Index Tracking Funds
I
ndex tracking funds, also known as index funds or index-tracking funds, are a type of passively managed fund that aims to track the performance of a specific investment market index.
To provide investors with returns that closely match the related index, the fund's portfolio primarily invests in component stocks that resemble the tracked index, seeking to replicate the index's performance as closely as possible based on the weights of each component stock through a comprehensive simulation strategy. Typically, fund managers achieve this by directly investing in the index or index-tracking collective investment schemes and adjusting the portfolio with changes in the index's component stocks or weights.
Index Tracking Funds of BCT Strategic MPF Scheme
We provide a comprehensive range of investment options to suit your risk and return preferences. Our offerings include the Default Investment Strategy and a diverse array of constituent funds. From equity funds to index tracking funds, balanced funds to global bond funds, and money market funds, tailored to your investment needs.
Amidst the vast selection of investment choices available, let's delve into the world of index tracking funds.
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Invesco Global Index Tracking Fund~
Inception date: 9 June 2023
Investment Objective: To achieve long-term capital growth by investing directly in Invesco MSCI3 World ESG Universal Screened UCITS ETF4.
Risk and return profile^: High
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MSCI* World ESG Universal Select Business Screens Index
The MSCI* World ESG Universal Select Business Screens Index is based on the MSCI World Index, its parent index, and includes large and mid-cap securities across 23 Developed Markets countries. The index aims to represent the performance of a strategy that excludes companies that are associated with controversial weapons, nuclear weapons, oil sands or recreational cannabis; or derive revenues from conventional weapons, thermal coal, tobacco or civilian firearms; or are involved in very severe controversies pertaining to ESG issues; or have an MSCI ESG Rating of CCC.
Source: Bloomberg, data as of 30 June 2023. For illustration purpose only.
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Invesco US Index Tracking Fund~
Inception date: 9 June 2023
Investment Objective: To achieve long-term capital growth by investing directly in Invesco MSCI3 USA ESG Universal Screened UCITS ETF5.
Risk and return profile^: High
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MSCI* USA ESG Universal Select Business Screens Index
The MSCI* USA ESG Universal Select Business Screens Index is based on the MSCI USA Index, its parent index, and includes large and mid-cap securities of the U.S. equity markets. The index aims to represent the performance of a strategy that excludes companies that are associated with controversial weapons, nuclear weapons, oil sands or recreational cannabis; or derive revenues from conventional weapons, thermal coal, tobacco or civilian firearms; or are involved in very severe controversies pertaining to ESG issues; or have an MSCI ESG Rating of CCC.
Source: Bloomberg, data as of 30 June 2023. For illustration purpose only.
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Invesco Hang Seng Index Tracking Fund
Inception date: 31 July 2014
Investment Objective: To achieve long-term capital growth by investing directly in the Tracker Fund of Hong Kong ("TraHK")** with a view to providing investment results that closely corresponds to the performance of the Hang Seng Index of Hong Kong.
Risk and return profile^: High
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Hang Seng Index
The Hang Seng Index is the most widely quoted gauge of the Hong Kong stock market and includes the largest and most liquid 80 stocks listed on the Main Board of the Stock Exchange of Hong Kong.
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Footnotes
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~ Invesco Global Index Tracking Fund and Invesco US Index Tracking Fund are not ESG funds in Hong Kong.
^ Risk and return profile of the constituent funds is determined by Invesco Hong Kong Limited based on the volatility, investment objectives and asset allocations of the constituent funds. Generally, higher volatility represents higher risk. Equity funds are of higher volatility when compared to bond funds and money market funds, and thus higher risk. Members should note that this is provided for reference only, and may be updated periodically based on prevailing market conditions.
3 The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities or any index on which such funds or securities are based. The Brochure contains a more detailed description of the limited relationship MSCI has with Invesco Hong Kong Limited and any related funds.
4 While Invesco MSCI World ESG Universal Screened UCITS ETF is ITCIS approved by the MPFA, it is not offered for sale to the public in Hong Kong.
5 While Invesco MSCI USA ESG Universal Screened UCITS ETF is ITCIS approved by the MPFA, it is not offered for sale to the public in Hong Kong.
*Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability of fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI's express written consent.**TraHK is an Index-Tracking Collective Investment Scheme approved by the MPFA (the "ITCIS"). Please read the disclaimer in relation to the Hang Seng Index in MPF scheme brochure.
Investment involves risks. Past performance is not indicative of future performance. Investors should read the offering documents (including the Key Scheme Information Document and the MPF Scheme Brochure) for details, including the fees and charges, risk factors and product features.
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Understand the Stock Market Index
Now that you have a grasp of our index tracking funds, you may be curious to learn more about stock market index.
