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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Excellent track record
over 28 years

Capturing Greater China's potential
Ranked No. 1 in the Greater China
equity fund category1
(A Units)
Monthly distribution classes
available in HKD, USD and RMB

Why invest in Value Partners Classic Fund?
Renowned Greater China experts

  • The Fund aims to generate excess returns throughout different market cycles andhas consistently outperformed peer funds over the long run1
  • An award-winning investment team of around 70 financial specialists covering a wide range of sector and region, with an average industry experience of 20 years and an average tenure of 12 years with Value Partners
Outstanding performance throughout major market cycles

Favorable macro outlook

  • Coupled with its growth potential, China's ahead-of-the-curve recovery is expected to continually draw inflows. Hence, our conviction toward China assets is unchanged
  • An accommodative monetary policy and large-scale fiscal stimulus may limit the rise of the USD, thereby attracting capital inflows to emerging markets and contributing to the performance of emerging market assets such as Chinese equities
China’s outstanding economic growth among major markets

Source: Goldman Sachs Global Investment Research, April 2021

Repositioning for global economic recovery

  • In light of higher inflation expectations and a global economic recovery, the Fund has been adding more to recovery plays
    • Industrials
    • Chinese shipping companies have taken up a lot of market share globally, as shipping companies from other countries still face challenges in exporting goods to the U.S. due to less quality control of COVID-19
    • Meanwhile, manufacturers in China continue to benefit from strong exports, especially from the U.S., where consumption remains strong

    • Financials
    • Concerns about liquidity tightening should benefit financials. Chinese banks should have higher pricing power and improved asset quality
    • China's 10-year bond yield is expected to stay above 3%, which is historically a key positive factor to support net-interest margin and earnings re-rating for banks. Rising bond yield is also a driver of investment returns of insurance companies

    • Consumption
    • Sportswear players are benefiting from stronger domestic brand recognition, driven by the "China Pride" phenomenon
    • Under the consumption upgrade in China, players that are going into luxury design and fashion are also expected to benefit as people are willing to pay more to get premium items and have a better lifestyle

    • Advanced technology hardware
    • China's emphasis on self-sufficiency and industrial improvments will be driven by innovation, encouraging new infrastructure and increasing capital expenditure
    • The Internet of Things presents numerous avenues of growth, meaning plenty of sustainable earnings headroom for respective value chains

 
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
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All fund performance information is quoted as of 31 March 2021, unless stated otherwise. Source: HSBC Institutional Trust Services (Asia) Limited and Bloomberg, in USD, NAV to NAV, with dividends reinvested. Fund performance is net of all fees. All indices are for reference only. 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 March 2021. 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. 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: 2016: -3.2%; 2017: +44.9%; 2018 : -23.1%; 2019: +32.4%; 2020: +37.6%; 2021 (year-to-date): +3.1%. The Fund (C Units) was launched on 15 October 2009. Calendar return of C Units in the past five years: 2016: -3.7%; 2017: +43.3%; 2018 : -23.5%; 2019: +31.9%; 2020: +36.8%; 2021(year-to-date): +2.9%. 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 +194.5%. 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. 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. 6. Volatility is a measure of the theoretical risk in terms of standard deviation, based on monthly return over the past 3 years.

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.