MPF Analysis

World Bond Fund

The World Bond Fund (ISIN: HK0000844354) is a Mandatory Provident Fund (MPF) offered by Fidelity Hong Kong. It provides investors with exposure to a diversified portfolio of international debt securities, offering a way to diversify fixed-income holdings across global markets.

Investment Objective

The fund aims to achieve a return related to the performance of the international bond markets. It invests at least 70% of its net asset value in a diversified portfolio of debt securities denominated in various currencies, issued by governments, quasi-government agencies, and corporations worldwide. The fund may use derivatives for hedging and efficient portfolio management purposes.

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

Risk Profile

  • Risk Class: 3 (Low to medium risk/return)
  • Risk Indicator: 7.93% (3-year annualized standard deviation as of April 30, 2026)

The fund is suitable for investors seeking global diversification within their fixed-income allocation and who are comfortable with the currency risk and interest rate sensitivity associated with international bond markets.

Fidelity World Bond Fund NAV history

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

Historical Performance (%)

YearPerformance
2025+5.03%
2024+0.65%
2023+6.31%
2022-15.90%
2021-1.74%

Portfolio Theory Read-Through

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

  • Expected Annual Return: ~-0.98% (calibrated with 5-year historical average)
  • Annualised Risk: ~7.93%
  • Sharpe Ratio: -0.69 (based on a 4.5% risk-free rate)

The World Bond Fund’s performance reflects the challenges faced by global fixed-income markets in 2022, where rising inflation and aggressive central bank tightening led to significant drawdowns. However, the diversification across regions and currencies provided a different risk-return profile compared to single-market bond funds, with a notable recovery in 2023 and 2025.

Sources

Fidelity MPF Global Bond