORMATION Index Universe FTSE All-World Index Series plus Hong Kong listed HSBC Holdings Index Launch FTSE MPF Asia Pacific ex JP incl. HSBC Index, FTSE MPF Emerging Markets Index - 2 July 8 FTSE MPF Emerging Markets Hedged Index - 21 March 11 All Other FTSE MPF Indices - 1 January 5 Base Date FTSE MPF Domestic Hong Kong Index, FTSE MPF China Index, FTSE MPF Greater China Index - 31 December 4 FTSE MPF Asia Pacific ex JP incl. HSBC Index, FTSE MPF Emerging Markets Index: - 3 March 7 FTSE MPF Emerging Markets Hedged Index - 31 December 1 All Other FTSE MPF Indices - 3 November Base Value FTSE MPF Asia Pacific ex JP incl. HSBC Index - 13922.23 FTSE MPF Emerging Markets Hedged Index - 7276.65 All Other FTSE MPF Indices - 5 Index Calculation End-of-day indices available End-of-Day Distribution Indices available on the next day at 11: Hong Kong local time (3: hours GMT) via FTP and email Currency HKD, USD Review Dates Semi annually in March and September for all regions: - Asia Pacific ex Japan - Latin America - Emerging Europe - Japan - Middle East & Africa - Developed Europe - North America Index Rules Available at www.ftse.com/products/indices/mpf Vendor Codes See page 4 or contact 2 of 19
FTSE MPF Index Series Data as at: 31 December 18 INDEX METHODOLOGY OVERVIEW CONTINUED Constituent Selection Size Screen for Inclusion and Exclusion Constituents and non-constituents will be ranked by full market capitalisation in their current respective regional All-World Index universe. Different size and weighting requirements are currently in place to review existing constituents for exclusion, and non-constituents for inclusion in the indices. For details of the screening please refer to the FTSE Global Equity Index Series Ground Rules on the ftse.com website. Liquidity Screen The index series is tested for liquidity, by the volume of shares traded to prevent illiquid stocks either being added to the indices or continuing to remain a member of the index family. The liquidity screen is based on a security s median daily trading per month, with each daily trade total ranked and the middle ranking day selected. Daily totals with zero trades are included. Non-constituents must turnover at least.5% of their shares in issue (after the adjustment of free float and foreign ownership restrictions) based on their median daily trade per month in ten of the twelve months prior to the semi-annual review. An existing constituent must trade at least.4% of its shares in issue (after the adjustment of free float and foreign ownership restrictions) based on its median daily trade per month for at least eight of the twelve months prior to the semi-annual review. New issues must have a minimum 3 months trading record when reviewed and a turnover of at least.5% of their shares in issue (after the adjustment of free float and foreign ownership restrictions) based on their median daily trading volume each month, on a pro-rata basis since listing. Further details of the index methodology can be found on www.ftse.com/products/indices/mp F. The following publications are available by contacting your local FTSE Russell Client Services team or info@ftserussell.com. GROUND RULES FOR THE MANAGEMENT OF THE FTSE MPF INDEX SERIES Free Float and Foreign Ownership Restriction The FTSE MPF Index Series constituents are adjusted for free float and foreign ownership restrictions, and therefore are weighted according to how much share capital is available for public investment. This achieves the most accurate and neutral market representation possible, meaning that only shares you can own are included in the index. FTSE has chosen to apply a precise free float methodology when determining the eligibility of a stock. If a company's actual free float is greater than 5%, the free float number will be rounded to 12 decimal places. Companies with an actual free float of 5% or below are not eligible for inclusion in the Index. Restrictions on the Size of Index Constituents In order to take into account the MPFA restrictions on the size of holdings included in a fund, each index in the FTSE MPF Index Series is capped to ensure no constituent is greater than 9 per cent on a monthly basis. Applying Dividend Withholding Tax Rates Withholding tax is paid on income investors earn overseas. The Government of Hong Kong, SAR has taxation agreements (DTA) with other countries that prevent what is known as double taxation. By taking into account the relevant dividend withholding tax rates the FTSE MPF Index Series provides a more accurate index calculation. Currency Hedging Calculation The currency hedged indices that are a part of the FTSE MPF Index Series use one month forward contracts in order to reduce the risk of currency fluctuations when investing in overseas stocks that are not denominated in Hong Kong Dollars. The MPF regulations stipulate that at least 3 per cent of a fund s exposure must be to Hong Kong Dollar risk assets. The currency hedged indices will hedge non-hong Kong Dollar currency exposure in the indices in excess of 65 per cent to ensure they stay well within the regulations. Index Committees and Market Consultations The FTSE Russell External Advisory Committees assist in the oversight of the FTSE All-World Index Series, of which the FTSE MPF Index Series is based. The Terms of Reference of the committees are set out on the FTSE Russell website. On a periodic basis FTSE in association with the HKIFA, and Willis Towers Watson conduct a market consultation. The aim of the consultation is to account for any change in investment restrictions and to ensure that the indices provide the most precise benchmark for the market. The results of the consultation will be reviewed by an independent review panel and then announced to the market along with any changes in the index series. 3 of 19
FTSE MPF Index Series Data as at: 31 December 18 COMMENTARY IN DECEMBER The FTSE MPF Index Series has been designed for the creation of index tracker funds and ETFs, and as a tool to enable performance comparisons with the many MPF funds currently available in Hong Kong. The index series contains 24 indices of which 14* are used as headline indices to compare against MPF investment fund performance. These 14 indices are either currency hedged or are not required to be hedged due to a large exposure in Hong Kong Dollar assets, and are used in the commentary included below. The 31 constituents of the FTSE MPF Hong Kong Index finished the month in negative territory, down 2.94 per cent in December. In fact all 14 headline indices also saw negative performance in the month. Domestic Hong Kong companies outperformed P Chip, Red Chip and H Share companies that are included in the FTSE MPF China Index by 3.84 per cent, although seeing a negative performance of.78 per cent on the month. Hong Kong companies account for 31.58 per cent, H Shares 29.65 per cent, P Chips 18.56 per cent, Red Chips 1.96 per cent, and HSBC finished the month with a weighting of 9.25 per cent in the FTSE MPF Hong Kong Index. Financials is the largest industry using the Industry Classification Benchmark (ICB) in both the FTSE MPF Domestic Hong Kong Index and FTSE MPF China Index with a weighting of 56.5 per cent and 45.7 per cent, respectively. Year to date the FTSE MPF Hong Kong Index is down 12.75 per cent, with the FTSE MPF Domestic Hong Kong Index and the FTSE MPF China Index down 11.18 per cent and down 13.38 per cent respectively. Over the past year, the FTSE MPF China Index has shown the highest volatility of the Hong Kong listed company indices at 22.37 per cent, with the FTSE MPF Domestic Hong Kong Index having a volatility of 16. per cent. The FTSE MPF Hong Kong Index has a 1 year volatility of 19.71 per cent. Compared to Hong Kong, the Asia Pacific ex Japan region saw slightly stronger performance in December, with the down 2.5 per cent. The FTSE MPF Japan Hedged Index finished the month down 7.98 per cent. Each index has 89 and 518 constituents respectively, with the FTSE MPF Asia Pacific ex Japan Hedged Index showing a 1 year volatility of 14.64 per cent compared to FTSE MPF Japan Hedged Index's volatility of 16.79 per cent. Against other regions Asia Pacific ex Japan outperformed both Europe and North America, with the FTSE MPF Europe Hedged Index down 4.71 per cent, and the FTSE MPF North America Hedged Index down 9.2 per cent. From the perspective of volatility, the over the past 1 year has been more volatile, it is 1.53 per cent more volatile than the FTSE MPF Europe Index, and compares with a volatility of 16.84 per cent for the FTSE MPF North America Hedged Index. Global markets fell 7.12 per cent in December, with the performance continuing to fall year-to-date by 8.76 per cent. Emerging Markets also saw negative performance in December, with the FTSE MPF Emerging Markets Hedged Index down.48 per cent. * the remaining 1 indices are unhedged and used for comparison purposes against the hedged indices. VENDOR CODES FTSE BLOOMBERG REUTERS FACTSET FTSE MPF Hong Kong Index GPMPF28 TFMPFHH.TFTGPMPF28H GPMPF28 FTSE MPF Domestic Hong Kong Index GPMPF29 TFMPFDH.TFTGPMPF29H GPMPF29 FTSE MPF China Index GPMPF3 TGPMPF3.TFTGPMPF3H GPMPF3 FTSE MPF Greater China Index GPMPF31 TFMPFGCH.TFTGPMPF31H GPMPF31 FTSE MPF All-World Index GPMPF25 TFMPFAWH.TFTGPMPF25H GPMPF25 FTSE MPF Asia Pacific ex Japan Index GPMPF27 TFMPFAPH.TFTGPMPF27H GPMPF27 FTSE MPF Asia Pacific ex JP ex AU ex NZ Index GPMPF26 TFMPFAXH.TFTGPMPF26H GPMPF26 FTSE MPF Asia Pacific ex Japan & Hong Kong Index GPMPF22 TFMPFXJH.TFTGPMPF22H GPMPF22 FTSE MPF Asia Pacific ex Japan incl. HSBC Index GPMPF32 TFMPFAHH.TFTGPMPF32H GPMPF32 FTSE MPF Emerging Markets Index GPMPF33 TFMPFEMH.TFTGPMPF33H GPMPF33 FTSE MPF Europe Index GPMPF23 TFMPFEH.TFTGPMPF23H GPMPF23 FTSE MPF Japan Index GPMPF TFMPFJH.TFTGPMPFH GPMPF FTSE MPF North America Index GPMPF24 TFMPFAH.TFTGPMPF24H GPMPF24 FTSE MPF USA Index GPMPF21 TFMPFUH.TFTGPMPF21H GPMPF21 4 of 19
FTSE MPF Hong Kong Index Data as at: 31 December 18 The FTSE MPF Hong Kong Index consists of all constituents in FTSE MPF Domestic Hong Kong Index and the FTSE MPF China Index. As at the end of December there were 31 constituents. FTSE MPF HONG KONG INDEX FIVE-YEAR PERFORMANCE (HKD TOTAL RETURN) PERFORMANCE HIGHLIGHTS 13=1) 1 1 1 1 1 The FTSE MPF Hong Kong Index ended the month in negative territory in December down 2.94 per cent, underperforming the FTSE MPF Asia Pacific ex Japan Hedged Index by.89 per cent. Year to date the FTSE MPF Hong Kong Index performance is down by 12.75 per cent, with a 1-year volatility of 19.71 per cent. FTSE MPF Hong Kong Index FTSE MPF HONG KONG INDEX HISTORICAL PERFORMANCE TABLE (HKD TOTAL RETURN) 14 15 16 17 FTSE MPF Hong Kong Index -2.94-2.5-6.95-1.29-8.34-8.81-12.75-12. -12.75 29.12-12. 27.15 8.89 4.92 4.9-6.13 3.7 42.71 3.44 27.69.21 8.49 3.75 3.15-8.73 7.39 36.34 3.15 FTSE MPF HONG KONG INDEX HISTORICAL VOLATILITY TABLE (HKD TOTAL RETURN) FTSE MPF Hong Kong Index * * ** *** 14 * 19.71 19.71 17.55 17.37 13.26 14.64 14.64 14.64 13.97 9.46 15 * 16 * 21.35 18.39 15.77 15.54 17 * 11.1 8.44 FIVE-YEAR HISTORICAL INDUSTRY BREAKDOWN SHARE TYPE BREAKDOWN 1 9.25 31.58 29.65 H Shares Red Chips P Chips HK Companies HSBC 1.96 18.56 Basic Materials Consumer Goods Consumer Services Financials Health Care Industrials Oil & Gas Technology Telecommunications Utilities FTSE MPF HONG KONG INDEX TOP 1 CONSTITUENTS Rank 1 2 3 4 5 6 7 8 9 B154564 Bank of China (H) H Share 1 SEDOL BMMV2K8 Tencent Holdings (P Chip) 6158163 HSBC Holdings 6267359 BW9P816 Constituent Name Hong Kong Exchanges & Clearing Share Type P Chip HK Company HK Company HK Company ICB Subsector Internet Diversified Industrials Net Market Cap (HKDm) 1,787,1 9.3 1,31,419 9.25 B4TX8S1 AIA Group Ltd. HK Company Life Insurance 784,951 6.8 BLMTQ3 China Construction Bank (H) H Share 577,175 4.47 B1G1QD8 ICBC (H) H Share 436,758 3.38 73556 China Mobile (Red Chip) Red Chip Mobile Telecommunications 398,358 3.9 B1FLR7 Ping An Insurance (H) H Share Life Insurance 345,5 2.67 CK Hutchison Holdings Investment Services 2,941 2.18 257,234 1,279 6,37,366 Index Weight 1.99 1.56 43.97 5 of 19
FTSE MPF Domestic Hong Kong Index Data as at: 31 December 18 The FTSE MPF Domestic Hong Kong Index consists of eligible large and mid cap Hong Kong companies from the FTSE All-World Index. The Hong Kong listed HSBC Holdings, and the Jardine Group companies listed in Singapore are also included. As at the end of December there were 89 constituents. FTSE MPF DOMESTIC HONG KONG INDEX FIVE-YEAR PERFORMANCE (HKD TOTAL RETURN) PERFORMANCE HIGHLIGHTS 13=1) 1 1 1 1 The FTSE MPF Domestic Hong Kong Index ended the month in negative territory in December down.78 per cent, outperforming the FTSE MPF Asia Pacific ex Japan Hedged Index by 1.27 per cent. Year to date the FTSE MPF Domestic Hong Kong Index performance is down by 11.18 per cent, with a 1-year volatility of 16. per cent. FTSE MPF Domestic Hong Kong Index FTSE MPF DOMESTIC HONG KONG INDEX HISTORICAL PERFORMANCE TABLE (HKD TOTAL RETURN) 14 15 16 17 FTSE MPF Domestic Hong Kong Index -.78-5.88-8.29-11.18-11.18 27.62 23.72 8.47 4.35 1.93-4.89 5. 36.84 3.56-2.5-8.34-8.81-12. -12. 27.69.21 8.49 3.75 3.15-8.73 7.39 36.34 3.15 FTSE MPF DOMESTIC HONG KONG INDEX HISTORICAL VOLATILITY TABLE (HKD TOTAL RETURN) * * ** *** 14 * 15 * 16 * 17 * FTSE MPF Domestic Hong Kong Index 16. 16. 14.19 15.18 11.22 17.15 15.21 8.51 14.64 14.64 14.64 13.97 9.46 15.77 15.54 8.44 FIVE-YEAR HISTORICAL INDUSTRY BREAKDOWN INDUSTRY BREAKDOWN 1.55 1.2 1.39.22 12.47. 8.49 56.5 1. Basic Materials Consumer Goods Consumer Services Financials Health Care Industrials Oil & Gas Technology Telecommunications Utilities FTSE MPF DOMESTIC HONG KONG INDEX TOP 1 CONSTITUENTS Rank 1 2 3 4 5 6 7 8 9 1 SEDOL Constituent Name ICB Subsector Net Market Cap (HKDm) Index Weight Industry Weight B4TX8S1 AIA Group Ltd. Life Insurance 784,951 9.24 16.48 6158163 6267359 BW9P816 BPB4M7 HSBC Holdings 1,31,419 9. Hong Kong Exchanges & Clearing Investment Services 2,941 6.96 CK Hutchison Holdings Diversified Industrials 1,279 Link Real Estate Investment Trust Retail REITs 167,213 6859927 Sun Hung Kai Props Real Estate Holding & Development 158,419 BYZQ77 CK Asset Holdings Real Estate Holding & Development 154,16 9717 CLP Holdings Conventional Electricity 145,186 6436557 Hong Kong & China Gas Gas Distribution 145,119 3. 35.9 68374 Hang Seng Bank 127,248 3.15 5.63 3,465,8 52.63-4.99 4.14 3.93 3.82 16.42 12.42 39.99 7.39 7. 6.81 3. 35.92 6 of 19
FTSE MPF China Index Data as at: 31 December 18 The FTSE MPF China Index consists of eligible H Share, P Chip and Red Chip companies listed on the Stock Exchange of Hong Kong (SEHK) from the FTSE All- World Index. China listed A Shares and B Shares are not included in this index. As at the end of December there were 1 H Share, 62 P Chip, and 39 Red Chip index constituents, which represents 53.87 per cent, 26.22 per cent and 19.92 per cent of the index, respectively. FTSE MPF CHINA INDEX FIVE-YEAR PERFORMANCE (HKD TOTAL RETURN) PERFORMANCE HIGHLIGHTS 13=1) 1 1 1 1 1 The FTSE MPF China Index ended the month in negative territory in December down 4.62 per cent, underperforming the FTSE MPF Asia Pacific ex Japan Hedged Index by 2.57 per cent. Year to date the FTSE MPF China Index performance is down by 13.38 per cent, with a 1-year volatility of 22.37 per cent. FTSE MPF China Index FTSE MPF CHINA INDEX HISTORICAL PERFORMANCE TABLE (HKD TOTAL RETURN) FTSE MPF China Index -4.62-8.6-11.8-13.38-13.38 24.76 25.12 7.65 4.58 8.13-7.25 1.46 41.96-2.5-8.34-8.81-12. -12. 27.69.21 8.49 3.75 3.15-8.73 7.39 36.34 14 15 16 17 3. 3.15 FTSE MPF CHINA INDEX HISTORICAL VOLATILITY TABLE (HKD TOTAL RETURN) FTSE MPF China Index * 22.37 14.64 * 22.37 14.64 **.39 14.64 *** 14 * 15 * 16 * 17 * 19.78 16.54 25.66.85 13.44 13.97 9.46 15.77 15.54 8.44 FIVE-YEAR HISTORICAL INDUSTRY BREAKDOWN INDUSTRY BREAKDOWN 1 12.44 8.26 8.5 7.8 3.64 3.48 3.36 6.75 1. 45.7 Basic Materials Consumer Goods Consumer Services Financials Health Care Industrials Oil & Gas Technology Telecommunications Utilities FTSE MPF CHINA INDEX TOP 1 CONSTITUENTS Rank SEDOL Constituent Name Share Type ICB Subsector Net Market Cap (HKDm) Index Weight 1 2 3 4 5 6 7 8 9 1 BMMV2K8 Tencent Holdings (P Chip) BLMTQ3 China Construction Bank (H) B1G1QD8 ICBC (H) 73556 China Mobile (Red Chip) B1FLR7 Ping An Insurance (H) B154564 Bank of China (H) BGS5 CNOOC (Red Chip) 6291819 China Petroleum & Chemical (H) 6718976 China Life Insurance (H) B1DYPZ5 China Merchants Bank (H) P Chip H Share H Share Red Chip H Share H Share Red Chip H Share H Share H Share Internet 1,787,1 577,175 436,758 Mobile Telecommunications 398,358 Life Insurance 345,5 257,234 Exploration & Production 192,161 Integrated Oil & Gas 142,6 Life Insurance 123,821 18,9 4,368,988 9.39 8.12 6.15 5.61 4.86 3.62 2.7 2.1 1.74 1.53 45.73 7 of 19
FTSE MPF Greater China Index Data as at: 31 December 18 FTSE MPF Greater China Index consists of all constituents in the FTSE MPF Domestic Hong Kong Index, the FTSE MPF China Index and FTSE Taiwan Index, except those Taiwanese companies listed on the Gretai Securities Markets. As at the end of December there were 397 constituents. FTSE MPF GREATER CHINA INDEX FIVE-YEAR PERFORMANCE (HKD TOTAL RETURN) PERFORMANCE HIGHLIGHTS 13=1) 1 1 1 1 1 The FTSE MPF Greater China Index ended the month in negative territory in December down 2.43 per cent, underperforming the FTSE MPF Asia Pacific ex Japan Hedged Index by.38 per cent. Year to date the FTSE MPF Greater China Index performance is down by 11.87 per cent, with a 1-year volatility of 18.52 per cent. FTSE MPF Greater China Index FTSE MPF GREATER CHINA INDEX HISTORICAL PERFORMANCE TABLE (HKD TOTAL RETURN) 14 15 16 17 FTSE MPF Greater China Index -2.43-2.5-8.49-8.34-9.56-11.87-11.87 32.7 28.88 9.72 5. 5.71-7.69 7.6-8.81-12. -12. 27.69.21 8.49 3.75 3.15-8.73 7.39 39.96 36.34 3. 3.15 FTSE MPF GREATER CHINA INDEX HISTORICAL VOLATILITY TABLE (HKD TOTAL RETURN) FTSE MPF Greater China Index * 18.52 14.64 * 18.52 14.64 ** 16.54 14.64 *** 14 * 15 * 16 * 15.81 11.65 18.99 17.6 13.97 9.46 15.77 15.54 17 * 1.19 8.44 FIVE-YEAR HISTORICAL INDUSTRY BREAKDOWN COUNTRY / SHARE TYPE BREAKDOWN 1 23.86 21.67 7.37 8.1 H Shares Red Chips P Chips HK Companies HSBC Taiwan 23.8 16.1 Basic Materials Consumer Goods Consumer Services Financials Health Care Industrials Oil & Gas Technology Telecommunications Utilities FTSE MPF GREATER CHINA INDEX TOP 1 CONSTITUENTS Rank 1 2 3 4 5 6 7 8 9 1 SEDOL Constituent Name Classification ICB Subsector Net Market Cap (HKDm) Index Weight BMMV2K8 Tencent Holdings (P Chip) 688916 Taiwan Semiconductor Manufacturing 6158163 HSBC Holdings B4TX8S1 AIA Group Ltd. BLMTQ3 China Construction Bank (H) B1G1QD8 ICBC (H) 73556 China Mobile (Red Chip) P Chip Internet 1,787,1 9.24 Taiwan Semiconductors 1,378,466 7.81 HK Company 1,31,419 HK Company Life Insurance 784,951 H Share 577,175 H Share 436,758 Red Chip Mobile Telecommunications 398,358 B1FLR7 Ping An Insurance (H) H Share Life Insurance 345,5 6267359 Hong Kong Exchanges & Clearing HK Company Investment Services 2,941 B154564 Bank of China (H) H Share 257,234 7,547,553 7.37 4.44 3.27 2.47 2.26 1.95 1.59 1.46 41.86 8 of 19
FTSE MPF All-World Index Data as at: 31 December 18 The FTSE MPF All-World Index consists of eligible large and mid cap companies which are listed on MPFA approved stock exchanges and covers 9 per cent of the investable market cap universe. As at the end of December there were 283 constituents. FTSE MPF ALL-WORLD INDEX FIVE-YEAR PERFORMANCE (HKD TOTAL RETURN) PERFORMANCE HIGHLIGHTS 13=1) 1 1 1 1 The ended the month in negative territory in December down 7.12 per cent, underperforming the FTSE MPF All-World Index by.11 per cent. Year to date the FTSE MPF All-World Hedged Index performance is down by 8.76 per cent, with a 1-year volatility of 12.32 per cent. FTSE MPF All-World Index FTSE MPF ALL-WORLD INDEX HISTORICAL PERFORMANCE TABLE (HKD TOTAL RETURN) FTSE MPF All-World Index -7.1-7.12-12.87-12.82-9.15-9.19-9.19 23.13 25.84 7.18 4.7 4.33-8.92-8.76-8.76 22.17 28.13 6.9 5.8 14 5.88 15-2.4 -.95 16 8.5 8.35 17 25.48 23.59 2.23 2.23 FTSE MPF ALL-WORLD INDEX HISTORICAL VOLATILITY TABLE (HKD TOTAL RETURN) * * ** *** 14 * 15 * 16 * FTSE MPF All-World Index 12.46 12.46 12.69 1.82 8.83 12.96 12.65 12.32 12.32 12.55 1.51 8.88 12.97 12.45 17 * 5.67 5. FIVE-YEAR HISTORICAL REGIONAL BREAKDOWN REGIONAL BREAKDOWN 1.23 1 11.78 56.98 8.76.29 Asia Pacific ex Japan Japan Europe Middle East & Africa North America Latin America.96 FTSE MPF ALL-WORLD INDEX TOP 1 CONSTITUENTS Rank SEDOL Constituent Name Country ICB Subsector Net Market Cap (HKDm) Index Weight 1 2588173 Microsoft Corp USA Software 6,18,652 1.97 2 46251 Apple Inc. USA Computer Hardware 5,857,149 1.91 3 19 Amazon.Com USA Broadline Retailers 4,773,998 1.56 4 2475833 Johnson & Johnson USA Pharmaceuticals 2,78,5.89 5 219385 JPMorgan Chase & Co USA 2,525,612.83 6 BYY88Y7 Alphabet Class C USA Internet 2,465,348.81 7 BYVY8G Alphabet Class A USA Internet 2,4,67. 8 B7TL8 Facebook Class A USA Internet 2,437,177. 9 2326618 Exxon Mobil Corporation USA Integrated Oil & Gas 2,258,658.74 1 7339 Berkshire Hathaway B USA Reinsurance 2,78,451.68 33,564,5 1.97 9 of 19
FTSE MPF Asia Pacific ex Japan Index Data as at: 31 December 18 The FTSE MPF Asia Pacific ex Japan Index consists of eligible large cap and mid cap companies which are listed on MPFA approved stock exchanges from the Asia Pacific region. As at the end of December there were 89 constituents. FTSE MPF ASIA PACIFIC EX JAPAN INDEX FIVE-YEAR PERFORMANCE (HKD TOTAL RETURN) PERFORMANCE HIGHLIGHTS 13=1) 1 1 1 1 The FTSE MPF Asia Pacific ex Japan Hedged Index ended the month in negative territory in December down 2.5 per cent, outperforming the FTSE MPF All- World Hedged Index by 5.7 per cent. Year to date the FTSE MPF Asia Pacific ex Japan Hedged Index performance is down by 12. per cent, with a 1-year volatility of 14.64 per cent. FTSE MPF Asia Pacific ex Japan Index FTSE MPF ASIA PACIFIC EX JAPAN INDEX HISTORICAL PERFORMANCE TABLE (HKD TOTAL RETURN) FTSE MPF Asia Pacific ex Japan Index 16 7.37-2.5-8.35-8.81-12. -12. 27.96 18.75 8.56 3.5 2.27-9.25 36.66-2.5-8.34-8.81-12. -12. 27.69.21 8.49 3.75 3.15-8.73 7.39 36.34-7.12-12.82-8.92-8.76-8.76 22.17 28.13 6.9 5.8 5.88 -.95 8.35 23.59 14 15 17 3.15 3.15 2.23 FTSE MPF ASIA PACIFIC EX JAPAN INDEX HISTORICAL VOLATILITY TABLE (HKD TOTAL RETURN) FTSE MPF Asia Pacific ex Japan Index * * ** *** 14 * 15 * 16 * 14.66 14.66 14.71 14.23 9.96 15.93 15.64 14.64 14.64 14.64 13.97 9.46 15.77 15.54 12.32 12.32 12.55 1.51 8.88 12.97 12.45 17 * 8.5 8.44 5. FIVE-YEAR HISTORICAL COUNTRY BREAKDOWN COUNTRY BREAKDOWN 1 13.74 3.38 1.21.77 2.99 11.69 11.6 3.32 11.31 17.58 22.95 Australia China Hong Kong SAR India Malaysia New Zealand Philippines Singapore South Korea Taiwan Thailand FTSE MPF ASIA PACIFIC EX JAPAN INDEX TOP 1 CONSTITUENTS Rank SEDOL Constituent Name Country ICB Subsector Net Market Cap (HKDm) Index Weight 1 BMMV2K8 Tencent Holdings (P Chip) China Internet 1,787,1 4.96 2 688916 Taiwan Semiconductor Manufacturing Taiwan Semiconductors 1,378,466 3.82 3 67717 Samsung Electronics South Korea Computer Hardware 1,275,13 3.54 4 B4TX8S1 AIA Group Ltd. Hong Kong SAR Life Insurance 784,951 2.18 5 621535 Commonwealth Bank of Australia Australia 72,114 1.95 6 614469 BHP Group Australia General Mining 5,771 1.68 7 BLMTQ3 China Construction Bank (H) China 577,175 1. 8 76146 Westpac Banking Corp Australia 472,246 1.31 9 6185495 CSL Australia Pharmaceuticals 4,691 1.28 1 B1G1QD8 ICBC (H) China 436,758 1.21 8,4,476 23.53 1 of 19
FTSE MPF Asia Pacific ex JP ex AU ex NZ Index Data as at: 31 December 18 The FTSE MPF Asia Pacific ex JP ex AU ex NZ Index consists of eligible large cap and mid cap Asia Pacific companies, excluding Japanese, Australian and New Zealand companies, that are listed on MPFA approved stock exchanges. As at the end of December there were 799 constituents. FTSE MPF ASIA PACIFIC EX JP EX AU EX NZ INDEX FIVE-YEAR PERFORMANCE (HKD TOTAL RETURN) PERFORMANCE HIGHLIGHTS 13=1) 1 1 1 1 1 The FTSE MPF Asia Pacific ex Japan ex Australia ex New Zealand Hedged Index ended the month in negative territory in December down 1.74 per cent, outperforming the FTSE MPF All-World Hedged Index by 5.38 per cent. Year to date the FTSE MPF Asia Pacific ex Japan ex Australia ex New Zealand Hedged Index performance is down by 12.94 per cent, with a 1-year volatility of 15.97 per cent. FTSE MPF Asia Pacific ex JP, AU & NZ Index FTSE MPF Asia Pacific ex JP, AU & NZ Hedged Index FTSE MPF ASIA PACIFIC EX JP EX AU EX NZ INDEX HISTORICAL PERFORMANCE TABLE (HKD TOTAL RETURN) FTSE MPF Asia Pacific ex JP ex AU ex NZ Index FTSE MPF Asia Pacific ex JP ex AU ex NZ Hedged Index -1.74-1.74-7.12-7.83-8.19-12.94-12.94 29.76 23.94 9.7 4.39 4.63-8.71 6..61 2.82-7.83-8.19-12.94-12.94 29.76 23.94 9.7 4.39 4.63-8.71 6..61 2.82-12.82-8.92-8.76-8.76 22.17 28.13 6.9 5.8 5.88 -.95 8.35 23.59 2.23 14 15 16 17 FTSE MPF ASIA PACIFIC EX JP EX AU EX NZ INDEX HISTORICAL VOLATILITY TABLE (HKD TOTAL RETURN) FTSE MPF Asia Pacific ex JP ex AU ex NZ Index FTSE MPF Asia Pacific ex JP ex AU ex NZ Hedged Index * * ** *** 14 * 15 * 16 * 15.97 15.97 14.91 14.58 1.15 15.9 15.59 15.97 12.32 15.97 12.32 14.91 12.55 14.58 1.51 1.15 8.88 15.9 12.97 15.59 12.45 17 * 9.4 9.4 5. FIVE-YEAR HISTORICAL COUNTRY BREAKDOWN COUNTRY BREAKDOWN 1 16.83 14.32 4.14 1.49 3.66 4.6 13.55 28.1 13.85 China Hong Kong SAR India Malaysia Philippines Singapore South Korea Taiwan Thailand FTSE MPF ASIA PACIFIC EX JP EX AU EX NZ INDEX TOP 1 CONSTITUENTS Rank SEDOL Constituent Name Country ICB Subsector Net Market Cap (HKDm) Index Weight 1 BMMV2K8 Tencent Holdings (P Chip) China Internet 1,787,1 6.7 2 688916 Taiwan Semiconductor Manufacturing Taiwan Semiconductors 1,378,466 4.68 3 67717 Samsung Electronics South Korea Computer Hardware 1,275,13 4.33 4 B4TX8S1 AIA Group Ltd. Hong Kong SAR Life Insurance 784,951 2.67 5 BLMTQ3 China Construction Bank (H) China 577,175 1.96 6 B1G1QD8 ICBC (H) China 436,758 1.48 7 73556 China Mobile (Red Chip) China Mobile Telecommunications 398,358 1.35 8 99626 Reliance Industries India Exploration & Production 39,35 1.33 9 61719 Housing Development Finance India Mortgage Finance 379,175 1.29 1 B1FLR7 Ping An Insurance (H) China Life Insurance 345,5 1.17 7,752,587 26.34 11 of 19
FTSE MPF Asia Pacific ex JP ex HK Index Data as at: 31 December 18 The FTSE MPF Asia Pacific ex JP ex HK Index consists of eligible large and mid cap Asia Pacific companies that are listed on MPFA approved stock exchanges. As at the end of December there were 581 constituents. FTSE MPF ASIA PACIFIC EX JP EX HK INDEX FIVE-YEAR PERFORMANCE (HKD TOTAL RETURN) PERFORMANCE HIGHLIGHTS 13=1) 1 1 1 1 The FTSE MPF Asia Pacific ex Japan & Hong Kong Hedged Index ended the month in negative territory in December down 1.43 per cent, outperforming the by 5.69 per cent. Year to date the FTSE MPF Asia Pacific ex Japan & Hong Kong Hedged Index performance is down by 1.82 per cent, with a 1-year volatility of 11.99 per cent. FTSE MPF Asia Pacific ex JP & HK Index FTSE MPF Asia Pacific ex JP & HK Hedged Index FTSE MPF ASIA PACIFIC EX JP EX HK INDEX HISTORICAL PERFORMANCE TABLE (HKD TOTAL RETURN) FTSE MPF Asia Pacific ex JP ex HK Index FTSE MPF Asia Pacific ex JP ex HK Hedged Index -1.66-9.2-7.58-12.46-12.46 27.45 14.24 8.42 2.7.55-1.86 9.55 32.9 3.22-1.43-8.94-7. -1.82-1.82 25.14 16.24 7.76 3.6 1.83-8.78 9.5 28.16 3.22-7.12-12.82-8.92-8.76-8.76 22.17 28.13 6.9 5.8 5.88 -.95 8.35 23.59 2.23 14 15 16 17 FTSE MPF ASIA PACIFIC EX JP EX HK INDEX HISTORICAL VOLATILITY TABLE (HKD TOTAL RETURN) * * ** *** FTSE MPF Asia Pacific ex JP ex HK Index 13.1 13.1 13.97 13.32 14 * 15 * 16 * 9.71 15.59 15.45 FTSE MPF Asia Pacific ex JP ex HK Hedged Index 11.99 11.99 12.53 11.65 8.93 14.8 13.84 12.32 12.32 12.55 1.51 8.88 12.97 12.45 17 * 8.38 7.51 5. FIVE-YEAR HISTORICAL COUNTRY BREAKDOWN COUNTRY BREAKDOWN 5.3 1 17.75.86 5.14 1.84 4.54 1.17 26.69 16.79 Australia India Malaysia New Zealand Philippines Singapore South Korea Taiwan Thailand FTSE MPF ASIA PACIFIC EX JP EX HK INDEX TOP 1 CONSTITUENTS Rank 1 2 3 4 5 6 7 8 9 1 SEDOL 688916 67717 621535 614469 76146 6185495 65586 99626 61719 66248 Constituent Name Taiwan Semiconductor Manufacturing Samsung Electronics Commonwealth Bank of Australia BHP Group Westpac Banking Corp CSL Australia & New Zealand Banking Group Reliance Industries Housing Development Finance National Australia Bank Country ICB Subsector Net Market Cap (HKDm) Taiwan South Korea Semiconductors Computer Hardware 1,378,466 1,275,13 Australia 72,114 Australia General Mining 5,771 Australia 472,246 Australia Pharmaceuticals 4,691 Australia 39,694 India Exploration & Production 39,35 India Mortgage Finance 379,175 Australia 3,963 6,415,573 Index Weight 5.81 5.37 2.96 2.55 1.99 1.94 1.65 1.64 1. 1.52 27.2 12 of 19
FTSE MPF Asia Pacific ex Japan Incl. HSBC Index Data as at: 31 December 18 The FTSE MPF Asia Pacific ex Japan Incl. HSBC Index consists of eligible large and mid cap companies in the Asia Pacific region which are listed on the MPFA approved stock exchanges. It also includes HSBC Holdings listed in Hong Kong. As at the end of December there were 891 constituents. FTSE MPF ASIA PACIFIC EX JAPAN INCL. HSBC INDEX FIVE-YEAR PERFORMANCE (HKD TOTAL RETURN) PERFORMANCE HIGHLIGHTS 13=1) 1 1 1 1 1 The FTSE MPF Asia Pacific ex Japan Incl. HSBC Hedged Index ended the month in negative territory in December down 2.9 per cent, outperforming the FTSE MPF All- World Hedged Index by 5.3 per cent. Year to date the FTSE MPF Asia Pacific ex Japan Incl. HSBC Hedged Index performance is down by 12.86 per cent, with a 1-year volatility of 14.55 per cent. FTSE MPF Asia Pacific ex JP Incl. HSBC Index FTSE Asia Pacific ex JP Incl. HSBC Hedged Index FTSE MPF ASIA PACIFIC EX JAPAN INCL. HSBC INDEX HISTORICAL PERFORMANCE TABLE (HKD TOTAL RETURN) 14 15 16 FTSE MPF Asia Pacific ex JP incl. HSBC Index -2.9-8.24-8.85-12.86-12.86 27.86 17.95 8.54 3.36 1.78-9.36 7. 36.63 3.26 FTSE MPF Asia Pacific ex JP incl. HSBC Hedged Index -2.9-8.24-8.85-12.86-12.86 27.82 19.41 8.53 3.61 2.62-8.96 7.39 36. 3.26-7.12-12.82-8.92-8.76-8.76 22.17 28.13 6.9 5.8 5.88 -.95 8.35 23.59 2.23 17 FTSE MPF ASIA PACIFIC EX JAPAN INCL. HSBC INDEX HISTORICAL VOLATILITY TABLE (HKD TOTAL RETURN) * * ** *** 14 * 15 * 16 * 17 * FTSE MPF Asia Pacific ex JP incl. HSBC Index 14.55 14.55 14.61 14.16 9.85 15. 15.67 8.45 FTSE MPF Asia Pacific ex JP incl. HSBC Hedged Index 14.55 14.55 14.52 13.98 9.39 15.69 15.59 8.44 12.32 12.32 12.55 1.51 8.88 12.97 12.45 5. FIVE-YEAR HISTORICAL COUNTRY BREAKDOWN COUNTRY BREAKDOWN 3. 1 11.28 13.26 3.27 1.17.75 2.88 1.68 16.97 22.15 14. China Hong Kong SAR Australia India Malaysia New Zealand Philippines Singapore South Korea Taiwan Thailand FTSE MPF ASIA PACIFIC EX JAPAN INCL. HSBC INDEX TOP 1 CONSTITUENTS Rank SEDOL Constituent Name Country ICB Subsector Net Market Cap (HKDm) 1 BMMV2K8 Tencent Holdings (P Chip) China Internet 1,787,1 2 688916 Taiwan Semiconductor Manufacturing Taiwan Semiconductors 1,378,466 3 6158163 HSBC Holdings Hong Kong SAR 1,31,419 4 67717 Samsung Electronics South Korea Computer Hardware 1,275,13 5 B4TX8S1 AIA Group Ltd. Hong Kong SAR Life Insurance 784,951 6 621535 Commonwealth Bank of Australia Australia 72,114 7 614469 BHP Group Australia General Mining 5,771 8 BLMTQ3 China Construction Bank (H) China 577,175 9 76146 Westpac Banking Corp Australia 472,246 1 6185495 CSL Australia Pharmaceuticals 4,691 9,345,138 Index Weight 4.79 3.69 3.48 3.41 2.1 1.88 1.62 1.55 1.26 1.23 25.2 13 of 19
FTSE MPF Emerging Markets Index Data as at: 31 December 18 The FTSE MPF Emerging Markets Index consists of eligible large and mid cap emerging market companies which are listed on MPFA approved stock exchanges. As at the end of December there were 525 constituents. FTSE MPF EMERGING MARKETS INDEX FIVE-YEAR PERFORMANCE (HKD TOTAL RETURN) PERFORMANCE HIGHLIGHTS 13=1) 1 1 1 1 The FTSE MPF Emerging Markets Hedged Index ended the month in negative territory in December down.48 per cent, outperforming the FTSE MPF All-World Hedged Index by 6.64 per cent. Year to date the FTSE MPF Emerging Markets Hedged Index performance is down by 8.18 per cent, with a 1-year volatility of 13.2 per cent. FTSE MPF Emerging Markets Index FTSE MPF EMERGING MARKETS INDEX HISTORICAL PERFORMANCE TABLE (HKD TOTAL RETURN) FTSE MPF Emerging Markets Index FTSE MPF Emerging Markets Hedged Index -.46-3.84 -.48-4.21-1.7-8.18-7.12-12.82-1.28-8.92-9.9-9.9-8.76-8.18 37.55 31.97-8.76 22.17 28.13 14.82 11.21 16.13 9.69 2. 3.4 14 3.32 4.44 15-19.21 16 15.66-15.74 13.17 6.9 5.8 5.88 -.95 8.35 17 32. 27. 23.59 2.76 2.76 2.23 FTSE MPF EMERGING MARKETS INDEX HISTORICAL VOLATILITY TABLE (HKD TOTAL RETURN) * * ** *** 14 * 15 * 16 * FTSE MPF Emerging Markets Index 14.47 14.47 16. 15.31 12.44 16.87 17.77 FTSE MPF Emerging Markets Hedged Index 13.2 13.2 14.62 13.24 11.24 14.94 15.57 12.32 12.32 12.55 1.51 8.88 12.97 12.45 17 * 9.55 8.32 5. FIVE-YEAR HISTORICAL COUNTRY BREAKDOWN COUNTRY BREAKDOWN 6.96 1 16.96 24.52 14.6 2.54 4.87 6.27.61 23. Brazil Greece* India Malaysia Mexico Philippines South Africa Taiwan Thailand Note: Greece was reclassified as an emerging market in March 16. FTSE MPF EMERGING MARKETS INDEX TOP 1 CONSTITUENTS Rank SEDOL Constituent Name Country ICB Subsector Net Market Cap (HKDm) Index Weight 1 688916 Taiwan Semiconductor Manufacturing Taiwan Semiconductors 1,378,466 8.2 2 6622691 Naspers South Africa Broadcasting & Entertainment 67,15 3.9 3 99626 Reliance Industries India Exploration & Production 39,35 2.27 4 5 6 B37HR3 Itau Unibanco Holding SA Brazil 333,929 7 8 9 1 61719 Housing Development Finance India Mortgage Finance 379,175 2.21 2196286 Vale SA Brazil Iron & Steel 357,399 65122 Infosys India Computer Services 2,858 BFM53 Banco Bradesco S/A Pref. Brazil 259,12 6438564 Hon Hai Precision Industry Taiwan Electrical Components & Equipment 215,82 B1NPJ1 Tata Consultancy Services India Computer Services 191,187 1.11 4,455,564 25.93 2.8 1.94 1.63 1.51 1.25 14 of 19
FTSE MPF Europe Index Data as at: 31 December 18 The FTSE MPF Europe Index consists of eligible large and mid cap European companies which are listed on MPFA approved stock exchanges. As at the end of December there were 572 constituents. FTSE MPF EUROPE INDEX FIVE-YEAR PERFORMANCE (HKD TOTAL RETURN) PERFORMANCE HIGHLIGHTS 13=1) 1 1 1 1 The FTSE MPF Europe Hedged Index ended the month in negative territory in December down 4.71 per cent, outperforming the FTSE MPF All-World Hedged Index by 2.41 per cent. Year to date the FTSE MPF Europe Hedged Index performance is down by 12.61 per cent, with a 1-year volatility of 13.11 per cent. FTSE MPF Europe Index FTSE MPF Europe Hedged Index FTSE MPF EUROPE INDEX HISTORICAL PERFORMANCE TABLE (HKD TOTAL RETURN) FTSE MPF Europe Index FTSE MPF Europe Hedged Index -4.5-4.71-7.12-12.82-12.33-14.62-14.62 8.71 -.19 2.82 -.4-12.14-11.3-12.61-12.61 1.55 8.41 3. 1.63-2.32.39-12.82-8.92-8.76-8.76 22.17 28.13 6.9 5.8 14-6.4 5.88 15-2.27 -.95 16 2.98 8.35 17 -. 27.32 22.84 23.59 3.51 3.51 2.23 FTSE MPF EUROPE INDEX HISTORICAL VOLATILITY TABLE (HKD TOTAL RETURN) * * ** *** 14 * 15 * 16 * 17 * FTSE MPF Europe Index 13.95 13.95 15.17 12.69 12.45 17.38.88 9.22 FTSE MPF Europe Hedged Index 13.11 13.11 14.2 11.56 12.3 17.19 19.36 8.27 12.32 12.32 12.55 1.51 8.88 12.97 12.45 5. FIVE-YEAR HISTORICAL COUNTRY BREAKDOWN COUNTRY BREAKDOWN 8.89 1 16.59 28.9 13.82 4.28 5.23 4.93 14.26 3.91 France Germany Italy Netherlands Spain Sweden Switzerland UK Others FTSE MPF EUROPE INDEX TOP 1 CONSTITUENTS Rank 1 2 3 4 5 6 7 8 9 1 SEDOL 712387 71365 711388 5528 BLX2 B15C557 7959 BM 4846288 989529 Constituent Name Country ICB Subsector Net Market Cap (HKDm) Index Weight Nestle Switzerland Food Products 1,96,665 3.7 Novartis (REGD) Switzerland Pharmaceuticals 1,451,518 2.34 Roche Hldgs (GENUS) Switzerland Pharmaceuticals 1,341,291 2.16 HSBC Hldgs UK 1,295,243 2.9 Royal Dutch Shell A UK Integrated Oil & Gas 1,43,6 1.68 Total France Integrated Oil & Gas 1,37,7 1.67 BP UK Integrated Oil & Gas 965,132 1.56 Royal Dutch Shell B UK Integrated Oil & Gas 873,864 1.41 SAP Germany Software 752,8 1.21 AstraZeneca UK Pharmaceuticals 741,6 1.19 11,9,57 18.38 15 of 19
FTSE MPF Japan Index Data as at: 31 December 18 The FTSE MPF Japan Index consists of eligible large and mid cap Japanese companies listed on the Tokyo Stock Exchange. As at the end of December there were 518 constituents. FTSE MPF JAPAN INDEX FIVE-YEAR PERFORMANCE (HKD TOTAL RETURN) PERFORMANCE HIGHLIGHTS 13=1) 1 1 1 1 The FTSE MPF Japan Hedged Index ended the month in negative territory in December down 7.98 per cent, underperforming the FTSE MPF All-World Hedged Index by.86 per cent. Year to date the FTSE MPF Japan Hedged Index performance is down by 13.59 per cent, with a 1-year volatility of 16.79 per cent. FTSE MPF Japan Index FTSE MPF Japan Hedged Index FTSE MPF JAPAN INDEX HISTORICAL PERFORMANCE TABLE (HKD TOTAL RETURN) FTSE MPF Japan Index FTSE MPF Japan Hedged Index -6.83-14.43-11.59-13.4-13.4 12.53.44 4.1 3.79-3.47 1.87 2.66 26.6 2.22-7.98-15.45-11.69-13.59-13.59 9.2 22.16 2.92 4.9.98 1.97 1.31 24.54 2.22-7.12-12.82-8.92-8.76-8.76 22.17 28.13 6.9 5.8 5.88 -.95 8.35 23.59 2.23 14 15 16 17 FTSE MPF JAPAN INDEX HISTORICAL VOLATILITY TABLE (HKD TOTAL RETURN) FTSE MPF Japan Index FTSE MPF Japan Hedged Index * 16.68 16.79 12.32 * ** *** 14 * 15 * 16 * 17 * 16.68 13. 12.12 17.83 18.55 23.5 11.19 16.79 14.73 12.89 17.84 18.79 24.21 1.24 12.32 12.55 1.51 8.88 12.97 12.45 5. FIVE-YEAR HISTORICAL INDUSTRY BREAKDOWN INDUSTRY BREAKDOWN 1 21.69 5.18 2.26 5.83 4.95 Basic Materials 1. 8.75 14.7 24.41 11.86 Consumer Goods Consumer Services Financials Health Care Industrials Oil & Gas Technology Telecommunications Utilities FTSE MPF JAPAN INDEX TOP 1 CONSTITUENTS Rank SEDOL Constituent Name ICB Subsector Net Market Cap (HKDm) Index Weight Industry Weight 1 69643 Toyota Motor Automobiles 1,153,969 4.31 17.65 2 6335171 Mitsubishi UFJ Financial 484,153 1.81 12.85 3 682156 Sony Corp Consumer Electronics 4,37 1.79 7.35 4 6776 SoftBank Group Mobile Telecommunications 443,735 1.66 31.99 5 687445 Takeda Pharmaceutical Pharmaceuticals,168 1.49 17.7 6 6435145 Honda Motor Co Automobiles 359,374 1.34 5.5 7 649995 Keyence Corp Electronic Equipment 357,469 1.33 6.15 8 656324 Sumitomo Mitsui Financial Group 343,444 1.28 9.11 9 624899 KDDI Corp Mobile Telecommunications 332,211 1.24 23.95 1 659114 Mizuho Financial Group 38,25 1.15 8.18 4,663,143 17.41-16 of 19
FTSE MPF North America Index Data as at: 31 December 18 The FTSE MPF North America Index consists of eligible U.S. and Canadian large and mid cap companies listed on the New York Stock Exchange, the NASDAQ Stock Market, the NYSE Amex and the Toronto Stock Exchange. As at the end of December there were constituents from Canada and 584 constituents from the USA, which represents 4.9 per cent and 95.1 per cent of the index, respectively. FTSE MPF NORTH AMERICA INDEX FIVE-YEAR PERFORMANCE (HKD TOTAL RETURN) PERFORMANCE HIGHLIGHTS 13=1) 1 1 1 1 1 The FTSE MPF North America Hedged Index ended the month in negative territory in December down 9.2 per cent, underperforming the FTSE MPF All-World Hedged Index by 1.9 per cent. Year to date the FTSE MPF North America Hedged Index performance is down by 5.74 per cent, with a 1-year volatility of 16.84 per cent. FTSE MPF North America Index FTSE MPF North America Hedged Index FTSE MPF NORTH AMERICA INDEX HISTORICAL PERFORMANCE TABLE (HKD TOTAL RETURN) 14 15 16 17 FTSE MPF North America Index FTSE MPF North America Hedged Index -9.2-9.2-7.12-13.93-13.95-12.82-8.1-5.53-5.53 29.57 42.88 9.2 7. 11. -1. 12. 22.46 1.55-8.2-5.74-5.74 28.18 42.13 8.63 7.28 11. -.82 11.79 21.65 1.55-8.92-8.76-8.76 22.17 28.13 6.9 5.8 5.88 -.95 8.35 23.59 2.23 FTSE MPF NORTH AMERICA INDEX HISTORICAL VOLATILITY TABLE (HKD TOTAL RETURN) FTSE MPF North America Index FTSE MPF North America Hedged Index * * ** 16.85 16.85 13.84 16.84 16.84 13.87 12.32 12.32 12.55 *** 1.95 1.91 14 * 11.27 11.27 1.51 8.88 15 * 15.41 15.38 12.97 16 * 13.16 13.16 12.45 17 * 6.72 6.7 5. FIVE-YEAR HISTORICAL INDUSTRY BREAKDOWN INDUSTRY BREAKDOWN 2.31 1 3.29 2.71 8.16.64 6.13 12.16 13.73 13.68 17.19 Basic Materials Consumer Goods Consumer Services Financials Health Care Industrials Oil & Gas Technology Telecommunications Utilities FTSE MPF NORTH AMERICA INDEX TOP 1 CONSTITUENTS Rank SEDOL Constituent Name Country ICB Subsector Net Market Cap (HKDm) Index Weight 1 2 2588173 46251 Microsoft Corp Apple Inc. USA USA Software Computer Hardware 6,18,652 5,857,149 3.45 3.36 3 19 Amazon.Com USA Broadline Retailers 4,773,998 2.74 4 2475833 Johnson & Johnson USA Pharmaceuticals 2,78,5 1.55 5 219385 JPMorgan Chase & Co USA 2,525,612 1.45 6 7 8 9 BYY88Y7 Alphabet Class C USA Internet 2,465,348 1.41 BYVY8G Alphabet Class A USA B7TL8 Facebook Class A USA 2326618 Exxon Mobil Corporation USA 1 7339 Berkshire Hathaway B USA Internet 2,4,67 1. Internet 2,437,177 1. Integrated Oil & Gas 2,258,658 1.3 Reinsurance 2,78,451 1.19 33,564,5 19.26 17 of 19
FTSE MPF USA Index Data as at: 31 December 18 The FTSE MPF USA Index consists of eligible large and mid cap U.S. companies listed on the New York Stock Exchange and the NASDAQ Stock Market. As at the end of December there were 584 constituents. FTSE MPF USA INDEX FIVE-YEAR PERFORMANCE (HKD TOTAL RETURN) PERFORMANCE HIGHLIGHTS 13=1) 1 1 1 1 1 The FTSE MPF USA Hedged Index ended the month in negative territory in December down 9.11 per cent, underperforming the FTSE MPF All-World Hedged Index by 1.99 per cent. Year to date the FTSE MPF USA Hedged Index performance is down by 5.31 per cent, with a 1-year volatility of 17.29 per cent. FTSE MPF USA Index FTSE MPF USA Hedged Index FTSE MPF USA INDEX HISTORICAL PERFORMANCE TABLE (HKD TOTAL RETURN) FTSE MPF USA Index FTSE MPF USA Hedged Index -13.93-14.3-12.82 14 15 16-9.6-7.73-4.94-4.94 29.99 46.31 9.14 7.91 12.27.26 11.41-9.11-7. -5.31-5.31 28.59 44.77 8.74 7.68 12.25.29 11.25-7.12-8.92-8.76-8.76 22.17 28.13 6.9 5.8 5.88 -.95 8.35 17 22.75 22.8 23.59 1.48 1.48 2.23 FTSE MPF USA INDEX HISTORICAL VOLATILITY TABLE (HKD TOTAL RETURN) * * ** *** 14 * 15 * 16 * FTSE MPF USA Index 17.28 17.28 13.96 11. 11.57 15.55 13.16 FTSE MPF USA Hedged Index 17.29 17.29 14.4 11.5 11.57 15.55 13.22 12.32 12.32 12.55 1.51 8.88 12.97 12.45 17 * 6.82 6.81 5. FIVE-YEAR HISTORICAL INDUSTRY BREAKDOWN INDUSTRY BREAKDOWN 1 21.55 5.43 12.29 2.25 3.36 2.36 8.48 Basic Materials 14.41 13.98 15.88 Consumer Goods Consumer Services Financials Health Care Industrials Oil & Gas Technology Telecommunications Utilities FTSE MPF USA INDEX TOP 1 CONSTITUENTS Rank SEDOL Constituent Name ICB Subsector Net Market Cap (HKDm) Index Weight Industry Weight 1 2588173 Microsoft Corp Software 6,18,652 3.63 16.85 2 46251 3 19 4 2475833 Apple Inc. Computer Hardware 5,857,149 3.53 16. Amazon.Com Broadline Retailers 4,773,998 2.88. Johnson & Johnson Pharmaceuticals 2,78,5 1.63 11.34 5 219385 JPMorgan Chase & Co 2,525,612 1.52 9.59 6 BYY88Y7 Alphabet Class C Internet 2,465,348 1.49 6.9 7 BYVY8G Alphabet Class A Internet 2,4,67 1.47 6.83 8 B7TL8 Facebook Class A Internet 2,437,177 1.47 6.82 9 2326618 Exxon Mobil Corporation Integrated Oil & Gas 2,258,658 1.36 25.9 1 7339 Berkshire Hathaway B Reinsurance 2,78,451 1.25 7.9 33,564,5.25-18 of 19