Vous êtes sur la page 1sur 26

Funds Menu

Funds Menu
January 2015
For Non-Professional Investors
September 2013

For Non-Professional Investors

Contents

Please pay particular attention to the risk of investment in China and other markets in the Asian region and in companies
with medium or small capitalization. The value of the funds 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.
Value Partners High-Dividend Stocks Fund and Value Partners Greater China High Yield Income Fund may invest in
higher-yielding debt and equity securities that are below investment grade; additionally, Value Partners Greater China High
Yield Income Fund may invest in debt securities issued by special purpose vehicles. Such investments can involve material
risks, e.g. counterparty risk, liquidity risk, credit risk and default risk, and may expose the Fund to significant losses.
Investors should note that there is no guarantee that the underlying securities in Value Partners High-Dividend Stocks Fund
and Value Partners Greater China High Yield Income Fund will pay out dividends. Therefore, there is no guarantee that
those funds investment strategies will succeed. There is also no guarantee of dividend or distribution payments during the
period an investor holds units in such funds, and a positive dividend yield does not represent/imply positive return.
Value Partners China A-Share Select Fund intends to invest predominantly in China A Shares directly, via its Managers
RQFII quota. Investors will be subject to certain risks including repatriation risk, custodial risk, regulatory risk and risks
associated with the Managers RQFII status. In addition, the RQFII policy and rules are relatively new and there may be
uncertainty in implementation and such policy and rules are subject to change. All these may adversely impact the fund. The
fund and its primary investments are denominated in RMB. RMB is currently not a freely convertible currency and is
subject to foreign exchange control policies, as well as repatriation restrictions imposed by the PRC government. Investors
whose base currencies of investments are not in RMB should take into account the potential risk of loss arising from
fluctuations in value between such currencies and the RMB.
The funds may also invest in derivatives which can involve material risks, e.g. counterparty default risk, insolvency or
liquidity risk, and may expose the funds to significant losses.
You should not make investment decision on the basis of this material alone. Please read the explanatory memorandum for
details and risk factors.

Pages
Value Partners Classic Fund

5-12

Value Partners High-Dividend Stocks Fund

13-14

Value Partners Intelligent Funds - China Convergence Fund

15-16

Value Partners Intelligent Funds - Chinese Mainland Focus Fund

17-18

Value Partners China Greenchip Fund Limited

19-20

Value Partners Taiwan Fund

21-22

Value Partners Greater China High Yield Income Fund

23-24

Value Partners China A-Share Select Fund

25-26

Value Partners Fund Offerings


Absolute return long-biased strategy
Asia Pacific

China

Taiwan

Classic Fund

China Convergence Fund

Taiwan Fund

A value fund investing primarily


in a broad mandate in the AsiaPacific markets with an
emphasis on Greater China
equities.

A value fund mainly investing


primarily in China A, B and H
shares.

High-Dividend Stocks Fund

Chinese Mainland Focus Fund

A value fund mainly investing


in relatively high yielding
investment in Asian region.

A value fund mainly investing in


Mainland China related
investments and investments that
we believe would be boosted by
the appreciation of Renminbi.
China Greenchip Fund

A value fund mainly


investing in
undervalued Taiwan
and Taiwan-related
entities.

CIES
Eligible*

A value fund investing primarily


in undervalued small-cap entities
with a focus on Greater China.
China A-Share Select Fund
A fund predominately investing in
RMB-denominated equities in the
PRC utilizing the Managers
RQFII quota.

Fixed income strategy


China
Greater China High Yield Income Fund
A fund that aims to provide regular income through primarily investing in Greater China debt
securities.

* Value Partners China Greenchip Fund Limited is one of the eligible collective
investment schemes for the purpose of the Hong Kong Capital Investment Entrant
Scheme (CIES).The CIES was suspended by the Hong Kong Government with effect
from 15 January 2015 until further notice.

28 Mar 2012

Value Partners Greater China High Yield Income Fund


(P USD Acc)

USD 1,100.4m

USD 61.45m

0.2%
-13.9%
-10.5%

1.1%
-14.0%
-

10.5%
-5.7%
-

21.2%
-15.7%
20.9%
-15.7%
-

2002

85.6%
34.9%
86.7%

92.1%
87.6%
3.9%
20.1%

79.7%
41.5%
-

83.6%
33.1%
83.1%
33.1%
-

2003

1.5%
13.2%
2.0%

0.8%
1.9%
8.4%
1.9%

8.9%
19.7%
-

5.8%
13.4%
5.6%
13.4%
-

2004

16.1%
8.4%
19.5%

3.9%
19.8%
11.6%
19.8%

12.2%
20.1%
-

15.9%
9.8%
15.6%
9.8%
-

2005

43.7%
39.0%
83.4%

86.9%
82.9%
48.1%
82.9%

35.0%
28.2%
-

41.8%
35.3%
41.2%
35.3%
-

2006

36.3%
43.4%
66.7%

56.6%
66.2%
56.0%
66.2%

44.2%
34.8%
-

41.1%
45.3%
40.4%
45.3%
-

2007

-35.7%
-42.4%
-47.9%

-57.4%
-46.4%
-51.1%

-45.2%
-50.8%
-44.8%
-50.8%

-46.8%
-54.1%
-

-47.9%
-46.5%
-48.1%
-46.5%
-

2008

58.0%
81.6%
76.4%

116.7%
56.6%
62.4%

87.1%
62.3%
86.0%
62.3%

82.8%
68.2%
-

82.9%
56.6%
82.0%
56.6%
7.7%
-0.3%

2009

19.2%
13.3%
21.3%

37.8%
8.6%
4.9%

21.3%
4.6%
23.9%
4.6%

25.8%
15.2%
-

20.2%
8.6%
19.6%
8.6%
21.2%
8.6%

2010

-13.0%
-19.7%
-19.5%

-25.0%
-17.0%
-18.2%

-22.4%
-18.4%
-17.8%
-18.4%

-11.9%
-16.6%
-

-17.2%
-17.4%
-17.6%
-17.4%
-17.6%
-17.4%

2011

13.0%

26.1%
18.2%
16.9%

24.8%
26.9%
22.0%

9.3%
22.7%
11.6%
22.7%

25.2%
18.6%
7.2%

14.0%
27.7%
13.4%
27.7%
13.4%
27.7%

2012

1.2%

13.7%
12.2%
9.1%

16.5%
6.6%
3.7%

9.2%
3.6%
8.3%
3.6%

8.1%
3.4%
7.5%

11.2%
6.5%
10.6%
6.5%
10.8%
6.5%

2013

1.1%

2.1%
5.1%
9.4%

2.4%
5.5%
8.0%

14.6%
8.0%
10.6%
8.0%

9.4%
2.8%
9.4%

13.5%
5.5%
13.0%
5.5%
13.3%
5.5%

2014
YTD

15.5%

54.2%
39.3%
25.3%

509.2%
206.2%
479.5%

1,368.9%
173.7%
306.3%
316.8%

654.1%
303.3%
26.1%

2,570.3%
417.3%
1,113.9%
205.8%
53.1%
28.0%

Since
inception

No part of this document, or any information contained herein, may be distributed, reproduced, taken or transmitted into the United States or its territories or possession. Any failure to comply with the restrictions may constitute a violation of the relevant laws.

*Indices combine the price return indices up to 31 December 2004 with the total return indices thereafter. Total return indices include dividend reinvestment whereas price return indices does not take into account reinvestment of dividends.
Starting from July 2009, the MSCI China Index will be used as the reference index for the entire history of the fund. Hang Seng H Shares Index, Shanghai Composite Index and Shenzhen Composite Index were no longer shown for comparison.
Disclaimer: 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. Information in this report has been obtained from sources
believed to be reliable but Value Partners Limited does not guarantee the accuracy or completeness of the information provided by third parties. This report has not been reviewed by the Securities and Futures Commission. Issuer: Value Partners Limited

Source: HSBC Institutional Trust Services (Asia) Limited and Bloomberg.


Unless otherwise stated, performance is calculated in USD, NAV to NAV, with dividends reinvested. Performance data is net of all fees.
Performance is calculated in HKD, NAV to NAV, with dividends reinvested. Performance data is net of all fees. Investors should note that figures for Non-Redeemable Class N shares shown above may differ from those of classes currently available for subscription (namely Class A and Class A2 QDis), due to differences in launch date of these classes. For Class A, the since
launch return is +72.3%.

3 Mar 2008

Value Partners Taiwan Fund


Taiwan Stock Exchange Index
MSCI Taiwan Index

HKD 5,243.58m

USD 141.41m

27 Nov 2003

8 Apr 2002

USD 342.07m

USD 2,888.49m
(Total Class A1, A2MDis & Z)

USD 1,466.04m
(Total A, B & C units)

Fund size

14 Jul 2000

28 Sep 2012

2 Sep 2002

15 Oct 2009

15 May 1996

1 Apr 1993

Inception
date

Value Partners China Greenchip Fund Limited+


Hong Kong Hang Seng Index*
MSCI China Free HKD

Value Partners Intelligent Funds -China Convergence Fund

MSCI China Index


Chinese Mainland Focus Fund

MSCI China Index

Value Partners High-Dividend Stocks Fund(Class A1)


MSCI Asia Pacific (ex-Japan) Index
Value Partners High-Dividend Stocks Fund(Class A2)

Value Partners Classic Fund (A unit)


Hong Kong Hang Seng Index*
Value Partners Classic Fund (B unit)
Hong Kong Hang Seng Index*
Value Partners Classic Fund (C unit)
Hong Kong Hang Seng Index*

Recent performance

Updated to end of December 2014

HHHH

Morningstar RatingTM1
As at 31-12-2014

31 December 2014

Value Partners Classic Fund


NAV per unit : A Units - USD267.03
USD1,466 million
Fund size :

B Units - USD121.39

2 Pages

C Units - USD15.31

Value Partners Classic Fund (the fund) primarily invests in stock markets of the Asia-Pacific region, with a Greater China focus.
Please pay particular attention to the risk of investment in China and other markets in the Asian region and in companies
with medium or small capitalization. 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.
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.
You should not make investment decision on the basis of this material alone. Please read the explanatory memorandum
for details and risk factors.

Performance update

Investment objective
The fund aims to achieve consistent superior return and uses a
bottom-up approach to invest in value stocks in the Asia Pacific
region, particularly those in Greater China region, which the
Manager believes are being traded at deep discounts to their
intrinsic value.

Performance since launch (with dividends reinvested) 2


%
2800
2400

Value Partners Classic Fund (A Units, USD)


Hong Kong Hang Seng Index 3

+2,570.3%

2000

A Units Hang Seng B Units


(USD)
Index 3
(USD)
One month
+4.6%
-1.6%
+4.5%
One year
+13.5%
+5.5%
+13.0%
Three years
+43.8%
+43.5%
+41.7%
Five years
+43.2%
+28.5%
+39.7%
Since launch
+2,570.3% +417.3% +1,113.9%
Annualized return
+16.3%
+7.8%
+14.3%
Annualized volatility
21.8%
27.0%
22.7%

1200

Annual performance 2

800

A Units
(USD)
+83.6%
+5.8%
+15.9%
+41.8%
+41.1%
-47.9%
+82.9%
+20.2%
-17.2%
+14.0%
+11.2%
+13.5%

+417.3%

400
0

1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

NAVs & codes


Classes 5
A Units (USD)
B Units (USD)
C Units (USD)
C Units (HKD) 6
C Units (AUD) Hedged
C Units (CAD) Hedged
C Units (NZD) Hedged

NAV
267.03
121.39
15.31
118.7352
12.42
12.24
12.28

ISIN
KYG9316N1025
KYG931701018
KYG9316N1280
KYG9316N1280
KYG9316N1363
KYG9316N1447
KYG9316N1512

Bloomberg
VLPARAI KY
VLPARBI KY
VLPARCI KY
VLPARCI KY
VLCHAUD KY
VLCHCAD KY
VLCHNZD KY

2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014

B Units
(USD)
+83.1%
+5.6%
+15.6%
+41.2%
+40.4%
-48.1%
+82.0%
+19.6%
-17.6%
+13.4%
+10.6%
+13.0%

C Units
(USD)
N/A
N/A
N/A
N/A
N/A
N/A
+7.7% 4
+21.2%
-17.6%
+13.4%
+10.8%
+13.3%

Value Partners Classic Fund A Units (USD): Monthly performance from 1 Jan 2003 to 31 Dec 2014
Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014

C Units
(USD)
+4.7%
+13.3%
+42.4%
+42.2%
+53.1%
+8.5%
18.8%

Annualized return and volatility are calculated from inception. 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.

1600

1993

Jan
+6.2%
+2.9%
+0.7%
+9.2%
+2.1%
-14.0%
-3.2%
-5.8%
-1.5%
+7.8%
+7.9%
-5.5%

Feb
+4.9%
+4.5%
+3.4%
+3.5%
+2.5%
+6.1%
-0.2%
+2.2%
-1.6%
+6.3%
-2.5%
+2.3%

Mar
+0.7%
+0.1%
-1.1%
+6.7%
+2.5%
-9.5%
+8.2%
+7.1%
+5.4%
-5.7%
-2.9%
-4.0%

Apr
-2.2%
-2.9%
+0.3%
+4.6%
+5.0%
+10.9%
+8.2%
+3.1%
+3.5%
+1.6%
+0.6%
-1.6%

May
+9.3%
-6.1%
-1.2%
-5.6%
+3.7%
-2.2%
+20.1%
-6.1%
-1.3%
-10.2%
+1.2%
+2.0%

Jun
+4.5%
-0.8%
+4.0%
-2.6%
+4.8%
-8.3%
+1.3%
+1.1%
-3.2%
-2.1%
-9.0%
+4.6%

Jul
+9.8%
-0.1%
+1.6%
+3.2%
+12.6%
-5.3%
+11.5%
+5.0%
+2.8%
-1.3%
+2.3%
+6.2%

Aug
+6.9%
-0.1%
-0.1%
+0.7%
-7.4%
-8.6%
+0.1%
+0.2%
-7.5%
+1.7%
+0.5%
+3.0%

Sep
+6.3%
+4.2%
+3.1%
+0.8%
+10.5%
-11.0%
+2.5%
+10.5%
-19.8%
+6.4%
+2.2%
-1.5%

Oct
+8.5%
+0.7%
-1.9%
+5.0%
+8.9%
-31.0%
+7.5%
+3.8%
+15.3%
+2.3%
+6.2%
+1.6%

Nov
+1.4%
+3.9%
+3.8%
+6.4%
-9.6%
+5.2%
+5.9%
-0.7%
-7.8%
+1.9%
+4.8%
+1.9%

Dec
+6.5%
+0.0%
+2.5%
+4.6%
+1.6%
+13.4%
+2.2%
-0.7%
+1.0%
+5.9%
+0.4%
+4.6%

Annual
+83.6%
+5.8%
+15.9%
+41.8%
+41.1%
-47.9%
+82.9%
+20.2%
-17.2%
+14.0%
+11.2%
+13.5%

9th Floor, Nexxus Building, 41 Connaught Road Central, Hong Kong Tel : (852) 2880 9263 Fax : (852) 2565 7975
Email : vpl@vp.com.hk Website : www.valuepartners.com.hk
5

Value Partners Classic Fund


31 December 2014
Top 10 securities holdings
Name
Luye Pharma
Chongqing Changan
Automobile
PetroChina
China Life Insurance
China Vanke
Ping An Insurance
Tasly Pharmaceutical
Industrial & Commercial
Bank Of China
CGN Power
China Taiping Insurance

Portfolio characteristics

Industry 7
Pharmaceuticals,
biotechnology & life sciences
Automobiles & components

%
8.4

Energy
Insurance
Real estate
Insurance
Pharmaceuticals,
biotechnology & life sciences
Banks

6.5
5.1
4.8
4.8
3.6

Utilities
Insurance

3.3
2.5

8.1

3.4

These stocks constitute 51% of the fund. The top ten securities holdings only
include companies and/ or REITs the fund invested, excluding any index tracking
fund or ETF.

As at 31 Dec 2014
Price/earnings ratio
Price/book ratio
Dividend yield

2015 10
13.8 times
2.4 times
2.5%

Fund facts
Manager:
Base currency:
Trustee:
Custodian:
Launch date:


Value Partners Limited


USD
Bank of Bermuda (Cayman) Limited
HSBC Institutional Trust Services (Asia) Limited
A Units (USD) - 1 Apr 1993
B Units (USD) - 15 May 1996
C Units (USD) - 15 Oct 2009
C Units (AUD/CAD/NZD) - 17 Mar 2014

A, B and C units are invested in the same fund, A and B units were no longer
issued from 12 Apr 2002 and 15 Oct 2009 respectively. Only C units are
currently available. Unit price is published daily in the South China Morning Post,
the Hong Kong Economic Journal and the Hong Kong Economic Times.

Geographical exposure by listing 8


H Shares
Hong Kong
China A Shares
Red Chips
China B Shares
Taiwan
Others
Singapore
Cash 9

25%
23%
16%
15%
11%
5%
3%
2%
2%

A Units

Minimum subscription
Minimum subsequent
subscription
Subscription fee
Management fee
Performance fee 11
Redemption fee
Dealing day

Sector exposure 7 8
Health care
Consumer discretionary
Insurance
Utilities
Information technology
Energy
Real estate
Banks
Others
Telecom services
Cash 9

Fee structure

18%
17%
14%
13%
10%
8%
6%
5%
5%
4%
2%

B Units

C Units
USD10,000
Closed
Closed
or equivalent
USD5,000
Nil
Nil
or equivalent
Closed
Closed
up to 5%
0.75% p.a.
1.25% p.a.
1.25% p.a.
15% of profit (High-on-high principle)
Nil
Daily
Daily
Daily dealing
redemption
redemption

Value Partners Investment Team


Chairman & Co-Chief Investment Officer: Cheah Cheng Hye
Deputy Chairman & Co-Chief Investment Officer: Louis So
Deputy Chief Investment Officer: Renee Hung
Senior Investment Director: Norman Ho, CFA
Investment Directors: Eric Chow; Alan Wang, CFA
Senior Fund Managers: Doris Ho; Kyu Ho; Lai Voon San;
Michelle Yu, CFA; Yu Xiao Bo

Recent awards

GREATER CHINA
EQUITY

Fund of the Year Awards 2011


Outstanding Achiever Greater China Equity
category 12
~ Benchmark

OUTSTANDING ACHIEVER

1. 2014 Morningstar, Inc. All Rights Reserved (for A Units). 2. Source: HSBC Institutional Trust Services (Asia) Limited and Bloomberg, in USD, NAV to NAV, with dividends reinvested.
Performance data is net of all fees. 3. Index refers to Hang Seng Price Return Index up to 31 Dec 2004, thereafter it is the Hang Seng Total Return Index. Hang Seng Total Return Index
includes dividend reinvestment whereas Hang Seng Price Return Index does not take into account reinvestment of dividends. 4. Calculated based on the since inception return of C Untis.
5. The fund may invest in financial derivative instruments (FDI) for hedging purposes. In adverse situations, the funds use of FDI may become ineffective in hedging and the fund may suffer
significant losses. Each hedged share class will hedge the funds base currency back to its currency of denomination on a best efforts basis. However, the volatility of the hedged classes
measured in the funds base currency may be higher than that of the equivalent class denominated in the funds base currency. Risks associated with FDI include counterparty risk, credit
risk and liquidity risk. Such exposure may lead to a high risk of capital loss. The AUD/CAD/NZD Hedged Classes are not recommended for investors whose base currency of investment is
not in the aforesaid currencies. 6. Investors should note that the base currency of C Units is in USD. The HKD is for reference only and should not be used for subscription or redemption
purpose. Conversion to the base currency of C Units will normally take place at the prevailing rate (as determined by the Funds Trustee or Custodian) on the corresponding fund dealing
day. Investor should be aware of possible risks resulting from fluctuations of exchange rates against USD. 7. Classification is based on Global Industry Classification Standard (GICS).
8. Exposure refers to net exposure (long exposure minus short exposure). Due to rounding, percentages shown may not add up to 100%. 9. Cash refers to net cash on hand excluding cash for
collaterals and margins. 10. The profile is based on market consensus forecast as derived from S&P Capital IQ and Bloomberg. Note that the managers internal estimates may differ significantly
from S&P Capital IQ and Bloomberg estimates. 11. Performance fee will only be charged if the NAV at the end of the financial year or upon realization of units exceeds the high watermark, which
is the all-time year-end high of the funds NAV. If in any one year, the fund suffers a loss, no performance fee can be charged in subsequent years until the loss is recovered fully (the high-on-high
principle). 12. Class A Units of the fund selected as one of the top 100 funds based on fund size, track record, Morningstars Star rating and one year absolute ranking as at month end Oct 2011.
13. Value Partners Classic Fund is not authorized as a hedge fund by the Securities and Futures Commission (SFC) in Hong Kong according to the Code on Unit Trusts and Mutual Funds. 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.
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. Information in this report has been obtained from sources believed to be reliable but
Value Partners Limited does not guarantee the accuracy or completeness of the information provided by third parties. This report has not been reviewed by the SFC. Issuer: Value Partners Limited.

VPCF_Master_201412

2011 - Long-Term Performance Award (10 years) 13


~ AsiaHedge Awards 2011

Value Partners Classic Fund


Commentary / Fourth Quarter 2014 (including Yearend 2014 Summary)

Value Partners Classic Fund (the Fund) primarily invests in stock markets of the Asia-Pacific region,
with a Greater China focus.
Please pay particular attention to the risk of investment in China and other markets in the Asian region
and in companies with medium or small capitalization. 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.
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.
You should not make investment decisions on the basis of this material alone. Please read the
explanatory memorandum for details and risk factors.

Value Partners Classic Fund (the Fund) finished 2014 on a high after a relatively volatile year. Chinese
equities drifted lower in the first half of the year, only to rally towards the end as the Shanghai-Hong Kong
Stock Connect and a loosening monetary stance helped drive equity markets higher. The Fund delivered a
positive return of 13.5% for the year. For reference, the Hang Seng Index gained 5.5% for the year while the
MSCI China Index rose 8.0%.
China reforms and supportive macros
The China story continues to remain compelling as we are only in the early stage of reform programs
announced in 2013. While investors are still wrestling with the reality that Chinas growth continues to slow,
we think that this could be a positive factor in delaying the recognition of reform dividends. In 2014, China
tackled some of the more difficult aspects on its reform agenda, such as raising SOE (state-owned enterprise)
profitability and efficiency. SOE reform measures are expected to continue, notably in the areas of asset
divestment, industry consolidation, mixed ownership and equity incentive schemes. Furthermore, the
Communist Party had its recent Fourth Plenum focusing on rule of law for the first time. The blueprint
improves judicial procedures and the separation of judicial and administrative functions. These changes will
play a significant role in Chinas long-term economic growth and political stability, benefiting those who are
doing business in China. These types of reforms are not easy to execute and demonstrate the significant
political clout and determination of the current administration.
From a macro perspective, a stronger US dollar environment and lower commodity prices will aid to
maintain low inflation in China and leave room for further interest rate cuts. A more accommodative
monetary policy environment is suitable in a time of significant reform. This will help minimize financial
market shocks as the rapid pace of reforms may expose its weakest links. We expect the Chinese
government to continue providing support to domestic growth by continuing infrastructure projects and
housing stimulus plans to maintain economic growth rate at around 7% to 7.5%.
Performance driven by A shares and stock selection in 2014
From a portfolio strategy perspective, the Fund has remained fully invested throughout much of the year,
underpinning our positive view on equity markets. We have further engaged in our high conviction ideas and
remained aggressive in employing our active strategy. In 2014, our significant additions in A shares and
stock selection were the key performance drivers of the Fund.

9th Floor, Nexxus Building, 41 Connaught Road Central, Hong Kong


Tel: (852) 2880-9263 Fax: (852) 2565-7975
Email: vpl@vp.com.hk Website: www.valuepartners.com.hk
7

At the beginning of 2014, our portfolio started with an exposure of approximately 10% in Chinese A shares.
With the anticipated launch of the Shanghai-Hong Kong Stock Connect and low market valuations, we
recognized potentials for strong A-share performance. With the support from our Shanghai research team
since 2009, we significantly increased the Funds A-share exposure to 27%1 as of the end of October ahead
of the official launch of the Stock Connect. We favored stocks that are dually listed in the Shanghai and
Hong Kong stock exchanges, as well as selected companies that are cheaper in the A-share market. We also
favored high-yielding stocks and unique opportunities available in the A-share market. Despite the
lukewarm take-up of the Stock Connect, we were able to take advantage of the broader A-share rally.
The CSI 300 Index has gained 52.1% (in US$ terms) over the year, particularly spurred by interest rate cuts
and recovering retail participation in the domestic stockmarket in the final month.
From a stock selection perspective, our positions in China healthcare, properties and energy have particularly
yielded a positive impact on the portfolio. Going forward, we will continue to find attractive value stocks,
especially in old economy sectors including banking, insurance and property. Healthcare, as one of the
few new economy sectors, will however remain one of our favorites.
Investment case study Lijun International Pharmaceutical
Lijun International Pharmaceutical (Lijun) is a healthcare company that has been one of our top holdings
and key performance contributors. It is one of the top three largest makers of infusion products in China.
Intravenous infusion solutions are a critical component of Chinas developing healthcare system, and Lijun
has experienced stable double-digit growth in the past five years. While Lijuns competitors focus on the
lower end of the market, Lijun pioneers in producing non-PVC soft bag injections with a market share of
over 30%. The advantages of non-PVC soft bag injections over traditional glass-based injection bottles
include lower weight for transportation and lower risk of breakage. Therefore, we expect non-PVC soft bags
to grow faster than the overall market. In addition, Lijun operates the largest single-factory production
facility for large-volume infusion products, giving it cost advantage with economies of scale. Lijuns strong
branding and low-cost production also help the company to generate a gross margin of over 50% in the first
half of 2014. On the back of an experienced management team and the capacity for further expansion, we
are hopeful that Lijun will continue to deliver strong earnings growth. While the overall healthcare sector
has performed strongly in the past two years, Lijun is currently trading at 12.7 times of 2015 forward
price-to-earnings ratio, which is reasonable given its business prospects.
Amidst a volatile environment, we believe this is a good time for Value Partners to thrive further as our
region is refocusing on stock picking and fundamental value. While we expect markets to remain somewhat
volatile, we are optimistic about the outlook for Chinese equities. We are also well-positioned to take
advantage of market fluctuations.
Corporate update
Value Partners has continued to grow from strength to strength in 2014. Our assets under management
(AUM) have grown by more than 20% in 2014 to over US$12.6 billion. Our performance also continued
to win us industry accolades. Among our numerous awards in 2014 include Asian Fund House of the Year
and Asset Management Company of the Year (Hong Kong) 2. In addition, we are pleased to report that
Value Partners Group has won the Enterprise Award in the DHL/SCMP Hong Kong Business Awards 2014,
a distinguished title given to entrepreneurs and companies that have made important contributions to
Hong Kong and the neighboring Pearl River Delta. This is the second time that we were given this renowned
title after receiving it in 2005, from a different judging panel. Meanwhile, in the Benchmark Fund of the
Year Awards 2014, we were named the Outstanding Achiever in the China Equity and High Yield Fixed
Income categories.

Page 2
8

Value Partners leading position in Asian fund management is also reflected in the industry leadership role
played by our Chairman and Co-Chief Investment Officer, Dato Cheah Cheng Hye. In 2014, Dato Cheah
was invited to speak at many industry events in Hong Kong, Shanghai and Singapore, organized by
professional and public organizations, including the Hong Kong Securities and Futures Commission (SFC);
the CFA Institute; The Hong Kong Society of Financial Analysts; and Business China Singapore, a
government-supported group seeking to strengthen business ties between Singapore and China. Dato Cheah
spoke mainly on investing and corporate governance. Also, from early 2014, Dato Cheah delivered a speech
at various gatherings entitled Chinese stocks: From Ugly Duckling to Beautiful Princess, predicting a
renaissance for the Chinese equity market, arising from President Xi Jinpings program emphasizing
deregulation, market-opening, a growing role for private enterprise and much improved corporate
governance. We are beginning to see the renaissance in action.
In closing this report, wed like to convey our heartfelt thanks to our investors for their continued support and
the confidence they have placed in us. The recovery of value stocks showed that our value discipline has
once again borne fruit as we stay true to our convictions. We look forward to achieving new highs and
bringing another prosperous year for investors.
Value Partners Investment Team
9 January 2015
1

Including exposure from both direct A-share investment and indirect investment through China A-Share Access
Products (CAAPs).

Value Partners was named Asian Fund House of the Year in AsianInvestors Investment Performance Awards 2014
and Asset Management Company of the Year (Hong Kong) in The Asset Triple A Investor and Fund Management
Awards 2014.
Fund performance mentioned referred to Value Partners Classic Fund A Unit. All performance figures are sourced
from HSBC Institutional Trust Services (Asia) Limited and Bloomberg (Data computed in US$ terms on NAV-to-NAV
basis with dividends reinvested) as at 31 December 2014. Performance data is net of all fees.
Individual stock performance is not indicative of fund performance.
Investors should note that 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. This commentary has not been reviewed by the
Securities and Futures Commission. Issuer: Value Partners Limited.

Page 3
9

10

Market cap:
US$24.7 billion

China Vanke
(Code: 000002 CH)

Market cap:
US$8.9 billion

China Taiping Insurance


(Code: 966 HK)

Market cap:
US$143.8 billion

China Life Insurance


(Code: 2628 HK)

Real estate

Insurance

Insurance

Nuclear power
producer

CGN Power
(Code: 1816 HK)

Market cap:
US$19.8 billion

Industry

Stock

Price: CNY13.90
P/E: 7.4x
P/B: 1.5x
Yield: 3.7%

Price: HK$22.20
P/EV*: 1.0x
Yield: 0.0%

Price: HK$30.45
P/EV*: 1.3x
Yield: 1.7%

Price: HK$3.37
P/E: 19.0x
P/B: 2.0x
Yield: 1.7%

Valuation
(2015 Estimates)

Page 4

China Vanke is Chinas largest developer of residential properties in terms of contracted sales.
It has over 300 projects that are located in over 60 cities in mainland China. We see China
Vankes land bank as one of the most diversified among its peers, which may help it deliver
faster sales growth. In 2014, its contracted sales rose 26% despite a decline in the overall
Chinese property market, which further solidifies its leading position in the industry. Being the
largest homebuilder in China, it may benefit from the more accommodative policy environment
in China since mid-2014, and the interest rate cuts in November 2014 has further helped
reviving homebuyers confidence.

China Taiping Insurance (CTI) engages in the underwriting of direct life insurance business,
property and casualty insurance business, and reinsurance business. The company has seen
peer-beating growth in life NBV (new business value) in 2014 on the back of specific
advantages in terms of its large scale agent recruitment. With a focus on life insurance, it is
also well positioned to benefit from measures by the Chinese government to let the insurance
industry play a bigger role in the social security network in the medium to long term.

China Life Insurance (China Life), together with its subsidiaries, is the largest integrated
insurer in China. It has the most extensive distribution and service network among all insurance
companies in China, covering life insurance, property & casualty insurance, pension plans
(corporate annuity), asset management and industrial investment. Following its management's
efforts to scale down bancassurance and focus on growing agency over the past few years,
China Life is finally able to execute on its much needed changes and restore its growth profile.
Meanwhile, it is expected to benefit from better investment returns and improving business
performance amidst rate cut cycles.

Listed in Hong Kong in December 2014, CGN Power is the leading nuclear power producer in
China with the biggest total installed capacity as of June 2014. Its nuclear power stations are
strategically located in economically developed regions in China that have a strong demand for
electricity. Within Chinas energy spectrum, nuclear power is unique in that it has the lowest
earnings volatility. As the Chinese government supports clean energy development, CGN Power
is well positioned to benefit from the potential growth of the nuclear power industry in the
coming years.

Remarks

Value Partners Classic Fund: 10 biggest holdings of securities as at 31 December 2014

11

Market cap:
US$4.3 billion

Luye Pharma Group


(Code: 2186 HK)

Market cap:
US$271.0 billion

Industrial & Commercial


Bank of China
(Code: 1398 HK)

Drug manufacturer
and distributor

Banks

Auto manufacturer

Chongqing Changan
Automobile
(Code: 200625 CH)

Market cap:
US$12.0 billion

Industry

Stock

Price: HK$9.99
P/E: 27.1x
P/B: 4.2x
Yield: 0.1%

Price: HK$5.66
P/E: 5.5x
P/B: 1.0x
Yield: 6.4%

Price: HK$17.56
P/E: 7.0x
P/B: 2.1x
Yield: 2.1%

Valuation
(2015 Estimates)

Page 5

Luye Pharma Group (Luye Pharma) is a leading pharmaceutical company which focuses on
the manufacturing and selling of pharmaceutical products in three of the fastest growing
therapeutic areas in China including oncology, cardiovascular system, and alimentary tract and
metabolism. In the first half of 2014, the groups nationwide distribution network enabled it to
sell its products to over 8,000 hospitals in the PRC. Given its strong product pipeline, proven
R&D capabilities and sales and marketing networks, Luye is well positioned to continue gaining
market share despite an increasingly competitive market environment.

Industrial & Commercial Bank of China (ICBC) is the largest commercial bank in China in
terms of assets and deposits. An extensive network of over 17,000 branches and a huge
customer base gives it both scale and funding advantages. ICBC has a liquid balance sheet, low
exposure to interbank, excess reserves and industry high capital adequacy.

Chongqing Changan Automobile (Changan) is one of the largest automakers in China. It


owns a joint venture with Ford. The joint venture Changan Ford has contributed to the majority
of the companys profits and launched in 2013 two locally manufactured sports utility vehicles
(SUV) models, aiming to participate in the fastest-growing passenger vehicle segment. Ford is
determined to ramp up production capacity to double their current production volume by 2015
and also expects to bring more new models to China and gain market share. In 2014, the
company delivered a sales volume growth of about 20%, continuing to shine among peers.

Remarks

12

Drug manufacturer
and distributor

Price: CNY41.10
P/E: 25.1x
P/B: 7.3x
Yield: 1.2%

Price: HK$79.10
P/EV*: 1.0x
Yield: 1.3%

Price: HK$8.60
P/E: 10.7x
P/B: 1.0x
Yield: 4.3%

Valuation
(2015 Estimates)

Tasly Pharmaceutical (Tasly) is a leading traditional Chinese medicine (TCM) developer and
distributor with a focus on the treatment of cardiovascular and cerebrovascular diseases. Given
the high potential of essential drug tendering ramp-up in most provinces in 2015 in China, Tasly
will likely continue to enjoy strong sales growth going forward. The company has a strong
potential for product internationalization to drive future growth. Its Compound Danshen
Dripping Pills is undergoing a Phase III clinical trial in the US and could potentially become the
first TCM product to enter the US market as a prescription drug.

Ping An Insurance (Ping An) is a leading provider of insurance service in China. It is one of
the first Chinese non-state-owned financial conglomerates that provide insurance (both life and
non-life), banking, securities, trust and asset management services to customers in the country.
In the current tough operating environment, Ping An is well-positioned amongst peers given its
superior agency force and multi-product platform.

PetroChina is the largest integrated oil company in Asia by market capitalization. It has crude
reserves of nearly 11 billion barrels and gas reserves of over 69,000 billion cubic feet. Its
downstream assets consist of refining, and a service-station marketing network of over 20,000
stations. PetroChina is expected to benefit from growth in gas usage as China targets to diversify
their energy reliance from coal. The SOE reform undergoing will also push the company to
adopt measures for better cost control and returns for investors.

Remarks

Page 6

Individual stock performance/yield is not necessarily indicative of overall fund performance.

Note: The above investments made up 50.5% of Value Partners Classic Fund as at 31 December 2014. The stock prices are based on the closing of 31 December 2014.

*EV = Embedded value

Market cap:
US$6.8 billion

Tasly Pharmaceutical
(Code: 600535 CH)

Market cap:
US$95.6 billion

Ping An Insurance
(Code: 2318 HK)

Insurance

Energy

PetroChina
(Code: 857 HK)

Market cap:
US$305.4 billion

Industry

Stock

HHHHH

Morningstar RatingTM1
As at 31-12-2014

Value Partners High-Dividend Stocks Fund


NAV per unit: Class A1 (USD) - USD74.64
USD2,888.5 million
Fund size:

31 December 2014

2 Pages

Class A2 MDis (USD) - USD11.56

Value Partners High-Dividend Stocks Fund (the fund) primarily invests in stock markets of the Asia-Pacific region, with a Greater China
focus.
The fund will primarily invest in higher-yielding equities and debt securities, while maintaining a flexible allocation to other assets
including gold, REITs and cash.
The fund may invest in higher-yielding debt and equity securities that are below investment grade. Such investments can involve
material risks, e.g. counterparty risk, liquidity risk, credit risk and default risk, and may expose the fund to significant losses.
Investors should note that there is no guarantee that the underlying securities in the fund will pay out dividends. Therefore, there is no
guarantee that the funds investment strategies will succeed. There is also no guarantee of dividend or distribution payments during the
period an investor holds units in the fund, and a positive dividend yield does not represent/imply positive return.
Please pay particular attention to the risk of investment in China and other markets in the Asian region and in companies with medium
or small capitalization. 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.
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.
You should not make investment decision on the basis of this material alone. Please read the explanatory memorandum for details and
risk factors.

Investment objective

Performance update

The fund aims to provide capital appreciation to unitholders by


investing primarily in a portfolio of relatively higher yielding debt and
equity securities in Asian region.

Performance since launch (with dividends reinvested) 2


%

800

The fund (Class A1, USD)


Index*

+654.1%

600
400

+303.3%

Class A1
(USD)
+0.6%
+9.4%
+48.1%
+64.3%
+654.1%
+17.8%
19.0%

One month
One year
Three years
Five years
Since launch
Annualized return ^
Annualized volatility ^

Class A2 MDis
(USD)
+0.6%
+9.4%
N/A
N/A
+26.1%
+10.9%
N/A

Index*
-2.1%
+2.8%
+30.0%
+29.7%
+303.3%
+12.0%
21.1%

* Index refers to MSCI AC Asia Pacific (ex-Japan) Total Return Index.


^ Annualized return and volatility are calculated from inception on 2 Sep 2002.
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.

200

Dividend information Class A2 MDis

0
-100

2002

Classes 4

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Class A2 MDis USD


Class A2 MDis HKD
Class A2 MDis AUD Hedged
Class A2 MDis CAD Hedged
Class A2 MDis NZD Hedged

NAVs & codes


Classes 4
Class A1 USD
Class A1 HKD 7
Class A2 MDis USD
Class A2 MDis HKD
Class A2 MDis AUD Hedged
Class A2 MDis CAD Hedged
Class A2 MDis NZD Hedged

NAV
74.64
578.8631
11.56
10.56
10.56
10.60
10.57

ISIN
KYG931731056
KYG931731056
KYG9318L1041
KYG9318L1538
KYG9318L1207
KYG9318L1389
KYG9318L1462

Bloomberg
VALASHY KY
VALASHY KY
VALHYA2 KY
VALHA2H KY
VALHA2A KY
VALHA2C KY
VALHA2N KY

Dividend
per unit 5
0.0499
0.0458
0.0639
0.0503
0.0641

Annualized
yield 6
5.2%
5.2%
7.3%
5.7%
7.3%

Ex-dividend
date
31-12-2014
31-12-2014
31-12-2014
31-12-2014
31-12-2014

Value Partners High-Dividend Stocks Fund - Class A1 (USD): Monthly performance from 1 Jan 2003 to 31 Dec 2014
Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014

Jan
+6.2%
+5.0%
+1.4%
+4.0%
+3.8%
-14.3%
-3.0%
-1.6%
+0.4%
+7.5%
+3.7%
-4.4%

Feb
+7.1%
+5.0%
+3.8%
+6.7%
+7.1%
+3.3%
+1.2%
+0.2%
-1.6%
+4.7%
+0.4%
+1.8%

Mar
-3.2%
-0.5%
-2.0%
+3.6%
-1.5%
-5.6%
+7.5%
+7.0%
+2.6%
-1.7%
-0.8%
+0.7%

Apr
-2.0%
-2.5%
+0.5%
+6.3%
+4.1%
+8.3%
+8.9%
+5.1%
+5.7%
+2.2%
+1.5%
+0.2%

May
+8.8%
-4.2%
-0.6%
-5.2%
+6.6%
-3.6%
+18.9%
-6.4%
-2.3%
-6.5%
+1.7%
+3.8%

Jun
+4.6%
-1.3%
+3.0%
-3.3%
+3.0%
-8.1%
+5.4%
+3.5%
-2.1%
+1.5%
-5.6%
+1.8%

Jul
+14.4%
+1.2%
+2.4%
+5.1%
+8.4%
-3.4%
+9.2%
+2.4%
+2.5%
+2.4%
+2.3%
+5.9%

Aug
+8.0%
-0.3%
-1.1%
+0.6%
-1.3%
-8.4%
-3.8%
+1.5%
-5.2%
+0.4%
-0.1%
+1.2%

Sep
+4.8%
+2.5%
+1.7%
+2.4%
+5.0%
-10.5%
+3.3%
+8.0%
-15.1%
+5.5%
+2.5%
-4.1%

Oct
+4.2%
-0.6%
-1.0%
+3.3%
+8.6%
-29.4%
+10.2%
+5.6%
+9.2%
+3.1%
+2.7%
+0.3%

Nov
+2.2%
+5.2%
+2.7%
+5.4%
-7.9%
+6.6%
+3.9%
+0.0%
-4.7%
+1.7%
+1.6%
+1.8%

Dec
+6.0%
-0.5%
+0.9%
+2.3%
+2.5%
+11.3%
+2.1%
-1.2%
+0.2%
+2.4%
-1.5%
+0.6%

Annual
+79.7%
+8.9%
+12.2%
+35.0%
+44.2%
-46.8%
+82.8%
+25.8%
-11.9%
+25.2%
+8.1%
+9.4%

9th Floor, Nexxus Building, 41 Connaught Road Central, Hong Kong Tel : (852) 2880 9263 Fax : (852) 2565 7975
Email : vpl@vp.com.hk Website : www.valuepartners.com.hk
13

Value Partners High-Dividend Stocks Fund


31 December 2014
Top 10 securities holdings

Agricultural Bank of China


China Vanke
(Stock code: 2202HK - H shares)
Samsung Electronics
China Power
Samsung Fire & Marine Insurance

Industry 8
Banks
Banks
Real estate

%
4.9
3.7
3.6

Transportation
Household & personal
products
Banks
Real estate

2.9
2.6
2.4
2.3

Technology, hardware &


equipment
Utilities
Insurance

2.3
2.2
2.1

These stocks constitute 29% of the fund. The top ten securities holdings only
include companies and/ or REITs the fund invested, excluding any index tracking
fund or ETF.

Geographical exposure by listing 9


H Shares
South Korea
Hong Kong
China A Shares
Red Chips
Singapore
Bonds
Others 10
Taiwan
Cash 11
Thailand

Fund facts
Manager:
Base currency:
Trustee:
Custodian:
Launch date:


Dividend policy 3:

Value Partners Limited


USD
Bank of Bermuda (Cayman) Limited
HSBC Institutional Trust Services (Asia) Limited
Class A1 (USD) - 2 Sep 2002
Class A2 MDis (USD) - 28 Sep 2012
Class A2 MDis (AUD/CAD/NZD) - 23 Sep 2013
Class A2 MDis aim at monthly distribution,
subject to Managers discretion

Unit price is published daily in the South China Morning Post, the Hong Kong
Economic Journal and the Hong Kong Economic Times.

24%
16%
16%
10%
8%
7%
5%
5%
4%
2%
2%

89

Consumer discretionary
Banks
Real estate
Industrials
Information technology
Bonds
Telecom services
Energy
Utilities
Insurance
Consumer staples
Materials
Others 10
REITs
Cash 11

16%
15%
13%
12%
8%
5%
5%
5%
5%
3%
3%
3%
3%
3%
2%

Total short exposure is -1.8%.


Short exposure includes: Consumer staples, -1.8%.

2015 12
8.5 times
1.3 times
5.0%
10.2%

Fee structure

Short exposure includes: South Korea, -1.8%.


The Funds % in A shares category was revised due to re-classification of one
Chinese property stock listed in Hong Kong.

Sector exposure

As at 31 Dec 2014
Price/earnings ratio
Price/book ratio
Dividend yield
Yield to maturity/put

Class A1

Minimum subscription
Minimum subsequent
subscription
Subscription fee
Management fee
Performance fee 13
Redemption fee
Dealing day

Class A2 MDis
USD10,000 / HKD80,000 /
AUD10,000 / CAD10,000 /
NZD10,000
USD5,000
/ HKD40,000 /
USD5,000 or
AUD5,000 / CAD5,000 /
HKD equivalent 7
NZD5,000
Up to 5%
1.25% p.a.
15% of profit (High-on-high principle)
Nil
Daily

USD10,000 or
HKD equivalent 7

Value Partners Investment Team


Chairman & Co-Chief Investment Officer: Cheah Cheng Hye
Deputy Chairman & Co-Chief Investment Officer: Louis So
Deputy Chief Investment Officer: Renee Hung
Senior Investment Director: Norman Ho, CFA
Investment Directors: Eric Chow; Alan Wang, CFA
Senior Fund Managers: Doris Ho; Kyu Ho; Lai Voon San;
Michelle Yu, CFA; Yu Xiao Bo

Recent awards
Lipper Fund Awards 2014 (Hong Kong)
Best Asia Pacific (Ex-Japan) Equity
5 Years Category 14
~ Lipper
Morningstar Hong Kong Fund Awards 2014 15
Best Asia Ex-Japan Equity Fund
~ Morningstar
Fund of the Year Awards 2013
Outstanding Achiever Asia Pacific Equity
Category 16
~ Benchmark

1. 2014 Morningstar, Inc. All Rights Reserved (for Class A1). 2. Source: HSBC Institutional Trust Services (Asia) Limited and Bloomberg, in USD, NAV to NAV, with dividend reinvested.
Performance data is net of all fees. 3. The Manager currently intends to make monthly dividend distribution in respect of the A2 MDis Classes; actual dividend payout will be subject to the Managers
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. For A1 Class units, Manager will
review dividend distribution at its discretion once a year (last dividend payout date: 21 Nov 2005). Please refer to the explanatory memorandum for more details. 4. The fund may invest in financial
derivative instruments (FDI) for hedging purposes. In adverse situations, the funds use of FDI may become ineffective in hedging and the fund may suffer significant losses. Each hedged share
class will hedge the funds base currency back to its currency of denomination on a best efforts basis. However, the volatility of the hedged classes measured in the funds base currency may be
higher than that of the equivalent class denominated in the funds base currency. Risks associated with FDI include counterparty risk, credit risk and liquidity risk. Such exposure may lead to a high
risk of capital loss. The AUD/CAD/NZD Hedged Classes are not recommended for investors whose base currency of investment is not in the aforesaid currencies. 5. The receiving bank may charge
a fee for incoming payments. Such fees will reduce the actual amount of dividends received by the investor. 6. Annualized yield of Class A2 MDis is calculated as follows: (dividend amount/NAV
as of 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. 7. Investors should note that the base currency of the fund is in USD. The HKD equivalent NAV per unit is for reference only and should not
be used for subscription or redemption purpose. Conversion to the base currency of the fund will normally take place at the prevailing rate (as determined by the funds Trustee or Custodian) on the
corresponding fund dealing day. Investors should be aware of possible risks resulting from fluctuations of exchange rates against USD. 8. Classification is based on Global Industry Classification
Standard (GICS). 9. Exposure refers to net exposure (long exposure minus short exposure). Due to rounding, percentages shown may not add up to 100%. 10. Others include 0.5% cash for
collaterals and margins. 11. Cash refers to net cash on hand excluding cash for collaterals and margins. 12. The profile is based on market consensus forecast as derived from S&P Capital IQ and
Bloomberg. Note that the managers internal estimates may differ significantly from S&P Capital IQ and Bloomberg estimates. Investors should note that all yield figures are for reference only and
do not represent the actual performance of the fund or the dividend yield received by investors, nor does a positive yield imply a positive return. Dividend yield is calculated based on the equity
portion of the fund, whereas Yield to maturity/put is calculated based on the debt portion of the fund by taking the average of yields of individual holdings (being the higher of the yield to maturity
and yield to put of each bond/convertible bond) after excluding event-driven investment with extremely high yield. 13. Performance fee will only be charged if the NAV at the end of the financial year
or upon realization of units exceeds the high watermark, which is the all-time year-end high of the funds NAV. If in any one year, the fund suffers a loss, no performance fee can be charged in
subsequent years until the loss is recovered fully (the high-on-high principle). 14. Based on data as of year-end 2013. 15. The 2014 Morningstar award was based on data of eligible funds in their
respective Morningstar category up to 31 Dec 2013. 16. Based on data as of 30 Sep 2013.
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. Information in this report has been obtained from sources believed to be reliable but
Value Partners Limited does not guarantee the accuracy or completeness of the information provided by third parties. This report has not been reviewed by the Securities and Futures Commission.
Issuer: Value Partners Limited.

HDF_Master_201412(R)

Name
Bank of China
China Construction Bank
China Vanke
(Stock code: 000002CH - A shares)
Daqin Railway
Amorepacific Corp.

Portfolio characteristics

14

HHHH

Morningstar RatingTM1
As at 31-12-2014

China Convergence Fund

31 December 2014

2 Pages

A Sub-Fund of Value Partners Intelligent Funds


NAV per unit: USD146.89
USD342.1 million
Fund size:

Please pay particular attention to the risk of investment in China and other markets in the Asian region and in companies
with medium or small capitalization. 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.
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.
You should not make investment decision on the basis of this material alone. Please read the explanatory memorandum
for details and risk factors.

Investment objective

Performance update

The fund aims to provide unitholders with long-term capital


appreciation by investing primarily in A and B shares listed on the
stock exchanges of Shanghai and Shenzhen, as well as H shares
listed in Hong Kong.

One month
One year

Note: On inception, in Jul 2000, the funds objective was to invest primarily in
B shares. In Jul 2001, the mandate was extended to include H shares. In Mar
2005, the mandate was further extended to include China A shares.

Three years

Performance since launch (with dividends reinvested) 2

Annualized return

%
1600

China Convergence Fund


MSCI China Index 3

+1,368.9%

1200

Five years
Since launch
Annualized volatility

China Convergence
Fund
+5.4%
+14.6%
+36.8%
+28.8%
+1,368.9%
+20.4%
25.9%

MSCI China Index 3


+1.2%
+8.0%
+37.3%
+17.3%
+173.7%
+7.2%
27.3%

Annualized return and volatility are calculated from inception on 14 Jul 2000.
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.

800

400

+173.7%
0
-200
2000

2002

2004

2006

2008

2010

2012

2014

Monthly performance from 1 Jan 2003 to 31 Dec 2014


Year

Jan

Feb

Mar

2003

+9.5%

+2.4%

2004

+2.4%

+6.7%

2005

+1.9%

2006

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Annual

+0.0%

+1.1%

+7.8%

+4.1%

+11.3%

+4.5%

+2.3%

+14.5%

+1.6%

+9.0%

+92.1%

+1.0%

-11.0%

+1.3%

-4.3%

+1.0%

-1.3%

+5.7%

-0.2%

+3.7%

-2.9%

+0.8%

+6.8%

+1.3%

+0.4%

-4.0%

-0.7%

+0.7%

-0.3%

+1.0%

-5.4%

+0.9%

+1.6%

+3.9%

+16.5%

+4.8%

+8.5%

+3.6%

+0.7%

-2.3%

-0.3%

+1.8%

+3.8%

+5.5%

+11.6%

+11.5%

+86.9%

2007

+3.5%

+3.2%

+3.8%

+11.8%

+8.0%

+2.8%

+11.7%

+0.8%

+7.6%

+11.8%

-12.5%

-4.0%

+56.6%

2008

-15.7%

+7.4%

-11.5%

+9.2%

-4.4%

-12.3%

-2.4%

-8.8%

-9.9%

-15.6%

+0.2%

+10.2%

-45.2%

2009

-3.0%

-2.3%

+12.4%

+11.6%

+17.9%

+4.3%

+11.9%

-7.0%

+4.6%

+8.4%

+6.8%

+1.5%

+87.1%

2010

-6.1%

+2.4%

+6.2%

+2.3%

-4.8%

+1.6%

+3.9%

+1.6%

+10.8%

+4.5%

+1.2%

-2.6%

+21.3%

2011

-3.2%

-0.9%

+4.8%

+2.2%

-2.5%

-2.4%

+1.5%

-7.3%

-19.4%

+13.5%

-7.6%

-0.3%

-22.4%

2012

+7.6%

+6.6%

-5.5%

+1.0%

-8.4%

-3.8%

-3.5%

+0.6%

+5.8%

+2.7%

+0.1%

+7.4%

+9.3%

2013

+7.5%

-2.0%

-2.9%

-0.6%

+2.7%

-9.9%

+3.5%

+1.8%

+2.2%

+3.9%

+5.6%

-1.8%

+9.2%

2014

-5.6%

+1.0%

-3.6%

-1.0%

+1.2%

+3.4%

+8.8%

+1.3%

-1.2%

+3.2%

+1.6%

+5.4%

+14.6%

9th Floor, Nexxus Building, 41 Connaught Road Central, Hong Kong Tel : (852) 2880 9263 Fax : (852) 2565 7975
Email : vpl@vp.com.hk Website : www.valuepartners.com.hk
15

China Convergence Fund: A Sub-Fund of Value Partners Intelligent Funds


31 December 2014

Top 10 securities holdings

Huadian Fuxin Energy

Industry
Real estate

%
6.7

Automobiles & components


Food, beverage & tobacco
Utilities
Insurance
Insurance
Real estate
Real estate

6.2
5.3
3.3
3.1
2.9
2.8
2.8

Technology, hardware &


equipment
Utilities

2.7
2.6

These stocks constitute 38% of the fund. The top ten securities holdings only
include companies and/ or REITs the fund invested, excluding any index
tracking fund or ETF.

Geographical exposure by listing


H Shares

37%

China A Shares

35%

Hong Kong

17%

China B Shares
Red Chips

12%
5%

Others

1%

Cash 6

-8%

Real estate

18%

Utilities

14%

Industrials

14%

Consumer discretionary

13%

Insurance

10%

Health care

9%

Consumer staples

9%

Information technology
Materials
Other financials
Cash

7%
5%
4%
3%
-8%

2015 7
12.2 times
2.0 times
2.6%

Fund facts
Manager:
Base currency:
Trustee:
Custodian:
Launch date:
Bloomberg and
ISIN codes:

Value Partners Limited


USD
Bank of Bermuda (Cayman) Limited
HSBC Institutional Trust Services (Asia) Limited
14 Jul 2000
VAPAICB KY / KYG9317Q1047

Unit price is published daily in the South China Morning Post, the Hong Kong
Economic Journal and the Hong Kong Economic Times.

Fee structure
USD10,000

Minimum subscription
Minimum subsequent
subscription
Subscription fee
Management fee
Performance fee 8
Redemption fee
Dealing day

USD5,000
Up to 5%
1.25% p.a.
15% of profit (High-on-high principle)
Nil
Daily

Value Partners Investment Team

Sector exposure 4 5

Energy

As at 31 Dec 2014
Price/earnings ratio
Price/book ratio
Dividend yield

Chairman & Co-Chief Investment Officer: Cheah Cheng Hye


Deputy Chairman & Co-Chief Investment Officer: Louis So
Deputy Chief Investment Officer: Renee Hung
Senior Investment Director: Norman Ho, CFA
Investment Directors: Eric Chow; Alan Wang, CFA;
Senior Fund Managers: Doris Ho; Kyu Ho; Lai Voon San;
Michelle Yu, CFA; Yu Xiao Bo

Recent awards
Morningstar 2010 Fund Awards (Hong Kong)
Best Greater China Equity Fund
~ Morningstar
Top 100 Funds of the Year 2010
China Equity 9
~ Benchmark Magazine

1. 2014 Morningstar, Inc. All Rights Reserved. 2. Source: HSBC Institutional Trust Services (Asia) Limited and Bloomberg, in USD, NAV to NAV, with dividends
reinvested. Performance data is net of all fees. 3. Starting from Jul 2009, the MSCI China Index will be used as the reference index for the entire history of the fund.
Hang Seng H Shares Index, Shanghai Composite Index and Shenzhen Composite Index were no longer shown for comparison. 4. Classification is based on Global
Industry Classification Standard (GICS). 5. Exposure refers to net exposure (long exposure minus short exposure). Due to rounding, percentages shown may not add
up to 100%. 6. Cash refers to net cash on hand excluding cash for collaterals and margins. 7. The profile is based on market consensus forecast as derived from S&P
Capital IQ and Bloomberg. Note that the managers internal estimates may differ significantly from S&P Capital IQ and Bloomberg estimates. 8. Performance fee will
only be charged if the NAV at the end of the financial year or upon realization of units exceeds the high watermark, which is the all-time year-end high of the funds
NAV. If in any one year, the fund suffers a loss, no performance fee can be charged in subsequent years until the loss is recovered fully (the high-on-high principle).
9. Based on fund size, track record, Morningstars Star rating and one year absolute ranking as at month end Oct 2010.
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. Information in this report has been
obtained from sources believed to be reliable but Value Partners Limited does not guarantee the accuracy or completeness of the information provided by third parties.
This report has not been reviewed by the Securities and Futures Commission. Issuer: Value Partners Limited.

CCF_Master_201412

Name
China Vanke
(Stock code: 000002CH - A shares)
Chongqing Changan Automobile
Inner Mongolia Yili Industrial
CGN Power
New China Life Insurance
Ping An Insurance
Sunac China
China Vanke
(Stock code: 2202HK - H shares)
ZTE Corp.

Portfolio characteristics
4

16

HHHHH

Morningstar RatingTM1
As at 31-12-2014

Chinese Mainland Focus Fund

31 December 2014

2 Pages

A Sub-Fund of Value Partners Intelligent Funds


NAV per unit: USD40.63
USD141.4 million
Fund size:

Please pay particular attention to the risk of investment in China and other markets in the Asian region and in companies
with medium or small capitalization. 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.
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.
You should not make investment decision on the basis of this material alone. Please read the explanatory memorandum
for details and risk factors.

Performance update

Investment objective
The fund aims to achieve medium to long-term capital appreciation
by investing primarily in investments which are related to
the Mainland of the Peoples Republic of China (PRC) and
investments whose value the Manager believes would be boosted
by a Renminbi (RMB) appreciation. The Manager will also invest
in investments whose value the Manager believes would increase
even if the RMB exchange rate remains unchanged.

Performance since launch (with dividends reinvested) 2


%

500

Chinese Mainland
Focus Fund
+6.5%

One month

MSCI China
Index 3
+1.2%

One year

+10.6%

+8.0%

Three years

+33.7%

+37.3%

Five years

+36.2%

+17.3%

Since launch

+306.3%

+316.8%

Annualized return

+13.5%

+13.7%

Annualized volatility

21.8%

27.0%

Annualized return and volatility are calculated from inception on 27 Nov 2003.
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.

Chinese Mainland Focus Fund


MSCI China Index 3

600

400

+316.8%
+306.3%

300
200
100
0
2003

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Monthly performance from 27 Nov 2003 to 31 Dec 2014


Year

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Annual
+3.9%

2003

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

+3.9%

2004

+5.5%

+7.6%

-0.3%

-11.3%

+0.7%

-3.4%

+1.9%

-1.4%

+4.6%

+1.4%

+6.0%

-1.7%

+8.4%

2005

+1.6%

+4.9%

-3.3%

+0.7%

-2.6%

+1.6%

+1.6%

+0.5%

+1.8%

-3.0%

+4.5%

+3.3%

+11.6%

2006

+12.3%

+2.8%

+7.9%

+2.0%

-5.1%

-0.6%

+0.6%

+1.3%

+1.6%

+4.4%

+7.6%

+6.3%

+48.1%

2007

+1.5%

+3.7%

+4.4%

+5.3%

+5.0%

+3.3%

+15.8%

-3.1%

+8.6%

+12.9%

-8.7%

-0.9%

+56.0%

2008

-17.5%

+5.7%

-10.1%

+10.1%

-2.9%

-11.0%

-2.7%

-7.8%

-9.9%

-16.2%

-0.5%

+9.9%

-44.8%

2009

-3.2%

-2.1%

+11.8%

+11.4%

+17.7%

+3.4%

+12.3%

-7.1%

+5.2%

+8.8%

+6.7%

+1.8%

+86.0%

2010

-5.7%

+1.9%

+6.5%

+2.8%

-4.7%

+1.5%

+4.9%

+1.7%

+10.6%

+6.4%

-1.1%

-2.0%

+23.9%

2011

-2.5%

-0.9%

+4.8%

+3.4%

-1.2%

-2.2%

+1.8%

-7.6%

-19.5%

+15.6%

-7.8%

+0.6%

-17.8%

2012

+6.7%

+6.8%

-5.7%

+1.4%

-8.6%

-3.5%

-2.7%

+0.7%

+5.5%

+4.5%

+1.4%

+6.0%

+11.6%

2013

+8.1%

-3.2%

-3.3%

-0.1%

+0.4%

-8.8%

+2.4%

+4.5%

+2.9%

+4.1%

+4.5%

-2.3%

+8.3%

2014

-5.7%

-1.7%

-2.4%

-1.8%

+1.4%

+4.0%

+7.7%

+0.4%

-2.0%

+2.8%

+1.8%

+6.5%

+10.6%

9th Floor, Nexxus Building, 41 Connaught Road Central, Hong Kong Tel : (852) 2880 9263 Fax : (852) 2565 7975
Email : vpl@vp.com.hk Website : www.valuepartners.com.hk
17

Chinese Mainland Focus Fund: A Sub-Fund of Value Partners Intelligent Funds


31 December 2014

Top 10 securities holdings


Name
Ping An Insurance
China Vanke
(Stock code: 000002CH - A shares)
Chongqing Changan
Automobile
Midea Group
Inner Mongolia Yili Industrial
CGN Power
Tasly Pharmaceutical
Sunac China
China Vanke
(Stock code: 2202HK - H shares)
Huadian Fuxin Energy

Portfolio characteristics

Industry 4
Insurance
Real estate

%
7.6
6.7

Automobiles & components

6.4

Consumer durables & apparel


Food, beverage & tobacco
Utilities
Pharmaceuticals,
biotechnology & life sciences
Real estate
Real estate

5.6
5.5
3.3
3.3
2.9
2.8

Utilities

2.7

These stocks constitute 47% of the fund. The top ten securities holdings only
include companies and/ or REITs the fund invested, excluding any index
tracking fund or ETF.

Geographical exposure by listing

China A Shares

41%

H Shares

31%

Hong Kong

18%

China B Shares
Red Chips
United States

12%
2%
1%

Cash 6

-8%

Consumer discretionary

19%

Real estate

16%

Utilities

15%

Health care

13%

Insurance

12%

Industrials

9%

Consumer staples

9%

Energy
Materials
Other financials
Cash 6

6%
4%
4%
2%
-8%

Fund facts
Manager:
Base currency:
Trustee:
Custodian:
Launch date:
Bloomberg and
ISIN codes:

Value Partners Limited


USD
Bank of Bermuda (Cayman) Limited
HSBC Institutional Trust Services (Asia) Limited
27 Nov 2003
VAPAICM KY / KYG9317Q1120

Unit price is published daily in the South China Morning Post, the Hong Kong
Economic Journal and the Hong Kong Economic Times.

Fee structure
Minimum subscription
Minimum subsequent subscription
Subscription fee
Management fee
Performance fee 8

USD10,000
USD5,000
Up to 5%
1.25% p.a.
15% of profit
(High-on-high principle)
Nil
Daily

Value Partners Investment Team

Sector exposure 4 5

Information technology

2015 7
11.5 times
2.0 times
2.9%

Redemption fee
Dealing day

3%

Others

As at 31 Dec 2014
Price/earnings ratio
Price/book ratio
Dividend yield

Chairman & Co-Chief Investment Officer: Cheah Cheng Hye


Deputy Chairman & Co-Chief Investment Officer: Louis So
Deputy Chief Investment Officer: Renee Hung
Senior Investment Director: Norman Ho, CFA
Investment Directors: Eric Chow; Alan Wang, CFA
Senior Fund Managers: Doris Ho; Kyu Ho; Lai Voon San;
Michelle Yu, CFA; Yu Xiao Bo

Recent awards
Lipper Fund Awards 2013 (Hong Kong)
Best China Equity Fund (5 Years) 9
~ Lipper
Lipper Fund Awards 2012 (Hong Kong)
Best China Equity Fund (3 Years) 10
~ Lipper

1. 2014 Morningstar, Inc. All Rights Reserved. 2. Source: HSBC Institutional Trust Services (Asia) Limited and Bloomberg, in USD, NAV to NAV, with dividends
reinvested. Performance data is net of all fees. 3. Starting from Jul 2009, the MSCI China Index will be used as the reference index for the entire history of the fund. Hang
Seng H Shares Index, Shanghai Composite Index and Shenzhen Composite Index were no longer shown for comparison. 4. Classification is based on Global Industry
Classification Standard (GICS). 5. Exposure refers to net exposure (long exposure minus short exposure). Due to rounding, percentages shown may not add up to 100%.
6. Cash refers to net cash on hand excluding cash for collaterals and margins. 7. The profile is based on market consensus forecast as derived from S&P Capital IQ and
Bloomberg. Note that the managers internal estimates may differ significantly from S&P Capital IQ and Bloomberg estimates. 8. Performance fee will only be charged if
the NAV at the end of the financial year or upon realization of units exceeds the high watermark, which is the all-time year-end high of the funds NAV. If in any one year,
the fund suffers a loss, no performance fee can be charged in subsequent years until the loss is recovered fully (the high-on-high principle). 9. Based on data as of yearend 2012. 10. Based on data as of year-end 2011. 11. Based on fund size, track record, Morningstars Star rating and one year absolute ranking as at month end Oct
2010.
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. Information in this report has been
obtained from sources believed to be reliable but Value Partners Limited does not guarantee the accuracy or completeness of the information provided by third parties.
This report has not been reviewed by the Securities and Futures Commission. Issuer: Value Partners Limited.

CMF_Master_201412

Top 100 Funds of the Year 2010


China Equity Best in Class 11
~ Benchmark Magazine

18

HHHHH

Morningstar RatingTM1
As at 31-12-2014

Value Partners China Greenchip Fund Limited

31 December 2014

2 Pages

NAV per share: Class A - HKD60.92 Class A2 QDis - HKD11.30


USD675.72 million (HKD5,243.6 million)
Fund size:

CIES Eligible*

Please pay particular attention to the risk of investment in China and other markets in the Asian region and in companies
with medium or small capitalization. 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.
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.
You should not make investment decision on the basis of this material alone. Please read the explanatory memorandum for
details and risk factors.

Performance update

Investment objective
The fund aims to achieve medium-term capital growth by means
of investing in companies established in Greater China or which
derive a majority of their revenue from business related to Greater
China, whether in the form of direct investment in, or trade with,
Greater China. This includes companies incorporated and/or listed
outside Greater China.

One month
One year
Three years
Five years
Since launch
Annualized return
Annualized volatility

Performance since launch (with dividends reinvested) 2


%

Value Partners China Greenchip Fund Limited


Hang Seng Index 3
MSCI China Index

900
700

300

+206.2%

100

MSCI China Hang Seng Class A2


Index
Index 3
QDis (HKD)
+1.2%
-1.6%
-0.4%
+8.0%
+5.5%
+2.0%
+36.6%
+42.6%
N/A
+17.3%
+28.5%
N/A
+479.5%
+206.2%
+15.9%
+14.8%
+9.2%
+10.8%
25.5%
20.3%
N/A

Investors should note that figures for Non-Redeemable Class N shares shown
above may differ from those of classes currently available for subscription (namely
Class A and Class A2 QDis), due to differences in launch date of these classes.
For Class A, the since launch return, annualized return and annualized volatility
are +72.3%, +7.3% and 25.1% respectively.

NAVs & codes

0
-100
2002

Class A
(HKD)
-0.4%
+2.4%
+48.8%
+53.8%
+509.2%#
+15.2%#
21.9%#

Annualized return and volatility are calculated from inception on 8 Apr 2002.
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.
+509.2%#
+479.5%

500

Classes 7
Class A HKD
Class A USD
Class A AUD Hedged
Class A CAD Hedged
Class A NZD Hedged
Class A2 QDis HKD

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Dividend information Class A2 QDis 4


Ex-dividend
date
31-12-2014
30-9-2014
30-6-2014
31-3-2014

Ex-dividend date Dividend per unit 5


NAV (HKD)
(HKD)
11.30
0.0565
11.26
0.0565
11.34
0.0550
11.00
0.0388

Annualized
yield 6
2.0%
2.0%
1.9%
1.4%

NAV
60.92
10.26
10.37
10.35
10.39
11.30

ISIN
KYG9317M1033
KYG9317M1603
KYG9317M1371
KYG9317M1454
KYG9317M1520
KYG9317M1116

Bloomberg
VPCHIGC KY
VPCHAUS KY
VPCHAAH KY
VPCHACH KY
VPCHANH KY
VPCA2QD KY

Value Partners China Greenchip Fund Limited Class A (HKD): Monthly performance from 1 Jan 2003 to 31 Dec 2014 2
Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014

Jan
+7.3%
+1.4%
+1.2%
+10.7%
+3.1%
-18.6%
+0.2%
-1.3%
-2.6%
+6.0%
+6.4%
-3.0%

Feb
+7.1%
+6.3%
+4.2%
+4.0%
+4.8%
+1.4%
-0.2%
+3.0%
-2.9%
+10.5%
+0.0%
+4.0%

Mar
-3.5%
-1.2%
-2.7%
+9.2%
+3.8%
-9.6%
+10.2%
+8.1%
+4.0%
-3.9%
-2.2%
-2.6%

Apr
-1.5%
-8.7%
-1.1%
+0.5%
+4.7%
+10.2%
+13.1%
+4.2%
+2.7%
-2.4%
+1.2%
-1.2%

May
+10.9%
-1.1%
-1.4%
-3.7%
+9.6%
-2.2%
+25.0%
-5.4%
-2.5%
-4.6%
+3.3%
+1.9%

Jun
+5.9%
-2.8%
+1.6%
-1.6%
+5.7%
-11.8%
+1.9%
+0.9%
-5.0%
-3.2%
-8.9%
+2.9%

Jul
+12.7%
+0.8%
+1.1%
+1.9%
+9.7%
-5.7%
+14.0%
+4.2%
+5.1%
-0.5%
+1.8%
+1.1%

Aug
+6.2%
-0.3%
+0.0%
+1.4%
-9.1%
-10.0%
-4.8%
+1.7%
-10.5%
+3.7%
+1.7%
+0.6%

Sep
+2.2%
+3.7%
+11.0%
+1.4%
+3.6%
-12.1%
+6.9%
+13.4%
-17.2%
+6.3%
+3.0%
-1.8%

Oct
+9.5%
+0.6%
-3.2%
+3.7%
+5.8%
-26.1%
+7.9%
+4.2%
+8.8%
+3.1%
+4.8%
+0.6%

Nov
+3.0%
+5.4%
+3.6%
+6.7%
-7.4%
+0.8%
+6.2%
+1.3%
-3.4%
+4.9%
+4.5%
+0.6%

Dec
+5.0%
-1.6%
+1.5%
+3.6%
-1.0%
+7.8%
+2.5%
-0.5%
-2.1%
+3.7%
+0.7%
-0.4%

Annual
+85.6%
+1.5%
+16.1%
+43.7%
+36.3%
-57.4%
+116.7%
+37.8%
-25.0%
+24.8%
+16.5%
+2.4%

9th Floor, Nexxus Building, 41 Connaught Road Central, Hong Kong Tel : (852) 2880 9263 Fax : (852) 2565 7975
Email : vpl@vp.com.hk Website : www.valuepartners.com.hk
19

Value Partners China Greenchip Fund Limited


31 December 2014
Top 10 securities holdings (as at 31 Oct 2014)

Bank of China
TCL Communication
Technology
ENN Energy
Techtronic Industries
Ju Teng International
Far Eastern Department
Stores
Texwinca Holdings
CNOOC

Industry 8
Automobiles & components

%
5.6

Pharmaceuticals,
biotechnology & life sciences
Banks

4.4

Technology, hardware &


equipment
Utilities
Consumer durables & apparel
Technology, hardware &
equipment
Retailing

3.0

Consumer durables & apparel


Energy

2.5
2.3

3.6

2.8
2.6
2.6
2.5

These stocks constitute 32% of the fund. The top ten securities holdings only
include companies and/ or REITs the fund invested, excluding any index
tracking fund or ETF.

Geographical exposure by listing 9


Hong Kong

37%

H Shares

26%

Red Chips

13%

China A Shares

10%

China B Shares

8%

Taiwan

Sector exposure

8%

Others

1%

Cash 10

-2%

Consumer discretionary

26%

Insurance

15%

Information technology

14%
9%

Utilities

8%

Industrials

7%

Health care

7%

Real estate

7%

Energy

4%

Telecom services

3%

Consumer staples

2%

Cash 10

-2%

2015 11
12.0 times
2.1 times
3.2%

Fund facts
Manager:
Base currency:
Administrator:
Custodian:
Launch date:



Dividend policy 4:

Value Partners Limited


HKD
Bank of Bermuda (Cayman) Limited
HSBC Institutional Trust Services (Asia) Limited
Class N - 8 Apr 2002 (Closed)
Class A - 27 Mar 2007
Class A2 QDis - 22 Jul 2013
Class A (AUD / CAD / NZD / USD) - 26 May 2014
Class A2 QDis - aim at quarterly distribution,
subject to Managers discretion
Other Classes - N/A

Unit price is published daily in the South China Morning Post and the Hong Kong
Economic Times.

Fee structure (Class A and Class A2 QDis)


Minimum subscription
Minimum subsequent
subscription
Subscription fee
Management fee
Performance fee 13
Redemption fee
Dealing day

HKD80,000 or equivalent 12
HKD40,000 or equivalent 12
Up to 5%
1.5% p.a.
15% of profit (High-on-high principle)
Nil
Daily

Value Partners Investment Team

89

Banks

As at 31 Dec 2014
Price/earnings ratio
Price/book ratio
Dividend yield

Chairman & Co-Chief Investment Officer: Cheah Cheng Hye


Deputy Chairman & Co-Chief Investment Officer: Louis So
Deputy Chief Investment Officer: Renee Hung
Senior Investment Director: Norman Ho, CFA
Investment Directors: Eric Chow; Alan Wang, CFA
Senior Fund Managers: Doris Ho; Kyu Ho; Lai Voon San;
Michelle Yu, CFA; Yu Xiao Bo

Recent awards
Lipper Fund Awards 2014 (Hong Kong)
Best Greater China Equity Fund (5 Years) 14
~ Lipper
Lipper Fund Awards 2013 (Hong Kong)
Best Greater China Equity Fund (5 Years) 15
~ Lipper
Lipper Fund Awards 2012 (Hong Kong)
Best Greater China Equity Fund (3 Years) 16
~ Lipper

* Value Partners China Greenchip Fund Limited is one of the eligible collective investment schemes for the purpose of the Hong Kong Capital Investment Entrant Scheme (CIES).
The CIES was suspended by the Hong Kong Government with effect from 15 January 2015 until further notice.
1. 2014 Morningstar, Inc. All Rights Reserved. 2. Unless otherwise specified, fund performance shown in this document refers to the returns on Non-Redeemable Class
N shares, which was launched on 8 Apr 2002. Source: HSBC Institutional Trust Services (Asia) Limited and Bloomberg, in HKD, NAV to NAV, with dividends reinvested.
Non-Redeemable Class N shares of the fund are closed for subscription from 26 Mar 2007; existing and new investors may subscribe for/redeem Class A or A2 QDis shares.
3. Index refers to Hang Seng Price Return Index up to 31 Dec 2004, thereafter it is the Hang Seng Total Return Index. Hang Seng Total Return Index includes dividend
reinvestment whereas Hang Seng Price Return Index does not take into account reinvestment of dividends. 4. The Manager currently intends to make quarterly dividend
distribution in respect of the A2 QDis Class; actual dividend payout will be subject to the Managers discretion. 5. The receiving bank may charge a fee for incoming payments.
Such fees will reduce the actual amount of dividends received by the investor. 6. Annualized yield of Class A2 QDis is calculated as follows: (dividend amount/NAV as of
ex-dividend date) x 4. 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. 7. The fund may invest in financial derivative instruments (FDI) for hedging purposes. In adverse
situations, the funds use of FDI may become ineffective in hedging and the fund may suffer significant losses. Each hedged share class will hedge the funds base currency
back to its currency of denomination on a best efforts basis. However, the volatility of the hedged classes measured in the funds base currency may be higher than that of the
equivalent class denominated in the funds base currency. Risks associated with FDI include counterparty risk, credit risk and liquidity risk. Such exposure may lead to a high risk
of capital loss. The AUD/CAD/NZD Hedged Classes are not recommended for investors whose base currency of investment is not in the aforesaid currencies. 8. Classification
is based on Global Industry Classification Standard (GICS). 9. Exposure refers to net exposure (long exposure minus short exposure). Due to rounding, percentages shown
may not add up to 100%. 10. Cash refers to net cash on hand excluding cash for collaterals and margins. 11. The profile is based on market consensus forecast as derived
from S&P Capital IQ and Bloomberg. Note that the managers internal estimates may differ significantly from S&P Capital IQ and Bloomberg estimates. 12. Investors should
note that the base currency of the fund is in HKD. Conversion to the base currency of the fund will normally take place at the prevailing rate (as determined by the funds Trustee
or Custodian) on the corresponding fund dealing day. Investors should be aware of possible risks resulting from fluctuations of exchange rates against USD/AUD/CAD/NZD.
13. Performance fee will only be charged if the NAV at the end of the financial year or upon realization of units exceeds the high watermark, which is the all-time year-end
high of the funds NAV. If in any one year, the fund suffers a loss, no performance fee can be charged in subsequent years until the loss is recovered fully (the high-on-high
principle).14. Based on data as of year-end 2013. 15. Based on data as of year-end 2012. 16. Based on data as of year-end 2011.
Investors should note investment involves risk. The price of shares 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. Information in this report has been obtained from
sources believed to be reliable but Value Partners Limited does not guarantee the accuracy or completeness of the information provided by third parties. This report has not
been reviewed by the SFC. Issuer: Value Partners Limited.

CG_Master_201412

Name
Chongqing Changan
Automobile
Luye Pharma

Portfolio characteristics

20

HHHH

Morningstar RatingTM1
As at 31-12-2014

31 December 2014

Value Partners Taiwan Fund

2 Pages

NAV per unit: USD15.42


USD61.5 million
Fund size:
Please pay particular attention to the risk of investment in China and other markets in the Asian region and in companies
with medium or small capitalization. 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.
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.
You should not make investment decision on the basis of this material alone. Please read the explanatory memorandum
for details and risk factors.

Performance update

Investment objective
The fund aims to achieve long term capital growth through primarily
investing in equity and equity linked securities of companies that
are listed on (a) the Taiwan Stock Exchange; or (b) the GRE Tai
Securities Market; or (c) any stock exchange but which have their
main operations or majority of assets in or derive the majority of their
income from Taiwan. This includes companies incorporated and/or
quoted outside Taiwan.

Performance since launch (with dividends reinvested) 2


%

Value Partners Taiwan Fund


Taiwan Stock Exchange Index
MSCI Taiwan Index

80
60

Value Partners Taiwan Stock MSCI Taiwan


Taiwan Fund Exchange Index
Index
(USD)
(USD)
(USD)
One month

-0.2%

-0.8%

-2.2%

One year

+2.1%

+5.1%

+9.4%

Three years

+46.4%

+39.2%

+39.5%

Since launch

+54.2%

+39.3%

+25.3%

Annualized return

+6.5%

+5.0%

+3.4%

Annualized volatility

20.8%

27.2%

27.0%

Annualized return and volatility are calculated from inception on 3 Mar


2008. 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.

+54.2%
+39.3%
+25.3%

40
20
0
-20
-40
-60
2008

2009

2010

2011

2012

2013

2014

Monthly performance from 3 Mar 2008 to 31 Dec 2014

Year

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

2008

N/A

N/A

+4.5%

+1.0%

-0.2%

-5.9%

-5.0%

-6.2%

-11.9%

-25.3%

+6.2%

+4.2%

Annual
-35.7%

2009

-4.4%

-1.3%

+12.0%

+1.6%

+17.9%

-3.4%

+7.9%

-2.2%

+11.4%

+2.1%

+3.8%

+3.7%

+58.0%

2010

-5.4%

-0.1%

+6.5%

+4.6%

-10.6%

+1.7%

+5.7%

+1.3%

+6.3%

+1.4%

+1.1%

+6.9%

+19.2%

2011

+2.5%

-3.5%

+0.9%

+8.0%

-1.4%

-0.5%

+7.2%

-10.3%

-12.9%

+5.7%

-7.8%

+0.8%

-13.0%

2012

+4.5%

+11.5%

+0.1%

-4.0%

-2.7%

+0.3%

+2.9%

+5.1%

+5.4%

-4.1%

+4.1%

+1.5%

+26.1%

2013

+0.5%

-0.2%

+0.5%

+3.7%

-0.6%

-3.6%

+3.1%

+1.1%

+2.1%

+4.0%

+1.3%

+1.4%

+13.7%

2014

+0.5%

+5.1%

+2.6%

-1.6%

+3.3%

+2.2%

-1.2%

+1.1%

-5.5%

-2.4%

-1.3%

-0.2%

+2.1%

9th Floor, Nexxus Building, 41 Connaught Road Central, Hong Kong Tel : (852) 2880 9263 Fax : (852) 2565 7975
Email : vpl@vp.com.hk Website : www.valuepartners.com.hk
21

Value Partners Taiwan Fund


31 December 2014

Top 5 securities holdings


Name
Taiwan Semiconductor
Manufacturing
Far Eastern Department
Stores
Senao Networks

Portfolio characteristics

Industry 3
Semiconductors &
semiconductor equipment
Retailing

%
10.3
4.6

Technology, hardware &


equipment
Chicony Power Technology Capital goods
Quanta Computer
Technology, hardware &
equipment

4.2
3.9

Geographical exposure by listing 4


Taiwan
Cash

93%
7%

Sector exposure 3 4
Information technology

Cash 5

Price/book ratio

2.4 times

Dividend yield

4.6%

Fund facts
Manager:
Base currency:
Trustee:
Custodian:
Launch date:
Bloomberg and
ISIN codes:

Value Partners Hong Kong Limited


USD
Bank of Bermuda (Cayman) Limited
HSBC Institutional Trust Services (Asia) Limited
3 Mar 2008
VTAIWAN KY / KYG9318Y1061

Unit price is published daily in the South China Morning Post, the Hong Kong
Economic Journal and the Hong Kong Economic Times.

Fee structure
62%

Consumer discretionary
Industrials

2015 6
13.3 times

4.4

These stocks constitute 27% of the fund. The top five securities holdings
only include companies and/ or REITs the fund invested, excluding any index
tracking fund or ETF.

As at 31 Dec 2014
Price/earnings ratio

11%
9%
7%

Consumer staples

4%

Others

3%

Other financials

3%

Health care

2%

Minimum subscription
Minimum subsequent
subscription
Subscription fee

US$10,000

Management fee

1.25% p.a.

Performance fee 7

15% of profit (High-on-high principle)

US$5,000
Up to 5%

Redemption fee
Dealing day

Nil
Daily

Value Partners Investment Team

1. 2014 Morningstar, Inc. All Rights Reserved. 2. Source: HSBC Institutional Trust Services (Asia) Limited and Bloomberg, in USD, NAV to NAV, with dividends
reinvested. Performance data is net of all fees. 3. Classification is based on Global Industry Classification Standard (GICS). 4. Exposure refers to net exposure (long
exposure minus short exposure). Due to rounding, percentages shown may not add up to 100%. 5. Cash refers to net cash on hand excluding cash for collaterals and
margins. 6. The profile is based on market consensus forecast as derived from S&P Capital IQ and Bloomberg. Note that the managers internal estimates may differ
significantly from S&P Capital IQ and Bloomberg estimates. 7. Performance fee will only be charged if the NAV at the end of the financial year or upon realization of units
exceeds the high watermark, which is the all-time year-end high of the funds NAV. If in any one year, the fund suffers a loss, no performance fee can be charged in
subsequent years until the loss is recovered fully (the high-on-high principle).
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. Information in this report has been
obtained from sources believed to be reliable but Value Partners Hong Kong Limited does not guarantee the accuracy or completeness of the information provided by
third parties. This report has not been reviewed by the Securities and Futures Commission. Issuer: Value Partners Hong Kong Limited.

TW_Master_201412

Chairman & Co-Chief Investment Officer: Cheah Cheng Hye


Deputy Chairman & Co-Chief Investment Officer: Louis So
Deputy Chief Investment Officer: Renee Hung
Senior Investment Director: Norman Ho, CFA
Investment Directors: Eric Chow; Alan Wang, CFA
Senior Fund Managers: Doris Ho; Kyu Ho; Lai Voon San;
Michelle Yu, CFA; Yu Xiao Bo

22

31 December 2014

Value Partners Greater China High Yield Income Fund

2 Pages

NAV per unit: USD11.55 (P Acc USD) / USD8.97 (P MDis USD)


USD1,100.4 million
Fund size:
Please pay attention to the risks associated with the Fund, particularly the risk of investment in China and other markets in
the Asian region and in companies with medium or small capitalization. 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.
Investors should note that there is no guarantee that the underlying securities in the Fund will pay out dividends. Therefore, there
is no guarantee that the Funds investment strategies will succeed. There is also no guarantee of dividend or distribution payments
during the period an investor holds units in the Fund, and a positive dividend yield does not represent/imply positive return.
The Fund may invest in debt securities that are below investment grade and/or issued by special purpose vehicles and may
involve greater risks, including credit risk, issuer-specific risk or counterparty risk. The Fund may also invest in derivatives
and structured products which can involve material risks, e.g. counterparty default risk or insolvency, and may expose the
Fund to significant losses.
You should not make investment decision on the basis of this marketing material alone. Please read the Explanatory
Memorandum for details and risk factors.

Investment objective
To provide capital appreciation to investors through primarily
investing in Greater China debt securities including but not
limited to high yield, convertible, and mainland Chinese
offshore bonds.

Commentary
Portfolio Review:
December has historically been an extremely quiet month with
very limited liquidity in the market. This year is of no exception, but
the negative impact on prices as a result of market illiquidity was
exacerbated by the continuously weak oil prices that are yet to find
a bottom and a few negative headlines in the Asian credit market.
The Asian credit market posted a negative month in December, with
high-yielding bonds underperformed. During the month, the portfolio
was little changed.
Outlook:
In terms of valuation, we see values are more abundant in Chinas
high-yield space (especially property) than other Asian high-yield
credits. While occasional market disruptions as a result of temporary
negative headlines may be expected, those times may present
opportunities for acquiring good credits at attractive prices.

Performance since launch (with dividends reinvested) 1


%
30

Value Partners Greater China High Yield Income Fund


(P Acc USD)

20

+15.5%

10
0
-10
3/2012

12/2012 4/2013 8/2013 12/2013 4/2014 8/2014 12/2014

Performance update 1
The Fund
(P Acc USD)

One
month

-2.9%

Three
Six
months months

-2.4%

-2.6%

One
year

Since
launch

+1.1%

+15.5%

Calendar year performance 1


The Fund
(P Acc USD)

2014

2013

2012
(Since launch)

+1.1%

+1.2%

+13.0%

Top 10 securities holdings


Name
Times Property
12.625% 03/21/2019
Sumitomo Mitsui
10.231% Perpetual
China SCE Property
11.5% 11/14/2017
Oceanwide Real Estate
11.75% 09/08/2019
Times Property
10.375% 07/16/2017
Sunac
9.375% 04/05/2018
CIFI Holdings
12.25% 04/15/2018
Caifu Holdings Ltd
8.75% 01/24/2020
Shui On Development
10.125% Perpetual
KWG Property
8.975% 01/14/2019

Sector 2
Real estate
Banks
Real estate
Real estate
Real estate
Real estate
Real estate
Diversified financials
Real estate
Real estate

Country
China/
Hong Kong
Japan

%
2.3

China/
Hong Kong
China/
Hong Kong
China/
Hong Kong
China/
Hong Kong
China/
Hong Kong
China/
Hong Kong
China/
Hong Kong
China/
Hong Kong

1.8

1.8

1.8
1.7
1.7
1.7
1.7
1.7
1.7

1. Source: HSBC Institutional Trust Services (Asia) Limited, in USD, NAV to NAV, with dividends reinvested. Performance data is net of all fees.
2. Classification is based on Global Industry Classification Standard (GICS).

9th Floor, Nexxus Building, 41 Connaught Road Central, Hong Kong Tel: (852) 2880 9263 Fax: (852) 2565 7975
Email: vpl@vp.com.hk Website: www.valuepartners.com.hk
23

Value Partners Greater China High Yield Income Fund


31 December 2014

Sector exposure 2 3

Dividend information Class MDis 7

Real estate
Others
Banks
Energy
Consumer durables & apparel
Software & services
Diversified financials
Cash 4
Capital goods
Retailing
Materials

Average duration
Yield to Maturity 5
Number of bond issuers

49.0%
11.2%
10.9%
5.6%
4.1%
3.9%
3.4%
3.2%
3.1%
3.0%
2.6%

P MDis USD
P MDis HKD
P MDis SGD Hedged
A MDis AUD Hedged
A MDis CAD Hedged
A MDis NZD Hedged

Classes 8

10.4%
113

Geographical exposure 3
67.3%
24.0%

0.4%
3.2%
17.1%

53.3%

22.8%
3.6%

3.1%
1.8%
1.1%
0.7%

14.3%

P Acc USD
P Acc HKD
P MDis USD
P MDis HKD
P MDis SGD Hedged
A MDis AUD Hedged
A MDis CAD Hedged
A MDis NZD Hedged

Manager:
Base currency:
Administrator:
Custodian:
Launch date:


Dividend policy 7:

NAV
11.55
11.46
8.97
8.93
9.57
9.16
9.20
9.25

ISIN
KYG9319N1097
KYG9319N1253
KYG9319N1170
KYG9319N1337
KYG9319N1824
KYG9319N2327
KYG9319N2400
KYG9319N2574

Bloomberg
VPGCPUA KY
VPGCPHA KY
VPGPUMD KY
VPGPHMD KY
VPPSHMA KY
VPGCAUD KY
VPGCCAD KY
VPGCHNZ KY

Value Partners Hong Kong Limited


USD
HSBC Trustee (Cayman) Limited
HSBC Institutional Trust Services (Asia) Limited
P Acc & MDis (USD/HKD) 27 Mar 2012
A MDis (AUD/CAD/NZD) 23 Sep 2013
P MDis (SGD) 26 Sep 2014
MDis Aim at Monthly distribution,
subject to Managers discretion

Minimum subscription
Subscription fee
Management fee
Performance fee
Dealing day

70.4%
B

Currency breakdown
USD
CNY
HKD
GBP
SGD
AUD

Ex-dividend
date
31-12-2014
31-12-2014
31-12-2014
31-12-2014
31-12-2014
31-12-2014

Fee structure (Class A and Class P)

3.2%

Investment grade
High yield
Average credit rating

Annualized
yield 9
10.0%
10.1%
9.4%
12.3%
10.7%
12.3%

Fund facts

8.7%

Credit ratings
A
BBB
BB
B & Below
Others 6
Cash 4

Dividend
amount / unit
0.0750
0.0750
0.0750
0.0941
0.0821
0.0947

NAVs & Codes

3.1 years

China/Hong Kong
Others
Indonesia

Classes 8

79.1%

HK$80,000/USD10,000 or equivalent
Up to 5%
1.5% p.a.
Nil
Daily

Value Partners Investment Team


Chairman & Co-Chief Investment Officer: Cheah Cheng Hye
Deputy Chairman & Co-Chief Investment Officer: Louis So
Deputy Chief Investment Officer: Renee Hung
Senior Investment Director: Norman Ho, CFA
Investment Directors: Eric Chow; Alan Wang, CFA
Senior Fund Managers: Doris Ho; Kyu Ho; Lai Voon San; Michelle Yu, CFA;
Yu Xiao Bo
Fixed Income Fund Managers: Gordon lp, CFA; Jason Yan, CFA, ACCA

Recent award

3. Exposure refers to net exposure (long exposure minus short exposure). Due to rounding, percentages shown may not add up to 100%. 4. Cash refers to net cash on hand
excluding cash for collaterals and margins. 5. Investors should note that Yield to Maturity is for reference only and does not represent the actual performance of the Fund or
the dividend yield received by investors, nor does a positive yield imply a positive return. 6. Including bonds whose issuers do not seek credit ratings (Convertible Bonds 9.4%;
Dim Sum Bonds 6.0%; Greater China Bonds 5.3%; Singapore Bonds 1.1%; Philippines Bonds 1.1%). 7. 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. 8. The fund may invest in financial derivative instruments (FDI) for hedging purposes. In adverse situations, the funds use of FDI may
become ineffective in hedging and the fund may suffer significant losses. Each hedged share class will hedge the funds base currency back to its currency of denomination
on a best efforts basis. However, the volatility of the hedged classes measured in the funds base currency may be higher than that of the equivalent class denominated in the
funds base currency. Risks associated with FDI include counterparty risk, credit risk and liquidity risk. Such exposure may lead to a high risk of capital loss. The AUD/CAD/
NZD/SGD Hedged Classes are not recommended for investors whose base currency of investment is not in the aforesaid currencies. 9. Annualized yield of Class MDis is
calculated as follows: (dividend amount/NAV as of 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.
This document is prepared by Value Partners Hong Kong Limited for information purposes only. Neither Value Partners Hong Kong Limited nor the Directors of the company
accept any responsibility whatsoever for the accuracy or completeness of the information provided by third parties contained in this document. It should not be copied or
distributed to third parties without the written consent of Value Partners Hong Kong Limited.
This document does not constitute a prospectus, an offer or an invitation to subscribe any securities, or a recommendation in relation to any securities.
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 China and other markets in the Asian
region, non-investment grade debt securities, and in companies with medium or small capitalization.
This document has not been reviewed by the Securities and Futures Commission. Issuer: Value Partners Hong Kong Limited.

GCHY_Master_201412

Mr. Gordon Ip (Value Partners Fund Manager):


Named one of the top 10 Astute Investors in
Asian G3 bonds in Hong Kong in 2014
~ The Asset

24

31 December 2014

Value Partners China A-Share Select Fund

2 Pages

NAV per unit : Class A RMB (CNH) RMB11.81


RMB355.72 million
Fund size :
Value Partners China A-Share Select Fund (the fund) invests primarily in RMB-denominated equities.
Please pay particular attention to the risk of investment in China and in companies with medium or small capitalization. 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.
The fund is also subject to concentration risk as a result of investing only in a single geographical region. Adverse developments in such
regions may affect the value of the underlying securities in which the fund invests.
The fund intends to invest predominantly in China A Shares directly, via its Managers RQFII quota. Investors will be subject to certain
risks including repatriation risk, custodial risk, regulatory risk and risks associated with the Managers RQFII status. In addition, the RQFII
policy and rules are relatively new and there may be uncertainty in implementation and such policy and rules are subject to change. All
these may adversely impact the fund.
The fund and its primary investments are denominated in RMB. RMB is currently not a freely convertible currency and is subject to
foreign exchange control policies, as well as repatriation restrictions imposed by the PRC government. Investors whose base currencies
of investments are not in RMB should take into account the potential risk of loss arising from fluctuations in value between such
currencies and the RMB.
The fund may invest in debt securities including those that are below investment grade/unrated, and may involve greater risks, including
credit risk, issuer-specific risk, counterparty risk and sovereign debt risk. The fund may also invest in derivatives which can involve
material risks, e.g. counterparty default risk, insolvency or liquidity risk. All these may expose the fund to significant losses.
You should not make investment decision on the basis of this material alone. Please read the explanatory memorandum for details and
risk factors.

Geographical exposure by listing 2

Investment objective
To achieve long-term capital growth and income appreciation by
predominately investing in RMB-denominated equities in the PRC
utilizing the Managers RQFII quota.

Performance update 1

One month

N/A

Since launch

N/A

+37.3%

CSI 300
Index
+25.8%
+44.6%

50%
30%

Shenzhen A Shares
18%

Cash 4
Bonds

Shanghai
Composite
Index
+20.6%

Class A
RMB (CNH)

Shanghai A Shares

2%

Sector exposure 2 3
Cash 4
Real estate

17%

Insurance

16%

18%

Consumer discretionary

10%

Industrials

10%

Health care
Information technology

10%
8%

Materials

4%

Utilities

3%

Bonds

2%

Telecom services

2%

Please refer to the back page for explanatory notes.

9th Floor, Nexxus Building, 41 Connaught Road Central, Hong Kong Tel : (852) 2880 9263 Fax : (852) 2565 7975
Email : vpl@vp.com.hk Website : www.valuepartners.com.hk
25

Value Partners China A-Share Select Fund


31 December 2014
Top 5 securities holdings

Fund facts

Name

Industry 3

China Vanke

Real estate

8.3

Ping An Insurance

Insurance

7.5

Daqin Railway

Transportation

6.7

SAIC Motor

Automobiles & components

6.0

China Life Insurance

Insurance

5.3

These stocks constitute 34% of the fund. The top five securities holdings only
include companies and/ or REITs the fund invested, excluding any index tracking
fund or ETF.

Portfolio characteristics
As at 31 Dec 2014

2015 5

Price/earnings ratio

12.9 times

Price/book ratio

2.3 times

Dividend yield

2.8%

NAVs & codes


Classes 6

NAV

ISIN

Bloomberg

Class A RMB (CNH)

11.81

HK0000220001

VPCAARM HK

Class A USD Unhedged 11.47

HK0000220019

VPCAAUU HK

Class A USD Hedged

11.59

HK0000220027

VPCAAUH HK

Class A HKD Unhedged 11.54

HK0000220035

VPCAAHU HK

Class A HKD Hedged

11.64

HK0000220043

VPCAAHH HK

Class A GBP Unhedged 10.63

HK0000220076

VPCAAGU HK

Class A GBP Hedged

11.53

HK0000220084

VPCAAGH HK

Class A AUD Hedged

11.58

HK0000220100

VPCAAAH HK

Class A CAD Hedged

10.94

HK0000220126

VPCAACH HK

Class A EUR Hedged

11.49

HK0000220068

VPCAAEH HK

Class A NZD Hedged

11.53

HK0000220142

VPCAANH HK

Manager & RQFII holder:


Trustee:
Base currency:
Custodian:

Value Partners Hong Kong Limited


HSBC Institutional Trust Services (Asia) Limited
Renminbi
The Hongkong and Shanghai Banking
Corporation Limited
HSBC Bank (China) Company Limited
Class A RMB (CNH)/USD Hedged - 16 Oct 2014
Class A USD Unhedged - 29 Oct 2014
Class A AUD/CAD/EUR/HKD/NZD Hedged - 12 Nov 2014
Class A HKD Unhedged - 13 Nov 2014
Class A GBP Hedged - 14 Nov 2014
Class A GBP Unhedged - 26 Nov 2014

PRC custodian:
Launch date:




Fee structure
Class A
Minimum subscription

RMB60,000 or equivalent

Minimum subsequent subscription

RMB30,000 or equivalent

Subscription fee

Up to 5%

Management fee

1.5% p.a.

Performance fee 7

15% of profit (High-on-High)

Dealing day

Daily

Value Partners Investment Team


Chairman & Co-Chief Investment Officer: Cheah Cheng Hye
Deputy Chairman & Co-Chief Investment Officer: Louis So
Deputy Chief Investment Officer: Renee Hung
Senior Investment Director: Norman Ho, CFA
Investment Directors: Eric Chow; Alan Wang, CFA
Senior Fund Managers: Doris Ho; Kyu Ho; Lai Voon San;
Michelle Yu, CFA; Yu Xiao Bo

Recent corporate awards


AsiaHedge Awards 2014
Management Firm of the Year
~ AsiaHedge
Investment Performance Awards 2014
Asian Fund House of the Year
~ AsianInvestor
2014 The Asset Triple A,
Investor and Fund Management Awards
Asset Management Company of the Year
(Hong Kong)
~ The Asset

1. Performance data will be shown after 6 months from its launch. 2. Exposure refers to net exposure (long exposure minus short exposure). Due to rounding,
percentages shown may not add up to 100%. 3. Classification is based on Global Industry Classification Standard (GICS). 4. Cash refers to net cash on hand excluding
cash for collaterals and margins. 5. The profile is based on market consensus forecast as derived from S&P Capital IQ and Bloomberg. Note that the managers internal
estimates may differ significantly from S&P Capital IQ and Bloomberg estimates. 6. The fund may invest in financial derivative instruments (FDI) for hedging purposes.
In adverse situations, the funds use of FDI may become ineffective in hedging and the fund may suffer significant losses. Each hedged share class will hedge the funds
base currency back to its currency of denomination on a best efforts basis. However, the volatility of the hedged classes measured in the funds base currency may be
higher than that of the equivalent class denominated in the funds base currency. Risks associated with FDI include counterparty risk, credit risk and liquidity risk. Such
exposure may lead to a high risk of capital loss. The AUD/CAD/EUR/GBP/HKD/NZD/USD Hedged Classes are not recommended for investors whose base currency of
investment is not in the aforesaid currencies. 7. Performance fee will only be charged if the NAV at the end of the financial year or upon realization of units exceeds the high
watermark, which is the all-time year-end high of the funds NAV. If in any one year, the fund suffers a loss, no performance fee can be charged in subsequent years
until the loss is recovered fully (the high-on-high principle).
Source: The Hong Kong and Shanghai Banking Corporation Limited and Bloomberg, in RMB, NAV to NAV, with dividends reinvested. Performance data is net of all fees.
Investors should read the explanatory memorandum for details and risk factors in particular those associated with investment in emerging markets. Information herein
has been obtained from sources believed to be reliable but Value Partners Hong Kong Limited does not guarantee the accuracy or completeness of the information
provided by third parties. This document has not been reviewed by the Securities and Futures Commission. Issuer: Value Partners Hong Kong Limited.

26