MPF Analysis

Hong Kong Bond Fund

The Hong Kong Bond Fund (ISIN: HK0000844362) is a Mandatory Provident Fund (MPF) offered by Fidelity Hong Kong. It is designed for investors seeking stable income and capital preservation through a diversified portfolio of high-quality debt securities denominated in Hong Kong Dollars.

Investment Objective

The fund aims to provide a return related to the performance of the Hong Kong bond market. It invests at least 70% of its net asset value in a portfolio of Hong Kong Dollar-denominated debt securities, including government bonds, quasi-government bonds, and corporate bonds. The fund may also invest in other debt securities globally to enhance returns or manage risk.

As a feeder fund, it primarily invests in the Fidelity Global Investment Fund (FGIF) - Hong Kong Bond Fund (MPF).

Risk Profile

  • Risk Class: 3 (Low to medium risk/return)
  • Risk Indicator: 4.24% (3-year annualized standard deviation as of April 30, 2026)

The fund is suitable for members with a conservative to moderate risk tolerance who are looking for a defensive component in their portfolio with relatively low volatility compared to equity funds.

Fidelity Hong Kong Bond Fund NAV history

Chart generated by scripts/fetch_hk_bond_fund.py. Data is calibrated based on official factsheet performance snapshots.

Historical Performance (%)

YearPerformance
2025+6.11%
2024+3.29%
2023+6.56%
2022-10.26%
2021-0.77%

Portfolio Theory Read-Through

Based on our analysis of the fund’s historical NAV data from 2021 to 2026:

  • Expected Annual Return: ~0.97% (calibrated with 5-year historical average)
  • Annualised Risk: ~4.24%
  • Sharpe Ratio: -0.83 (based on a 4.5% risk-free rate)

The fund experienced significant pressure in 2022 due to the global interest rate hiking cycle, which negatively impacted bond prices. However, it showed resilience and recovery in 2023-2025 as interest rates stabilized and the yield carry provided attractive returns for bondholders.

Sources

Fidelity MPF Hong Kong Bond