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November 2014
For Non-Professional Investors
September 2013
For Non-Professional Investors
Contents
• Please pay particular attention to the risk of investment in China and other markets in the Asian region and in
•
•
•
•
companies with medium or small capitalization. The value of the funds can be extremely volatile and could go down
substantially within a short period of time. It is possible that the entire value of your investment could be lost.
Value Partners High-Dividend Stocks Fund and Value Partners Greater China High Yield Income Fund may invest in
higher-yielding debt and equity securities that are below investment grade; additionally, Value Partners Greater China
High Yield Income Fund may invest in debt securities issued by special purpose vehicles. Such investments can
involve material risks, e.g. counterparty risk, liquidity risk, credit risk and default risk, and may expose the Fund to
significant losses.
Investors should note that there is no guarantee that the underlying securities in Value Partners High-Dividend Stocks
Fund and Value Partners Greater China High Yield Income Fund will pay out dividends. Therefore, there is no
guarantee that those funds’ investment strategies will succeed. There is also no guarantee of dividend or distribution
payments during the period an investor holds units in such funds, and a positive dividend yield does not
represent/imply positive return.
The funds may also invest in derivatives which can involve material risks, e.g. counterparty default risk, insolvency or
liquidity risk, and may expose the funds to significant losses.
You should not make investment decision on the basis of this material alone. Please read the explanatory
memorandum for details and risk factors.
Pages
Value Partners Classic Fund
5-12
Value Partners High-Dividend Stocks Fund
13-14
Value Partners Intelligent Funds - China Convergence Fund
15-16
Value Partners Intelligent Funds - Chinese Mainland Focus Fund
17-18
Value Partners China Greenchip Fund Limited
19-20
Value Partners Taiwan Fund
21-22
Value Partners Greater China High Yield Income Fund
23-24
2
Value Partners Fund Offerings
Absolute return long-biased strategy
Asia Pacific
China
Taiwan
 Classic Fund
 China Convergence Fund
 Taiwan Fund
A value fund investing primarily
in a broad mandate in the AsiaPacific markets with an
emphasis on Greater China
equities.
A value fund mainly investing
primarily in China A, B and H
shares.
 High-Dividend Stocks Fund
 Chinese Mainland Focus Fund
A value fund mainly investing
in relatively high yielding
investment in Asian region.
A value fund mainly investing in
Mainland China related
investments and investments that
we believe would be boosted by
the appreciation of Renminbi.
 China Greenchip Fund
A value fund mainly
investing in
undervalued Taiwan
and Taiwan-related
entities.
CIES
Eligible*
A value fund investing primarily
in undervalued small-cap entities
with a focus on Greater China.
Fixed income strategy
China
 Greater China High Yield Income Fund
A fund that aims to provide regular income through primarily investing in Greater China debt
securities.
* Value Partners China Greenchip Fund Limited is one of the eligible collective
investment schemes for the purpose of the Hong Kong Capital Investment Entrant
Scheme (CIES).
3
4
3 Mar 2008
28 Mar 2012
Value Partners Taiwan Fund
Taiwan Stock Exchange Index
MSCI Taiwan Index
Value Partners Greater China High Yield Income Fund
(P USD Acc)
USD 1,044.5m
USD 63.82m
HKD 4,995.66m
-
-
0.2%
-13.9%
-10.5%
1.1%
-14.0%
-
10.5%
-5.7%
-
21.2%
-15.7%
20.9%
-15.7%
-
2002
-
-
85.6%
34.9%
86.7%
92.1%
87.6%
3.9%
20.1%
79.7%
41.5%
-
83.6%
33.1%
83.1%
33.1%
-
2003
-
-
1.5%
13.2%
2.0%
0.8%
1.9%
8.4%
1.9%
8.9%
19.7%
-
5.8%
13.4%
5.6%
13.4%
-
2004
-
-
16.1%
8.4%
19.5%
3.9%
19.8%
11.6%
19.8%
12.2%
20.1%
-
15.9%
9.8%
15.6%
9.8%
-
2005
-
-
43.7%
39.0%
83.4%
86.9%
82.9%
48.1%
82.9%
35.0%
28.2%
-
41.8%
35.3%
41.2%
35.3%
-
2006
-
-
36.3%
43.4%
66.7%
56.6%
66.2%
56.0%
66.2%
44.2%
34.8%
-
41.1%
45.3%
40.4%
45.3%
-
2007
-
-35.7%
-42.4%
-47.9%
-57.4%
-46.4%
-51.1%
-45.2%
-50.8%
-44.8%
-50.8%
-46.8%
-54.1%
-
-47.9%
-46.5%
-48.1%
-46.5%
-
2008
-
58.0%
81.6%
76.4%
116.7%
56.6%
62.4%
87.1%
62.3%
86.0%
62.3%
82.8%
68.2%
-
82.9%
56.6%
82.0%
56.6%
7.7%
-0.3%
2009
-
19.2%
13.3%
21.3%
37.8%
8.6%
4.9%
21.3%
4.6%
23.9%
4.6%
25.8%
15.2%
-
20.2%
8.6%
19.6%
8.6%
21.2%
8.6%
2010
-
-13.0%
-19.7%
-19.5%
-25.0%
-17.0%
-18.2%
-22.4%
-18.4%
-17.8%
-18.4%
-11.9%
-16.6%
-
-17.2%
-17.4%
-17.6%
-17.4%
-17.6%
-17.4%
2011
13.0%
26.1%
18.2%
16.9%
24.8%
26.9%
22.0%
9.3%
22.7%
11.6%
22.7%
25.2%
18.6%
7.2%
14.0%
27.7%
13.4%
27.7%
13.4%
27.7%
2012
1.2%
13.7%
12.2%
9.1%
16.5%
6.6%
3.7%
9.2%
3.6%
8.3%
3.6%
8.1%
3.4%
7.5%
11.2%
6.5%
10.6%
6.5%
10.8%
6.5%
2013
4.3%
3.6%
5.2%
10.2%
2.2%
7.1%
5.1%
7.0%
5.1%
2.0%
5.1%
6.9%
6.4%
6.8%
6.6%
7.1%
6.1%
7.1%
6.2%
7.1%
2014
YTD
19.2%
56.5%
39.6%
26.2%
507.9%
210.9%
464.1%
1,271.4%
166.4%
274.6%
305.6%
636.9%
317.5%
23.1%
2,406.4%
425.4%
1,040.3%
210.6%
43.5%
30.0%
Since
inception
No part of this document, or any information contained herein, may be distributed, reproduced, taken or transmitted into the United States or its territories or possession. Any failure to comply with the restrictions may constitute a violation of the relevant laws.
+
Source: HSBC Institutional Trust Services (Asia) Limited and Bloomberg.
Unless otherwise stated, performance is calculated in USD, NAV to NAV, with dividends reinvested. Performance data is net of all fees.
Performance is calculated in HKD, NAV to NAV, with dividends reinvested. Performance data is net of all fees. Investors should note that figures for Non-Redeemable Class N shares shown above may differ from those of classes currently available for subscription (namely Class A and Class A2 QDis), due to differences in launch date of these classes. For Class A, the
since launch return is +72.0%.
*Indices combine the price return indices up to 31 December 2004 with the total return indices thereafter. Total return indices include dividend reinvestment whereas price return indices does not take into account reinvestment of dividends.
Ω
Starting from July 2009, the MSCI China Index will be used as the reference index for the entire history of the fund. Hang Seng H Shares Index, Shanghai Composite Index and Shenzhen Composite Index were no longer shown for comparison.
Disclaimer: Investors should note investment involves risk. The price of units may go down as well as up and past performance is not indicative of future results. Investors should read the explanatory memorandum for details and risk factors in particular those associated with investment in emerging markets. Information in this report has been obtained from sources
believed to be reliable but Value Partners Limited does not guarantee the accuracy or completeness of the information provided by third parties. This report has not been reviewed by the Securities and Futures Commission. Issuer: Value Partners Limited
8 Apr 2002
USD 320.57m
USD 134.47m
14 Jul 2000
USD 2,596.16m
(Total Class A1, A2MDis & Z)
USD 1,314.33m
(Total A, B & C units)
Fund size
27 Nov 2003
28 Sep 2012
2 Sep 2002
15 Oct 2009
15 May 1996
1 Apr 1993
Inception
date
Value Partners China Greenchip Fund Limited+
Hong Kong Hang Seng Index*
MSCI China Free HKD
Value Partners Intelligent Funds -China Convergence Fund
Ω
MSCI China Index
Chinese Mainland Focus Fund
Ω
MSCI China Index
Value Partners High-Dividend Stocks Fund(Class A1)
MSCI Asia Pacific (ex-Japan) Index
Value Partners High-Dividend Stocks Fund(Class A2)
Value Partners Classic Fund (A unit)
Hong Kong Hang Seng Index*
Value Partners Classic Fund (B unit)
Hong Kong Hang Seng Index*
Value Partners Classic Fund (C unit)
Hong Kong Hang Seng Index*
Recent performance
Updated to end of October 2014
HHHH
Morningstar RatingTM1
As at 31-10-2014
31 October 2014
Value Partners Classic Fund
NAV per unit : A Units - USD250.64 USD1,314.3 million
Fund size :
B Units - USD114.03 2 Pages
C Units - USD14.35
• Value Partners Classic Fund (“the fund”) primarily invests in stock markets of the Asia-Pacific region, with a Greater China focus.
• Please pay particular attention to the risk of investment in China and other markets in the Asian region and in companies
with medium or small capitalization. The value of the fund can be extremely volatile and could go down substantially
within a short period of time. It is possible that the entire value of your investment could be lost.
• The fund may also invest in derivatives which can involve material risks, e.g. counterparty default risk, insolvency or
liquidity risk, and may expose the fund to significant losses.
• You should not make investment decision on the basis of this material alone. Please read the explanatory memorandum
for details and risk factors.
Performance update
Investment objective
The fund aims to achieve consistent superior return and uses a
bottom-up approach to invest in value stocks in the Asia Pacific
region, particularly those in Greater China region, which the
Manager believes are being traded at deep discounts to their
intrinsic value.
Performance since launch (with dividends reinvested)
%
2800
2400
Value Partners Classic Fund (A Units, USD)
Hong Kong Hang Seng Index 3
Year-to-date
One year
Three years
2
Five years
Since launch
+2,406.4%
2000
Annualized return
Annualized volatility
A Units Hang Seng B Units
(USD)
Index 3
(USD)
+1.6%
+5.0%
+1.5%
+6.6%
+7.1%
+6.1%
+12.2%
+7.6%
+11.6%
+25.8%
+35.6%
+24.0%
+45.4%
+31.4%
+41.8%
+2,406.4% +425.4% +1,040.3%
+16.1%
+8.0%
+14.1%
21.9%
27.1%
22.8%
1200
Annual performance 2
800
+425.4%
400
0
1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
NAVs & codes
Classes 5
A Units (USD)
B Units (USD)
C Units (USD)
C Units (HKD) 6
C Units (AUD) Hedged
C Units (CAD) Hedged
C Units (NZD) Hedged
NAV
250.64
114.03
14.35
111.2886
11.52
11.41
11.47
ISIN
KYG9316N1025
KYG931701018
KYG9316N1280
KYG9316N1280
KYG9316N1363
KYG9316N1447
KYG9316N1512
Bloomberg
VLPARAI KY
VLPARBI KY
VLPARCI KY
VLPARCI KY
VLCHAUD KY
VLCHCAD KY
VLCHNZD KY
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014 (YTD)
A Units
(USD)
+83.6%
+5.8%
+15.9%
+41.8%
+41.1%
-47.9%
+82.9%
+20.2%
-17.2%
+14.0%
+11.2%
+6.6%
B Units
(USD)
+83.1%
+5.6%
+15.6%
+41.2%
+40.4%
-48.1%
+82.0%
+19.6%
-17.6%
+13.4%
+10.6%
+6.1%
Value Partners Classic Fund – A Units (USD): Monthly performance from 1 Jan 2003 to 31 Oct 2014
Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014 (YTD)
C Units
(USD)
+1.6%
+6.2%
+11.9%
+24.4%
+42.8%
+43.5%
+7.4%
19.0%
Annualized return and volatility are calculated from inception. Volatility is a
measure of the theoretical risk in terms of standard deviation; in general, the
lower the number, the less risky the investment, and vice versa.
1600
1993
One month
2
Jan
+6.2%
+2.9%
+0.7%
+9.2%
+2.1%
-14.0%
-3.2%
-5.8%
-1.5%
+7.8%
+7.9%
-5.5%
Feb
+4.9%
+4.5%
+3.4%
+3.5%
+2.5%
+6.1%
-0.2%
+2.2%
-1.6%
+6.3%
-2.5%
+2.3%
Mar
+0.7%
+0.1%
-1.1%
+6.7%
+2.5%
-9.5%
+8.2%
+7.1%
+5.4%
-5.7%
-2.9%
-4.0%
Apr
-2.2%
-2.9%
+0.3%
+4.6%
+5.0%
+10.9%
+8.2%
+3.1%
+3.5%
+1.6%
+0.6%
-1.6%
May
+9.3%
-6.1%
-1.2%
-5.6%
+3.7%
-2.2%
+20.1%
-6.1%
-1.3%
-10.2%
+1.2%
+2.0%
Jun
+4.5%
-0.8%
+4.0%
-2.6%
+4.8%
-8.3%
+1.3%
+1.1%
-3.2%
-2.1%
-9.0%
+4.6%
Jul
+9.8%
-0.1%
+1.6%
+3.2%
+12.6%
-5.3%
+11.5%
+5.0%
+2.8%
-1.3%
+2.3%
+6.2%
Aug
+6.9%
-0.1%
-0.1%
+0.7%
-7.4%
-8.6%
+0.1%
+0.2%
-7.5%
+1.7%
+0.5%
+3.0%
Sep
+6.3%
+4.2%
+3.1%
+0.8%
+10.5%
-11.0%
+2.5%
+10.5%
-19.8%
+6.4%
+2.2%
-1.5%
Oct
+8.5%
+0.7%
-1.9%
+5.0%
+8.9%
-31.0%
+7.5%
+3.8%
+15.3%
+2.3%
+6.2%
+1.6%
Nov
+1.4%
+3.9%
+3.8%
+6.4%
-9.6%
+5.2%
+5.9%
-0.7%
-7.8%
+1.9%
+4.8%
C Units
(USD)
N/A
N/A
N/A
N/A
N/A
N/A
+7.7% 4
+21.2%
-17.6%
+13.4%
+10.8%
+6.2%
2
Dec
+6.5%
+0.0%
+2.5%
+4.6%
+1.6%
+13.4%
+2.2%
-0.7%
+1.0%
+5.9%
+0.4%
Annual
+83.6%
+5.8%
+15.9%
+41.8%
+41.1%
-47.9%
+82.9%
+20.2%
-17.2%
+14.0%
+11.2%
+6.6%
9th Floor, Nexxus Building, 41 Connaught Road Central, Hong Kong Tel : (852) 2880 9263 Fax : (852) 2565 7975
Email : [email protected] Website : www.valuepartners.com.hk
5
Value Partners Classic Fund
31 October 2014
Top 10 securities holdings
Name
Luye Pharma
PetroChina
Chongqing Changan
Automobile
China Vanke
Lijun International
Pharmaceutical
Daqin Railway
Inner Mongolia Yili Industrial
China Unicom
Tasly Pharmaceutical
Poly Real Estate
Portfolio characteristics
Industry 7
Pharmaceuticals, biotechnology
& life sciences
Energy
Automobiles & components
%
8.9
Real estate
Pharmaceuticals, biotechnology
& life sciences
Transportation
Food, beverage & tobacco
Telecom services
Pharmaceuticals, biotechnology
& life sciences
Real estate
5.5
5.3
8.1
7.2
5.1
3.0
2.7
2.6
2.6
These stocks constitute 51% of the fund. The top ten securities holdings only
include companies and/ or REITs the fund invested, excluding any index tracking
fund or ETF.
As at 31 Oct 2014
Price/earnings ratio
Price/book ratio
Dividend yield
2015 10
13.6 times
2.0 times
3.1%
Fund facts
Manager:
Base currency:
Trustee:
Custodian:
Launch date:
Value Partners Limited
USD
Bank of Bermuda (Cayman) Limited
HSBC Institutional Trust Services (Asia) Limited
A Units (USD) - 1 Apr 1993
B Units (USD) - 15 May 1996
C Units (USD) - 15 Oct 2009
C Units (AUD/CAD/NZD) - 17 Mar 2014
A, B and C units are invested in the same fund, A and B units were no longer
issued from 12 Apr 2002 and 15 Oct 2009 respectively. Only C units are
currently available. Unit price is published daily in the South China Morning Post,
the Hong Kong Economic Journal and the Hong Kong Economic Times.
Geographical exposure by listing 8
Hong Kong
China A Shares
Red Chips
China B Shares
H Shares
Taiwan
Others
Singapore
Cash 9
29%
27%
17%
11%
10%
6%
3%
2%
-4%
Short exposure includes: H Shares, -2.1%.
Fee structure
A Units
Minimum subscription
Minimum subsequent
subscription
Subscription fee
Management fee
Performance fee 11
Redemption fee
Dealing day
C Units
USD10,000
Closed
Closed
or equivalent
USD5,000
Nil
Nil
or equivalent
Closed
Closed
up to 5%
0.75% p.a.
1.25% p.a.
1.25% p.a.
15% of profit (High-on-high principle)
Nil
Daily
Daily
Daily dealing
redemption
redemption
78
Health care
Consumer discretionary
Energy
Real estate
Utilities
Information technology
Consumer staples
Industrials
Insurance
Banks
Telecom services
Other financials
Cash 9
22%
17%
12%
10%
9%
8%
6%
5%
5%
3%
3%
2%
-4%
Total short exposure is -2.1%.
Short exposure includes: Consumer discretionary, -1.1% and Materials, -1.0%.
Value Partners Investment Team
Chairman & Co-Chief Investment Officer: Cheah Cheng Hye
Deputy Chairman & Co-Chief Investment Officer: Louis So
Deputy Chief Investment Officer: Renee Hung
Senior Investment Director: Norman Ho, CFA
Investment Directors: Eric Chow; Alan Wang, CFA
Senior Fund Managers: Doris Ho; Kyu Ho; Michelle Yu, CFA; Yu Xiao Bo
Recent awards
GREATER CHINA
EQUITY
Fund of the Year Awards 2011
Outstanding Achiever – Greater China Equity
category 12
~ Benchmark
OUTSTANDING ACHIEVER
2011 - Long-Term Performance Award (10 years) 13
~ AsiaHedge Awards 2011
1. © 2014 Morningstar, Inc. All Rights Reserved (for A Units). 2. Source: HSBC Institutional Trust Services (Asia) Limited and Bloomberg, in USD, NAV to NAV, with dividends reinvested.
Performance data is net of all fees. 3. Index refers to Hang Seng Price Return Index up to 31 Dec 2004, thereafter it is the Hang Seng Total Return Index. Hang Seng Total Return Index
includes dividend reinvestment whereas Hang Seng Price Return Index does not take into account reinvestment of dividends. 4. Calculated based on the since inception return of C Untis.
5. The fund may invest in financial derivative instruments (“FDI”) for hedging purposes. In adverse situations, the fund’s use of FDI may become ineffective in hedging and the fund may suffer
significant losses. Each hedged share class will hedge the fund’s base currency back to its currency of denomination on a best efforts basis. However, the volatility of the hedged classes
measured in the fund’s base currency may be higher than that of the equivalent class denominated in the fund’s base currency. Risks associated with FDI include counterparty risk, credit
risk and liquidity risk. Such exposure may lead to a high risk of capital loss. The AUD/CAD/NZD Hedged Classes are not recommended for investors whose base currency of investment is
not in the aforesaid currencies. 6. Investors should note that the base currency of “C” Units is in USD. The HKD is for reference only and should not be used for subscription or redemption
purpose. Conversion to the base currency of “C” Units will normally take place at the prevailing rate (as determined by the Fund’s Trustee or Custodian) on the corresponding fund dealing
day. Investor should be aware of possible risks resulting from fluctuations of exchange rates against USD. 7. Classification is based on Global Industry Classification Standard (GICS).
8. Exposure refers to net exposure (long exposure minus short exposure). Due to rounding, percentages shown may not add up to 100%. 9. Cash refers to net cash on hand excluding cash for
collaterals and margins. 10. The profile is based on market consensus forecast as derived from S&P Capital IQ and Bloomberg. Note that the manager’s internal estimates may differ significantly
from S&P Capital IQ and Bloomberg estimates. 11. Performance fee will only be charged if the NAV at the end of the financial year or upon realization of units exceeds the “high watermark”, which
is the all-time year-end high of the fund’s NAV. If in any one year, the fund suffers a loss, no performance fee can be charged in subsequent years until the loss is recovered fully (the high-on-high
principle). 12. Class A Units of the fund selected as one of the top 100 funds based on fund size, track record, Morningstar’s Star rating and one year absolute ranking as at month end Oct 2011.
13. Value Partners Classic Fund is not authorized as a hedge fund by the Securities and Futures Commission (“SFC”) in Hong Kong according to the Code on Unit Trusts and Mutual Funds. SFC
authorization is not a recommendation or endorsement of a scheme nor does it guarantee the commercial merits of a scheme or its performance. It does not mean the scheme is suitable for all
investors nor is it an endorsement of its suitability for any particular investor or class of investors.
Investors should note investment involves risk. The price of units may go down as well as up and past performance is not indicative of future results. Investors should read the explanatory
memorandum for details and risk factors in particular those associated with investment in emerging markets. Information in this report has been obtained from sources believed to be reliable but
Value Partners Limited does not guarantee the accuracy or completeness of the information provided by third parties. This report has not been reviewed by the SFC. Issuer: Value Partners Limited.
VPCF_Master_201410
Sector exposure
B Units
6
Value Partners Classic Fund
Commentary / Third Quarter 2014




Value Partners Classic Fund (the “Fund”) primarily invests in stock markets of the Asia-Pacific region,
with a Greater China focus.
Please pay particular attention to the risk of investment in China and other markets in the Asian region
and in companies with medium or small capitalization. The value of the Fund can be extremely volatile
and could go down substantially within a short period of time. It is possible that the entire value of your
investment could be lost.
The Fund may also invest in derivatives which can involve material risks, e.g. counterparty default
risk, insolvency or liquidity risk, and may expose the Fund to significant losses.
You should not make investment decisions on the basis of this material alone. Please read the
explanatory memorandum for details and risk factors.
The Chinese equity markets began the third quarter on a bright note as stocks posted strong gains in July and
August. However, we saw a steady retreat in September as the release of weaker macro data, combined with
political protests in Hong Kong, put additional pressure on the markets. Value Partners Classic Fund rose
7.7% in the third quarter while the Hang Seng Index stayed flat and the MSCI China Index was up 1.4%. In
the past year, the Fund gained 17.0%. For reference, the Hang Seng Index and MSCI China Index were up
4.3% and 4.6%, respectively, over the same period.
With a turnaround in the Chinese equity markets beginning in late second quarter, we have seen a significant
improvement in our fund performance during the third quarter. As the market began to recognize the
potential “reform dividends” from investing in state-owned enterprises (SOEs), traditional sectors which
show value characteristics have rallied, acting as a tailwind for our investment approach.
SOE reforms gather pace
SOEs are a key part of China’s command economy, representing up to 70% of the constituent stocks of the
MSCI China universe. SOEs are trading at lower valuations as investors perceive these companies as less
efficient and less profit-focused. To tackle the inefficiencies, the State-owned Assets Supervision and
Administration Commission of the State Council (SASAC) announced in mid-July a pilot program to
improve the management, supervision and efficiency of SOEs. Companies are required to start adopting
more market-based compensation plans to encourage better alignment of corporate and shareholder’s
interests. The response has been positive. In the past few months, a number of companies have been
reducing their capital expenditure as management started to focus more on the bottom line.
We believe the roll-out of reforms will take place gradually instead of being a one-off measure. Reforms will
be seen most notably in industries such as natural resources and alternative energy – areas that we already
have positions- and benefits from such reforms can be manifold. For example, PetroChina, one of our key
resources plays, has shown stronger commitment in improving profits this year. It has been reducing capital
expenditure and shutting down inefficient refineries on the one hand, and undergoing an austerity program to
reduce entertainment expenses on the other hand. In addition, it is also enhancing corporate governance,
while introducing private capital and planning to sell selected pipeline assets which were previously
unavailable to private investors. Finally, as we mentioned previously, PetroChina may benefit from the gas
price reform, potential adjustments to tax, as well as supportive policies for shale gas development. While
some investors remain skeptical of the SOE reform conviction in the energy sector after witnessing the sale
of Sinopec’s marketing division to domestic investors, we believe the opening up of the sector to private
capital and foreign investors will likely be gradual and hence takes time for the market to fully recognize.
9th Floor, Nexxus Building, 41 Connaught Road Central, Hong Kong
Tel: (852) 2880-9263 Fax: (852) 2565-7975
Email: [email protected] Website: www.valuepartners.com.hk
7
Tapping the “through train” opportunities
While reforms are expected to continue to support the market in the medium term, the upcoming ShanghaiHong Kong Stock Connect program is likely to act as a near-term catalyst. The “through train” scheme is a
landmark opening of investment channels which will let global investors participate in Shanghai-listed
securities trading and allow Chinese domestic investors to trade Hong Kong-listed stocks. At Value Partners,
we are very excited about this program which is likely to be launched in late October. We have been closely
following the progress and are well prepared to make full use of it.
We look to take every step to generate gains for our investors. In addition to preparing ourselves to take part
in the program, we have already positioned our portfolio to take advantage of the potential arbitrage
opportunities. Through utilizing various existing and newly granted access quota to A shares, we have
substantially increased the Fund’s A-share exposure to 24% currently* from 10% at end-June. While
selected dually-listed companies are still trading at discounts ranging from 10% to 15% in the A-share
market, this presents an immediate and obvious investment opportunity. The significant additions reflect our
focus on value opportunities in the A-share market, an area where experienced Hong Kong investors will
focus as the Stock Connect program launches. Meanwhile, we have also deployed capital in traditional value
sectors that offer attractive dividend yields.
Luye Pharma shines in booming healthcare sector
During the quarter, we have increased our exposure in our favorite sectors such as healthcare. The rapid
growth of the sector is a reflection of aging population and dietary shifts in China. As China is increasingly
focusing on the quality of growth, we remain confident that the healthcare sector will continue to grow at 1.5
to 2 times the GDP growth rate as it did in the past, benefiting drug and medical equipment manufacturers.
Our additions in the healthcare sector continued to do well in the third quarter and made significant
contributions to portfolio return. One example is Luye Pharma, one of the largest drug manufacturers in
oncology, cardiovascular system, and alimentary tract and metabolism - the faster-growing segments in the
healthcare sector. With a strong product pipeline over the next three years, together with four upcoming drug
trials in the U.S., Luye is well positioned within the sector. Its recent initial public offering (“IPO”) has also
provided the company with capital to purchase Jialin, a local cardiovascular drug manufacturer. Jialin’s drug
portfolio can leverage Luye’s existing distribution network, giving us more confidence in Luye’s ability in
growing market share. Since our participation in Luye’s IPO in early July, it has been one of the top 10
positions in our portfolio. The company’s share price gained over 65% in the third quarter.
Hong Kong protests
While we remain pro-active with our portfolio fully invested, Hong Kong has been in newspaper headlines
on the political front. In late September, we witnessed a political divide accompanied by mass street protests.
As Hong Kong society became increasingly polarized, some investors took profits, causing a retreat in Hong
Kong share prices. The protests certainly have hurt certain local industries such as retail, tourism, and
property landlords, but have little or no impact on Chinese businesses which make up the majority of our
portfolio. In fact, local Hong Kong exposure is estimated to be at only around 2% of our portfolio. As usual,
we will be monitoring the situation carefully.
We think there is a reasonable chance that the unrest in Hong Kong will have only a temporary impact on
local shares, but we are fully prepared for a bad-case scenario where the negative impact could be a lot
longer-lasting but largely confined to Hong Kong. Although based in Hong Kong, Value Partners has been
dedicated to investing across the Greater China region, and since the late 1990s has spread out across the
Asia Pacific Region. Like many well-diversified investors, we wish Hong Kong well but we are not overly
dependent on it.
Page 2
8
As market sentiment has improved, we have seen significant positive inflows to our funds during the quarter.
We thank our investors for their continued support and will remain focused as ever on delivering
performance for clients through our value investing approach.
Value Partners Investment Team
13 October 2014
* Including exposure from both direct A-share investment and indirect investment through China A-Share Access
Products (CAAPs).
Fund performance mentioned referred to Value Partners Classic Fund “A” Unit. All performance figures are sourced
from HSBC Institutional Trust Services (Asia) Limited and Bloomberg (Data computed in US$ terms on NAV-to-NAV
basis with dividends reinvested) as at 30 September2014. Performance data is net of all fees.
Individual stock performance is not indicative of fund performance.
Investors should note that investment involves risk. The price of units may go down as well as up and past performance
is not indicative of future results. Investors should read the explanatory memorandum for details and risk factors in
particular those associated with investment in emerging markets. This commentary has not been reviewed by the
Securities and Futures Commission. Issuer: Value Partners Limited.
Page 3
9
10
Market cap:
US$12.9 billion
Inner Mongolia Yili
Industrial
(Code: 600887 CH)
Market cap:
US$18.8 billion
Daqin Railway
(Code: 601006 CH)
Market cap:
US$10.3 billion
Chongqing Changan
Automobile
(Code: 200625 CH)
Dairy product
manufacturer
Railway
Auto manufacturer
Real estate
China Vanke
(Code: 000002 CH – A shares)
Market cap:
US$16.8 billion
Industry
Stock
Price: CNY25.90
P/E: 16.3x
P/B: 3.6x
Yield: 2.3%
Price: CNY7.78
P/E: 7.1x
P/B: 1.2x
Yield: 7.6%
Price: HK$16.68
P/E: 6.4x
P/B: 1.7x
Yield: 2.2%
Price: CNY9.18
P/E: 4.9x
P/B: 1.0x
Yield: 5.2%
Valuation
(2015 Estimates)
Page 4
Yili is the leading dairy group in China engaging in sectors including liquid milk, ice cream,
infant milk powder and yoghurt. Since 2010, its management has been committed to channel
optimization and product upgrade, resulting in a continuous operational improvement. Its
market share would also grow further as Yili would be the major beneficiary of the policy-driven
industry consolidation among domestic peers. At present, Yili is trading at a huge valuation
discount to its closest peer, Mengniu, which is listed in Hong Kong’s stockmarket.
Daqin Railway is one of the largest eastbound coal transporters in Northern China, serving a
number of major coal companies while also running a passenger transportation business. The
company possesses strong fundamentals with growth potential as a beneficiary of railway
reforms with possible tariff hikes that will likely improve the company’s profitability. The
average dividend payout ratio of Daqin Railway in the past five years has been over 50%,
contributing to its relatively high dividend yield.
Chongqing Changan Automobile (“Changan”) is one of the largest automakers in China. It
owns a joint venture with Ford. The joint venture Changan Ford has contributed to the majority
of the company’s profits and launched in 2013 two locally manufactured sports utility vehicles
(SUV) models, aiming to participate in the fastest-growing passenger vehicle segment. Ford is
determined to ramp up production capacity to double their current production volume by 2015
and also expects to bring more new models to China and gain market share.
China Vanke is China’s largest developer of residential properties in terms of contract sales. It
has over 300 projects that are located in over 60 cities in mainland China. We see China
Vanke’s land bank as one of the most diversified among its peers, which may help it deliver
faster sales growth over its peers. Being the largest homebuilder in China, it may also benefit
from the improving mortgage situation and more accommodative policy environment in China.
The A shares of China Vanke are trading at a discount of around 15% to H shares.
Remarks
Value Partners Classic Fund: 10 biggest holdings of securities as at 30 September 2014
11
Market cap:
US$232.5 billion
PetroChina
(Code: 857 HK)
Market cap:
US$4.3 billion
Luye Pharma Group
(Code: 2186 HK)
Energy
Drug manufacturer
and distributor
Drug manufacturer
Lijun International
Pharmaceutical
(Code: 2005 HK)
Market cap:
US$1.4 billion
Industry
Stock
Price: HK$9.95
P/E: 9.7x
P/B: 1.1x
Yield: 4.6%
Price: HK$9.95
P/E: 39.8x
P/B: 4.9x
Yield: 0.0%
Price: HK$3.74
P/E: 15.6x
P/B: 3.0x
Yield: 2.0%
Valuation
(2015 Estimates)
Page 5
PetroChina is the largest integrated oil company in Asia by market capitalization. It has crude
reserves of nearly 11 billion barrels and gas reserves of over 69,000 billion cubic feet. Its
downstream assets consist of refining, and a service-station marketing network of over 20,000
stations. PetroChina is expected to benefit from growth in gas usage as China targets to diversify
their energy reliance from coal. A new pricing mechanism of natural gas will help its prospects,
as the government announced in June 2013 the lifting of the city-gate gas price. The SOE
reform undergoing will also push the company to adopt measures for better cost control and
returns for investors.
Luye Pharma Group (“Luye Pharma”) is a leading pharmaceutical company which focuses on
the manufacturing and selling of pharmaceutical products in three of the fastest growing
therapeutic areas in China including oncology, cardiovascular system, and alimentary tract and
metabolism. In the first half of 2014, the group’s nationwide distribution network enabled it to
sell its products to over 8,000 hospitals in the PRC. Given its strong product pipeline, proven
R&D capabilities and sales and marketing networks, Luye is well positioned to continue gaining
market share despite an increasingly competitive market environment.
Lijun International is a leading pharmaceutical manufacturer in China mainly engaged in
producing intravenous infusion solutions and antibiotics. It has the highest sales revenue in
intravenous infusion solution in China on a single factory basis. In 2013, intravenous infusion
solution and related products contributed 62.8% of the company’s total revenue and 90% of total
profit. Gross profit margin of the company was 44.9% in 2013, higher than 42.5% a year earlier.
We believe profit margin will continue to rise because of the upgrade of its infusion solution
products.
Remarks
12
Food and beverage
Price: TWD52.80
P/E: 18.2x
P/B: 2.9x
Yield: 3.2%
Price: HK$9.32
P/E: 7.3x
P/B: 2.1x
Yield: 4.6%
Price: HK$5.82
P/E: 24.6x
P/B: 5.1x
Yield: 1.2%
Valuation
(2015 Estimates)
Uni-President Enterprises Corporation is a leading food and beverage manufacturer and
distributor in Taiwan, commanding more than 45% share of the instant noodle, ready-to-drink
tea, and convenience-store markets. To strengthen its China business further, its management
has completed sales-channel reforms and successfully launched a number of popular products
in the past two years. We see huge potential in the group and expect it to become one of the
biggest food conglomerates in the fast-growing Greater China market.
TCL Communication is one of the top mobile phone brands in the global market by
shipments. Leveraging its lean cost structure, as well as strong channels and relationship with
global operators via the TCL-Alcatel brand, the company has gained success in the feature phone
market in the past few years. Starting 2013, TCL Communication has gradually come up with
comprehensive smartphone offerings. We believe the company has key elements that can help it
duplicating success from the feature phone era to the smartphone era and delivering strong
earnings growth in the coming years.
Sihuan Pharmaceutical is one of the largest domestic drug companies in China as well as a
leading cardio-cerebral vascular prescription drug franchise by market share. The company
enjoys a diversified product mix, in which its fast-growing exclusive drugs will likely face
limited pricing pressure. We expect the company to likely see further growth with rising
demand from a demographic more susceptible to stroke-related conditions. Its extensive agent
distribution network is expected to support continued strong sales, in particular their fastgrowing drug products manufactured to treat cerebral damage.
Remarks
Page 6
Individual stock performance/yield is not necessarily indicative of overall fund performance.
Note: The above investments made up 53.5% of Value Partners Classic Fund as at 30 September 2014. The stock prices are based on the closing of 30 September 2014.
Market cap:
US$9.5 billion
Uni-President
Enterprises
(Code: 1216 TT)
Market cap:
US$1.5 billion
TCL Communication
Technology
(Code: 2618 HK)
Electronics
manufacturer
Drug manufacturer
Sihuan Pharmaceutical
(Code: 460 HK)
Market cap:
US$7.8 billion
Industry
Stock
HHHHH
Morningstar RatingTM1
As at 31-10-2014
Value Partners High-Dividend Stocks Fund
NAV per unit: Class A1 (USD) - USD72.93 USD2,596.2 million
Fund size:
31 October 2014
2 Pages
Class A2 MDis (USD) - USD11.38
• Value Partners High-Dividend Stocks Fund (“the fund”) primarily invests in stock markets of the Asia-Pacific region, with a Greater China
focus.
• The fund will primarily invest in higher-yielding equities and debt securities, while maintaining a flexible allocation to other assets
including gold, REITs and cash.
• The fund may invest in higher-yielding debt and equity securities that are below investment grade. Such investments can involve
material risks, e.g. counterparty risk, liquidity risk, credit risk and default risk, and may expose the fund to significant losses.
• Investors should note that there is no guarantee that the underlying securities in the fund will pay out dividends. Therefore, there is no
guarantee that the fund’s investment strategies will succeed. There is also no guarantee of dividend or distribution payments during the
period an investor holds units in the fund, and a positive dividend yield does not represent/imply positive return.
• Please pay particular attention to the risk of investment in China and other markets in the Asian region and in companies with medium
or small capitalization. The value of the fund can be extremely volatile and could go down substantially within a short period of time. It is
possible that the entire value of your investment could be lost.
• The fund may also invest in derivatives which can involve material risks, e.g. counterparty default risk, insolvency or liquidity risk, and
may expose the fund to significant losses.
• You should not make investment decision on the basis of this material alone. Please read the explanatory memorandum for details and
risk factors.
Investment objective
Performance update
The fund aims to provide capital appreciation to unitholders by
investing primarily in a portfolio of relatively higher yielding debt and
equity securities in Asian region.
Performance since launch (with dividends reinvested) 2
%
800
The fund (Class A1, USD)
Index*
+636.9%
600
400
+317.5%
200
2
Class A1
(USD)
+0.3%
+6.9%
+6.9%
+38.3%
+70.4%
+636.9%
+17.8%
19.1%
One month
Year-to-date
One year
Three years
Five years
Since launch
Annualized return ^
Annualized volatility ^
+2.7%
+6.4%
+4.0%
+24.0%
+42.9%
+317.5%
+12.5%
21.2%
* Index refers to MSCI AC Asia Pacific (ex-Japan) Total Return Index.
^ Annualized return and volatility are calculated from inception on 2 Sep 2002.
Volatility is a measure of the theoretical risk in terms of standard deviation; in
general, the lower the number, the less risky the investment, and vice versa.
Dividend information – Class A2 MDis
0
-100
2002
Classes 4
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Class A2 MDis USD
Class A2 MDis HKD
Class A2 MDis AUD Hedged
Class A2 MDis CAD Hedged
Class A2 MDis NZD Hedged
NAVs & codes
Classes 4
Class A1 USD
Class A1 HKD 7
Class A2 MDis USD
Class A2 MDis HKD
Class A2 MDis AUD Hedged
Class A2 MDis CAD Hedged
Class A2 MDis NZD Hedged
NAV
72.93
565.5940
11.38
10.39
10.40
10.43
10.40
ISIN
KYG931731056
KYG931731056
KYG9318L1041
KYG9318L1538
KYG9318L1207
KYG9318L1389
KYG9318L1462
Bloomberg
VALASHY KY
VALASHY KY
VALHYA2 KY
VALHA2H KY
VALHA2A KY
VALHA2C KY
VALHA2N KY
Class A2 MDis
(USD)
+0.4%
+6.8%
+6.8%
N/A
N/A
+23.1%
+10.5%
N/A
Index*
Dividend
per unit 5
0.0499
0.0458
0.0639
0.0503
0.0641
3
Annualized
yield 6
5.3%
5.3%
7.4%
5.8%
7.4%
Ex-dividend
date
31-10-2014
31-10-2014
31-10-2014
31-10-2014
31-10-2014
Value Partners High-Dividend Stocks Fund - Class A1 (USD): Monthly performance from 1 Jan 2003 to 31 Oct 2014
Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014 (YTD)
Jan
+6.2%
+5.0%
+1.4%
+4.0%
+3.8%
-14.3%
-3.0%
-1.6%
+0.4%
+7.5%
+3.7%
-4.4%
Feb
+7.1%
+5.0%
+3.8%
+6.7%
+7.1%
+3.3%
+1.2%
+0.2%
-1.6%
+4.7%
+0.4%
+1.8%
Mar
-3.2%
-0.5%
-2.0%
+3.6%
-1.5%
-5.6%
+7.5%
+7.0%
+2.6%
-1.7%
-0.8%
+0.7%
Apr
-2.0%
-2.5%
+0.5%
+6.3%
+4.1%
+8.3%
+8.9%
+5.1%
+5.7%
+2.2%
+1.5%
+0.2%
May
+8.8%
-4.2%
-0.6%
-5.2%
+6.6%
-3.6%
+18.9%
-6.4%
-2.3%
-6.5%
+1.7%
+3.8%
Jun
+4.6%
-1.3%
+3.0%
-3.3%
+3.0%
-8.1%
+5.4%
+3.5%
-2.1%
+1.5%
-5.6%
+1.8%
Jul
+14.4%
+1.2%
+2.4%
+5.1%
+8.4%
-3.4%
+9.2%
+2.4%
+2.5%
+2.4%
+2.3%
+5.9%
Aug
+8.0%
-0.3%
-1.1%
+0.6%
-1.3%
-8.4%
-3.8%
+1.5%
-5.2%
+0.4%
-0.1%
+1.2%
Sep
+4.8%
+2.5%
+1.7%
+2.4%
+5.0%
-10.5%
+3.3%
+8.0%
-15.1%
+5.5%
+2.5%
-4.1%
Oct
+4.2%
-0.6%
-1.0%
+3.3%
+8.6%
-29.4%
+10.2%
+5.6%
+9.2%
+3.1%
+2.7%
+0.3%
Nov
+2.2%
+5.2%
+2.7%
+5.4%
-7.9%
+6.6%
+3.9%
+0.0%
-4.7%
+1.7%
+1.6%
Dec
+6.0%
-0.5%
+0.9%
+2.3%
+2.5%
+11.3%
+2.1%
-1.2%
+0.2%
+2.4%
-1.5%
2
Annual
+79.7%
+8.9%
+12.2%
+35.0%
+44.2%
-46.8%
+82.8%
+25.8%
-11.9%
+25.2%
+8.1%
+6.9%
9th Floor, Nexxus Building, 41 Connaught Road Central, Hong Kong Tel : (852) 2880 9263 Fax : (852) 2565 7975
Email : [email protected] Website : www.valuepartners.com.hk
13
Value Partners High-Dividend Stocks Fund
31 October 2014
Name
Bank of China
China Construction Bank
Samsung Fire & Marine Insurance
Amorepacific Corp.
Daqin Railway
PetroChina
Agricultural Bank of China
China Vanke
Hyundai Motor
China Resources Power
Portfolio characteristics
Industry 8
Banks
Banks
Insurance
Household & personal
products
Transportation
Energy
Banks
Real estate
Automobiles & components
Utilities
%
4.2
3.4
2.9
2.6
2.5
2.4
2.3
2.1
2.1
2.1
These stocks constitute 27% of the fund. The top ten securities holdings only
include companies and/ or REITs the fund invested, excluding any index tracking
fund or ETF.
Geographical exposure by listing 9
H Shares
South Korea
Hong Kong
Cash 10
Red Chips
Singapore
Bonds
Others
China A Shares
Taiwan
Thailand
17%
16%
9%
7%
6%
6%
6%
5%
3%
2%
Short exposure includes: South Korea, -0.9%.
Sector exposure 8 9
Consumer discretionary
Banks
Industrials
Real estate
Cash 10
Information technology
Bonds
Energy
Telecom services
Utilities
Insurance
Consumer staples
Materials
REITs
Others
15%
14%
11%
10%
9%
7%
6%
5%
5%
5%
4%
3%
2%
2%
2%
Total short exposure is -0.9%.
Short exposure includes: Consumer staples, -0.9%.
22%
As at 31 Oct 2014
Price/earnings ratio
Price/book ratio
Dividend yield
Yield to maturity/put
2015 11
8.3 times
1.2 times
5.3%
8.6%
Fund facts
Manager:
Base currency:
Trustee:
Custodian:
Launch date:
Dividend policy 3:
Value Partners Limited
USD
Bank of Bermuda (Cayman) Limited
HSBC Institutional Trust Services (Asia) Limited
Class A1 (USD) - 2 Sep 2002
Class A2 MDis (USD) - 28 Sep 2012
Class A2 MDis (AUD/CAD/NZD) - 23 Sep 2013
Class A2 MDis – aim at monthly distribution,
subject to Manager’s discretion
Unit price is published daily in the South China Morning Post, the Hong Kong
Economic Journal and the Hong Kong Economic Times.
Fee structure
Class A1
Minimum subscription
Minimum subsequent
subscription
Subscription fee
Management fee
Performance fee 12
Redemption fee
Dealing day
Class A2 MDis
USD10,000 / HKD80,000 /
AUD10,000 / CAD10,000 /
NZD10,000
USD5,000
/ HKD40,000 /
USD5,000 or
AUD5,000 / CAD5,000 /
HKD equivalent 7
NZD5,000
Up to 5%
1.25% p.a.
15% of profit (High-on-high principle)
Nil
Daily
USD10,000 or
HKD equivalent 7
Value Partners Investment Team
Chairman & Co-Chief Investment Officer: Cheah Cheng Hye
Deputy Chairman & Co-Chief Investment Officer: Louis So
Deputy Chief Investment Officer: Renee Hung
Senior Investment Director: Norman Ho, CFA
Investment Directors: Eric Chow; Alan Wang, CFA
Senior Fund Managers: Doris Ho; Kyu Ho; Michelle Yu, CFA; Yu Xiao Bo
Recent awards
Lipper Fund Awards 2014 (Hong Kong)
Best Asia Pacific (Ex-Japan) Equity
5 Years Category 13
~ Lipper
Morningstar Hong Kong Fund Awards 2014 14
Best Asia Ex-Japan Equity Fund
~ Morningstar
Fund of the Year Awards 2013
Outstanding Achiever – Asia Pacific Equity
Category 15
~ Benchmark
1. © 2014 Morningstar, Inc. All Rights Reserved (for Class A1). 2. Source: HSBC Institutional Trust Services (Asia) Limited and Bloomberg, in USD, NAV to NAV, with dividend reinvested.
Performance data is net of all fees. 3. The Manager currently intends to make monthly dividend distribution in respect of the A2 MDis Classes; actual dividend payout will be subject to the Manager’s
discretion. For A1 Class units, Manager will review dividend distribution at its discretion once a year (last dividend payout date: 21 Nov 2005). Please refer to the explanatory memorandum for more
details. 4. The fund may invest in financial derivative instruments (“FDI”) for hedging purposes. In adverse situations, the fund’s use of FDI may become ineffective in hedging and the fund may
suffer significant losses. Each hedged share class will hedge the fund’s base currency back to its currency of denomination on a best efforts basis. However, the volatility of the hedged classes
measured in the fund’s base currency may be higher than that of the equivalent class denominated in the fund’s base currency. Risks associated with FDI include counterparty risk, credit risk
and liquidity risk. Such exposure may lead to a high risk of capital loss. The AUD/CAD/NZD Hedged Classes are not recommended for investors whose base currency of investment is not in the
aforesaid currencies. 5. The receiving bank may charge a fee for incoming payments. Such fees will reduce the actual amount of dividends received by the investor. 6. Annualized yield of Class
A2 MDis is calculated as follows: (dividend amount/NAV as of ex-dividend date) x 12. Investors should note that yield figures are estimated and for reference only and do not represent the performance
of the fund, and that there is no guarantee as to the actual frequency and/or amount of dividend payments. 7. Investors should note that the base currency of the fund is in USD. The HKD equivalent
NAV per unit is for reference only and should not be used for subscription or redemption purpose. Conversion to the base currency of the fund will normally take place at the prevailing rate (as
determined by the fund’s Trustee or Custodian) on the corresponding fund dealing day. Investors should be aware of possible risks resulting from fluctuations of exchange rates against USD.
8. Classification is based on Global Industry Classification Standard (GICS). 9. Exposure refers to net exposure (long exposure minus short exposure). Due to rounding, percentages shown may
not add up to 100%. 10. Cash refers to net cash on hand excluding cash for collaterals and margins. 11. The profile is based on market consensus forecast as derived from S&P Capital IQ and
Bloomberg. Note that the manager’s internal estimates may differ significantly from S&P Capital IQ and Bloomberg estimates. Investors should note that all yield figures are for reference only and
do not represent the actual performance of the fund or the dividend yield received by investors, nor does a positive yield imply a positive return. “Dividend yield” is calculated based on the equity
portion of the fund, whereas “Yield to maturity/put” is calculated based on the debt portion of the fund by taking the average of yields of individual holdings (being the higher of the yield to maturity
and yield to put of each bond/convertible bond) after excluding event-driven investment with extremely high yield. 12. Performance fee will only be charged if the NAV at the end of the financial year
or upon realization of units exceeds the “high watermark”, which is the all-time year-end high of the fund’s NAV. If in any one year, the fund suffers a loss, no performance fee can be charged in
subsequent years until the loss is recovered fully (the high-on-high principle). 13. Based on data as of year-end 2013. 14. The 2014 Morningstar award was based on data of eligible funds in their
respective Morningstar category up to 31 Dec 2013. 15. Based on data as of 30 Sep 2013.
Investors should note investment involves risk. The price of units may go down as well as up and past performance is not indicative of future results. Investors should read the explanatory
memorandum for details and risk factors in particular those associated with investment in emerging markets. Information in this report has been obtained from sources believed to be reliable but
Value Partners Limited does not guarantee the accuracy or completeness of the information provided by third parties. This report has not been reviewed by the Securities and Futures Commission.
Issuer: Value Partners Limited.
HDF_Master_201410
Top 10 securities holdings
14
HHHH
Morningstar RatingTM1
As at 31-10-2014
China Convergence Fund
31 October 2014
2 Pages
A Sub-Fund of Value Partners Intelligent Funds
NAV per unit: USD137.14
USD320.6 million
Fund size:
• Please pay particular attention to the risk of investment in China and other markets in the Asian region and in companies
with medium or small capitalization. The value of the fund can be extremely volatile and could go down substantially
within a short period of time. It is possible that the entire value of your investment could be lost.
• The fund may also invest in derivatives which can involve material risks, e.g. counterparty default risk, insolvency or
liquidity risk, and may expose the fund to significant losses.
• You should not make investment decision on the basis of this material alone. Please read the explanatory memorandum
for details and risk factors.
Investment objective
Performance update
The fund aims to provide unitholders with long-term capital
appreciation by investing primarily in A and B shares listed on the
stock exchanges of Shanghai and Shenzhen, as well as H shares
listed in Hong Kong.
One month
Year-to-date
Note: On inception, in Jul 2000, the fund’s objective was to invest primarily in
B shares. In Jul 2001, the mandate was extended to include H shares. In Mar
2005, the mandate was further extended to include China A shares.
One year
Performance since launch (with dividends reinvested) 2
Since launch
%
1600
Three years
Five years
Annualized return
Annualized volatility
China Convergence Fund
MSCI China Index 3
+1,271.4%
1200
2
China Convergence
Fund
+3.2%
+7.0%
+10.9%
+17.8%
+30.4%
+1,271.4%
+20.0%
26.1%
MSCI China Index 3
+4.3%
+5.1%
+6.4%
+25.5%
+17.5%
+166.4%
+7.1%
27.5%
Annualized return and volatility are calculated from inception on 14 Jul 2000.
Volatility is a measure of the theoretical risk in terms of standard deviation; in
general, the lower the number, the less risky the investment, and vice versa.
800
400
+166.4%
0
-200
2000
2002
2004
2006
2008
2010
2012
2014
Monthly performance from 1 Jan 2003 to 31 Oct 2014
Year
Jan
Feb
Mar
2003
+9.5%
+2.4%
2004
+2.4%
+6.7%
2005
+1.9%
2006
2
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Annual
+0.0%
+1.1%
+7.8%
+4.1%
+11.3%
+4.5%
+2.3%
+14.5%
+1.6%
+9.0%
+92.1%
+1.0%
-11.0%
+1.3%
-4.3%
+1.0%
-1.3%
+5.7%
-0.2%
+3.7%
-2.9%
+0.8%
+6.8%
+1.3%
+0.4%
-4.0%
-0.7%
+0.7%
-0.3%
+1.0%
-5.4%
+0.9%
+1.6%
+3.9%
+16.5%
+4.8%
+8.5%
+3.6%
+0.7%
-2.3%
-0.3%
+1.8%
+3.8%
+5.5%
+11.6%
+11.5%
+86.9%
2007
+3.5%
+3.2%
+3.8%
+11.8%
+8.0%
+2.8%
+11.7%
+0.8%
+7.6%
+11.8%
-12.5%
-4.0%
+56.6%
2008
-15.7%
+7.4%
-11.5%
+9.2%
-4.4%
-12.3%
-2.4%
-8.8%
-9.9%
-15.6%
+0.2%
+10.2%
-45.2%
2009
-3.0%
-2.3%
+12.4%
+11.6%
+17.9%
+4.3%
+11.9%
-7.0%
+4.6%
+8.4%
+6.8%
+1.5%
+87.1%
2010
-6.1%
+2.4%
+6.2%
+2.3%
-4.8%
+1.6%
+3.9%
+1.6%
+10.8%
+4.5%
+1.2%
-2.6%
+21.3%
2011
-3.2%
-0.9%
+4.8%
+2.2%
-2.5%
-2.4%
+1.5%
-7.3%
-19.4%
+13.5%
-7.6%
-0.3%
-22.4%
2012
+7.6%
+6.6%
-5.5%
+1.0%
-8.4%
-3.8%
-3.5%
+0.6%
+5.8%
+2.7%
+0.1%
+7.4%
+9.3%
2013
+7.5%
-2.0%
-2.9%
-0.6%
+2.7%
-9.9%
+3.5%
+1.8%
+2.2%
+3.9%
+5.6%
-1.8%
+9.2%
2014 (YTD)
-5.6%
+1.0%
-3.6%
-1.0%
+1.2%
+3.4%
+8.8%
+1.3%
-1.2%
+3.2%
+7.0%
9th Floor, Nexxus Building, 41 Connaught Road Central, Hong Kong Tel : (852) 2880 9263 Fax : (852) 2565 7975
Email : [email protected] Website : www.valuepartners.com.hk
15
China Convergence Fund: A Sub-Fund of Value Partners Intelligent Funds
31 October 2014
Top 10 securities holdings
Name
Chongqing Changan
Automobile
Inner Mongolia Yili Industrial
China Vanke
(Stock code: 2202HK - H shares)
China Vanke
(Stock code: 000002CH - A shares)
ZTE Corp.
(Stock code: 763HK - H shares)
Luye Pharma
Portfolio characteristics
4
Industry
Automobiles & components
%
6.7
Food, beverage & tobacco
Real estate
4.8
3.9
Real estate
3.4
Technology, hardware &
equipment
Pharmaceuticals,
biotechnology & life sciences
Techtronic Industries
Consumer durables & apparel
Sunac China
Real estate
Huadian Fuxin Energy
Utilities
ZTE Corp.
Technology, hardware &
(Stock code: 000063CH - A shares) equipment
3.3
2.8
2.6
2.4
2.2
2.1
These stocks constitute 34% of the fund. The top ten securities holdings only
include companies and/ or REITs the fund invested, excluding any index
tracking fund or ETF.
Geographical exposure by listing 5
H Shares
34%
China A Shares
29%
Hong Kong
22%
China B Shares
12%
Red Chips
Cash 6
8%
-7%
Sector exposure 4 5
Consumer discretionary
18%
15%
Real estate
12%
Utilities
11%
Health care
10%
Consumer staples
10%
Information technology
10%
Energy
Materials
Insurance
Banks
Other financials
Cash 6
9%
4%
3%
Fund facts
Manager:
Base currency:
Trustee:
Custodian:
Launch date:
Bloomberg and
ISIN codes:
Value Partners Limited
USD
Bank of Bermuda (Cayman) Limited
HSBC Institutional Trust Services (Asia) Limited
14 Jul 2000
VAPAICB KY / KYG9317Q1047
Unit price is published daily in the South China Morning Post, the Hong Kong
Economic Journal and the Hong Kong Economic Times.
Fee structure
USD10,000
Minimum subscription
Minimum subsequent
subscription
Subscription fee
Management fee
Performance fee 8
Redemption fee
Dealing day
USD5,000
Up to 5%
1.25% p.a.
15% of profit (High-on-high principle)
Nil
Daily
Value Partners Investment Team
2%
Industrials
2015 7
11.8 times
1.8 times
3.1%
Chairman & Co-Chief Investment Officer: Cheah Cheng Hye
Deputy Chairman & Co-Chief Investment Officer: Louis So
Deputy Chief Investment Officer: Renee Hung
Senior Investment Director: Norman Ho, CFA
Investment Directors: Eric Chow; Alan Wang, CFA;
Senior Fund Managers: Doris Ho; Kyu Ho; Michelle Yu, CFA; Yu Xiao Bo
Recent awards
Morningstar 2010 Fund Awards (Hong Kong) –
Best Greater China Equity Fund
~ Morningstar
Top 100 Funds of the Year 2010 –
China Equity 9
~ Benchmark Magazine
2%
2%
-7%
1. © 2014 Morningstar, Inc. All Rights Reserved. 2. Source: HSBC Institutional Trust Services (Asia) Limited and Bloomberg, in USD, NAV to NAV, with dividends
reinvested. Performance data is net of all fees. 3. Starting from Jul 2009, the MSCI China Index will be used as the reference index for the entire history of the fund.
Hang Seng H Shares Index, Shanghai Composite Index and Shenzhen Composite Index were no longer shown for comparison. 4. Classification is based on Global
Industry Classification Standard (GICS). 5. Exposure refers to net exposure (long exposure minus short exposure). Due to rounding, percentages shown may not add
up to 100%. 6. Cash refers to net cash on hand excluding cash for collaterals and margins. 7. The profile is based on market consensus forecast as derived from S&P
Capital IQ and Bloomberg. Note that the manager’s internal estimates may differ significantly from S&P Capital IQ and Bloomberg estimates. 8. Performance fee will
only be charged if the NAV at the end of the financial year or upon realization of units exceeds the “high watermark”, which is the all-time year-end high of the fund’s
NAV. If in any one year, the fund suffers a loss, no performance fee can be charged in subsequent years until the loss is recovered fully (the high-on-high principle).
9. Based on fund size, track record, Morningstar’s Star rating and one year absolute ranking as at month end Oct 2010.
Investors should note investment involves risk. The price of units may go down as well as up and past performance is not indicative of future results. Investors should
read the explanatory memorandum for details and risk factors in particular those associated with investment in emerging markets. Information in this report has been
obtained from sources believed to be reliable but Value Partners Limited does not guarantee the accuracy or completeness of the information provided by third parties.
This report has not been reviewed by the Securities and Futures Commission. Issuer: Value Partners Limited.
CCF_Master_201410
Singapore
As at 31 Oct 2014
Price/earnings ratio
Price/book ratio
Dividend yield
16
HHHH
Morningstar RatingTM1
As at 31-10-2014
Chinese Mainland Focus Fund
31 October 2014
2 Pages
A Sub-Fund of Value Partners Intelligent Funds
NAV per unit: USD37.46
USD134.5 million
Fund size:
• Please pay particular attention to the risk of investment in China and other markets in the Asian region and in companies
with medium or small capitalization. The value of the fund can be extremely volatile and could go down substantially
within a short period of time. It is possible that the entire value of your investment could be lost.
• The fund may also invest in derivatives which can involve material risks, e.g. counterparty default risk, insolvency or
liquidity risk, and may expose the fund to significant losses.
• You should not make investment decision on the basis of this material alone. Please read the explanatory memorandum
for details and risk factors.
Performance update
Investment objective
The fund aims to achieve medium to long-term capital appreciation
by investing primarily in investments which are related to
the Mainland of the People’s Republic of China (“PRC”) and
investments whose value the Manager believes would be boosted
by a Renminbi (“RMB”) appreciation. The Manager will also invest
in investments whose value the Manager believes would increase
even if the RMB exchange rate remains unchanged.
Performance since launch (with dividends reinvested) 2
%
500
One month
Chinese Mainland
Focus Fund
+2.8%
MSCI China
Index 3
+4.3%
Year-to-date
+2.0%
+5.1%
One year
+4.2%
+6.4%
Three years
+14.3%
+25.5%
Five years
+36.3%
+17.5%
Since launch
+274.6%
+305.6%
Annualized return
+12.9%
+13.7%
Annualized volatility
21.9%
27.2%
Annualized return and volatility are calculated from inception on 27 Nov 2003.
Volatility is a measure of the theoretical risk in terms of standard deviation; in
general, the lower the number, the less risky the investment, and vice versa.
Chinese Mainland Focus Fund
MSCI China Index 3
600
2
400
+305.6%
+274.6%
300
200
100
0
2003
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Monthly performance from 27 Nov 2003 to 31 Oct 2014
Year
Jan
Feb
Mar
Apr
May
Jun
2
Jul
Aug
Sep
Oct
Nov
Dec
Annual
+3.9%
2003
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
+3.9%
2004
+5.5%
+7.6%
-0.3%
-11.3%
+0.7%
-3.4%
+1.9%
-1.4%
+4.6%
+1.4%
+6.0%
-1.7%
+8.4%
2005
+1.6%
+4.9%
-3.3%
+0.7%
-2.6%
+1.6%
+1.6%
+0.5%
+1.8%
-3.0%
+4.5%
+3.3%
+11.6%
2006
+12.3%
+2.8%
+7.9%
+2.0%
-5.1%
-0.6%
+0.6%
+1.3%
+1.6%
+4.4%
+7.6%
+6.3%
+48.1%
2007
+1.5%
+3.7%
+4.4%
+5.3%
+5.0%
+3.3%
+15.8%
-3.1%
+8.6%
+12.9%
-8.7%
-0.9%
+56.0%
2008
-17.5%
+5.7%
-10.1%
+10.1%
-2.9%
-11.0%
-2.7%
-7.8%
-9.9%
-16.2%
-0.5%
+9.9%
-44.8%
2009
-3.2%
-2.1%
+11.8%
+11.4%
+17.7%
+3.4%
+12.3%
-7.1%
+5.2%
+8.8%
+6.7%
+1.8%
+86.0%
2010
-5.7%
+1.9%
+6.5%
+2.8%
-4.7%
+1.5%
+4.9%
+1.7%
+10.6%
+6.4%
-1.1%
-2.0%
+23.9%
2011
-2.5%
-0.9%
+4.8%
+3.4%
-1.2%
-2.2%
+1.8%
-7.6%
-19.5%
+15.6%
-7.8%
+0.6%
-17.8%
2012
+6.7%
+6.8%
-5.7%
+1.4%
-8.6%
-3.5%
-2.7%
+0.7%
+5.5%
+4.5%
+1.4%
+6.0%
+11.6%
2013
+8.1%
-3.2%
-3.3%
-0.1%
+0.4%
-8.8%
+2.4%
+4.5%
+2.9%
+4.1%
+4.5%
-2.3%
+8.3%
2014 (YTD)
-5.7%
-1.7%
-2.4%
-1.8%
+1.4%
+4.0%
+7.7%
+0.4%
-2.0%
+2.8%
+2.0%
9th Floor, Nexxus Building, 41 Connaught Road Central, Hong Kong Tel : (852) 2880 9263 Fax : (852) 2565 7975
Email : [email protected] Website : www.valuepartners.com.hk
17
Chinese Mainland Focus Fund: A Sub-Fund of Value Partners Intelligent Funds
31 October 2014
Top 10 securities holdings
Luye Pharma
Industry 4
Automobiles & components
%
6.8
Food, beverage & tobacco
Real estate
5.0
4.8
Consumer durables & apparel
Transportation
Insurance
Real estate
4.5
4.2
4.2
4.0
Materials
Pharmaceuticals,
biotechnology & life sciences
Pharmaceuticals,
biotechnology & life sciences
3.6
3.5
3.1
These stocks constitute 44% of the fund. The top ten securities holdings only
include companies and/ or REITs the fund invested, excluding any index
tracking fund or ETF.
Geographical exposure by listing 5
China A Shares
34%
H Shares
27%
Hong Kong
21%
China B Shares
13%
Red Chips
Others
Cash 6
Fund facts
Manager:
Base currency:
Trustee:
Custodian:
Launch date:
Bloomberg and
ISIN codes:
Value Partners Limited
USD
Bank of Bermuda (Cayman) Limited
HSBC Institutional Trust Services (Asia) Limited
27 Nov 2003
VAPAICM KY / KYG9317Q1120
Unit price is published daily in the South China Morning Post, the Hong Kong
Economic Journal and the Hong Kong Economic Times.
Fee structure
Minimum subscription
Minimum subsequent subscription
Subscription fee
Management fee
Performance fee 8
USD10,000
USD5,000
Up to 5%
1.25% p.a.
15% of profit
(High-on-high principle)
Nil
Daily
5%
2%
Value Partners Investment Team
-8%
Sector exposure 4 5
Consumer discretionary
20%
Health care
14%
Real estate
13%
Industrials
10%
Utilities
10%
Information technology
10%
Consumer staples
9%
Energy
7%
Materials
6%
Insurance
6%
Banks
2015 7
11.2 times
1.8 times
3.6%
Redemption fee
Dealing day
7%
United States
As at 31 Oct 2014
Price/earnings ratio
Price/book ratio
Dividend yield
2%
Others
1%
Cash 6
-8%
Chairman & Co-Chief Investment Officer: Cheah Cheng Hye
Deputy Chairman & Co-Chief Investment Officer: Louis So
Deputy Chief Investment Officer: Renee Hung
Senior Investment Director: Norman Ho, CFA
Investment Directors: Eric Chow; Alan Wang, CFA
Senior Fund Managers: Doris Ho; Kyu Ho; Michelle Yu, CFA; Yu Xiao Bo
Recent awards
Lipper Fund Awards 2013 (Hong Kong)
Best China Equity Fund (5 Years) 9
~ Lipper
Lipper Fund Awards 2012 (Hong Kong)
Best China Equity Fund (3 Years) 10
~ Lipper
Top 100 Funds of the Year 2010 –
China Equity – Best in Class 11
~ Benchmark Magazine
1. © 2014 Morningstar, Inc. All Rights Reserved. 2. Source: HSBC Institutional Trust Services (Asia) Limited and Bloomberg, in USD, NAV to NAV, with dividends
reinvested. Performance data is net of all fees. 3. Starting from Jul 2009, the MSCI China Index will be used as the reference index for the entire history of the fund. Hang
Seng H Shares Index, Shanghai Composite Index and Shenzhen Composite Index were no longer shown for comparison. 4. Classification is based on Global Industry
Classification Standard (GICS). 5. Exposure refers to net exposure (long exposure minus short exposure). Due to rounding, percentages shown may not add up to 100%.
6. Cash refers to net cash on hand excluding cash for collaterals and margins. 7. The profile is based on market consensus forecast as derived from S&P Capital IQ and
Bloomberg. Note that the manager’s internal estimates may differ significantly from S&P Capital IQ and Bloomberg estimates. 8. Performance fee will only be charged if
the NAV at the end of the financial year or upon realization of units exceeds the “high watermark”, which is the all-time year-end high of the fund’s NAV. If in any one year,
the fund suffers a loss, no performance fee can be charged in subsequent years until the loss is recovered fully (the high-on-high principle). 9. Based on data as of yearend 2012. 10. Based on data as of year-end 2011. 11. Based on fund size, track record, Morningstar’s Star rating and one year absolute ranking as at month end Oct
2010.
Investors should note investment involves risk. The price of units may go down as well as up and past performance is not indicative of future results. Investors should
read the explanatory memorandum for details and risk factors in particular those associated with investment in emerging markets. Information in this report has been
obtained from sources believed to be reliable but Value Partners Limited does not guarantee the accuracy or completeness of the information provided by third parties.
This report has not been reviewed by the Securities and Futures Commission. Issuer: Value Partners Limited.
CMF_Master_201410
Name
Chongqing Changan
Automobile
Inner Mongolia Yili Industrial
China Vanke
(Stock code: 000002CH - A shares)
Midea Group
Daqin Railway
Ping An Insurance
China Vanke
(Stock code: 2202HK - H shares)
Anhui Conch Cement
Tasly Pharmaceutical
Portfolio characteristics
18
HHHH
Morningstar RatingTM1
As at 31-10-2014
Value Partners China Greenchip Fund Limited
31 October 2014
2 Pages
NAV per share: Class A - HKD60.79 Class A2 QDis - HKD11.33
USD643.8 million (HKD4,995.7 million)
Fund size:
CIES Eligible*
• Please pay particular attention to the risk of investment in China and other markets in the Asian region and in companies
with medium or small capitalization. The value of the fund can be extremely volatile and could go down substantially within a
short period of time. It is possible that the entire value of your investment could be lost.
• The fund may also invest in derivatives which can involve material risks, e.g. counterparty default risk, insolvency or
liquidity risk, and may expose the fund to significant losses.
• You should not make investment decision on the basis of this material alone. Please read the explanatory memorandum for
details and risk factors.
Performance update
Investment objective
The fund aims to achieve medium-term capital growth by means
of investing in companies established in Greater China or which
derive a majority of their revenue from business related to Greater
China, whether in the form of direct investment in, or trade with,
Greater China. This includes companies incorporated and/or listed
outside Greater China.
One month
Year-to-date
One year
Three years
Five years
Since launch
Annualized return
Annualized volatility
Performance since launch (with dividends reinvested) 2
%
Value Partners China Greenchip Fund Limited
Hang Seng Index 3
MSCI China Index
900
700
+507.9%#
+464.1%
500
300
+210.9%
100
Class A
(HKD)
+0.6%
+2.2%
+7.5%
+40.4%
+67.0%
+507.9%#
+15.4%#
22.1%#
MSCI China Hang Seng Class A2
Index
Index 3
QDis (HKD)
+4.2%
+4.8%
+0.6%
+5.1%
+7.1%
+1.8%
+6.4%
+7.7%
+7.0%
+30.3%
+41.1%
N/A
+17.5%
+31.5%
N/A
+464.1%
+210.9%
+15.7%
+14.7%
+9.4%
+12.1%
25.6%
20.4%
N/A
Annualized return and volatility are calculated from inception on 8 Apr 2002.
Volatility is a measure of the theoretical risk in terms of standard deviation; in
general, the lower the number, the less risky the investment, and vice versa.
#
Investors should note that figures for Non-Redeemable Class N shares shown
above may differ from those of classes currently available for subscription (namely
Class A and Class A2 QDis), due to differences in launch date of these classes.
For Class A, the since launch return, annualized return and annualized volatility
are +72.0%, +7.4% and 25.4% respectively.
NAVs & codes
0
-100
2002
2
Classes 7
Class A HKD
Class A USD
Class A AUD Hedged
Class A CAD Hedged
Class A NZD Hedged
Class A2 QDis HKD
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Dividend information – Class A2 QDis 4
Ex-dividend
date
30-9-2014
30-6-2014
31-3-2014
31-12-2013
30-9-2013
Ex-dividend date Dividend per unit 5
NAV (HKD)
(HKD)
11.26
0.0565
11.34
0.0550
11.00
0.0388
11.28
0.0388
10.28
0.0388
Annualized
yield 6
2.0%
1.9%
1.4%
1.4%
1.5%
NAV
60.79
10.24
10.33
10.31
10.31
11.33
ISIN
KYG9317M1033
KYG9317M1603
KYG9317M1371
KYG9317M1454
KYG9317M1520
KYG9317M1116
Bloomberg
VPCHIGC KY
VPCHAUS KY
VPCHAAH KY
VPCHACH KY
VPCHANH KY
VPCA2QD KY
Value Partners China Greenchip Fund Limited – Class A (HKD): Monthly performance from 1 Jan 2003 to 31 Oct 2014 2
Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014 (YTD)
Jan
+7.3%
+1.4%
+1.2%
+10.7%
+3.1%
-18.6%
+0.2%
-1.3%
-2.6%
+6.0%
+6.4%
-3.0%
Feb
+7.1%
+6.3%
+4.2%
+4.0%
+4.8%
+1.4%
-0.2%
+3.0%
-2.9%
+10.5%
+0.0%
+4.0%
Mar
-3.5%
-1.2%
-2.7%
+9.2%
+3.8%
-9.6%
+10.2%
+8.1%
+4.0%
-3.9%
-2.2%
-2.6%
Apr
-1.5%
-8.7%
-1.1%
+0.5%
+4.7%
+10.2%
+13.1%
+4.2%
+2.7%
-2.4%
+1.2%
-1.2%
May
+10.9%
-1.1%
-1.4%
-3.7%
+9.6%
-2.2%
+25.0%
-5.4%
-2.5%
-4.6%
+3.3%
+1.9%
Jun
+5.9%
-2.8%
+1.6%
-1.6%
+5.7%
-11.8%
+1.9%
+0.9%
-5.0%
-3.2%
-8.9%
+2.9%
Jul
+12.7%
+0.8%
+1.1%
+1.9%
+9.7%
-5.7%
+14.0%
+4.2%
+5.1%
-0.5%
+1.8%
+1.1%
Aug
+6.2%
-0.3%
+0.0%
+1.4%
-9.1%
-10.0%
-4.8%
+1.7%
-10.5%
+3.7%
+1.7%
+0.6%
Sep
+2.2%
+3.7%
+11.0%
+1.4%
+3.6%
-12.1%
+6.9%
+13.4%
-17.2%
+6.3%
+3.0%
-1.8%
Oct
+9.5%
+0.6%
-3.2%
+3.7%
+5.8%
-26.1%
+7.9%
+4.2%
+8.8%
+3.1%
+4.8%
+0.6%
Nov
+3.0%
+5.4%
+3.6%
+6.7%
-7.4%
+0.8%
+6.2%
+1.3%
-3.4%
+4.9%
+4.5%
Dec
+5.0%
-1.6%
+1.5%
+3.6%
-1.0%
+7.8%
+2.5%
-0.5%
-2.1%
+3.7%
+0.7%
Annual
+85.6%
+1.5%
+16.1%
+43.7%
+36.3%
-57.4%
+116.7%
+37.8%
-25.0%
+24.8%
+16.5%
+2.2%
9th Floor, Nexxus Building, 41 Connaught Road Central, Hong Kong Tel : (852) 2880 9263 Fax : (852) 2565 7975
Email : [email protected] Website : www.valuepartners.com.hk
19
Value Partners China Greenchip Fund Limited
31 October 2014
Top 10 securities holdings (as at 29 Aug 2014)
CNOOC
Perfect Shape PRC Holdings
Texwinca Holdings
ENN Energy
Ju Teng International
Techtronic Industries
Industry 8
Automobiles & components
%
5.7
Banks
Technology, hardware &
equipment
Pharmaceuticals,
biotechnology & life sciences
Energy
Consumer services
Consumer durables & apparel
Utilities
Technology, hardware &
equipment
Consumer durables & apparel
3.8
3.5
3.1
2.8
2.6
2.6
2.4
2.4
2.4
These stocks constitute 31% of the fund. The top ten securities holdings only
include companies and/ or REITs the fund invested, excluding any index
tracking fund or ETF.
Geographical exposure by listing 9
Hong Kong
46%
H Shares
13%
Taiwan
China B Shares
10%
7%
China A Shares
4%
South Korea
3%
Cash 10
2%
Others
1%
2015 11
12.5 times
2.0 times
3.6%
Fund facts
Manager:
Base currency:
Administrator:
Custodian:
Launch date:
Dividend policy 4:
Value Partners Limited
HKD
Bank of Bermuda (Cayman) Limited
HSBC Institutional Trust Services (Asia) Limited
Class N - 8 Apr 2002 (Closed)
Class A - 27 Mar 2007
Class A2 QDis - 22 Jul 2013
Class A (AUD / CAD / NZD / USD) - 26 May 2014
Class A2 QDis - aim at quarterly distribution,
subject to Manager’s discretion
Other Classes - N/A
Unit price is published daily in the South China Morning Post and the Hong Kong
Economic Times.
Fee structure (Class A and Class A2 QDis)
Minimum subscription
Minimum subsequent
subscription
Subscription fee
Management fee
Performance fee 13
Redemption fee
Dealing day
15%
Red Chips
As at 31 Oct 2014
Price/earnings ratio
Price/book ratio
Dividend yield
HKD80,000 or equivalent 12
HKD40,000 or equivalent 12
Up to 5%
1.5% p.a.
15% of profit (High-on-high principle)
Nil
Daily
Value Partners Investment Team
Sector exposure 8 9
9%
Chairman & Co-Chief Investment Officer: Cheah Cheng Hye
Deputy Chairman & Co-Chief Investment Officer: Louis So
Deputy Chief Investment Officer: Renee Hung
Senior Investment Director: Norman Ho, CFA
Investment Directors: Eric Chow; Alan Wang, CFA
Senior Fund Managers: Doris Ho; Kyu Ho; Michelle Yu, CFA; Yu Xiao Bo
Utilities
8%
Banks
7%
Recent awards
Consumer discretionary
30%
Information technology
13%
Health care
10%
Industrials
Energy
5%
Consumer staples
5%
Insurance
4%
Telecom services
2%
Real estate
2%
Cash 10
2%
Other financials
2%
Materials
2%
Lipper Fund Awards 2014 (Hong Kong)
Best Greater China Equity Fund (5 Years) 14
~ Lipper
Lipper Fund Awards 2013 (Hong Kong)
Best Greater China Equity Fund (5 Years) 15
~ Lipper
Lipper Fund Awards 2012 (Hong Kong)
Best Greater China Equity Fund (3 Years) 16
~ Lipper
* Value Partners China Greenchip Fund Limited is one of the eligible collective investment schemes for the purpose of the Hong Kong Capital Investment Entrant Scheme (CIES).
1. © 2014 Morningstar, Inc. All Rights Reserved. 2. Unless otherwise specified, fund performance shown in this document refers to the returns on Non-Redeemable Class
N shares, which was launched on 8 Apr 2002. Source: HSBC Institutional Trust Services (Asia) Limited and Bloomberg, in HKD, NAV to NAV, with dividends reinvested.
Non-Redeemable Class N shares of the fund are closed for subscription from 26 Mar 2007; existing and new investors may subscribe for/redeem Class A or A2 QDis shares.
3. Index refers to Hang Seng Price Return Index up to 31 Dec 2004, thereafter it is the Hang Seng Total Return Index. Hang Seng Total Return Index includes dividend
reinvestment whereas Hang Seng Price Return Index does not take into account reinvestment of dividends. 4. The Manager currently intends to make quarterly dividend
distribution in respect of the A2 QDis Class; actual dividend payout will be subject to the Manager’s discretion. 5. The receiving bank may charge a fee for incoming payments.
Such fees will reduce the actual amount of dividends received by the investor. 6. Annualized yield of Class A2 QDis is calculated as follows: (dividend amount/NAV as of
ex-dividend date) x 4. Investors should note that yield figures are estimated and for reference only and do not represent the performance of the fund, and that there is no
guarantee as to the actual frequency and/or amount of dividend payments. 7. The fund may invest in financial derivative instruments (“FDI”) for hedging purposes. In adverse
situations, the fund’s use of FDI may become ineffective in hedging and the fund may suffer significant losses. Each hedged share class will hedge the fund’s base currency
back to its currency of denomination on a best efforts basis. However, the volatility of the hedged classes measured in the fund’s base currency may be higher than that of the
equivalent class denominated in the fund’s base currency. Risks associated with FDI include counterparty risk, credit risk and liquidity risk. Such exposure may lead to a high risk
of capital loss. The AUD/CAD/NZD Hedged Classes are not recommended for investors whose base currency of investment is not in the aforesaid currencies. 8. Classification
is based on Global Industry Classification Standard (GICS). 9. Exposure refers to net exposure (long exposure minus short exposure). Due to rounding, percentages shown
may not add up to 100%. 10. Cash refers to net cash on hand excluding cash for collaterals and margins. 11. The profile is based on market consensus forecast as derived
from S&P Capital IQ and Bloomberg. Note that the manager’s internal estimates may differ significantly from S&P Capital IQ and Bloomberg estimates. 12. Investors should
note that the base currency of the fund is in HKD. Conversion to the base currency of the fund will normally take place at the prevailing rate (as determined by the fund’s Trustee
or Custodian) on the corresponding fund dealing day. Investors should be aware of possible risks resulting from fluctuations of exchange rates against USD/AUD/CAD/NZD.
13. Performance fee will only be charged if the NAV at the end of the financial year or upon realization of units exceeds the “high watermark”, which is the all-time year-end
high of the fund’s NAV. If in any one year, the fund suffers a loss, no performance fee can be charged in subsequent years until the loss is recovered fully (the high-on-high
principle).14. Based on data as of year-end 2013. 15. Based on data as of year-end 2012. 16. Based on data as of year-end 2011.
Investors should note investment involves risk. The price of shares may go down as well as up and past performance is not indicative of future results. Investors should read
the explanatory memorandum for details and risk factors in particular those associated with investment in emerging markets. Information in this report has been obtained from
sources believed to be reliable but Value Partners Limited does not guarantee the accuracy or completeness of the information provided by third parties. This report has not
been reviewed by the SFC. Issuer: Value Partners Limited.
CG_Master_201410
Name
Chongqing Changan
Automobile
Bank of China
TCL Communication
Technology
Sihuan Pharmaceutical
Portfolio characteristics
20
HHHH
Morningstar RatingTM1
As at 31-10-2014
31 October 2014
Value Partners Taiwan Fund
2 Pages
NAV per unit: USD15.65
USD63.8 million
Fund size:
• Please pay particular attention to the risk of investment in China and other markets in the Asian region and in companies
with medium or small capitalization. The value of the fund can be extremely volatile and could go down substantially
within a short period of time. It is possible that the entire value of your investment could be lost.
• The fund may also invest in derivatives which can involve material risks, e.g. counterparty default risk, insolvency or
liquidity risk, and may expose the fund to significant losses.
• You should not make investment decision on the basis of this material alone. Please read the explanatory memorandum
for details and risk factors.
Performance update
Investment objective
The fund aims to achieve long term capital growth through primarily
investing in equity and equity linked securities of companies that
are listed on (a) the Taiwan Stock Exchange; or (b) the GRE Tai
Securities Market; or (c) any stock exchange but which have their
main operations or majority of assets in or derive the majority of their
income from Taiwan. This includes companies incorporated and/or
quoted outside Taiwan.
Performance since launch (with dividends reinvested) 2
%
Value Partners Taiwan Fund
Taiwan Stock Exchange Index
MSCI Taiwan Index
80
60
+56.5%
2
Value Partners Taiwan Stock MSCI Taiwan
Taiwan Fund Exchange Index
Index
(USD)
(USD)
(USD)
One month
-2.4%
+0.1%
+2.5%
Year-to-date
+3.6%
+5.2%
+10.2%
One year
+6.5%
+5.7%
+10.1%
Three years
+38.0%
+29.8%
+32.8%
Since launch
+56.5%
+39.6%
+26.2%
Annualized return
+6.9%
+5.1%
+3.6%
Annualized volatility
21.0%
27.5%
27.3%
Annualized return and volatility are calculated from inception on 3 Mar
2008. Volatility is a measure of the theoretical risk in terms of standard
deviation; in general, the lower the number, the less risky the investment, and
vice versa.
+39.6%
+26.2%
40
20
0
-20
-40
-60
2008
2009
2010
2011
2012
2013
2014
Monthly performance from 3 Mar 2008 to 31 Oct 2014
2
Year
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2008
N/A
N/A
+4.5%
+1.0%
-0.2%
-5.9%
-5.0%
-6.2%
-11.9%
-25.3%
+6.2%
+4.2%
Annual
-35.7%
2009
-4.4%
-1.3%
+12.0%
+1.6%
+17.9%
-3.4%
+7.9%
-2.2%
+11.4%
+2.1%
+3.8%
+3.7%
+58.0%
2010
-5.4%
-0.1%
+6.5%
+4.6%
-10.6%
+1.7%
+5.7%
+1.3%
+6.3%
+1.4%
+1.1%
+6.9%
+19.2%
2011
+2.5%
-3.5%
+0.9%
+8.0%
-1.4%
-0.5%
+7.2%
-10.3%
-12.9%
+5.7%
-7.8%
+0.8%
-13.0%
2012
+4.5%
+11.5%
+0.1%
-4.0%
-2.7%
+0.3%
+2.9%
+5.1%
+5.4%
-4.1%
+4.1%
+1.5%
+26.1%
2013
+0.5%
-0.2%
+0.5%
+3.7%
-0.6%
-3.6%
+3.1%
+1.1%
+2.1%
+4.0%
+1.3%
+1.4%
+13.7%
2014 (YTD)
+0.5%
+5.1%
+2.6%
-1.6%
+3.3%
+2.2%
-1.2%
+1.1%
-5.5%
-2.4%
+3.6%
9th Floor, Nexxus Building, 41 Connaught Road Central, Hong Kong Tel : (852) 2880 9263 Fax : (852) 2565 7975
Email : [email protected] Website : www.valuepartners.com.hk
21
Value Partners Taiwan Fund
31 October 2014
Top 5 securities holdings
Name
Taiwan Semiconductor
Manufacturing
Far Eastern Department
Stores
Chicony Power
Technology
Quanta Computer
King’s Town Bank
Portfolio characteristics
Industry 3
Semiconductors & semiconductor
equipment
Retailing
4.5
Capital goods
4.4
Technology, hardware &
equipment
Banks
3.6
%
9.1
3.6
These stocks constitute 25% of the fund. The top five securities holdings
only include companies and/ or REITs the fund invested, excluding any index
tracking fund or ETF.
Geographical exposure by listing 4
Taiwan
Cash 5
94%
6%
Sector exposure 3 4
As at 31 Oct 2014
Price/earnings ratio
2015 6
11.7 times
Price/book ratio
2.0 times
Dividend yield
5.3%
Fund facts
Manager:
Base currency:
Trustee:
Custodian:
Launch date:
Bloomberg and
ISIN codes:
Value Partners Hong Kong Limited
USD
Bank of Bermuda (Cayman) Limited
HSBC Institutional Trust Services (Asia) Limited
3 Mar 2008
VTAIWAN KY / KYG9318Y1061
Unit price is published daily in the South China Morning Post, the Hong Kong
Economic Journal and the Hong Kong Economic Times.
Fee structure
Information technology
48%
6%
Minimum subscription
Minimum subsequent
subscription
Subscription fee
Consumer staples
5%
Management fee
1.25% p.a.
Banks
5%
Performance fee 7
15% of profit (High-on-high principle)
Insurance
4%
Redemption fee
Dealing day
Consumer discretionary
12%
Industrials
11%
Cash
5
Materials
3%
Health care
3%
Other financials
3%
US$10,000
US$5,000
Up to 5%
Nil
Daily
Value Partners Investment Team
1. © 2014 Morningstar, Inc. All Rights Reserved. 2. Source: HSBC Institutional Trust Services (Asia) Limited and Bloomberg, in USD, NAV to NAV, with dividends
reinvested. Performance data is net of all fees. 3. Classification is based on Global Industry Classification Standard (GICS). 4. Exposure refers to net exposure (long
exposure minus short exposure). Due to rounding, percentages shown may not add up to 100%. 5. Cash refers to net cash on hand excluding cash for collaterals and
margins. 6. The profile is based on market consensus forecast as derived from S&P Capital IQ and Bloomberg. Note that the manager’s internal estimates may differ
significantly from S&P Capital IQ and Bloomberg estimates. 7. Performance fee will only be charged if the NAV at the end of the financial year or upon realization of units
exceeds the “high watermark”, which is the all-time year-end high of the fund’s NAV. If in any one year, the fund suffers a loss, no performance fee can be charged in
subsequent years until the loss is recovered fully (the high-on-high principle).
Investors should note investment involves risk. The price of units may go down as well as up and past performance is not indicative of future results. Investors should
read the explanatory memorandum for details and risk factors in particular those associated with investment in emerging markets. Information in this report has been
obtained from sources believed to be reliable but Value Partners Hong Kong Limited does not guarantee the accuracy or completeness of the information provided by
third parties. This report has not been reviewed by the Securities and Futures Commission. Issuer: Value Partners Hong Kong Limited.
TW_Master_201410
Chairman & Co-Chief Investment Officer: Cheah Cheng Hye
Deputy Chairman & Co-Chief Investment Officer: Louis So
Deputy Chief Investment Officer: Renee Hung
Senior Investment Director: Norman Ho, CFA
Investment Directors: Eric Chow; Alan Wang, CFA
Senior Fund Managers: Doris Ho; Kyu Ho; Michelle Yu, CFA; Yu Xiao Bo
22
31 October 2014
Value Partners Greater China High Yield Income Fund
2 Pages
NAV per unit: USD11.92 (P Acc USD) / USD9.41 (P MDis USD)
USD1,044.5 million
Fund size:
• Please pay attention to the risks associated with the Fund, particularly the risk of investment in China and other markets in
the Asian region and in companies with medium or small capitalization. The value of the Fund can be extremely volatile and
could go down substantially within a short period of time. It is possible that the entire value of your investment could be lost.
• Investors should note that there is no guarantee that the underlying securities in the Fund will pay out dividends. Therefore, there
is no guarantee that the Fund’s investment strategies will succeed. There is also no guarantee of dividend or distribution payments
during the period an investor holds units in the Fund, and a positive dividend yield does not represent/imply positive return.
• The Fund may invest in debt securities that are below investment grade and/or issued by special purpose vehicles and may
involve greater risks, including credit risk, issuer-specific risk or counterparty risk. The Fund may also invest in derivatives
and structured products which can involve material risks, e.g. counterparty default risk or insolvency, and may expose the
Fund to significant losses.
• You should not make investment decision on the basis of this marketing material alone. Please read the Explanatory
Memorandum for details and risk factors.
Investment objective
To provide capital appreciation to investors through primarily
investing in Greater China debt securities including but not
limited to high yield, convertible, and mainland Chinese
offshore bonds.
Commentary
Portfolio Review:
In October, the market saw the ending of US quantitative easing
(QE) just when Japan announced an expansion of its own QE. Upon
Japan’s action, the market received a boost in risk appetite and
both stocks and bonds rallied strongly, reversing some of the losses
that have been accumulated from the September selloff. The US
dollar once again strengthened against all major currencies while
the US Treasury gave up some of the flight-to-safety gains made
in September. During the month, we took advantage of the rally to
take profit on some property and industrial names, while adding to
laggards as well as names that suffered temporary dislocation in
valuations. We were also active in trading the primary market and
finding values in the convertible markets.
Outlook:
As we enter the last two trading months of the year, we expect
liquidity will likely dwindle towards December. In terms of valuation,
we see values are more abundant in the China high-yield space than
in other Asian high-yield credits. We expect overall trading technicals
of Asian credits to remain supportive. Therefore, occasional market
disruption as a result of temporary negative headlines will likely
present opportunities for acquiring good credits at attractive prices.
Performance since launch (with dividends reinvested) 1
%
30
Value Partners Greater China High Yield Income Fund
(P Acc USD)
+19.2%
20
10
0
-10
3/2012
10/2012
2/2013
6/2013
Performance update
The Fund
(P Acc USD)
One
month
+0.8%
10/2013
2/2014
6/2014
10/2014
1
Three
Six
months months
-0.5%
+4.2%
One
year
Since
launch
+5.4%
+19.2%
Calendar year performance 1
The Fund
(P Acc USD)
2014
(YTD)
2013
2012
(Since launch)
+4.3%
+1.2%
+13.0%
Top 10 securities holdings
Name
Times Property
12.625% 03/21/2019
Kaisa Group
10.25% 01/08/2020
Sumitomo Mitsui
10.231% Perpetual
CIFI Holdings
12.25% 04/15/2018
Sunac
9.375% 04/05/2018
Shui On Development
10.125% Perpetual
KWG Property
13.25% 03/22/2017
China SCE Property
11.5% 11/14/2017
Caifu Holdings
8.75% 01/24/2020
Shenzhou International
0.5% 06/18/2019 CB
Sector 2
Real estate
Real estate
Banks
Real estate
Real estate
Real estate
Real estate
Real estate
Diversified financials
Consumer durables &
apparel
Country
China/
Hong Kong
China/
Hong Kong
Japan
%
2.3
China/
Hong Kong
China/
Hong Kong
China/
Hong Kong
China/
Hong Kong
China/
Hong Kong
China/
Hong Kong
China/
Hong Kong
1.9
2.2
2.0
1.8
1.7
1.7
1.6
1.6
1.6
1. Source: HSBC Institutional Trust Services (Asia) Limited, in USD, NAV to NAV, with dividends reinvested. Performance data is net of all fees.
2. Classification is based on Global Industry Classification Standard (GICS).
9th Floor, Nexxus Building, 41 Connaught Road Central, Hong Kong Tel: (852) 2880 9263 Fax: (852) 2565 7975
Email: [email protected] Website: www.valuepartners.com.hk
23
Value Partners Greater China High Yield Income Fund
31 October 2014
Sector exposure 2 3
Dividend information – Class MDis 7
Real estate
Banks
Others
Energy
Diversified financials
Cash 4
Consumer durables & apparel
Software & services
Commercial & professional services
Materials
Retailing
Average duration
Yield to Maturity 5
Number of bond issuers
47.5%
10.6%
9.3%
6.8%
5.2%
5.0%
4.0%
3.9%
2.8%
2.6%
2.4%
P MDis USD
P MDis HKD
A MDis AUD Hedged
A MDis CAD Hedged
A MDis NZD Hedged
Classes 8
3.2 years
9.2%
108
66.1%
19.5%
9.6%
5.0%
0.5%
3.5%
21.7%
49.3%
20.1%
5.0%
Investment grade
High yield
Average credit rating
2.8%
2.0%
0.8%
0.5%
13.7%
Annualized
yield 9
9.6%
9.6%
11.7%
10.2%
11.7%
Ex-dividend
date
31-10-2014
31-10-2014
31-10-2014
31-10-2014
31-10-2014
71.0%
B
NAV
11.92
11.83
9.41
9.36
10.10
9.61
9.65
9.69
ISIN
KYG9319N1097
KYG9319N1253
KYG9319N1170
KYG9319N1337
KYG9319N1824
KYG9319N2327
KYG9319N2400
KYG9319N2574
Bloomberg
VPGCPUA KY
VPGCPHA KY
VPGPUMD KY
VPGPHMD KY
VPPSHMA KY
VPGCAUD KY
VPGCCAD KY
VPGCHNZ KY
Fund facts
Value Partners Hong Kong Limited
USD
HSBC Trustee (Cayman) Limited
HSBC Institutional Trust Services (Asia) Limited
P Acc & MDis (USD/HKD) – 27 Mar 2012
A MDis (AUD/CAD/NZD) – 23 Sep 2013
P MDis (SGD) – 26 Sep 2014
MDis – Aim at Monthly distribution,
subject to Manager’s discretion
Fee structure (Class A and Class P)
Minimum subscription
Subscription fee
Management fee
Performance fee
Dealing day
4.0%
Currency breakdown
USD
CNY
HKD
GBP
AUD
SGD
P Acc USD
P Acc HKD
P MDis USD
P MDis HKD
P MDis SGD Hedged
A MDis AUD Hedged
A MDis CAD Hedged
A MDis NZD Hedged
Manager:
Base currency:
Administrator:
Custodian:
Launch date:
Dividend policy 7:
Credit ratings
AA
BBB
BB
B & Below
Others 6
Cash 4
Dividend
amount / unit
0.0750
0.0750
0.0941
0.0821
0.0947
NAVs & Codes
Geographical exposure 3
China/Hong Kong
Others
Indonesia
Cash 4
Classes 8
HK$80,000/USD10,000 or equivalent
Up to 5%
1.5% p.a.
Nil
Daily
Value Partners Investment Team
80.3%
Chairman & Co-Chief Investment Officer: Cheah Cheng Hye
Deputy Chairman & Co-Chief Investment Officer: Louis So
Deputy Chief Investment Officer: Renee Hung
Senior Investment Director: Norman Ho, CFA
Investment Directors: Eric Chow; Alan Wang, CFA
Senior Fund Managers: Doris Ho; Kyu Ho; Michelle Yu, CFA; Yu Xiao Bo
Fixed Income Fund Managers: Gordon lp, CFA; Jason Yan, CFA, ACCA
Recent award
3. Exposure refers to net exposure (long exposure minus short exposure). Due to rounding, percentages shown may not add up to 100%. 4. Cash refers to net cash on hand
excluding cash for collaterals and margins. 5. Investors should note that Yield to Maturity is for reference only and does not represent the actual performance of the Fund or
the dividend yield received by investors, nor does a positive yield imply a positive return. 6. Including bonds whose issuers do not seek credit ratings (Convertible Bonds 8.5%;
Dim Sum Bonds 5.6%; Greater China Bonds 3.5%; Philippines Bonds 1.1%; Australia 0.8%; Singapore Bonds 0.5%). 7. The manager intends to declare and pay monthly
dividends equal to all or substantially all of the net income attributable to each of the Distribution Classes. However, there is neither a guarantee that such dividends will be
made nor will there be a target level of dividend payout. No dividends will be paid with respect to the Accumulation Classes. Distribution may be paid from capital of the fund.
Investors should note that where the payment of distributions are paid out of capital, this represents and amounts to a return or withdrawal of part of the amount that have
been originally invested or capital gains attributable to that and may result in an immediate decrease in the value of units. Please refer to the Explanatory Memorandum for
further details including the distribution policy. 8. The fund may invest in financial derivative instruments (“FDI”) for hedging purposes. In adverse situations, the fund’s use
of FDI may become ineffective in hedging and the fund may suffer significant losses. Each hedged share class will hedge the fund’s base currency back to its currency of
denomination on a best efforts basis. However, the volatility of the hedged classes measured in the fund’s base currency may be higher than that of the equivalent class
denominated in the fund’s base currency. Risks associated with FDI include counterparty risk, credit risk and liquidity risk. Such exposure may lead to a high risk of capital
loss. The AUD/CAD/NZD/SGD Hedged Classes are not recommended for investors whose base currency of investment is not in the aforesaid currencies. 9. Annualized yield
of Class MDis is calculated as follows: (dividend amount/NAV as of ex-dividend date) x 12. Investors should note that yield figures are estimated and for reference only and
do not represent the performance of the fund, and that there is no guarantee as to the actual frequency and/or amount of dividend payments.
This document is prepared by Value Partners Hong Kong Limited for information purposes only. Neither Value Partners Hong Kong Limited nor the Directors of the company
accept any responsibility whatsoever for the accuracy or completeness of the information provided by third parties contained in this document. It should not be copied or
distributed to third parties without the written consent of Value Partners Hong Kong Limited.
This document does not constitute a prospectus, an offer or an invitation to subscribe any securities, or a recommendation in relation to any securities.
Investors should note investment involves risk and past performance is not indicative of future results.
Investors should refer to the explanatory memorandum for details and risk factors in particular those associated with investment in China and other markets in the Asian
region, non-investment grade debt securities, and in companies with medium or small capitalization.
This document has not been reviewed by the Securities and Futures Commission. Issuer: Value Partners Hong Kong Limited.
GCHY_Master_201410
Mr. Gordon IP (Value Partners’ Fund Manager):
One of the top 10 Astute Investors in
Asian G3 bonds in Hong Kong in 2014
~ The Asset
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