Important Information

      I. Chinese Mainland Focus Fund (The “Fund”) invests primarily in investments which are related to mainland China.
      II. The Fund invests in China-related companies which involve certain risks not typically associated with investment in more developed markets, such as greater political, tax, economic, foreign exchange, liquidity and regulatory risks.
      III. The Fund is also subject to concentration risk due to its concentration in China-related companies. Adverse development in such region may affect the value of the underlying securities in which the Fund invests.
      IV. Investing in China exposes the Fund to additional risks including currency repatriation risk, uncertainty of taxation policies and risk associated with StockConnects, RQFII Quota, SME board, ChiNext market and/or the STAR board. The Fund may also expose to RMB currency and conversion risk.
      V. Investing in small /mid-capitalization securities may have lower liquidity and their prices are more volatile to adverse economic developments.
      VI. It is possible that the entire value of your investment could be lost. You should not make investment decision on the basis of this material alone. Please read the explanatory memorandum for details and risk factors.
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All China strategy
Covers China’s A-, B- and
H-shares as well as
U.S.-listed ADRs
Well-positioned to capture
structural growth in
China’s economy

Mainly from Healthcare,
Internet economy and
5G-related investment themes
Proven long term
track record

Ranks the first quartile in its
since-inception performance
among China equities fund category1
Why invest in Chinese Mainland Focus Fund?
Positioning for its next chapter of growth

  • The Fund comprehensively captures the growth drivers of China with over 4,300 Chinese companies listed worldwide, investing into China A-shares, B-shares, H-shares and American depositary receipts (ADR)
  • Under the gradual market liberalization, global investors are to increase their allocation to China, lifting demand for the mainland-listed stocks. Value Partners conducts due-diligence comprehensively on A-shares market, including pockets that are commonly overlooked by the market
  • The Manager may strategically invest between 0% and 100% of the Fund’s latest NAV in A Shares and between 0% and 35% in B Shares, and between 0% and 100% in H Shares
Capturing opportunities from all sectors

Source: Bloomberg, Factset, Value Partners, as of 10 March 2020. Only the market cap of the listed share class is included. Offshore China stocks are defined based on companies with ultimate parent domiciled in China, or companies with key risk or revenue source from China. Suspended stocks are excluded.

Riding on China’s economic shift

  • The Fund maintains high conviction calls on companies that will benefit in the long term from China’s policy reform and economic transformation
  • The Fund can nimbly select among different sectors or where prospects are the most attractive as a result of reforms and is presently focused on stocks listed in China and Hong Kong
Attractive valuations in Hong Kong and China

  • Following stable increases in China’s GDP over multiple years, the economy expanded by 6%2 in the fourth quarter of 2019, driven by strong consumption growth
  • Hong Kong and China stocks are inexpensive compared to their global counterparts. Valuations are at even more attractive levels taking the upsides of China’s reforms and the economic transformation into consideration
2020E global P/E valuation comparison

Source: FactSet, I/B/E/S, MSCI, Goldman Sachs Asia-Pacific Weekly Kickstart, as at 27 March 2020

Investment pioneers in China markets

  • Value Partners has since been investing in China when the country first opened its markets around the early 1990s. Investment value is added through comprehensive bottom-up research.
  • Value Partners has an over 70-member investment team of extensive experience and local knowledge, one of the largest in the region.
Proven long term track record

Source: Morningstar, as at 31 March 2020. Chinese Mainland Focus Fund was launched on 27 November 2003. Calendar year return of the past 5 years: 2015: +1.7%; 2016: -10.3%; 2017: +61.2%; 2018: -28.3%; 2019: +36.6%

Key awards
 
For more details, please contact your bank or investment consultant. You may also contact our Fund Investor Services Team.

Hotline: +852 2143 0608
Email: hkenquiry@vp.com.hk
Other fund in focus:
Related investment insights:
All fund information is quoted as at 31 March 2020 (unless otherwise stated). Source: HSBC Institutional Trust Services (Asia) Limited and Bloomberg. Performance in USD, NAV to NAV, with dividends reinvested and net of all fees.
1. Source: Morningstar. Peer Group refers to Morningstar Category of China Equity (HKSFC authorized funds) which includes all funds with performance history started between 27 November 2003 and 31 March 2020. Authorization does not imply official recommendation. 2. Source: National Bureau of Statistics of China, as at 20 January 2020. 3. The award reflects the fund’s 10-year performance up to the end of 2017. 4. The award reflects performance up to 30 September 2018. 5. The award reflects performance up to 31 December 2017.

The views expressed are the views of Value Partners Limited only and are subject to change based on market and other conditions. The information provided does not constitute investment advice and it should not be relied on as such. All materials have been obtained from sources believed to be reliable, but its accuracy is not guaranteed. This material contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. 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. Investors should seek advice from a financial adviser before making any investment. In the event that you choose not to do so, you should consider whether the investment selected is suitable for you. The website has not been reviewed by the Securities and Futures Commission of Hong Kong. Issuer: Value Partners Limited.