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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Strong 27-year track record
Ranked No.1 in the Greater China
equity fund category1 (A Units)
Provide monthly distribution classes
payouts of around 4% p.a.2
(Aims to distribute income on a monthly basis. Dividend yield is not guaranteed and dividend may be distributed out of capital) Please refer to Important Information V
Market review – Ongoing easing policies conducive to earnings recovery

  • China’s economic growth stabilized with its 3Q2019 GDP growing at 6.0%3, while consumption growth has become a driving force to help support the domestic economy
  • Over 200 A-shares4, mostly mid-caps, have been included in MSCI’s flagship emerging market (EM) indexes, attracting fund inflows from active and passive funds
  • China central bank’s rate cuts reaffirmed its easy policy stance. The stabilization of RMB also provides an ideal backdrop for corporates’ earnings recovery
Greater China sectors under spotlight – Focus on long-term trends

5G and hi-tech devices
  • Focus on investing in techniques, components, products and services required by 5G developments
  • Chinese mainland’s demand for Taiwan’s mid- to high-end production technologies is increased
Healthcare
  • China’s healthcare spending only takes up about 6.4%5 of GDP, lower than in Japan and in the U.S.
  • There is a strong structural demand in healthcare. The sector’s growth potential is significant with ongoing consolidation and reforms


Higher education
  • Average tuition fees for China’s private higher education sector are much lower than in South Korea and the U.S.
  • China’s gross enrollment ratio in tertiary education is expected to be 50%6 in 2020, meaning there is a shortfall of 750,0007 higher education places
Consumption upgrade
  • A rising middle class and further urbanization in China supports a consumption-driven economy
  • Young population’s premiumization drives the country’s consumption
Why invest in Value Partners Classic Fund?

1. Investment team
An investment team of about 70 financial specialists, who have an average industry experience of 19 years and an average tenure of 11 years with Value Partners
2. Outstanding performance throughout major market cycles
The investment team’s decades-long track record of stock selection capability has been proved over multiple market cycles

3. High-conviction, bottom-up stock
picking
High proportion of active asset allocation (71.8%8), rigorously sticking to investment disciplines
4. 360-degree fundamental research analysis
Tap undiscovered investment opportunities with more than 6,500 due diligence meetings every year

Source: Value Partners. Performance in USD, NAV to NAV, with dividends reinvested and net of all fees. All indices are for reference only.

Value Partners Classic Fund helps investors dig out:

  • Opportunities in China’s economic growth and transformation
  • Stocks with capital appreciation and dividend payouts
  • Proactive investment in quality Greater China enterprises
Major corporate and fund awards
 
For more details, please contact your bank or investment consultant. You may also contact our Fund Investor Services Team.

Contact Value Partners
Hotline: (852) 2143 0688
Email: investservices@vp.com.hk
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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 30 September 2019. 2. As at 31 December 2019. The Manager currently intends to make monthly dividend distribution in respect of the C Unit MDis Classes; actual dividend payout will be subject to the Manager’s discretion. 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 more details. Annualized yield of MDis Class is calculated as follows: (Latest dividend amount/NAV as at 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. 3. Source: National Bureau of Statistics of China, as at 17 October 2019. 4. Source: MSCI, 7 November 2019. 5. Source: National Health of Commission of China, 22 May 2019. 6. Source: State Council of China, 10 January 2017. 7. Source: Value Partners, 23 November 2019. 8. Source: Value Partners, 31 October 2019. 9. Value Partners Classic Fund (“the Fund”) (A Units) was launched on 1 April 1993. Calendar year return of A Units in the past five years: 2014: +13.5%; 2015: -1.5%; 2016: -3.2%; 2017: +44.9%; 2018 : -23.1%; 2019 (year-to-date): +16.3%. The Fund (C Units) was launched on 15 October 2009. Calendar return of C Units in the past five years: 2014: +13.3%; 2015: -2.0%; 2016: -3.7%; 2017: +43.3%; 2018 : -23.5%; 2019 (year-to-date): +15.8%. Investors should note that figures for A Units shown above may differ from those of classes currently available for subscription of (C Units), due to differences in launch date of these classes. For C Units, the since launch return is +87.1%. 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. 10. 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. 11. Annualized return and volatility are calculated from inception based on published NAV. 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. 12. 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. 13. Announced in January 2019, the award recognizes a WFOE house's ability to expand in a fast growing market, enhance its product and distribution arrangements, gain market acceptance and raise funds in the past year. 14. The awards were judged based on performance over the past 12 months, up to 30 April 2017. 15. The award recognized funds that have outperformed their peers over the past 12 months, up to 30 April 2017. 16. Based on performance for the 12-month period from September 2016 to the end of August 2017.

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 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. Investment involves risk. The price of units may go down as well as up and past performance is not indicative of future results. Investors may not get back the full amount invested. Please refer to the explanatory memorandum. The website has not been reviewed by the Securities and Futures Commission of Hong Kong. Issuer: Value Partners Hong Kong Limited.