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Funds Menu
For Non-Professional Investors
September 2013
Funds Menu January 2015
For Non-Professional Investors
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
Value Partners China A-Share Select Fund 25-26
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.
Value Partners China A-Share Select Fund intends to invest predominantly in China A Shares directly, via its Managers RQFII quota. Investors will be subject to certain risks including repatriation risk, custodial risk, regulatory risk and risks associated with the Managers RQFII status. In addition, the RQFII policy and rules are relatively new and there may be uncertainty in implementation and such policy and rules are subject to change. All these may adversely impact the fund. The fund and its primary investments are denominated in RMB. RMB is currently not a freely convertible currency and is subject to foreign exchange control policies, as well as repatriation restrictions imposed by the PRC government. Investors whose base currencies of investments are not in RMB should take into account the potential risk of loss arising from fluctuations in value between such currencies and the RMB.
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.
2
Value Partners Fund Offerings
Asia Pacific China Taiwan
Classic Fund
A value fund investing primarily in a broad mandate in the Asia-Pacific markets with an emphasis on Greater China equities.
China Convergence Fund
A value fund mainly investing primarily in China A, B and H shares.
Taiwan Fund
A value fund mainly investing in undervalued Taiwan and Taiwan-related entities.
High-Dividend Stocks Fund
A value fund mainly investing in relatively high yielding investment in Asian region.
Chinese Mainland Focus Fund
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 investing primarily in undervalued small-cap entities with a focus on Greater China.
China A-Share Select Fund
A fund predominately investing in RMB-denominated equities in the PRC utilizing the Managers RQFII quota.
Absolute return long-biased strategy
China
Greater China High Yield Income Fund
A fund that aims to provide regular income through primarily investing in Greater China debt securities.
Fixed income strategy
CIES
Eligible*
* 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).The CIES was suspended by the Hong Kong Government with effect
from 15 January 2015 until further notice.
3
Upd
ated
to e
nd o
f Dec
embe
r 20
14
Rec
ent p
erfo
rman
ce20
14Y
TD
Val
ue P
artn
ers C
lass
ic F
und
(A u
nit)
1 A
pr 1
993
21.2
%83
.6%
5.8%
15.9
%41
.8%
41.1
%-4
7.9%
82.9
%20
.2%
-17.
2%14
.0%
11.2
%13
.5%
2,57
0.3%
Hon
g K
ong
Han
g Se
ng In
dex*
-15.
7%33
.1%
13.4
%9.
8%35
.3%
45.3
%-4
6.5%
56.6
%8.
6%-1
7.4%
27.7
%6.
5%5.
5%41
7.3%
Val
ue P
artn
ers C
lass
ic F
und
(B u
nit)
15 M
ay 1
996
USD
1,4
66.0
4m20
.9%
83.1
%5.
6%15
.6%
41.2
%40
.4%
-48.
1%82
.0%
19.6
%-1
7.6%
13.4
%10
.6%
13.0
%1,
113.
9%H
ong
Kon
g H
ang
Seng
Inde
x*(T
otal
A, B
& C
uni
ts)
-15.
7%33
.1%
13.4
%9.
8%35
.3%
45.3
%-4
6.5%
56.6
%8.
6%-1
7.4%
27.7
%6.
5%5.
5%20
5.8%
Val
ue P
artn
ers C
lass
ic F
und
(C u
nit)
15 O
ct 2
009
--
--
--
-7.
7%21
.2%
-17.
6%13
.4%
10.8
%13
.3%
53.1
%H
ong
Kon
g H
ang
Seng
Inde
x*-
--
--
--
-0.3
%8.
6%-1
7.4%
27.7
%6.
5%5.
5%28
.0%
Val
ue P
artn
ers H
igh-
Div
iden
d St
ocks
Fun
d(C
lass
A1)
2 Se
p 20
02U
SD 2
,888
.49m
10.5
%79
.7%
8.9%
12.2
%35
.0%
44.2
%-4
6.8%
82.8
%25
.8%
-11.
9%25
.2%
8.1%
9.4%
654.
1%M
SCI A
sia
Paci
fic (e
x-Ja
pan)
Inde
x(T
otal
Cla
ss A
1, A
2MD
is &
Z)
-5.7
%41
.5%
19.7
%20
.1%
28.2
%34
.8%
-54.
1%68
.2%
15.2
%-1
6.6%
18.6
%3.
4%2.
8%30
3.3%
Val
ue P
artn
ers H
igh-
Div
iden
d St
ocks
Fun
d(C
lass
A2)
28 S
ep 2
012
--
--
--
--
--
7.2%
7.5%
9.4%
26.1
%
Val
ue P
artn
ers I
ntel
ligen
t Fun
ds --
Chi
na C
onve
rgen
ce F
und
14 J
ul 2
000
USD
342
.07m
1.1%
92.1
%0.
8%3.
9%86
.9%
56.6
%-4
5.2%
87.1
%21
.3%
-22.
4%9.
3%9.
2%14
.6%
1,36
8.9%
M
SCI C
hina
Inde
x-1
4.0%
87.6
%1.
9%19
.8%
82.9
%66
.2%
-50.
8%62
.3%
4.6%
-18.
4%22
.7%
3.6%
8.0%
173.
7%
Chi
nese
Mai
nlan
d Fo
cus F
und
27 N
ov 2
003
USD
141
.41m
-3.
9%8.
4%11
.6%
48.1
%56
.0%
-44.
8%86
.0%
23.9
%-1
7.8%
11.6
%8.
3%10
.6%
306.
3%
MSC
I Chi
na In
dex
-20
.1%
1.9%
19.8
%82
.9%
66.2
%-5
0.8%
62.3
%4.
6%-1
8.4%
22.7
%3.
6%8.
0%31
6.8%
Val
ue P
artn
ers C
hina
Gre
ench
ip F
und
Lim
ited+
8 A
pr 2
002
HK
D 5
,243
.58m
0.2%
85.6
%1.
5%16
.1%
43.7
%36
.3%
-57.
4%11
6.7%
37.8
%-2
5.0%
24.8
%16
.5%
2.4%
509.
2%H
ong
Kon
g H
ang
Seng
Inde
x*-1
3.9%
34.9
%13
.2%
8.4%
39.0
%43
.4%
-46.
4%56
.6%
8.6%
-17.
0%26
.9%
6.6%
5.5%
206.
2%M
SCI C
hina
Fre
e H
KD
-10.
5%86
.7%
2.0%
19.5
%83
.4%
66.7
%-5
1.1%
62.4
%4.
9%-1
8.2%
22.0
%3.
7%8.
0%47
9.5%
Val
ue P
artn
ers T
aiw
an F
und
3 M
ar 2
008
USD
61.
45m
--
--
--
-35.
7%58
.0%
19.2
%-1
3.0%
26.1
%13
.7%
2.1%
54.2
%Ta
iwan
Sto
ck E
xcha
nge
Inde
x-
--
--
--4
2.4%
81.6
%13
.3%
-19.
7%18
.2%
12.2
%5.
1%39
.3%
MSC
I Tai
wan
Inde
x-
--
--
--4
7.9%
76.4
%21
.3%
-19.
5%16
.9%
9.1%
9.4%
25.3
%
Val
ue P
artn
ers G
reat
er C
hina
Hig
h Y
ield
Inco
me
Fund
28
Mar
201
2U
SD 1
,100
.4m
--
--
--
--
--
13.0
%1.
2%1.
1%15
.5%
(P U
SD A
cc)
Unl
ess o
ther
wis
e st
ated
, per
form
ance
is c
alcu
late
d in
USD
, NA
V to
NA
V, w
ith d
ivid
ends
rein
vest
ed. P
erfo
rman
ce d
ata
is n
et o
f all
fees
.
S
tarti
ng fr
om Ju
ly 2
009,
the
MSC
I Chi
na In
dex
will
be
used
as t
he re
fere
nce
inde
x fo
r the
ent
ire h
isto
ry o
f the
fund
. Han
g Se
ng H
Sha
res I
ndex
, Sha
ngha
i Com
posi
te In
dex
and
Shen
zhen
Com
posi
te In
dex
wer
e no
long
er sh
own
for c
ompa
rison
.
No
part
of t
his d
ocum
ent,
or a
ny in
form
atio
n co
ntai
ned
here
in, m
ay b
e di
stri
bute
d, re
prod
uced
, tak
en o
r tra
nsm
itted
into
the
Uni
ted
Stat
es o
r its
terr
itori
es o
r pos
sess
ion.
Any
failu
re to
com
ply
with
the
rest
rict
ions
may
con
stitu
te a
vio
latio
n of
the
rele
vant
law
s.
2006
2007
*Ind
ices
com
bine
the
pric
e re
turn
indi
ces u
p to
31
Dec
embe
r 200
4 w
ith th
e to
tal r
etur
n in
dice
s the
reaf
ter.
Tota
l ret
urn
indi
ces i
nclu
de d
ivid
end
rein
vest
men
t whe
reas
pric
e re
turn
indi
ces d
oes n
ot ta
ke in
to a
ccou
nt re
inve
stm
ent o
f div
iden
ds.
Sinc
ein
cept
ion
Ince
ptio
nda
te
Sour
ce: H
SBC
Inst
itutio
nal T
rust
Ser
vice
s (A
sia)
Lim
ited
and
Blo
ombe
rg.
2002
Fund
size
2005
2012
2011
2013
+ Per
form
ance
is c
alcu
late
d in
HK
D, N
AV
to N
AV
, with
div
iden
ds re
inve
sted
. Per
form
ance
dat
a is
net
of a
ll fe
es. I
nves
tors
shou
ld n
ote
that
figu
res f
or N
on-R
edee
mab
le C
lass
N sh
ares
show
n ab
ove
may
diff
er fr
om th
ose
of c
lass
es c
urre
ntly
ava
ilabl
e fo
r sub
scrip
tion
(nam
ely
Cla
ss A
and
Cla
ss A
2 Q
Dis
), du
e to
diff
eren
ces i
n la
unch
dat
e of
thes
e cl
asse
s. Fo
r Cla
ss A
, the
sinc
e la
unch
retu
rn is
+72
.3%
.
2003
2010
2004
2009
2008
Dis
clai
mer
: Inv
esto
rs sh
ould
not
e in
vest
men
t inv
olve
s ris
k. T
he p
rice
of u
nits
may
go
dow
n as
wel
l as u
p an
d pa
st p
erfo
rman
ce is
not
indi
cativ
e of
futu
re re
sults
. In
vest
ors s
houl
d re
ad th
e ex
plan
ator
y m
emor
andu
m fo
r det
ails
and
risk
fact
ors i
n pa
rtic
ular
thos
e as
soci
ated
with
inve
stm
ent i
n em
ergi
ng m
arke
ts.
Info
rmat
ion
in th
is re
port
has
bee
n ob
tain
ed fr
om so
urce
s be
lieve
d to
be
relia
ble
but V
alue
Par
tner
s Lim
ited
does
not
gua
rant
ee th
e ac
cura
cy o
r com
plet
enes
s of t
he in
form
atio
n pr
ovid
ed b
y th
ird
part
ies.
Thi
s rep
ort h
as n
ot b
een
revi
ewed
by
the
Secu
ritie
s and
Fut
ures
Com
mis
sion
. Iss
uer:
Val
ue P
artn
ers L
imite
d
4
Value Partners ClassiC Fund
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.
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.
Performance update 2
A Units (USD)
Hang Seng Index 3
B Units (USD)
C Units (USD)
One month +4.6% -1.6% +4.5% +4.7%One year +13.5% +5.5% +13.0% +13.3%Three years +43.8% +43.5% +41.7% +42.4%Five years +43.2% +28.5% +39.7% +42.2%Since launch +2,570.3% +417.3% +1,113.9% +53.1% Annualized return +16.3% +7.8% +14.3% +8.5% Annualized volatility 21.8% 27.0% 22.7% 18.8%
Performance since launch (with dividends reinvested) 2
%
0
400
800
1200
1600
2000
2400
2800
20142012201020082006200420022000199819961993
+2,570.3%
+417.3%
Value Partners Classic Fund (A Units, USD)Hong Kong Hang Seng Index 3
NAV per unit : A Units - USD267.03 B Units - USD121.39 C Units - USD15.31Fund size : USD1,466 million
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual2003 +6.2% +4.9% +0.7% -2.2% +9.3% +4.5% +9.8% +6.9% +6.3% +8.5% +1.4% +6.5% +83.6%2004 +2.9% +4.5% +0.1% -2.9% -6.1% -0.8% -0.1% -0.1% +4.2% +0.7% +3.9% +0.0% +5.8%2005 +0.7% +3.4% -1.1% +0.3% -1.2% +4.0% +1.6% -0.1% +3.1% -1.9% +3.8% +2.5% +15.9%2006 +9.2% +3.5% +6.7% +4.6% -5.6% -2.6% +3.2% +0.7% +0.8% +5.0% +6.4% +4.6% +41.8%2007 +2.1% +2.5% +2.5% +5.0% +3.7% +4.8% +12.6% -7.4% +10.5% +8.9% -9.6% +1.6% +41.1%2008 -14.0% +6.1% -9.5% +10.9% -2.2% -8.3% -5.3% -8.6% -11.0% -31.0% +5.2% +13.4% -47.9%2009 -3.2% -0.2% +8.2% +8.2% +20.1% +1.3% +11.5% +0.1% +2.5% +7.5% +5.9% +2.2% +82.9%2010 -5.8% +2.2% +7.1% +3.1% -6.1% +1.1% +5.0% +0.2% +10.5% +3.8% -0.7% -0.7% +20.2%2011 -1.5% -1.6% +5.4% +3.5% -1.3% -3.2% +2.8% -7.5% -19.8% +15.3% -7.8% +1.0% -17.2%2012 +7.8% +6.3% -5.7% +1.6% -10.2% -2.1% -1.3% +1.7% +6.4% +2.3% +1.9% +5.9% +14.0%2013 +7.9% -2.5% -2.9% +0.6% +1.2% -9.0% +2.3% +0.5% +2.2% +6.2% +4.8% +0.4% +11.2%2014 -5.5% +2.3% -4.0% -1.6% +2.0% +4.6% +6.2% +3.0% -1.5% +1.6% +1.9% +4.6% +13.5%
Value Partners Classic Fund A Units (USD): Monthly performance from 1 Jan 2003 to 31 Dec 2014 2
31 deCember 2014 2 Pages
Annual performance 2
A Units (USD)
B Units (USD)
C Units (USD)
2003 +83.6% +83.1% N/A2004 +5.8% +5.6% N/A2005 +15.9% +15.6% N/A2006 +41.8% +41.2% N/A2007 +41.1% +40.4% N/A2008 -47.9% -48.1% N/A2009 +82.9% +82.0% +7.7% 4
2010 +20.2% +19.6% +21.2%2011 -17.2% -17.6% -17.6%2012 +14.0% +13.4% +13.4%2013 +11.2% +10.6% +10.8%2014 +13.5% +13.0% +13.3%
9th Floor, Nexxus Building, 41 Connaught Road Central, Hong Kong Tel : (852) 2880 9263 Fax : (852) 2565 7975Email : [email protected] Website : www.valuepartners.com.hk
HHHHMorningstar RatingTM1
As at 31-12-2014
NAVs & codes
Classes 5 NAV ISIN BloombergA Units (USD) 267.03 KYG9316N1025 VLPARAI KYB Units (USD) 121.39 KYG931701018 VLPARBI KYC Units (USD) 15.31 KYG9316N1280 VLPARCI KYC Units (HKD) 6 118.7352 KYG9316N1280 VLPARCI KYC Units (AUD) Hedged 12.42 KYG9316N1363 VLCHAUD KYC Units (CAD) Hedged 12.24 KYG9316N1447 VLCHCAD KYC Units (NZD) Hedged 12.28 KYG9316N1512 VLCHNZD KY
ValuePartnersClassicFund(thefund)primarilyinvestsinstockmarketsoftheAsia-Pacificregion,withaGreaterChinafocus. PleasepayparticularattentiontotheriskofinvestmentinChinaandothermarketsintheAsianregionandincompanies
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 fundmayalso invest inderivativeswhichcan involvematerial risks,e.g.counterpartydefault risk, insolvencyorliquidityrisk,andmayexposethefundtosignificantlosses.
Youshouldnotmakeinvestmentdecisiononthebasisofthismaterialalone.Pleasereadtheexplanatorymemorandumfor details and risk factors.
5
Value Partners Classic Fund31 deCember 2014
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 funds use of FDI may become ineffective in hedging and the fund may suffer significant losses. Each hedged share class will hedge the funds base currency back to its currency of denomination on a best efforts basis. However, the volatility of the hedged classes measured in the funds base currency may be higher than that of the equivalent class denominated in the funds 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 Funds 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 managers 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 funds 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, Morningstars 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.
Top 10 securities holdings
Name Industry 7 %Luye Pharma Pharmaceuticals,
biotechnology & life sciences8.4
Chongqing Changan Automobile
Automobiles & components 8.1
PetroChina Energy 6.5China Life Insurance Insurance 5.1China Vanke Real estate 4.8Ping An Insurance Insurance 4.8Tasly Pharmaceutical Pharmaceuticals,
biotechnology & life sciences3.6
Industrial & Commercial Bank Of China
Banks 3.4
CGN Power Utilities 3.3China Taiping Insurance Insurance 2.5
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.
Portfolio characteristics
As at 31 Dec 2014 2015 10Price/earnings ratio 13.8 timesPrice/book ratio 2.4 timesDividend yield 2.5%
Geographicalexposurebylisting8
25%H Shares23%Hong Kong
16%China A Shares15%Red Chips
11%China B Shares5%Taiwan
3%Others2%Singapore2%9Cash
Sector exposure 7 8
18%Health care17%Consumer discretionary
14%Insurance13%Utilities
10%Information technology8%Energy
6%Real estate5%Banks5%Others
4%Telecom services2%9Cash
Value Partners Investment TeamChairman & Co-Chief Investment Officer: Cheah Cheng HyeDeputyChairman&Co-ChiefInvestmentOfficer:Louis SoDeputyChiefInvestmentOfficer:Renee HungSenior Investment Director: Norman Ho, CFAInvestment Directors: Eric Chow; Alan Wang, CFASenior Fund Managers: Doris Ho; Kyu Ho; Lai Voon San; Michelle Yu, CFA; Yu Xiao Bo
Fund factsManager: Value Partners LimitedBase currency: USDTrustee: Bank of Bermuda (Cayman) LimitedCustodian: HSBC Institutional Trust Services (Asia) LimitedLaunch date: 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 2014A, 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.
Fee structureA Units B Units C Units
Minimum subscription Closed Closed USD10,000 or equivalent Minimum subsequent subscription Nil Nil
USD5,000 or equivalent
Subscription fee Closed Closed up to 5%Management fee 0.75% p.a. 1.25% p.a. 1.25% p.a.Performance fee 11 15% of profit (High-on-high principle)Redemption fee Nil
Dealing day DailyredemptionDaily
redemption Daily dealing
Recent awardsFund of the Year Awards 2011OutstandingAchieverGreaterChinaEquitycategory 12~ Benchmark
2011 - Long-Term Performance Award (10 years) 13~ AsiaHedge Awards 2011
GREATER CHINAEQUITY
OUTSTANDING ACHIEVER
VP
CF_
Mas
ter_
2014
12
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
Value Partners Classic Fund Commentary / Fourth Quarter 2014 (including Yearend 2014 Summary)
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.
Value Partners Classic Fund (the Fund) finished 2014 on a high after a relatively volatile year. Chinese equities drifted lower in the first half of the year, only to rally towards the end as the Shanghai-Hong Kong Stock Connect and a loosening monetary stance helped drive equity markets higher. The Fund delivered a positive return of 13.5% for the year. For reference, the Hang Seng Index gained 5.5% for the year while the MSCI China Index rose 8.0%. China reforms and supportive macros The China story continues to remain compelling as we are only in the early stage of reform programs announced in 2013. While investors are still wrestling with the reality that Chinas growth continues to slow, we think that this could be a positive factor in delaying the recognition of reform dividends. In 2014, China tackled some of the more difficult aspects on its reform agenda, such as raising SOE (state-owned enterprise) profitability and efficiency. SOE reform measures are expected to continue, notably in the areas of asset divestment, industry consolidation, mixed ownership and equity incentive schemes. Furthermore, the Communist Party had its recent Fourth Plenum focusing on rule of law for the first time. The blueprint improves judicial procedures and the separation of judicial and administrative functions. These changes will play a significant role in Chinas long-term economic growth and political stability, benefiting those who are doing business in China. These types of reforms are not easy to execute and demonstrate the significant political clout and determination of the current administration. From a macro perspective, a stronger US dollar environment and lower commodity prices will aid to maintain low inflation in China and leave room for further interest rate cuts. A more accommodative monetary policy environment is suitable in a time of significant reform. This will help minimize financial market shocks as the rapid pace of reforms may expose its weakest links. We expect the Chinese government to continue providing support to domestic growth by continuing infrastructure projects and housing stimulus plans to maintain economic growth rate at around 7% to 7.5%. Performance driven by A shares and stock selection in 2014 From a portfolio strategy perspective, the Fund has remained fully invested throughout much of the year, underpinning our positive view on equity markets. We have further engaged in our high conviction ideas and remained aggressive in employing our active strategy. In 2014, our significant additions in A shares and stock selection were the key performance drivers of the Fund.
7
Page 2
At the beginning of 2014, our portfolio started with an exposure of approximately 10% in Chinese A shares. With the anticipated launch of the Shanghai-Hong Kong Stock Connect and low market valuations, we recognized potentials for strong A-share performance. With the support from our Shanghai research team since 2009, we significantly increased the Funds A-share exposure to 27%1 as of the end of October ahead of the official launch of the Stock Connect. We favored stocks that are dually listed in the Shanghai and Hong Kong stock exchanges, as well as selected companies that are cheaper in the A-share market. We also favored high-yielding stocks and unique opportunities available in the A-share market. Despite the lukewarm take-up of the Stock Connect, we were able to take advantage of the broader A-share rally. The CSI 300 Index has gained 52.1% (in US$ terms) over the year, particularly spurred by interest rate cuts and recovering retail participation in the domestic stockmarket in the final month. From a stock selection perspective, our positions in China healthcare, properties and energy have particularly yielded a positive impact on the portfolio. Going forward, we will continue to find attractive value stocks, especially in old economy sectors including banking, insurance and property. Healthcare, as one of the few new economy sectors, will however remain one of our favorites. Investment case study Lijun International Pharmaceutical Lijun International Pharmaceutical (Lijun) is a healthcare company that has been one of our top holdings and key performance contributors. It is one of the top three largest makers of infusion products in China. Intravenous infusion solutions are a critical component of Chinas developing healthcare system, and Lijun has experienced stable double-digit growth in the past five years. While Lijuns competitors focus on the lower end of the market, Lijun pioneers in producing non-PVC soft bag injections with a market share of over 30%. The advantages of non-PVC soft bag injections over traditional glass-based injection bottles include lower weight for transportation and lower risk of breakage. Therefore, we expect non-PVC soft bags to grow faster than the overall market. In addition, Lijun operates the largest single-factory production facility for large-volume infusion products, giving it cost advantage with economies of scale. Lijuns strong branding and low-cost production also help the company to generate a gross margin of over 50% in the first half of 2014. On the back of an experienced management team and the capacity for further expansion, we are hopeful that Lijun will continue to deliver strong earnings growth. While the overall healthcare sector has performed strongly in the past two years, Lijun is currently trading at 12.7 times of 2015 forward price-to-earnings ratio, which is reasonable given its business prospects. Amidst a volatile environment, we believe this is a good time for Value Partners to thrive further as our region is refocusing on stock picking and fundamental value. While we expect markets to remain somewhat volatile, we are optimistic about the outlook for Chinese equities. We are also well-positioned to take advantage of market fluctuations. Corporate update Value Partners has continued to grow from strength to strength in 2014. Our assets under management (AUM) have grown by more than 20% in 2014 to over US$12.6 billion. Our performance also continued to win us industry accolades. Among our numerous awards in 2014 include Asian Fund House of the Year and Asset Management Company of the Year (Hong Kong) 2. In addition, we are pleased to report that Value Partners Group has won the Enterprise Award in the DHL/SCMP Hong Kong Business Awards 2014, a distinguished title given to entrepreneurs and companies that have made important contributions to Hong Kong and the neighboring Pearl River Delta. This is the second time that we were given this renowned title after receiving it in 2005, from a different judging panel. Meanwhile, in the Benchmark Fund of the Year Awards 2014, we were named the Outstanding Achiever in the China Equity and High Yield Fixed Income categories.
8
Page 3
Value Partners leading position in Asian fund management is also reflected in the industry leadership role played by our Chairman and Co-Chief Investment Officer, Dato Cheah Cheng Hye. In 2014, Dato Cheah was invited to speak at many industry events in Hong Kong, Shanghai and Singapore, organized by professional and public organizations, including the Hong Kong Securities and Futures Commission (SFC); the CFA Institute; The Hong Kong Society of Financial Analysts; and Business China Singapore, a government-supported group seeking to strengthen business ties between Singapore and China. Dato Cheah spoke mainly on investing and corporate governance. Also, from early 2014, Dato Cheah delivered a speech at various gatherings entitled Chinese stocks: From Ugly Duckling to Beautiful Princess, predicting a renaissance for the Chinese equity market, arising from President Xi Jinpings program emphasizing deregulation, market-opening, a growing role for private enterprise and much improved corporate governance. We are beginning to see the renaissance in action. In closing this report, wed like to convey our heartfelt thanks to our investors for their continued support and the confidence they have placed in us. The recovery of value stocks showed that our value discipline has once again borne fruit as we stay true to our convictions. We look forward to achieving new highs and bringing another prosperous year for investors. Value Partners Investment Team 9 January 2015 1 Including exposure from both direct A-share investment and indirect investment through China A-Share Access Products (CAAPs). 2 Value Partners was named Asian Fund House of the Year in AsianInvestors Investment Performance Awards 2014 and Asset Management Company of the Year (Hong Kong) in The Asset Triple A Investor and Fund Management Awards 2014. 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 31 December 2014. 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.
9
Page
4
Val
ue P
artn
ers C
lass
ic F
und:
10
bigg
est h
oldi
ngs o
f sec
uriti
es a
s at 3
1 D
ecem
ber
2014
S
tock
In
dust
ry
Val
uatio
n
(201
5 Es
timat
es)
Rem
arks
CG
N P
ower
(C
ode:
181
6 H
K)
Mar
ket c
ap:
US$
19.8
bill
ion
Nuc
lear
pow
er
prod
ucer
Pr
ice:
HK
$3.3
7 P/
E: 1
9.0x
P/
B: 2
.0x
Yie
ld: 1
.7%
List
ed in
Hon
g K
ong
in D
ecem
ber
2014
, CG
N P
ower
is th
e le
adin
g nu
clea
r po
wer
pro
duce
r in
C
hina
with
the
bigg
est t
otal
inst
alle
d ca
paci
ty a
s of
Jun
e 20
14.
Its n
ucle
ar p
ower
sta
tions
are
st
rate
gica
lly lo
cate
d in
eco
nom
ical
ly d
evel
oped
regi
ons
in C
hina
that
hav
e a
stro
ng d
eman
d fo
r el
ectri
city
. W
ithin
Chi
nas
ene
rgy
spec
trum
, nuc
lear
pow
er is
uni
que
in th
at it
has
the
low
est
earn
ings
vol
atili
ty.
As t
he C
hine
se g
over
nmen
t sup
ports
cle
an e
nerg
y de
velo
pmen
t, C
GN
Pow
er
is w
ell
posi
tione
d to
ben
efit
from
the
pot
entia
l gr
owth
of
the
nucl
ear
pow
er i
ndus
try i
n th
e co
min
g ye
ars.
Chi
na L
ife In
sura
nce
(Cod
e: 2
628
HK
) M
arke
t cap
: U
S$14
3.8
billi
on
Insu
ranc
e Pr
ice:
HK
$30.
45
P/EV
*: 1
.3x
Yie
ld: 1
.7%
Chi
na L
ife I
nsur
ance
(C
hina
Life
),
toge
ther
with
its
sub
sidi
arie
s, is
the
lar
gest
int
egra
ted
insu
rer i
n C
hina
. It
has t
he m
ost e
xten
sive
dis
tribu
tion
and
serv
ice
netw
ork
amon
g al
l ins
uran
ce
com
pani
es i
n C
hina
, co
verin
g lif
e in
sura
nce,
pro
perty
& c
asua
lty i
nsur
ance
, pe
nsio
n pl
ans
(cor
pora
te a
nnui
ty),
asse
t man
agem
ent a
nd in
dust
rial i
nves
tmen
t. F
ollo
win
g its
man
agem
ent's
ef
forts
to
scal
e do
wn
banc
assu
ranc
e an
d fo
cus
on g
row
ing
agen
cy o
ver
the
past
few
yea
rs,
Chi
na L
ife is
fina
lly a
ble
to e
xecu
te o
n its
muc
h ne
eded
cha
nges
and
rest
ore
its g
row
th p
rofil
e.
Mea
nwhi
le,
it is
exp
ecte
d to
ben
efit
from
bet
ter
inve
stm
ent
retu
rns
and
impr
ovin
g bu
sine
ss
perf
orm
ance
am
idst
rate
cut
cyc
les.
Chi
na T
aipi
ng In
sura
nce
(Cod
e: 9
66 H
K)
Mar
ket c
ap:
US$
8.9
billi
on
Insu
ranc
e Pr
ice:
HK
$22.
20
P/EV
*: 1
.0x
Yie
ld: 0
.0%
Chi
na T
aipi
ng In
sura
nce
(C
TI)
eng
ages
in th
e un
derw
ritin
g of
dire
ct li
fe in
sura
nce
busi
ness
, pr
oper
ty a
nd c
asua
lty i
nsur
ance
bus
ines
s, an
d re
insu
ranc
e bu
sine
ss.
The
com
pany
has
see
n pe
er-b
eatin
g gr
owth
in
life
NB
V (
new
bus
ines
s va
lue)
in
2014
on
the
back
of
spec
ific
adva
ntag
es in
term
s of
its
larg
e sc
ale
agen
t rec
ruitm
ent.
W
ith a
foc
us o
n lif
e in
sura
nce,
it is
al
so w
ell p
ositi
oned
to b
enef
it fr
om m
easu
res
by th
e C
hine
se g
over
nmen
t to
let t
he in
sura
nce
indu
stry
pla
y a
bigg
er ro
le in
the
soci
al se
curit
y ne
twor
k in
the
med
ium
to lo
ng te
rm.
Chi
na V
anke
(C
ode:
000
002
CH
) M
arke
t cap
: U
S$24
.7 b
illio
n
Rea
l est
ate
Pric
e: C
NY
13.9
0 P/
E: 7
.4x
P/B
: 1.5
x Y
ield
: 3.7
%
Chi
na V
anke
is C
hina
s la
rges
t dev
elop
er o
f res
iden
tial p
rope
rties
in te
rms
of c
ontra
cted
sal
es.
It ha
s ov
er 3
00 p
roje
cts
that
are
loc
ated
in
over
60
citie
s in
mai
nlan
d C
hina
. W
e se
e C
hina
V
anke
s la
nd b
ank
as o
ne o
f th
e m
ost d
iver
sifie
d am
ong
its p
eers
, whi
ch m
ay h
elp
it de
liver
fa
ster
sal
es g
row
th.
In 2
014,
its
con
tract
ed s
ales
ros
e 26
% d
espi
te a
dec
line
in t
he o
vera
ll C
hine
se p
rope
rty m
arke
t, w
hich
furth
er s
olid
ifies
its
lead
ing
posi
tion
in th
e in
dust
ry.
Bei
ng th
e la
rges
t hom
ebui
lder
in C
hina
, it m
ay b
enef
it fr
om th
e m
ore
acco
mm
odat
ive
polic
y en
viro
nmen
t in
Chi
na s
ince
mid
-201
4, a
nd t
he i
nter
est
rate
cut
s in
Nov
embe
r 20
14 h
as f
urth
er h
elpe
d re
vivi
ng h
omeb
uyer
s c
onfid
ence
.
10
Page
5
Sto
ck
Indu
stry
V
alua
tion
(2
015
Estim
ates
) R
emar
ks
Cho
ngqi
ng C
hang
an
Aut
omob
ile
(Cod
e: 2
0062
5 C
H)
Mar
ket c
ap:
US$
12.0
bill
ion
Aut
o m
anuf
actu
rer
Pric
e: H
K$1
7.56
P/
E: 7
.0x
P/B
: 2.1
x Y
ield
: 2.1
%
Cho
ngqi
ng C
hang
an A
utom
obile
(C
hang
an)
is
one
of t
he l
arge
st a
utom
aker
s in
Chi
na.
It
owns
a jo
int v
entu
re w
ith F
ord.
The
join
t ven
ture
Cha
ngan
For
d ha
s co
ntrib
uted
to th
e m
ajor
ity
of th
e co
mpa
nys
pro
fits
and
laun
ched
in 2
013
two
loca
lly m
anuf
actu
red
spor
ts u
tility
veh
icle
s (S
UV
) mod
els,
aim
ing
to p
artic
ipat
e in
the
fast
est-g
row
ing
pass
enge
r veh
icle
seg
men
t. F
ord
is
dete
rmin
ed to
ram
p up
pro
duct
ion
capa
city
to d
oubl
e th
eir
curr
ent p
rodu
ctio
n vo
lum
e by
201
5 an
d al
so e
xpec
ts t
o br
ing
mor
e ne
w m
odel
s to
Chi
na a
nd g
ain
mar
ket
shar
e.
In 2
014,
the
co
mpa
ny d
eliv
ered
a sa
les v
olum
e gr
owth
of a
bout
20%
, con
tinui
ng to
shin
e am
ong
peer
s.
Indu
stria
l & C
omm
erci
al
Ban
k of
Chi
na
(Cod
e: 1
398
HK
) M
arke
t cap
: U
S$27
1.0
billi
on
Ban
ks
Pric
e: H
K$5
.66
P/E:
5.5
x P/
B: 1
.0x
Yie
ld: 6
.4%
Indu
stria
l & C
omm
erci
al B
ank
of C
hina
(I
CB
C)
is th
e la
rges
t com
mer
cial
ban
k in
Chi
na in
te
rms
of a
sset
s an
d de
posi
ts.
An
exte
nsiv
e ne
twor
k of
ove
r 17
,000
bra
nche
s an
d a
huge
cu
stom
er b
ase
give
s it
both
sca
le a
nd fu
ndin
g ad
vant
ages
. IC
BC
has
a li
quid
bal
ance
she
et, l
ow
expo
sure
to in
terb
ank,
exc
ess r
eser
ves a
nd in
dust
ry h
igh
capi
tal a
dequ
acy.
Luye
Pha
rma
Gro
up
(Cod
e: 2
186
HK
) M
arke
t cap
: U
S$4.
3 bi
llion
Dru
g m
anuf
actu
rer
and
dist
ribut
or
Pric
e: H
K$9
.99
P/E:
27.
1x
P/B
: 4.2
x Y
ield
: 0.1
%
Luye
Pha
rma
Gro
up (
Luy
e Ph
arm
a)
is a
lead
ing
phar
mac
eutic
al c
ompa
ny w
hich
foc
uses
on
the
man
ufac
turin
g an
d se
lling
of
phar
mac
eutic
al p
rodu
cts
in t
hree
of
the
fast
est
grow
ing
ther
apeu
tic a
reas
in C
hina
incl
udin
g on
colo
gy, c
ardi
ovas
cula
r sy
stem
, and
alim
enta
ry tr
act a
nd
met
abol
ism
. In
the
first
hal
f of 2
014,
the
grou
ps
natio
nwid
e di
strib
utio
n ne
twor
k en
able
d it
to
sell
its p
rodu
cts
to o
ver
8,00
0 ho
spita
ls in
the
PRC
. G
iven
its
stro
ng p
rodu
ct p
ipel
ine,
pro
ven
R&
D c
apab
ilitie
s an
d sa
les
and
mar
ketin
g ne
twor
ks, L
uye
is w
ell p
ositi
oned
to c
ontin
ue g
aini
ng
mar
ket s
hare
des
pite
an
incr
easi
ngly
com
petit
ive
mar
ket e
nviro
nmen
t.
11
Page
6
Sto
ck
Indu
stry
V
alua
tion
(2
015
Estim
ates
) R
emar
ks
Petro
Chi
na
(Cod
e: 8
57 H
K)
Mar
ket c
ap:
US$
305.
4 bi
llion
Ener
gy
Pric
e: H
K$8
.60
P/E:
10.
7x
P/B
: 1.0
x Y
ield
: 4.3
%
Petro
Chi
na is
the
larg
est i
nteg
rate
d oi
l com
pany
in A
sia
by m
arke
t cap
italiz
atio
n.
It ha
s cr
ude
rese
rves
of
near
ly 1
1 bi
llion
bar
rels
and
gas
res
erve
s of
ove
r 69
,000
bill
ion
cubi
c fe
et.
Its
dow
nstre
am a
sset
s co
nsis
t of
refin
ing,
and
a s
ervi
ce-s
tatio
n m
arke
ting
netw
ork
of o
ver
20,0
00
stat
ions
. Pe
troC
hina
is e
xpec
ted
to b
enef
it fr
om g
row
th in
gas
usa
ge a
s Chi
na ta
rget
s to
dive
rsify
th
eir
ener
gy r
elia
nce
from
coa
l. T
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12
Value Partners HigH-DiViDenD stocks FunD
Investment objectiveThe 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.
ValuePartnersHigh-DividendStocksFund(thefund)primarilyinvestsinstockmarketsoftheAsia-Pacificregion,withaGreaterChinafocus.
The fundwillprimarily invest inhigher-yieldingequitiesanddebtsecurities,whilemaintaininga flexibleallocation tootherassetsincludinggold,REITsandcash.
The fundmay invest inhigher-yieldingdebtandequitysecurities thatarebelow investmentgrade.Such investmentscan involvematerialrisks,e.g.counterpartyrisk,liquidityrisk,creditriskanddefaultrisk,andmayexposethefundtosignificantlosses.
Investorsshouldnotethatthereisnoguaranteethattheunderlyingsecuritiesinthefundwillpayoutdividends.Therefore,thereisnoguaranteethatthefundsinvestmentstrategieswillsucceed.Thereisalsonoguaranteeofdividendordistributionpaymentsduringtheperiodaninvestorholdsunitsinthefund,andapositivedividendyielddoesnotrepresent/implypositivereturn.
PleasepayparticularattentiontotheriskofinvestmentinChinaandothermarketsintheAsianregionandincompanieswithmediumorsmallcapitalization.Thevalueofthefundcanbeextremelyvolatileandcouldgodownsubstantiallywithinashortperiodoftime.Itispossiblethattheentirevalueofyourinvestmentcouldbelost.
Thefundmayalsoinvestinderivativeswhichcaninvolvematerialrisks,e.g.counterpartydefaultrisk,insolvencyorliquidityrisk,andmayexposethefundtosignificantlosses.
Youshouldnotmakeinvestmentdecisiononthebasisofthismaterialalone.Pleasereadtheexplanatorymemorandumfordetailsandriskfactors.
NAVperunit: ClassA1(USD)-USD74.64 ClassA2MDis(USD)-USD11.56Fundsize: USD2,888.5million
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual2003 +6.2% +7.1% -3.2% -2.0% +8.8% +4.6% +14.4% +8.0% +4.8% +4.2% +2.2% +6.0% +79.7%2004 +5.0% +5.0% -0.5% -2.5% -4.2% -1.3% +1.2% -0.3% +2.5% -0.6% +5.2% -0.5% +8.9%2005 +1.4% +3.8% -2.0% +0.5% -0.6% +3.0% +2.4% -1.1% +1.7% -1.0% +2.7% +0.9% +12.2%2006 +4.0% +6.7% +3.6% +6.3% -5.2% -3.3% +5.1% +0.6% +2.4% +3.3% +5.4% +2.3% +35.0%2007 +3.8% +7.1% -1.5% +4.1% +6.6% +3.0% +8.4% -1.3% +5.0% +8.6% -7.9% +2.5% +44.2%2008 -14.3% +3.3% -5.6% +8.3% -3.6% -8.1% -3.4% -8.4% -10.5% -29.4% +6.6% +11.3% -46.8%2009 -3.0% +1.2% +7.5% +8.9% +18.9% +5.4% +9.2% -3.8% +3.3% +10.2% +3.9% +2.1% +82.8%2010 -1.6% +0.2% +7.0% +5.1% -6.4% +3.5% +2.4% +1.5% +8.0% +5.6% +0.0% -1.2% +25.8%2011 +0.4% -1.6% +2.6% +5.7% -2.3% -2.1% +2.5% -5.2% -15.1% +9.2% -4.7% +0.2% -11.9%2012 +7.5% +4.7% -1.7% +2.2% -6.5% +1.5% +2.4% +0.4% +5.5% +3.1% +1.7% +2.4% +25.2%2013 +3.7% +0.4% -0.8% +1.5% +1.7% -5.6% +2.3% -0.1% +2.5% +2.7% +1.6% -1.5% +8.1%2014 -4.4% +1.8% +0.7% +0.2% +3.8% +1.8% +5.9% +1.2% -4.1% +0.3% +1.8% +0.6% +9.4%
ValuePartnersHigh-DividendStocksFund-ClassA1(USD):Monthlyperformancefrom1Jan2003to31Dec20142
31 December 2014 2 Pages
* IndexreferstoMSCIACAsiaPacific(ex-Japan)TotalReturnIndex.^ Annualizedreturnandvolatilityarecalculatedfrominceptionon2Sep2002.Volatility isameasureof the theoretical risk in termsof standarddeviation; ingeneral,thelowerthenumber,thelessriskytheinvestment,andviceversa.
Performanceupdate2
ClassA1(USD)
Index*ClassA2MDis
(USD)One month +0.6% -2.1% +0.6%One year +9.4% +2.8% +9.4%Three years +48.1% +30.0% N/AFive years +64.3% +29.7% N/ASince launch +654.1% +303.3% +26.1% Annualized return ^ +17.8% +12.0% +10.9% Annualized volatility ^ 19.0% 21.1% N/A
Performancesincelaunch(withdividendsreinvested) 2
201420132012201120102009200820072006200520042002
+654.1%
+303.3%
The fund (Class A1, USD)Index*
%
0
200
400
600
800
-100
NAVs&codes
Classes4 NAV ISIN BloombergClass A1 USD 74.64 KYG931731056 VALASHY KYClass A1 HKD 7 578.8631 KYG931731056 VALASHY KYClass A2 MDis USD 11.56 KYG9318L1041 VALHYA2 KYClass A2 MDis HKD 10.56 KYG9318L1538 VALHA2H KYClass A2 MDis AUD Hedged 10.56 KYG9318L1207 VALHA2A KYClass A2 MDis CAD Hedged 10.60 KYG9318L1389 VALHA2C KYClass A2 MDis NZD Hedged 10.57 KYG9318L1462 VALHA2N KY
9thFloor,NexxusBuilding,41ConnaughtRoadCentral,HongKongTel:(852)28809263Fax:(852)25657975Email:[email protected]:www.valuepartners.com.hk
HHHHHMorningstar RatingTM1
As at 31-12-2014
DividendinformationClassA2MDis3
Classes4 Dividendperunit5
Annualizedyield6
Ex-dividenddate
Class A2 MDis USD 0.0499 5.2% 31-12-2014Class A2 MDis HKD 0.0458 5.2% 31-12-2014Class A2 MDis AUD Hedged 0.0639 7.3% 31-12-2014Class A2 MDis CAD Hedged 0.0503 5.7% 31-12-2014Class A2 MDis NZD Hedged 0.0641 7.3% 31-12-2014
13
ValuePartnersHigh-DividendStocksFund31 December 2014
Portfoliocharacteristics
1.2014Morningstar, Inc.AllRightsReserved (forClassA1).2.Source:HSBC InstitutionalTrustServices (Asia) LimitedandBloomberg, inUSD,NAV toNAV,with dividend reinvested.Performancedataisnetofallfees.3.TheManagercurrentlyintendstomakemonthlydividenddistributioninrespectoftheA2MDisClasses;actualdividendpayoutwillbesubjecttotheManagersdiscretion.Distributionmaybepaid fromcapital of the fund. Investors shouldnote thatwhere thepayment of distributionsarepaid out of capital, this represents andamounts to a returnorwithdrawalofpartoftheamountthathavebeenoriginallyinvestedorcapitalgainsattributabletothatandmayresultinanimmediatedecreaseinthevalueofunits.ForA1Classunits,Managerwillreviewdividenddistributionatitsdiscretiononceayear(lastdividendpayoutdate:21Nov2005).Pleaserefertotheexplanatorymemorandumformoredetails.4.Thefundmayinvestinfinancialderivativeinstruments(FDI)forhedgingpurposes.Inadversesituations,thefundsuseofFDImaybecomeineffectiveinhedgingandthefundmaysuffersignificantlosses.Eachhedgedshareclasswillhedgethefundsbasecurrencybacktoitscurrencyofdenominationonabesteffortsbasis.However,thevolatilityofthehedgedclassesmeasuredinthefundsbasecurrencymaybehigherthanthatoftheequivalentclassdenominatedinthefundsbasecurrency.RisksassociatedwithFDIincludecounterpartyrisk,creditriskandliquidityrisk.Suchexposuremayleadtoahighriskofcapitalloss.TheAUD/CAD/NZDHedgedClassesarenotrecommendedforinvestorswhosebasecurrencyofinvestmentisnotintheaforesaidcurrencies.5.Thereceivingbankmaychargeafeeforincomingpayments.Suchfeeswillreducetheactualamountofdividendsreceivedbytheinvestor.6.AnnualizedyieldofClassA2MDisiscalculatedasfollows:(dividendamount/NAVasofex-dividenddate)x12.Investorsshouldnotethatyieldfiguresareestimatedandforreferenceonlyanddonotrepresenttheperformanceofthefund,andthatthereisnoguaranteeastotheactualfrequencyand/oramountofdividendpayments.7.InvestorsshouldnotethatthebasecurrencyofthefundisinUSD.TheHKDequivalentNAVperunitisforreferenceonlyandshouldnotbeusedforsubscriptionorredemptionpurpose.Conversiontothebasecurrencyofthefundwillnormallytakeplaceattheprevailingrate(asdeterminedbythefundsTrusteeorCustodian)onthecorrespondingfunddealingday.InvestorsshouldbeawareofpossiblerisksresultingfromfluctuationsofexchangeratesagainstUSD.8.ClassificationisbasedonGlobalIndustryClassificationStandard (GICS).9.Exposure refers tonetexposure (longexposureminusshortexposure).Due to rounding,percentagesshownmaynotaddup to100%.10.Others include0.5%cash forcollateralsandmargins.11.Cashreferstonetcashonhandexcludingcashforcollateralsandmargins.12.TheprofileisbasedonmarketconsensusforecastasderivedfromS&PCapitalIQandBloomberg.NotethatthemanagersinternalestimatesmaydiffersignificantlyfromS&PCapitalIQandBloombergestimates.Investorsshouldnotethatallyieldfiguresareforreferenceonlyanddonotrepresenttheactualperformanceofthefundorthedividendyieldreceivedbyinvestors,nordoesapositiveyieldimplyapositivereturn.Dividendyieldiscalculatedbasedontheequityportionofthefund,whereasYieldtomaturity/putiscalculatedbasedonthedebtportionofthefundbytakingtheaverageofyieldsofindividualholdings(beingthehigheroftheyieldtomaturityandyieldtoputofeachbond/convertiblebond)afterexcludingevent-driveninvestmentwithextremelyhighyield.13.PerformancefeewillonlybechargediftheNAVattheendofthefinancialyearoruponrealizationofunitsexceedsthehighwatermark,whichistheall-timeyear-endhighofthefundsNAV.Ifinanyoneyear,thefundsuffersaloss,noperformancefeecanbechargedinsubsequentyearsuntilthelossisrecoveredfully(thehigh-on-highprinciple).14.Basedondataasofyear-end2013.15.The2014MorningstarawardwasbasedondataofeligiblefundsintheirrespectiveMorningstarcategoryupto31Dec2013.16.Basedondataasof30Sep2013.Investors shouldnote investment involves risk.Thepriceof unitsmaygodownaswell as upandpast performance is not indicativeof future results. Investors should read theexplanatorymemorandumfordetailsandriskfactorsinparticularthoseassociatedwithinvestmentinemergingmarkets.InformationinthisreporthasbeenobtainedfromsourcesbelievedtobereliablebutValuePartnersLimiteddoesnotguaranteetheaccuracyorcompletenessoftheinformationprovidedbythirdparties.ThisreporthasnotbeenreviewedbytheSecuritiesandFuturesCommission.Issuer:ValuePartnersLimited.
Top10securitiesholdings
ValuePartnersInvestmentTeam
Name Industry8 %Bank of China Banks 4.9China Construction Bank Banks 3.7China Vanke (Stock code: 000002CH - A shares)
Real estate 3.6
Daqin Railway Transportation 2.9Amorepacific Corp. Household & personal
products2.6
Agricultural Bank of China Banks 2.4China Vanke (Stock code: 2202HK - H shares)
Real estate 2.3
Samsung Electronics Technology, hardware & equipment
2.3
China Power Utilities 2.2Samsung Fire & Marine Insurance Insurance 2.1These stocks constitute 29%of the fund.The top ten securities holdingsonlyincludecompaniesand/orREITsthefundinvested,excludinganyindextrackingfundorETF.
Asat31Dec2014 201512
Price/earnings ratio 8.5 timesPrice/book ratio 1.3 timesDividend yield 5.0%Yield to maturity/put 10.2%
Manager: Value Partners LimitedBase currency: USDTrustee: Bank of Bermuda (Cayman) LimitedCustodian: HSBC Institutional Trust Services (Asia) LimitedLaunch date: Class A1 (USD) - 2 Sep 2002 Class A2 MDis (USD) - 28 Sep 2012 Class A2 MDis (AUD/CAD/NZD) - 23 Sep 2013Dividend policy 3: Class A2 MDis aim at monthly distribution,
subject to Managers discretionUnitprice ispublisheddaily in theSouthChinaMorningPost, theHongKongEconomicJournalandtheHongKongEconomicTimes.
Fundfacts
Recentawards
Chairman&Co-ChiefInvestmentOfficer:Cheah Cheng HyeDeputyChairman&Co-ChiefInvestmentOfficer:Louis SoDeputyChiefInvestmentOfficer:Renee HungSeniorInvestmentDirector:Norman Ho, CFAInvestmentDirectors:Eric Chow; Alan Wang, CFASeniorFundManagers: Doris Ho; Kyu Ho; Lai Voon San; Michelle Yu, CFA; Yu Xiao Bo
Geographicalexposurebylisting9
24%H Shares16%South Korea16%Hong Kong
10%China A Shares8%Red Chips
7%Singapore5%Bonds5%10Others
4%Taiwan2%11Cash2%Thailand
Sectorexposure89
16%Consumer discretionary15%Banks
13%Real estate12%Industrials
8%Information technology5%Bonds5%Telecom services5%Energy5%Utilities
3%Insurance3%Consumer staples3%Materials3%10Others3%REITs
2%11Cash
Feestructure
ClassA1 ClassA2MDis
Minimum subscription USD10,000 or HKD equivalent 7USD10,000 / HKD80,000 /AUD10,000 / CAD10,000 /
NZD10,000
Minimum subsequent subscription
USD5,000 or HKD equivalent 7
USD5,000 / HKD40,000 /AUD5,000 / CAD5,000 /
NZD5,000Subscription fee Up to 5%Management fee 1.25% p.a.Performance fee 13 15% of profit (High-on-high principle)Redemption fee NilDealing day Daily
LipperFundAwards2014(HongKong)BestAsiaPacific(Ex-Japan)Equity 5YearsCategory 14~Lipper
MorningstarHongKongFundAwards201415BestAsiaEx-JapanEquityFund~ Morningstar
FundoftheYearAwards2013OutstandingAchieverAsiaPacificEquityCategory 16~Benchmark
HD
F_M
aste
r_20
1412
(R)
Shortexposureincludes:SouthKorea,-1.8%.TheFunds%inAsharescategorywasrevisedduetore-classificationofoneChinesepropertystocklistedinHongKong.
Totalshortexposureis-1.8%.Shortexposureincludes:Consumerstaples,-1.8%.
14
China ConvergenCe Funda Sub-Fund of Value Partners Intelligent Funds
Investment objectiveThe 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.Note: On inception, in Jul 2000, the funds 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.
PleasepayparticularattentiontotheriskofinvestmentinChinaandothermarketsintheAsianregionandincompanieswithmediumorsmallcapitalization.Thevalueof the fundcanbeextremelyvolatileandcouldgodownsubstantiallywithinashortperiodoftime.Itispossiblethattheentirevalueofyourinvestmentcouldbelost.
The fundmayalso invest inderivativeswhichcan involvematerial risks,e.g.counterpartydefault risk, insolvencyorliquidityrisk,andmayexposethefundtosignificantlosses.
Youshouldnotmakeinvestmentdecisiononthebasisofthismaterialalone.Pleasereadtheexplanatorymemorandumfordetailsandriskfactors.
Performancesincelaunch(withdividendsreinvested) 2
NAVperunit: USD146.89Fundsize: USD342.1million
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual2003 +9.5% +2.4% +0.0% +1.1% +7.8% +4.1% +11.3% +4.5% +2.3% +14.5% +1.6% +9.0% +92.1%2004 +2.4% +6.7% +1.0% -11.0% +1.3% -4.3% +1.0% -1.3% +5.7% -0.2% +3.7% -2.9% +0.8%2005 +1.9% +6.8% +1.3% +0.4% -4.0% -0.7% +0.7% -0.3% +1.0% -5.4% +0.9% +1.6% +3.9%2006 +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 -5.6% +1.0% -3.6% -1.0% +1.2% +3.4% +8.8% +1.3% -1.2% +3.2% +1.6% +5.4% +14.6%
Monthlyperformancefrom1Jan2003to31Dec20142
31 deCember 20142 Pages
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.
Performanceupdate2
ChinaConvergenceFund
MSCIChinaIndex3
One month +5.4% +1.2%One year +14.6% +8.0%Three years +36.8% +37.3%Five years +28.8% +17.3%Since launch +1,368.9% +173.7% Annualized return +20.4% +7.2% Annualized volatility 25.9% 27.3%
%
0
400
800
1200
1600
-200
20142012201020082006200420022000
+1,368.9%
+173.7%
China Convergence FundMSCI China Index 3
9thFloor,NexxusBuilding,41ConnaughtRoadCentral,HongKongTel:(852)28809263Fax:(852)25657975Email:[email protected]:www.valuepartners.com.hk
HHHHMorningstar RatingTM1
As at 31-12-2014
15
ChinaConvergenceFund:ASub-FundofValuePartnersIntelligentFunds31 deCember 2014
Portfoliocharacteristics
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 managers 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 funds 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, Morningstars 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.
Top10securitiesholdings
Name Industry4 %China Vanke (Stock code: 000002CH - A shares)
Real estate 6.7
Chongqing Changan Automobile Automobiles & components 6.2Inner Mongolia Yili Industrial Food, beverage & tobacco 5.3CGN Power Utilities 3.3New China Life Insurance Insurance 3.1Ping An Insurance Insurance 2.9Sunac China Real estate 2.8China Vanke (Stock code: 2202HK - H shares)
Real estate 2.8
ZTE Corp. Technology, hardware & equipment
2.7
Huadian Fuxin Energy Utilities 2.6
These stocks constitute 38% of the fund. The top ten securities holdings only include companies and/ or REITs the fund invested, excluding any index tracking fund or ETF. Fee structure
Asat31Dec2014 20157
Price/earnings ratio 12.2 timesPrice/book ratio 2.0 timesDividend yield 2.6%
Manager: Value Partners LimitedBase currency: USDTrustee: Bank of Bermuda (Cayman) LimitedCustodian: HSBC Institutional Trust Services (Asia) LimitedLaunch date: 14 Jul 2000Bloomberg and VAPAICB KY / KYG9317Q1047ISIN codes:
Unit price is published daily in the South China Morning Post, the Hong Kong Economic Journal and the Hong Kong Economic Times.
Fund facts
Geographicalexposurebylisting5Minimum subscription USD10,000Minimum subsequent subscription USD5,000
Subscription fee Up to 5%Management fee 1.25% p.a.Performance fee 8 15% of profit (High-on-high principle)Redemption fee NilDealing day Daily
37%H Shares35%China A Shares
17%Hong Kong12%China B Shares
5%Red Chips1%Others
-8%6CashValuePartnersInvestmentTeamChairman&Co-ChiefInvestmentOfficer:Cheah Cheng HyeDeputyChairman&Co-ChiefInvestmentOfficer:Louis SoDeputyChiefInvestmentOfficer:Renee HungSeniorInvestmentDirector:Norman Ho, CFAInvestmentDirectors:Eric Chow; Alan Wang, CFA; SeniorFundManagers: Doris Ho; Kyu Ho; Lai Voon San; Michelle Yu, CFA; Yu Xiao Bo
Recentawards
Morningstar2010FundAwards(HongKong) BestGreaterChinaEquityFund~ Morningstar
Top100FundsoftheYear2010 ChinaEquity9
~ Benchmark Magazine
Sectorexposure45
18%Real estate14%Utilities14%Industrials
13%Consumer discretionary10%Insurance
9%Health care9%Consumer staples
7%Information technology5%Energy
4%Materials3%Other financials
-8%6Cash
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Chinese Mainland FoCus FundA Sub-Fund of Value Partners Intelligent Funds
Investment objectiveThe fund aims to achieve medium to long-term capital appreciation by investing primarily in investments which are related to the Mainland of the Peoples 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.
PleasepayparticularattentiontotheriskofinvestmentinChinaandothermarketsintheAsianregionandincompanieswithmediumorsmallcapitalization.Thevalueof the fundcanbeextremelyvolatileandcouldgodownsubstantiallywithinashortperiodoftime.Itispossiblethattheentirevalueofyourinvestmentcouldbelost.
The fundmayalso invest inderivativeswhichcan involvematerial risks,e.g.counterpartydefault risk, insolvencyorliquidityrisk,andmayexposethefundtosignificantlosses.
Youshouldnotmakeinvestmentdecisiononthebasisofthismaterialalone.Pleasereadtheexplanatorymemorandumfordetailsandriskfactors.
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.
Performanceupdate2
Performancesincelaunch(withdividendsreinvested) 2
NAVperunit: USD40.63Fundsize: USD141.4million
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual2003 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A +3.9% +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 -5.7% -1.7% -2.4% -1.8% +1.4% +4.0% +7.7% +0.4% -2.0% +2.8% +1.8% +6.5% +10.6%
Monthlyperformancefrom27Nov2003to31Dec20142
31 deCeMber 20142 Pages
ChineseMainland Focus Fund
MSCIChina Index3
One month +6.5% +1.2%One year +10.6% +8.0%Three years +33.7% +37.3%Five years +36.2% +17.3%Since launch +306.3% +316.8% Annualized return +13.5% +13.7% Annualized volatility 21.8% 27.0%
%
0
100
200
300
400
500
600
20142013201220112010200920082007200620052003
Chinese Mainland Focus FundMSCI China Index 3
+316.8%+306.3%
9thFloor,NexxusBuilding,41ConnaughtRoadCentral,HongKongTel:(852)28809263Fax:(852)25657975Email:[email protected]:www.valuepartners.com.hk
HHHHHMorningstar RatingTM1
As at 31-12-2014
17
ChineseMainlandFocusFund:ASub-FundofValuePartnersIntelligentFunds31 deCeMber 2014
Portfoliocharacteristics
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 managers 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 funds 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 year-end 2012. 10.Based on data as of year-end 2011. 11.Based on fund size, track record, Morningstars 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.
Top10securitiesholdings
Name Industry4 %Ping An Insurance Insurance 7.6China Vanke (Stock code: 000002CH - A shares)
Real estate 6.7
Chongqing Changan Automobile
Automobiles & components 6.4
Midea Group Consumer durables & apparel 5.6Inner Mongolia Yili Industrial Food, beverage & tobacco 5.5CGN Power Utilities 3.3Tasly Pharmaceutical Pharmaceuticals,
biotechnology & life sciences3.3
Sunac China Real estate 2.9China Vanke (Stock code: 2202HK - H shares)
Real estate 2.8
Huadian Fuxin Energy Utilities 2.7These stocks constitute 47% of the fund. The top ten securities holdings only include companies and/ or REITs the fund invested, excluding any index tracking fund or ETF.
Fee structure
Asat31Dec2014 20157
Price/earnings ratio 11.5 timesPrice/book ratio 2.0 timesDividend yield 2.9%
Manager: Value Partners LimitedBase currency: USDTrustee: Bank of Bermuda (Cayman) LimitedCustodian: HSBC Institutional Trust Services (Asia) LimitedLaunch date: 27 Nov 2003Bloomberg and VAPAICM KY / KYG9317Q1120ISIN codes:
Unit price is published daily in the South China Morning Post, the Hong Kong Economic Journal and the Hong Kong Economic Times.
Fund facts
Geographicalexposurebylisting5
Sectorexposure45
Minimum subscription USD10,000Minimum subsequent subscription USD5,000Subscription fee Up to 5%Management fee 1.25% p.a.
Performance fee 8 15% of profit(High-on-high principle)Redemption fee NilDealing day Daily
41%China A Shares31%H Shares
18%Hong Kong12%China B Shares
3%Red Chips2%United States
1%Others-8%6Cash
19%Consumer discretionary16%Real estate
15%Utilities13%Health care
12%Insurance9%Industrials9%Consumer staples
6%Information technology4%Energy4%Materials
2%Other financials-8%6Cash
ValuePartnersInvestmentTeamChairman&Co-ChiefInvestmentOfficer:Cheah Cheng HyeDeputyChairman&Co-ChiefInvestmentOfficer:Louis SoDeputyChiefInvestmentOfficer:Renee HungSeniorInvestmentDirector:Norman Ho, CFAInvestmentDirectors:Eric Chow; Alan Wang, CFASeniorFundManagers: Doris Ho; Kyu Ho; Lai Voon San; Michelle Yu, CFA; Yu Xiao Bo
Recentawards
LipperFundAwards2013(HongKong)BestChinaEquityFund(5Years)9 ~ Lipper
LipperFundAwards2012(HongKong)BestChinaEquityFund(3Years)10 ~ Lipper
Top100FundsoftheYear2010 ChinaEquityBestinClass 11
~ Benchmark Magazine
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Value Partners China GreenChiP Fund limited
Investment objectiveThe 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.
PleasepayparticularattentiontotheriskofinvestmentinChinaandothermarketsintheAsianregionandincompanies withmediumorsmallcapitalization.Thevalueofthefundcanbeextremelyvolatileandcouldgodownsubstantiallywithina shortperiodoftime.Itispossiblethattheentirevalueofyourinvestmentcouldbelost.
The fundmayalso invest inderivativeswhichcan involvematerial risks,e.g.counterpartydefault risk, insolvencyor liquidityrisk,andmayexposethefundtosignificantlosses.
Youshouldnotmakeinvestmentdecisiononthebasisofthismaterialalone.Pleasereadtheexplanatorymemorandumfor detailsandriskfactors.
NAVpershare: ClassA-HKD60.92 ClassA2QDis-HKD11.30Fundsize: USD675.72million(HKD5,243.6million)
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual2003 +7.3% +7.1% -3.5% -1.5% +10.9% +5.9% +12.7% +6.2% +2.2% +9.5% +3.0% +5.0% +85.6%2004 +1.4% +6.3% -1.2% -8.7% -1.1% -2.8% +0.8% -0.3% +3.7% +0.6% +5.4% -1.6% +1.5%2005 +1.2% +4.2% -2.7% -1.1% -1.4% +1.6% +1.1% +0.0% +11.0% -3.2% +3.6% +1.5% +16.1%2006 +10.7% +4.0% +9.2% +0.5% -3.7% -1.6% +1.9% +1.4% +1.4% +3.7% +6.7% +3.6% +43.7%2007 +3.1% +4.8% +3.8% +4.7% +9.6% +5.7% +9.7% -9.1% +3.6% +5.8% -7.4% -1.0% +36.3%2008 -18.6% +1.4% -9.6% +10.2% -2.2% -11.8% -5.7% -10.0% -12.1% -26.1% +0.8% +7.8% -57.4%2009 +0.2% -0.2% +10.2% +13.1% +25.0% +1.9% +14.0% -4.8% +6.9% +7.9% +6.2% +2.5% +116.7%2010 -1.3% +3.0% +8.1% +4.2% -5.4% +0.9% +4.2% +1.7% +13.4% +4.2% +1.3% -0.5% +37.8%2011 -2.6% -2.9% +4.0% +2.7% -2.5% -5.0% +5.1% -10.5% -17.2% +8.8% -3.4% -2.1% -25.0%2012 +6.0% +10.5% -3.9% -2.4% -4.6% -3.2% -0.5% +3.7% +6.3% +3.1% +4.9% +3.7% +24.8%2013 +6.4% +0.0% -2.2% +1.2% +3.3% -8.9% +1.8% +1.7% +3.0% +4.8% +4.5% +0.7% +16.5%2014 -3.0% +4.0% -2.6% -1.2% +1.9% +2.9% +1.1% +0.6% -1.8% +0.6% +0.6% -0.4% +2.4%
ValuePartnersChinaGreenchipFundLimitedClassA(HKD):Monthlyperformancefrom1Jan2003to31Dec20142
31 deCember 20142 PaGes
ClassA(HKD)
MSCIChina Index
HangSeng Index3
ClassA2QDis(HKD)
One month -0.4% +1.2% -1.6% -0.4%One year +2.4% +8.0% +5.5% +2.0%Three years +48.8% +36.6% +42.6% N/AFive years +53.8% +17.3% +