Important Information

      I. Value Partners Greater China High Yield Income Fund (the “Fund”) primarily invests in a portfolio of fixed and floating rate bonds and other debt securities, including convertible bonds, in the Greater China region.
      II. The Fund may invest in high yielding securities which may be unrated or below investment grade and debt securities issued by special purpose vehicles. The Fund is therefore exposed to higher credit/insolvency risk and default risk.
      III. The Fund primarily invests in the Greater China region and therefore is subject to emerging market and concentration risks. Generally, investments in emerging markets are more volatile than investments in developed markets due to additional risks relating to political, social, economic and regulatory uncertainty. Adverse development in such region may affect the value of the underlying securities in which the Fund invests.
      IV. In respect of the distribution shares 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 of the net asset value per share of the Fund.
      V. 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.
      VI. You should not make investment decision on the basis of this marketing material alone. Please read the explanatory memorandum for details and risk factors.
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AUM of USD 5.6 billion1
One of the largest Greater China high yield bond strategies in the market
Payout of around 8.6% p.a. for monthly distribution classes2,3
(Dividend yield is not guaranteed and may be distributed out of capital)
Please refer to Important Information IV
Proactively capturing Greater China bond opportunities
Focus on under-covered and under-researched credits
Why invest in Value Partners Greater China High Yield Income Fund?
Pioneer of Greater China high yield bond investing

  • As one of the largest Greater China high yield bond strategies in the market (AUM at USD5.6 billion1), the Fund is posted positive returns in 7 out of 8 calendar years since inception
  • Annualized volatility over the past 5 years was 5.5%, around one quarter of the average of China equities4
  • The Fund is managed by our award-winning fixed income team, which has a proven track record of uncovering value and delivering attractive returns through a flexible investment approach
Promising outlook for China bond market

  • Global liquidity conditions may ease further in 2020 as global central banks signal further interest rate cuts
  • Investors tend to favor income-oriented strategies to provide certainty during climates of economic slowdown
  • The emerging market J.P. Morgan Asia Credit Index benchmark will include Chinese government debt starting in February 20205. Further opening up in China’s financial sector alongside supportive policies will benefit the bond market
  • China high yield bonds are undervalued compared to their 3-year averages, and offer higher yields compared to developed market debt

Source: Value Partners, Bloomberg, as at 31 December 2019

Actively find alpha in lower-rated or lesser known bonds

  • The Fund identifies and invests in quality bonds with compelling levels of income, searching value opportunities across the entire credit spectrum, which includes under-researched and lesser-known names that may be overlooked by the market
  • Rigorous due diligence and prudent bottom-up analysis have underpinned a track record of success
  • Our bottom-up approach enables a nimble flexibility in term of allocation to sector, rating and portfolio duration. The Fund mainly invests in high yield bonds, which are shorter duration bonds and generally come with lower volatility
Enjoy monthly income3 and better return potential

  • Since its inception, the Fund has delivered an impressive track record of long term returns in addition to attractive monthly dividends3
Value Partners’ fixed income investment capability
Value Partners’ fixed income team manages about US$6.6 billion6 in assets. Dedicated to uncover hidden investment value, 13 seasoned investment experts all have in-depth knowledge and proven investment experience in Asian bond markets as well as their specialized sectors.

With Value Partners’ rich research resources in Asia, rigorous credit analysis and prudent investment process, our award-winning fixed income team and products are highly recognized.

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

Hotline: +852 2143 0608
Email: investservices@vp.com.hk
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All fund performance information is quoted as of 28 February 2020, unless stated otherwise. Source: HSBC Institutional Trust Services (Asia) Limited and Bloomberg, in USD, NAV to NAV, with dividends reinvested and net of all fees.
1. As at 28 February 2020. 2. For Class P USD MDis, as at 28 February 2020. 3. The manager intends to declare and pay monthly dividends equal to all or substantially all of the net income attributable to each of the Distribution Classes. However, there is neither a guarantee that such dividends will be made nor will there be a target level of dividend payout. No dividends will be paid with respect to the Accumulation Classes. 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 further details including the distribution policy. 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. 4. China stocks refer to MSCI China Index. 5-year annualized volatility is 21.5% as at 28 February 2020. Source: Morningstar. 5. Source: Bloomberg, September 2019. 6. As at 31 December 2019. 7. Value Partners Greater China High Yield Income Fund was awarded for its performance over 3-year and 5-year periods up to 30 September 2019. 8. The award reflects performance up to 31 December 2018. 9. Announced in January 2019, the award was selected through both quantitative and qualitative methods. Funds were assessed based on their performances over the past 12 months and whether judges believe they will outperform in the next 12 months.

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 and past performance is not indicative of future results. Investors should refer to the explanatory memorandum for details and risk factors in particular those associated with investment in Greater China markets in the Asian region, non-investment grade and unrated debt securities and debt securities issued by special purpose vehicles. 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 Hong Kong Limited.