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Important Information

      I. Value Partners Classic Fund (The “Fund”) primarily invests in markets of the Asia-Pacific region, with a Greater China focus.
      II. The Fund invests in China-related companies and emerging markets 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 Asia-Pacific region, particularly China-related companies. 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.
      IV. 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.
      V. In respect of the distribution units for the Fund, the Manager currently intends to make monthly dividend distribution. However, the distribution rate is not guaranteed. Distribution yield is not indicative of the return of the Fund. 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 you originally invested or capital gains attributable to that and may result in an immediate decrease in the value of units.
      VI. 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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Focuses on identifying long-term structural investment themes while share prices are trading below intrinsic value
One of the longest-running Greater China Funds with 30 years of track record: Ranked No.1 in the Greater China equity fund category1 (A Units)

Benchmark-agnostic approach with excess return driven by bottom-up stock picks
Why invest in Value Partners Classic Fund?
Renowned Greater China experts

  • The Fund aims to generate excess returns throughout different market cycles and has consistently outperformed peer funds1 over the long run
  • An award-winning investment team of over 60 financial specialists covering a wide range of sectors and markets, with a combined average industry experience of 23 years and an average tenure of 13 years with Value Partners
  • Taps into undiscovered investment opportunities with a walk-the-extra-mile fundamental research analysis combined with over 6,500 due diligence meetings annually
Outstanding performance throughout major market cycles

Source: Morningstar and HSBC Institutional Trust Services (Asia) Limited as of 31 December 2022, in USD, NAV to NAV, with dividends reinvested. Performance data is net of all fees.

Top 3 performance contributors were driven by our active bottom-up stock picks in the last 10 years

Source: Value Partners, from 31 October 2012 to 31 December 2022
Outstanding Risk/Reward profile among peer group
(1 April 1993 to 31 December 2022)

Source: Value Partners, Bloomberg and Morningstar as of 31 December 2022, performance in USD, net of all fees. All indices are for reference only.
Undemanding valuations for long-term investors

  • China's equities market will likely be supported by the accelerated reopening as well as government's pro-growth, countercyclical measures to boost the economy
  • Despite recent market rebound, valuations of Chinese equities remain at undemanding levels - at about 12x forward-looking PE and still below the long-term historical average
MSCI China (ex A-shares and financials) forward P/E

Source: Go-goal, CICC, 31 December 2022
Structural growth opportunities

      Consumption upgrade
    • Consumption growth is likely to speed up with the macro recovery ahead and consumers will continue to spend more on life style upgrades
    • In addition, the rising middle-class population, increasing household income and urbanization remain long-tern growth drivers
    • The growing preference for domestic over global brands is also a driver for the consumer sector, as seen in domestic sportswear names, which are gaining market share
      •
      Advanced technology hardware
    • Despite a weak macro backdrop, demand for data centers, high-performance computing, and artificial intelligence remains firm, supporting the demand for advanced-node semiconductor manufacturing
    • Leading semiconductor foundries with advanced-node manufacturing capabilities are expected to gain more market share
    • China's "self-sufficiency" plan also creates substantial business opportunities for some local technology leaders
      •
      Financials – wealth management
    • Wealth management services providers should benefit from retail investors'growing demand for professionally managed investment services, presenting long-term investment opportunities
    • The muted performance of the property market will encourage investors to diversify from property investment to financial assets over the long-term
    • Some leading retail banks and insurance companies are well positioned to capture this trend and to grow their scale over time
      •

 
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:
1. Performance ranking is based on the performance of funds which are categorized under the Morningstar Greater China Equity Fund category and with performance history started before 1 April 1993. Based on the performance from 2 April 1993 to 31 December 2022. The Manager does not accept any application for A Units until further notice. New investors and existing unit holders who wish to top up may subscribe in C Units. Investors should note that figures for A Units may differ from C Units, due to differences in launch date of these classes. 2. Hang Seng Price Return Index was used till 31 Dec 2004, thereafter it is the Hang Seng Total Return Index. Hang Seng Total Return Index takes into account of dividend reinvestment whereas Hang Seng Price Return Index does not. 3. Index refers to Hang Seng Index (Price Return) since fund inception till 31 Dec 2004, thereafter it is the Hang Seng Index (Total Return) up to 30 Sep 2017. Hang Seng Index (Total Return) includes dividend reinvestment whereas Hang Seng Index (Price Return) does not take into account reinvestment of dividends. With effect from 1 Oct 2017, it is the MSCI Golden Dragon Index (Total Net Return), which takes into account of dividend reinvestment after deduction of withholding tax. 4. The Fund (A Units) was launched on 1 April 1993. Calendar year return of A Units over past 5 years: 2017: 44.9%; 2018:-23.1%; 2019: 32.4%; 2020: 37.6%; 2021:-6.6%; 2022:-28.1%. The Fund (C Units) was launched on 15 October 2009. Calendar return of the C Units over past 5 years: 2017: 43.3%; 2018:-23.5%; 2019: 31.9%; 2020: 36.8%; 2021:–7.2%; 2022:-28.4%. Investors should note that figures for A Units shown above may differ from those of classes currently available for subscription (C Units), due to differences in launch date of these classes. For C Units, the since launch return is +90.1%. The Manager does not accept any application for A Units until further notice. New investors and existing unitholders who wish to top up may subscribe in C Units. 5. Annualized return and volatility are calculated from inception based on published NAV. 6. 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.
The views expressed are the views of Value Partners Hong Kong 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 their 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. 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. This material has not been reviewed by the Securities and Futures Commission of Hong Kong. Issuer: Value Partners Hong Kong Limited.