|Value Partners Asian Food and Nutrition Fund (The “Fund”) primarily invests in the equity securities of companies engaged in or profit from any activity forming part of the food and beverage nutrition value chain based, or carrying out their business, in the Asia (ex-Japan) region which the Investment Manager believes contribute positively to environmental, social and governance (“ESG”) attributes along the value chain.
|The Fund may subject to risks associated with ESG investing, including concentration and exclusion risks, subjective judgment in investment selection, etc.
|The Fund invests in concentrated region/sector and subjects to higher level of risks than a fund having a more diverse portfolio of investments.
|The Fund’s equity portfolio may include small- and mid-cap companies. Investments in such companies may involve greater risks. The stock of such companies may also have lower liquidity and their prices are more volatile to adverse economic developments than those of larger capitalisation companies in general.
|The Fund may also invest in derivatives and engage in securities financing transactions which can involve material risks, e.g. counterparty default risk, collateral reinvestment risk or liquidity risk, and may expose the Fund to significant losses.
|In respect of the distribution classes for the Fund, the Investment 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.
|You should not make investment decision on the basis of this material alone. Please read the prospectus for details and risk factors.
opportunities in Asia’s
food and nutrition
Robust growth potential
food services sector
The rising adoption
of food and
Huge demand for Asia's food and nutrition upgrade
- Challenges: Asia has bigger undernourished population and less nutritious diet compared to developed markets. For example, the average Asian diet has 20% less protein.
- Thesis: Asia is home to two-thirds of the world’s middle class population by 2030. This is a core pillar to drive an increase demand in food quantity and quality. Asia’s retail food market is projected to double in the next decade, significantly outpacing the developed markets.
- This also presents massive opportunities for Asian domestic players, given the food premiumization, rising recognition and preference for local brands. For example, the top four dairy brands in China and Korea are all local brands and have taken up 65% of total market shares.
Robust growth potential in the underpenetrated food services sector
- Challenges: Organized food retailers that enable food accessibility are underpenetrated in many Asian countries.
- Thesis: Similarly, the rising middle class is critical to lead a rapid increase in demand for organized food services, such as grocery stores, chain restaurants and food delivery.
- The Fund aims to capitalize on companies that enhance food or grocery accessibility through internet solutions and large restaurant chains that provide enhanced quality and nutritious food to customers.
The rising adoption of food and agri-technology
- Challenges: 80% of the region’s food sources are from small-scale farmers who tend to lack technology adoption, employ irresponsible farming and fishing techniques, suffer from water pollution and soil erosion, and thus resulting in low crop yield.
- This also leads to other issues, such as food safety, due to the lack of tracking and traceability of food sources.
- Thesis: To serve the needs of increasing demand of both food quantity and quality, the adoption of technology to enhance sustainable food production and quality is taking place in Asia.
- On food production, Asia is home to several leading food-tech players with advanced technologies, such as the development of hybrid seeds, vertical farming, which can greatly enhance crop yield and food security.
- On food quality, technology adoption for food inspection, sampling and testing, supply chain traceability is increasing to address concern on food safety.
1. Risk-based exclusion, 2. Proprietary risk assessment, 3. Active Engagement, 4. Post-trade monitoring.
The Fund seeks to address the Asian food challenges by investing in Asia ex Japan companies that promote and aligned with the following 7 Sustainable Development Goals of the United Nations (UNSDGs):
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.