Value Partners High-Dividend Stocks Fund

Transcription

1 Value Partners High-Dividend Stocks Fund Morningstar Rating TM1 As at HKD/USD/RMB classes and AUD/CAD/GBP/NZD/RMB/SGD hedged classes available Value Partners High-Dividend Stocks Fund (The Fund ) primarily invests in higher yielding debt and equity securities in the Asian region. The Fund may invest in higher-yielding debt and equity securities that are below investment grade. Such investments can involve greater risks due to the speculative nature. The Fund may invest in China and other markets of the Asian region, therefore is subject to emerging market risks. Generally, investments in emerging markets are more volatile than investments in developed markets due to additional risks relating to political, social, economic and regulatory uncertainty. 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. In respect of the distribution units for the Fund, the Manager currently intends to make monthly dividend distribution. However, the distribution rate is not guaranteed. Distribution yield is not indicative of the return of the Fund. Distribution may be paid from capital of the Fund. Investors should note that where the payment of distributions are paid out of capital, this represents and amounts to a return or withdrawal of part of the amount you originally invested or capital gains attributable to that and may result in an immediate decrease in the value of units. You should not make investment decision on the basis of this material alone. Please read the explanatory memorandum for details and risk factors. Why invest in Value Partners High-Dividend Stocks Fund? 1 Capture the Asia dividend story Dividends are an important source of returns for Asia ex-japan equities, contributing nearly half of the asset class total returns since December The global normalization of interest rates can potentially benefit Asian high dividend stocks as the asset class performs well during a rate hike environment Supported by solid earnings growth, many Chinese and Korean cooperates have been enhancing their dividend payouts, which is expected to support share prices Enlist the support of Asia s premium investment specialists An award-winning investment team of over 70 seasoned professionals who are committed to uncovering quality dividend opportunities within Asia ex-japan The Fund aims to strike the optimal balance between stable high dividend and cyclical high dividend stocks amid an everchanging landscape in order to generate a sustainable yield and additional alpha This flexibility enables the Fund to outperform its reference index in 1 of the past 17 calendar years 4 Q1 019 Fund leaflet Asian high dividend stocks & rising rates: A solid combination MSCI Asia ex-japan High Dividend Index (LHS) Fed Funds Rate (RHS) Index level % Source: Bloomberg, data as at 31 December 018 % Flexible approach to tackle changing markets 08/003 08/004 08/005 08/006 08/007 08/008 08/009 08/010 08/011 08/01 08/013 08/014 08/015 08/016 08/017 08/018 Stable high yield Cyclical high yield Last Fed rate hike cycle Monetary easing cycle Source: Value Partners, data as at August 018 Tightening cycle % 46% 3 4 Enjoy a compelling risk-reward profile Since inception, the Fund has managed to deliver higher annualized returns (13.8%), while maintaining a lower volatility (18.3%) than its reference index 5 and peers 6 The Fund has also proven to be resilient during times of stress having managed to recover quicker than its reference index following the global financial crisis Additionally the ongoing US-China trade dispute has limited direct impact on the regions the Fund is invested in Focus on the duration rather than the timing It is an almost impossible task to time your investments perfectly. Adopting a long-term, disciplined approach has generally been proven to be more rewarding It is therefore less about investing when it is low, but more about investing over a longer period. Historical data has shown that returns over a -year rolling period are consistently better than 1-year returns following a market correction % 1, % 140% 10% 100% 80% 60% 40% 0% 0% Shorter recovery following market corrections Value Partners High-Dividend Stocks Fund (Class A1 USD) Index Fund returns following the financial crisis The stock 9/15/008 10/15/008 11/15/008 1/15/008 1/15/009 market has bottomed out /15/009 3/15/009 4/15/009 5/15/009 6/15/009 7/15/009 8/15/009 9/15/009 1-year rolling return (LHS) -year rolling return (LHS) MSCI Asia ex-japan Index (RHS) +76.5% +37.% 0% 10% 0% -10% -0% -30% -40% -50% All fund information is quoted as of 31 December 018. Source: Morningstar, HSBC Institutional Trust Services (Asia) Ltd., Bloomberg Morningstar, Inc. All Rights Reserved (For Class A1). Performance in USD, NAV to NAV, is net of fees and with dividend reinvested.. The fund may invest in financial derivative instruments ( FDI ) for hedging purposes. In adverse situations, the fund s use of FDI may become ineffective in hedging and the fund may suffer significant losses. Each hedged share class will hedge the fund s base currency back to its currency of denomination on a best efforts basis. However, the volatility of the hedged classes measured in the fund s base currency may be higher than that of the equivalent class denominated in the fund s 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/GBP/NZD/RMB/SGD Hedged Classes are not recommended for investors whose base currency of investment is not in the aforesaid currencies. 3. Source: CLSA, Factset, data from December 000 to July Value Partners High-Dividend Stocks Fund ( the Fund ) (Class A1 USD) was launched on September 00. Calendar year return of Class A1 USD: 00: +10.5%; 003: +79.7%; 004: +8.9%; 005: +1.%; 006: 35.0%; 007: +44.%; 008:-46.8%; 009: +8.8%; 010: +5.8%; 011: -11.9%; 01: +5.%; 013: +8.1%; 014: +9.4%; 015:-3.7%; 016: -0.%; 017: +3.9%; 018: -14.%. 5. Index refers to MSCI AC Asia Pacific (ex-japan) Index (Total Net Return) up to 30 April 016, thereafter it is the MSCI AC Asia (ex-japan) Index (Total Net Return) due to a change in investment profile. MSCI Total Net Return Indices takes into account of dividend reinvestment after deduction of withholding tax. Annualized return and annualized volatility are +10.0% and 19.7% respectively. 6. Source: Morningstar. Peer Group refers to Morningstar Category of Asia ex-japan Equity (HKSFC authorized funds) which includes all funds with performance history started between September 00 and 31 December 018.

2 Value Partners High-Dividend Stocks Fund Q1 019 Fund leaflet Investment objective and strategy 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. Without fixed geographical or sectoral weightings, the Fund invests in high income investments and can also flexibly allocate to different asset classes, e.g. commodities, collective investment schemes, derivatives and cash on ancillary basis, according to different market conditions. Fund facts Share class A1 (USD) 8 RMB hedged / RMB A Acc unhedged A MDis USD Distribution classes 7 A MDis HKD/ AUD hedged / NZD hedged / CAD hedged A MDis GBP hedged A MDis RMB hedged / RMB unhedged A MDis SGD hedged Launch date Sep 00 Apr Sep 01 3 Sep Mar 015 Apr Jan 017 Subscription fee Up to 5% Management fee Performance fee 9 Dealing frequency Base currency Performance 1.5% p.a. 15% of profit (high-on-high principle) The Fund (Class A1) Daily USD The Fund (Class A MDis) Index 5 One year -14.% -14.% -14.4% Three years +13.8% +1.7% +9.% Since launch +76.5% +36.8% +37.% Annualized return 10 (since launch) +13.8% +5.1% +10.0% Annualized volatility 10 (since launch) 18.3% 13.6% 19.7% Dividend history of Class A MDis USD 7 over the past 6 months Ex-dividend Ex-dividend date NAV Dividend per unit Annualized date (USD) (USD) 11 yield 7 31/1/ % 30/11/ % 31/10/ % 8/9/ % 31/8/ % 31/7/ % Geographical exposure by listing 1 Hong Kong H Shares South Korea Red Chips Taiwan Indonesia 13 Cash India China A Shares Singapore Thailand Others Sector exposure 1, 14 13% 9% 6% 5% 4% 4% % % % % Real estate 16% Consumer discretionary 15% Industrials 15% Banks 1% Insurance 8% Information technology 7% Other financials 7% Utilities 5% 13 Cash 4% Communication services 3% Consumer staples Health care Others 3% % 3% Senior investment staff 19% 3% 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 Chung Man Wing; Kenny Tjan, CFA; Michelle Yu, CFA; Yu Xiao Bo Anthony Chan, CFA; Kelly Chung, CFA; Senior Fund Managers Doris Ho; Glenda Hsia; Philip Li, CFA; Luo Jing, CFA; Kai Mak; Yu Chen Jun Key awards Corporate : Benchmark Fund of the Year Awards 018, Hong Kong 15 Asia ex-japan Equity House: Best-in-Class Fund: Thomson Reuters Lipper Fund Awards Best Asia Pacific ex-japan Equity (10 Years) Scan the QR code to download the new Value Partners Mobile App^ now! Access the latest fund information and market updates! ^ For Hong Kong investors only. Fund information refers to Value Partners funds authorized by the Securities and Futures Commission of Hong Kong. Authorization does not imply official recommendation. 7. The Manager currently intends to make monthly dividend distribution in respect of the A MDis classes (actual dividend payout will be subject to the Manager s discretion). Distribution may be paid from capital of the fund. Investors should note that where the payment of distributions are paid out of capital, this represents and amounts to a return or withdrawal of part of the amount that have been originally invested or capital gains attributable to that and may result in an immediate decrease in the value of units. Investors should note that positive yield does not represent/imply positive return. For A1 Class units, Manager will review dividend distribution at its discretion once a year (last dividend payout date: 1 November 005). Please refer to the explanatory memorandum for more details. Annualized yield of MDis Class is calculated as follows: (Latest dividend amount/nav as of ex-dividend date) x 1. 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. 8. Certain distributors may accept payment for subscription fee in HKD for Class A1, please contact relevant distributors for details. Please note that Class A1 is denominated in USD, investors may have to bear the foreign exchange costs or fees involved. 9. 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 fund s 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). 10. Annualized return and volatility are calculated from inception on September 00. 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. 11. The receiving bank may charge a fee for incoming payments. Such fees will reduce the actual amount of dividends received by the investor. 1. Exposure refers to net exposure (long exposure minus short exposure). Due to rounding, percentages shown may not add up to 100%. 13. Cash refers to net cash including cash equivalents, investment in money market funds but excluding cash for collaterals and margins. 14. Classification is based on Global Industry Classification Standard (GICS). 15. The award reflects performance up to 30 September The award reflects performance as at 31 December 016. The views expressed are the views of Value Partners Hong Kong Limited only and are subject to change based on market and other conditions. The information provided does not constitute investment advice and it should not be relied on as such. All materials have been obtained from sources believed to be reliable, but its accuracy is not guaranteed. This material contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Investors should note investment involves risk. The price of units may go down as well as up and past performance is not indicative of future results. Investors should read the explanatory memorandum for details and risk factors in particular those associated with investment in emerging markets. Investors should seek advice from a financial adviser before making any investment. In the event that you choose not to do so, you should consider whether the investment selected is suitable for you. This material has not been reviewed by the Securities and Futures Commission. Issuer: Value Partners Hong Kong Limited. For Singapore investors: The Fund is registered as a restricted foreign scheme in Singapore and will only be distributed to (i) institutional investors and (ii) accredited investors and certain other persons in Singapore in accordance with section 304 and 305 of the Securities and Futures Act. Value Partners Asset Management Singapore Pte Ltd, Singapore Company Registration No G. This advertisement has not been reviewed by the Monetary Authority of Singapore. Follow us on Hong Kong: ( 85 ) Singapore: ( 65)

3 Value Partners High-Dividend Stocks Fund NAV per unit : Class A1 USD - USD88.78 Fund size : USD,740. million HHHH Morningstar Rating TM1 As at Class A MDis USD - USD10.90 February 019 Value Partners High-Dividend Stocks Fund (The Fund ) primarily invests in higher yielding debt and equity securities in the Asian region. The Fund may invest in higher-yielding debt and equity securities that are below investment grade. Such investments can involve greater risks due to the speculative nature. The Fund may invest in China and other markets of the Asian region, therefore is subject to emerging market risks. Generally, investments in emerging markets are more volatile than investments in developed markets due to additional risks relating to political, social, economic and regulatory uncertainty. 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. In respect of the distribution units for the Fund, the Manager currently intends to make monthly dividend distribution. However, the distribution rate is not guaranteed. Distribution yield is not indicative of the return of the Fund. Distribution may be paid from capital of the Fund. Investors should note that where the payment of distributions are paid out of capital, this represents and amounts to a return or withdrawal of part of the amount you originally invested or capital gains attributable to that and may result in an immediate decrease in the value of units. 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 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 % 1, The Fund (Class A1 USD) Index* % Dividend information Class A MDis Classes 3 Dividend per Annualized Ex-dividend unit 4 yield 5 date Class A MDis USD % Class A MDis HKD % Class A MDis AUD Hedged % Class A MDis CAD Hedged % Class A MDis GBP Hedged % Class A MDis NZD Hedged % Class A MDis RMB Hedged % Class A MDis RMB Unhedged % Class A MDis SGD Hedged % NAVs & codes % Classes 3 NAV ISIN Bloomberg 00 Class A1 USD HK VALASHY HK Class A1 HKD HK VALASHY HK 0 Class A Acc RMB Hedged 1.79 HK VALHAHR HK -100 Class A Acc RMB Unhedged HK VALHAUR HK Class A MDis USD HK VALHYA HK Performance update Class A MDis HKD HK VALHAH HK Class A MDis AUD Hedged 9.33 HK VALHAA HK Class A1 Class A Class A Index* Class A MDis CAD Hedged 9.51 HK VALHAC HK USD MDis USD Acc RMB Class A MDis GBP Hedged 9.00 HK VALHDSF HK One month +3.1% +3.1% +.6% +.1% Class A MDis NZD Hedged 9.64 HK VALHAN HK Year-to-date +8.5% +8.5% +5.5% +9.5% Class A MDis RMB Hedged 9.59 HK VALHRMB HK One year -8.4% -8.4% -3.5% -8.% Class A MDis RMB Unhedged 9.81 HK VAHYRMB HK Three years +40.4% +39.1% +4.8% +54.9% Class A MDis SGD Hedged HK VALHAS HK Five years +33.7% +3.5% N/A +3.9% Since launch % +48.5% +45.9% % Annualized return ^ +14.% +6.4% +7.9% +10.5% Annualized volatility ^ 18.% 13.5% 13.0% 19.8% The Fund Class A1 USD: Monthly performance from 1 Jan 009 to 8 Feb 019 Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual % +1.% +7.5% +8.9% +18.9% +5.4% +9.% -3.8% +3.3% +10.% +3.9% +.1% +8.8% % +0.% +7.0% +5.1% -6.4% +3.5% +.4% +1.5% +8.0% +5.6% +0.0% -1.% +5.8% % -1.6% +.6% +5.7% -.3% -.1% +.5% -5.% -15.1% +9.% -4.7% +0.% -11.9% % +4.7% -1.7% +.% -6.5% +1.5% +.4% +0.4% +5.5% +3.1% +1.7% +.4% +5.% % +0.4% -0.8% +1.5% +1.7% -5.6% +.3% -0.1% +.5% +.7% +1.6% -1.5% +8.1% % +1.8% +0.7% +0.% +3.8% +1.8% +5.9% +1.% -4.1% +0.3% +1.8% +0.6% +9.4% % +1.% +1.1% +11.% -0.7% -1.8% -6.4% -9.5% -1.6% +6.4% -3.8% +0.9% -3.7% % -1.7% +9.7% +0.4% -.7% +.6% +4.1% +.0% +.3% -.% -0.6% -.3% -0.% % +3.% +1.7% +1.1% +.8% +1.9% +3.5% +0.4% +1.0% +3.3% +1.% +.4% +3.9% % -4.8% -1.1% -0.0% +0.8% -5.5% -0.5% -.4% -1.% -11.3% +6.0% -0.5% -14.% 019 (YTD) +5.3% +3.1% +8.5% * Index refers to MSCI AC Asia Pacific (ex-japan) Index (Total Net Return) up to 30 Apr 016, thereafter it is the MSCI AC Asia (ex-japan) Index (Total Net Return) due to a change in investment profile. MSCI (Total Net Return) Indices takes into account of dividend reinvestment after deduction of withholding tax. ^ 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. 43rd Floor, The Center, 99 Queen s Road Central, Hong Kong Hotline: Hong Kong (85) Singapore (65) fis@vp.com.hk Follow us on

4 Value Partners High-Dividend Stocks Fund February 019 Top 10 securities holdings 7 Name Industry 8 % China Construction Banks 5.5 Bank Corporation Longfor Group Holdings Ltd Real estate 3.9 Far East Horizon Ltd Diversified financials 3.4 Ping An Insurance (Group) Co Insurance 3. of China Ltd China Resources Power Utilities.4 Holdings Co Ltd Far East Consortium Real estate.4 International Ltd Qingdao Port International Co Ltd Transportation.4 Samsung Electronics Co Ltd - Technology,.3 Preference Shares hardware & equipment Taiwan Semiconductor Semiconductors &.3 Manufacturing Co Ltd semiconductor equipment CK Asset Holdings Ltd Real estate. These stocks constitute 30% of the Fund. Portfolio characteristics As at 8 Feb Price/earnings ratio 8. times Price/book ratio 1.1 times Portfolio yield 4.5% Yield to maturity/put N/A 31% Hong Kong Geographical exposure by listing 10 H Shares 18% South Korea 11% Red Chips 10% 11 Cash 7% Taiwan 6% China A Shares 4% India 3% Indonesia 3% Singapore % Thailand % Others 3% 16% Real estate Sector exposure 8, 10 Industrials 15% Consumer discretionary 13% Banks 1% 11 Cash 7% Information technology 7% Other financials 7% Health care 6% Insurance 6% Utilities 4% Consumer staples 3% Communication services % Others % Fund facts Manager: Value Partners Hong Kong Limited Base currency: USD Trustee: HSBC Institutional Trust Services (Asia) Limited Custodian: HSBC Institutional Trust Services (Asia) Limited Launch date: Class A1 USD - Sep 00 Class A MDis USD - 8 Sep 01 Class A MDis HKD - 3 Sep 013 Class A MDis AUD/CAD/NZD Hedged - 3 Sep 013 Class A Acc RMB Unhedged - 0 Mar 014 Class A MDis RMB Unhedged - 1 Sep 014 Class A MDis RMB Hedged - 10 Sep 014 Class A Acc RMB Hedged - 11 Sep 014 Class A MDis GBP Hedged - 1 Mar 015 Class A MDis SGD Hedged - 3 Jan 017 Dividend policy : Class A MDis aim at monthly distribution, subject to Manager s discretion Fee structure Minimum subscription Minimum subsequent subscription Class A1 Class A MDis Class A Acc USD10,000 / HKD80,000 / USD10,000 or AUD10,000 / CAD10,000 / RMB60,000 HKD equivalent 6 GBP10,000 / RMB60,000 / NZD10,000 / SGD10,000 USD5,000 or HKD equivalent 6 USD5,000 / HKD40,000 / AUD5,000 / CAD5,000 / GBP5,000 / RMB30,000 / NZD5,000 / SGD5,000 Subscription fee Up to 5% Management fee 1.5% p.a. Performance fee 1 15% of profit (High-on-high principle) Redemption fee Nil Dealing day Daily Senior investment staff RMB30,000 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: Chung Man Wing; Michelle Yu, CFA; Yu Xiao Bo Senior Fund Managers: Anthony Chan, CFA; Kelly Chung, CFA; Doris Ho; Glenda Hsia; Amy Lee, CFA, CAIA; Philip Li, CFA; Luo Jing, CFA; Yu Chen Jun Key corporate awards Benchmark Fund of the Year Awards 018, Hong Kong Asia ex-japan Equity House: Best-in-Class 13 ~ Benchmark I&M Professional Investment Awards 018 House Performance Awards: Offshore China Equity (10-year) 14 ~ Insights & Mandate Listed Company Awards of Excellence 018 Outstanding Listed Company (Main Board Category) 15 ~ Hong Kong Economic Journal Scan QR code for fund documents 16 : Source: HSBC Institutional Trust Services (Asia) Limited and Bloomberg, data as at the last valuation date of the month as stated above, unless stated otherwise. Performance is calculated on NAV to NAV in base currency with dividend reinvested and net of fees. All indices are for reference only Morningstar, Inc. All Rights Reserved (for Class A1).. The Manager currently intends to make monthly dividend distribution in respect of the A MDis Classes; actual dividend payout will be subject to the Manager s discretion. Distribution may be paid from capital of the Fund. Investors should note that where the payment of distributions are paid out of capital, this represents and amounts to a return or withdrawal of part of the amount that have been originally invested or capital gains attributable to that and may result in an immediate decrease in the value of units. For A1 Class units, Manager will review dividend distribution at its discretion once a year (last dividend payout date: 1 Nov 005). Please refer to the explanatory memorandum for more details. 3. Each hedged share class will hedge the Fund s base currency back to its currency of denomination on a best efforts basis. However, the volatility of the hedged classes measured in the Fund s base currency may be higher than that of the equivalent class denominated in the Fund s base currency. The AUD/CAD/GBP/NZD/RMB/SGD Hedged Classes are not recommended for investors whose base currency of investment is not in the aforesaid currencies. 4. The receiving bank may charge a fee for incoming payments. Such fees will reduce the actual amount of dividends received by the investor. 5. Annualized yield of MDis Class is calculated as follows: (Latest dividend amount/nav as at ex-dividend date) x 1. 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. 6. 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 Fund s Trustee or Custodian) on the corresponding fund dealing day. Investors should be aware of possible risks resulting from fluctuations of exchange rates against USD. 7. Our portfolio disclosure policy can be obtained from the Investment Manager upon request to fis@vp.com.hk. 8. Classification is based on Global Industry Classification Standard (GICS). 9. The profile is based on market consensus forecast as derived from S&P Capital IQ and Bloomberg. Harmonic mean methodology is applied to calculate the forecast P/E ratio and P/B ratio. Note that the manager s 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. 10. Exposure refers to net exposure (long exposure minus short exposure). Due to rounding, percentages shown may not add up to 100%. 11. Cash refers to net cash including cash equivalents, investment in money market funds but excluding cash for collaterals and margins. 1. 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 Fund s 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). 13. The award reflects performance up to 30 September The award reflects performance up to 31 December The award recognises listed companies that were able to demonstrate outstanding business performance, create value for investors and showcase strong corporate governance over the past year. The award was bestowed on 5 November For Hong Kong investors only. 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. Investors should seek advice from a financial adviser before making any investment. In the event that you choose not to do so, you should consider whether the investment selected is suitable for you. For Singapore investors: The Fund is registered as a restricted foreign scheme in Singapore and will only be distributed to (i) institutional investors and (ii) accredited investors and certain other persons in Singapore in accordance with section 304 and 305 of the Securities and Futures Act. Value Partners Asset Management Singapore Pte Ltd, Singapore Company Registration No G. This advertisement has not been reviewed by the Monetary Authority of Singapore. This document has not been reviewed by the Securities and Futures Commission of Hong Kong. Issuer: Value Partners Hong Kong Limited. HDF_Master+SG_0190

5 PRODUCT KEY FACTS Value Partners High-Dividend Stocks Fund Issuer: Value Partners Hong Kong Limited October 018 This statement provides you with key information about the Value Partners High-Dividend Stocks Fund (the Fund ). This statement is a part of the offering document. You should not invest in this product based on this statement alone. Quick facts Manager: Trustee and Custodian: Dealing frequency: Base currency: Ongoing charges over a year # : Dividend policy: Value Partners Hong Kong Limited HSBC Institutional Trust Services (Asia) Limited Daily (Hong Kong business days) US dollars (US$) Exclusive of performance fees Inclusive of performance fees Class A1 1.45% γ 1.45% γ Class A MDis 1.45% γ 1.45% γ Class A MDis HKD 1.45% γ 1.45% γ Class A MDis AUD Hedged 1.45% γ 1.45% γ Class A MDis CAD Hedged 1.44% γ 1.44% γ Class A MDis GBP Hedged 1.45% γ 1.45% γ Class A MDis NZD Hedged 1.45% γ 1.45% γ Class A Acc RMB Unhedged 1.45% γ 1.45% γ Class A Acc RMB Hedged 1.45% γ 1.45% γ Class A MDis RMB Unhedged 1.45% γ 1.45% γ Class A MDis RMB Hedged 1.45% γ 1.45% γ Class A MDis SGD Hedged 1.45% γ 1.45% γ Class A Acc HKD Hedged, Class A Acc SGD Hedged, Class A Acc RMB Unhedged, Class A Acc RMB Hedged, and Class A Acc JPY Hedged: It is the current intention of the Manager that distributions of income will not be made from the Fund Class A1: Manager to review dividend distribution at its discretion once a year. Last dividend payout date: 1 November 005 Class A MDis, Class A MDis HKD, Class A MDis AUD Hedged, Class A MDis CAD Hedged, Class A MDis GBP Hedged, Class A MDis NZD Hedged, Class A MDis HKD Hedged, Class A MDis SGD Hedged, Class A MDis RMB Unhedged, Class A MDis RMB Hedged, Class A MDis JPY Hedged: Value Partners High-Dividend Stocks Fund - Product Key Facts 1

6 Value Partners High-Dividend Stocks Fund Minimum investment: Financial year-end of this Fund: At its discretion, the Manager currently intends to make monthly dividend distribution. In respect of the above classes, dividends may be paid out of the capital of the relevant class and may result in an immediate reduction of the net asset value ( NAV ) per unit of the Fund. US$10,000 initial, and US$5,000 subsequent (for Class A1 and Class A MDis) HKD80,000 initial, and HKD40,000 subsequent (for Class A Acc HKD Hedged, Class A MDis HKD and Class A MDis HKD Hedged) AUD10,000 initial and AUD5,000 subsequent (for Class A MDis AUD Hedged) CAD10,000 initial and CAD5,000 subsequent (for Class A MDis CAD Hedged) GBP10,000 initial and GBP5,000 subsequent (for Class A MDis GBP Hedged) NZD10,000 initial and NZD5,000 subsequent (for Class A MDis NZD Hedged) SGD10,000 initial and SGD5,000 subsequent (for Class A Acc SGD Hedged and Class A MDis SGD Hedged) RMB60,000 initial, and RMB30,000 subsequent (for Class A Acc RMB Unhedged, Class A Acc RMB Hedged, Class A MDis RMB Unhedged and Class A MDis RMB Hedged) JPY1,000,000 initial and JPY500,000 subsequent (for Class A Acc JPY Hedged and Class A MDis JPY Hedged) 31 December # γ The ongoing charges figure is expressed as a percentage of the sum of expenses over the average net asset value of the class of units for the corresponding period as described below. This figure may vary from year to year. The performance fees to be paid as at year end, where applicable, may vary subject to market conditions. Information is updated as at 6 September 018. This figure is an annualized figure based on the expenses for the interim period ended 30 June 018. The actual ongoing charges figure may be different and may vary from year to year. What is this product? The Fund was originally a unit trust constituted under the laws of the Cayman Islands. With effect on and from April 016, the jurisdiction of the Fund was changed from the Cayman Islands to Hong Kong. Objectives and Investment Strategy Objectives The Fund aims to provide capital appreciation to unitholders by investing primarily (i.e. not less than 70% of the Fund s NAV) in a portfolio of relatively higher yielding debt and equity securities in the Asian region. The Fund will concentrate on investing in interest-bearing or dividend-distributing debt and equity securities of companies or issuers in the Asian markets. There are no fixed geographical, sectoral or industry weightings in the allocation of assets and the Manager does not intend to follow benchmark indices in determining the geographical, sectoral or industry weightings of the Fund. For the avoidance of doubt, not less than 70% of the Fund s NAV will be invested in equity securities. Value Partners High-Dividend Stocks Fund - Product Key Facts

7 Value Partners High-Dividend Stocks Fund Strategy The Fund may invest in securities issued by companies of any market size and in such proportions as the Manager deems appropriate. Debt and equity securities that the Fund may invest in include but are not limited to listed debt securities, bonds, sovereign debts, listed equities, real estate investment trusts ( REITs ), and Exchange Traded Funds ( ETFs ). The Manager may invest in debt securities that are below investment grade or unrated and investors should be aware of the greater risks which may be involved in investing in these securities. Below investment grade refers to a credit rating of BB+ or below from Standard & Poor s, Ba1 or below from Moody s or an equivalent rating from an internationally recognized rating agency. The Manager may invest not more than 30% of the Fund s latest available NAV in debt securities that are below investment grade or unrated. In addition, the Fund s assets may from time to time include cash, deposits, short-term papers, such as treasury bills, certificates of deposit, banker s acceptances, shortterm commercial paper and other fixed income instruments. However, the Fund will not invest more than 10% of its NAV in debt securities issued and/or guaranteed by a single sovereign issuer (including its government, public or local authority) which is below investment grade. The Manager may also place a substantial portion of the portfolio in cash or cash equivalents. Under exceptional circumstances (e.g. market crash or major crisis), the Fund may be invested temporarily up to 100% in liquid assets such as deposits, treasury bills, certificates of deposit. The Fund may invest in China A Shares via the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect (collectively the Stock Connects ), China A Shares Access Products ( CAAPs ) and/or collective investment schemes directly investing in China A Shares through qualified foreign institutional investors ( QFIIs ) or Renminbi qualified foreign institutional investors ( RQFIIs ) ( A Shares CIS ). The investment in China A Shares through the Stock Connects, CAAPs and A Shares CIS is subject to a maximum exposure of 0% of the Fund s latest available NAV and not more than 10% of the Fund s latest available NAV may be invested in CAAPs issued by any single CAAP Issuer. The aggregate exposure to China A Shares and China B Shares will not exceed 0% of the Fund s latest available NAV. For the avoidance of doubt, the Fund will not in aggregate invest more than 0% of its non-cash assets in the Mainland China market. The Fund will have a limited exposure to investments denominated in RMB. Assets of the Fund denominated in RMB are valued with reference to the CNH rate. Under the current regulations, the rate at which RMB may be exchanged outside Mainland China (in the case of Hong Kong, the CNH rate) may be different from the exchange rate within Mainland China (the CNY rate). Please refer to the offering document for details. To the extent permitted by the SFC s Code on Unit Trusts and Mutual Funds and the provisions set out under the section Investment Restrictions and Prohibition in the Explanatory Memorandum, the Fund may also, on an ancillary basis, invest less than 30% of its NAV in commodities, futures contracts, options, depository receipts, warrants, convertible bonds and units in any unit trust or shares in any mutual fund corporation or any other collective investment scheme. For the purposes of hedging market and currency risks, the Fund may invest in index and currency swaps and currency forwards. The Fund does not invest in any asset backed securities (including asset backed commercial papers) or mortgage backed securities for hedging or non-hedging purposes. Nor does the Fund intend to engage in repurchase and reverse repurchase transactions or other similar over-the-counter transactions. However, the Fund may enter into securities lending arrangements provided that the value of the securities to be loaned, together with the value of all other securities which are the subject of a loan by the Fund does not exceed 10% of its latest available NAV. * The SFC s authorisation is not a recommendation or endorsement of a collective investment scheme nor does it guarantee the commercial merits of such collective investment scheme or its performance. It does not mean the collective investment scheme is suitable for all investors nor is it an endorsement of its suitability for any particular investor or classes of investors. Value Partners High-Dividend Stocks Fund - Product Key Facts 3

8 Value Partners High-Dividend Stocks Fund What are the key risks? Investment involves risks. Please refer to the offering document for details including the risk factors. 1. Investment risk The Fund is an investment fund. The Fund s investment portfolio may fall in value due to any of the key risk factors below and therefore you may lose a substantial proportion or all of your investment in the Fund. There is no guarantee of the repayment of principal.. Geographical concentration risk The concentration of the Fund s investments in Asian markets may result in greater volatility in the value of the Fund than more diverse portfolios which comprise broad-based global investments. The value of the Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the Asian market. 3. Risk of investing in emerging markets Investing in emerging markets involves certain increased risks and special considerations not typically associated with investment in more developed economies or markets, such as greater political, tax, economic, foreign exchange risks/controls, liquidity, settlement, custody, legal and regulatory risk, and the likelihood of higher degree of volatility. 4. Equity risk The Fund's investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors. To achieve the investment objective, the Fund may invest in high dividend stocks. There is no guarantee that dividends will be declared by such companies. Also investors should not expect the dividend policy of such companies is tantamount to the dividend policy of the Fund. 5. Risk associated with high volatility of the equity market in the Asian region High market volatility and potential settlement difficulties in the markets may also result in significant fluctuations in the prices of the securities traded on such markets and thereby may adversely affect the value of the Fund. 6. Risk associated with regulatory/exchanges requirements/policies of the equity market in the Asian region Securities exchanges in the Asian region typically have the right to suspend or limit trading in any security traded on the relevant exchange. The government or the regulators may also implement policies that may affect the financial markets. All these may have a negative impact on the Fund. 7. Risks associated with investment in Mainland China Imposition of additional governmental restrictions, change in the policies and/or implementation of measures to prevent overheating of the economy in the Mainland China may have an adverse impact on the performance of the Fund. 8. Risks relating to China A Shares market The China A Shares market may be more volatile and unstable (for example, due to the risk of suspension of a particular stock or government intervention). Market volatility and potential lack of liquidity due to low trading volume in the China A Shares markets may result in prices of securities traded on such markets fluctuating significantly resulting in substantial changes in the NAV of the Fund. 9. Risk relating to debt securities Credit risk - The Fund may be subject to the risk that an issuer will fail to make principal and interest payments when due, which may lead to a default and, ultimately, a fall in the value of the Fund. Interest rate risk - The Fund may invest in fixed income securities which are subject to interest rate risk. A fixed income security s value will decrease in value when interest rates rise. Volatility and liquidity risk - The debt securities in markets that the Fund invests in may be subject to higher volatility and lower liquidity compared to more developed markets. It is possible that there may be no liquidity for certain securities that the Fund may invest in, in particular debt securities and securities that are not listed on a recognised stock exchange. The Fund s ability to sell or liquidate investments at favourable times or for favourable prices may be Value Partners High-Dividend Stocks Fund - Product Key Facts 4

9 Value Partners High-Dividend Stocks Fund restricted. The prices of securities traded in such markets may be subject to fluctuations. The bid and offer spreads of the price of such securities may be large and the Fund may incur significant trading costs. As a result, the Fund s value will be adversely affected. Credit rating downgrading risk - Investment grade securities may be subject to the risk of being downgraded to below investment grade securities, and its issuer s credit rating may also subsequently be downgraded. The Fund s investment value in such security may be adversely affected. The Manager may or may not dispose of the securities, subject to the investment objectives of the Fund. Unrated or below investment grade and high yielding debt securities risk - The Fund may invest in high yielding securities which may be unrated or rated below investment grade. Such investments are considered to have a higher credit risk, lower liquidity, higher volatility and greater possibility of default than securities which are investment grade with respect to payment of interest and the return of principal. Valuation risk Valuation of the Fund s investments may involve uncertainties and judgmental determinations. If such valuation turns out to be incorrect, this may affect the NAV calculation of the Fund. Credit rating risk Credit ratings assigned by credit agencies are subject to limitations and do not guarantee the creditworthiness of the issuers. 10. Foreign exchange risk The Fund is denominated in US dollars but may issue classes of units denominated in a currency other than its base currency. In addition, the Fund may invest in assets that are denominated in a currency other than its base currency or the relevant class currency. The NAV of the Fund may therefore be affected unfavorably by fluctuations in the exchange rates between these currencies and the base currency and by changes in exchange rate controls. 11. Risks relating to currency hedging and the currency hedged classes ( Currency Hedged Classes ) The Manager may (but is not obliged to) enter into certain currency related transactions in order to hedge the currency exposure of the assets of the Fund attributable to a particular class into the class currency of the relevant class. Investors in the Currency Hedged Classes may have exposure to currencies other than the currency of that Currency Hedged Class. Investors should also be aware that the hedging strategy may substantially limit the benefits of any potential increase in value of a Currency Hedged Class expressed in the class currency, if the Currency Hedged Class denominating currency falls against the base currency of the Fund. The precise hedging strategy applied to a particular Currency Hedged Class may vary. In addition, there is no guarantee that the desired hedging instruments will be available or hedging strategy will achieve its desired result. In such circumstances, investors of the Currency Hedged Class may still be subject to the currency exchange risk on an unhedged basis. If the counterparties of the instruments used for hedging purposes default, investors of the Currency Hedged Classes may be exposed to the currency exchange risk on an unhedged basis and may therefore suffer further losses. 1. Performance fee risk The performance fee payable to the Manager may create an incentive for the Manager to make investments that are riskier or more speculative than would be the case in the absence of a performance fee. There is no adjustment of equalisation credit or equalisation losses on an individual unitholder basis. A unitholder redeeming units may still incur performance fee in respect of the units, even though a loss in investment capital has been suffered by the redeeming unitholder. In addition, performance fees may be paid on unrealised gains which may never be realised by the Fund. 13. Risks associated with RMB Classes of Units Investors may invest in Class A Acc RMB Unhedged, Class A Acc RMB Hedged, Class A MDis RMB Unhedged, Class A MDis RMB Hedged ( RMB classes ). It should be noted that the RMB is currently not a freely convertible currency as it is subject to foreign exchange control policies of the Chinese government. Non-RMB based investors are exposed to foreign exchange risk and there is no guarantee that the value of RMB against the investors base currencies will not depreciate. Any depreciation of the RMB could adversely affect the investors investments in the Fund. Value Partners High-Dividend Stocks Fund - Product Key Facts 5

10 Value Partners High-Dividend Stocks Fund Although offshore RMB ( CNH ) and onshore RMB ( CNY ) are the same currency, they trade at different rates. Any divergence between CNH and CNY may adversely impact investors. Under exceptional circumstances, payment of redemptions and/or dividend payment in RMB may be delayed due to the exchange controls and restrictions applicable to RMB. 14. Risks associated with investments in derivative instruments Risks associated with derivative instruments include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. The leverage element/ component of a derivative instrument and adverse changes in the value or level of the underlying asset, rate or index can result in a loss significantly greater than the amount invested in the derivative instrument itself. Exposure to derivative instruments may lead to a high risk of significant loss by the Fund. 15. Dividend risk and risk relating to dividends paid out of capital There is neither guarantee of distribution/dividend payments nor distribution rate or dividend yield. Payment of dividends out of capital represents a return or withdrawal of part of an investor s original investment or from any capital gains attributable to the original investment. Any such distributions may result in an immediate reduction of the NAV per unit of the Fund. The distribution amount and NAV of the Currency Hedged Classes may be adversely affected by differences in the interest rates of the reference currency of the Currency Hedged Classes and the Fund s base currency, resulting in an increase in the amount of distribution that is paid out of capital and hence a greater erosion of capital than other non-hedged classes. The Manager may amend the distribution policy subject to obtaining the SFC s prior approval and by giving not less than one month s prior notice to unitholders. How has the Fund performed? 100% 80% 8.8% 60% 40% 5.8% 5.% 3.9% 0% 8.1% 9.4% 0% -0% % -3.7% -0.% -40% -60% -46.8% Past performance information is not indicative of future performance. Investors may not get back the full amount invested. The computation basis of the performance is based on the calendar year end, NAV-to-NAV, with dividend reinvested. These figures show by how much Class A1 increased or decreased in value during the calendar year being shown. Performance data has been calculated in US$ including ongoing charges and excluding subscription fee and redemption fee you might have to pay. Fund launch date: September 00 Class A1 launch date: September 00 Class A1 has the longest history and is broadly indicative of the Fund s performance characteristics. Value Partners High-Dividend Stocks Fund - Product Key Facts 6

11 Value Partners High-Dividend Stocks Fund Is there any guarantee? This Fund does not have any guarantees. You may not get back the full amount of money you invest. What are the fees and charges? Charges which may be payable by you You may have to pay the following fees when dealing in the units of the Fund. Fee Subscription fee (Preliminary Charge) Switching fee Redemption fee What you pay Up to 5% of the amount you buy Nil* Nil * Certain distributors may impose a charge for each switching of units acquired through it for units in another class, which will be deducted at the time of the switching and paid to the relevant distributor. Unitholders who intend to switch their units from one class to units in another class should check with their respective distributors for the charge on switching. Ongoing fees payable by the Fund The following expenses will be paid out of the Fund. They affect you because they reduce the return you get on your investments. Annual rate (as a % of the Fund s NAV) Management fee 1.5%* Trustee fees First US$400 million of the Fund s NAV %* (Including fees of the Next US$400 million of the Fund s NAV % Custodian and Thereafter % Registrar s Agent) The trustee fees are subject to a monthly minimum of US$4,000. Under the terms of the Trust Deed, the Trustee is also entitled to a fixed annual fee of US$3,000. Performance fee Other fees 15% of the appreciation in the NAV per unit in the relevant class in the relevant performance period over the high water mark calculated annually on a high-on-high basis. High water mark is initially set at the initial issue price of the relevant class. Each performance period corresponds to the financial year of the Fund. Where a performance fee is payable to the Manager for a performance period, the NAV per unit of that class (after deduction of performance fee and any distribution declared or paid) on the last valuation day of that performance period will be set as the high water mark for the next performance period. For details and illustrative examples of the performance fee calculation, please refer to the section headed Performance Fee in the Fund s offering document. You may have to pay other fees when dealing in the units of the Fund. * Please note that some fees may be increased up to a specified permitted maximum on giving unitholders at least one month s prior notice. Please refer to the section of the offering document entitled Fees and Expenses for further details of the fees and charges payable and the permitted maximum of such fees, as well as other ongoing expenses that may be borne by the Fund. Value Partners High-Dividend Stocks Fund - Product Key Facts 7