Value Partners China Convergence Fund Acc USD

惠理中華匯聚基金 Acc 美元

KYG9317Q1047

Risk Rating: Level 5

iFund risk rating methodology is a qualitative and quantitative assessment of a single fund’s geographic and asset class focus, investment style and any potential risk factors, as measured from one (1) (lowest risk) to six (6) (highest risk). For the funds with risk rating five (5) or six (6), these are mainly aimed at providing capital appreciation to investors by investing primarily in single market equities, single industry equities or derivatives etc. For more details, please refer to the Due Diligence section under the Procedures page.

Dealing Hours

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD4,000.00Min. Subscription

1.25%

HKD4,000.00Min. Subscription

USD

HKD4,000.00Min. Subscription

HKD4,000.00

HKD4,000.00

Daily

16:30

2019-09-30

*Not include dividends (If applicable)

Fund Performances (including dividend, if any)

1 mth
+5.94%
3 mth
+4.34%
6 mth
-6.99%
1 yr
+8.07%
3 yr
+30.90%
5 yr
+35.61%

Analytical Figures (3 years)

Annualized Return
+9.39%
Annualized Volatility
+16.31%
Sharpe Ratio
+0.50

Fund Information

Fund Houses
Value Partners Ltd.
Launch Date
2000-07-13
Fund Manager
Team managed
Manager Start Date
Team managed
Geographical Focus
China
Asset Class/ Sector
Equity - All cap
Risk Rating
Risk Level 5

iFund risk rating methodology is a qualitative and quantitative assessment of a single fund’s geographic and asset class focus, investment style and any potential risk factors, as measured from one (1) (lowest risk) to six (6) (highest risk). For the funds with risk rating five (5) or six (6), these are mainly aimed at providing capital appreciation to investors by investing primarily in single market equities, single industry equities or derivatives etc. For more details, please refer to the Due Diligence section under the Procedures page.

Fund AUM(As of 2019-09-17)
USD 221,094,295.77
Management Fee
1.25%
Latest Dividend
N.A.

Sector Leaders

    No Funds

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD4,000.00Min. Subscription

1.25%

HKD4,000.00Min. Subscription

USD

HKD4,000.00Min. Subscription

HKD4,000.00

HKD4,000.00

Daily

16:30

2019-09-30

Dividend Records

No Dividends

Investment Objective

The Sub-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 market securities.

Nature and Extent of Risks

Investment involves risks. Please refer to the offering document for details including the risk factors.
1. Investment risk
- The Sub-Fund is an investment fund. There is no guarantee of the repayment of principal. The SubFund’s investment portfolio may fall in value and you may lose a substantial proportion or all of your investment in the Sub-Fund.
2. Risk of investing in China
- Investing in China-related companies involves certain risks and special considerations not typically associated with investment in more developed economies or markets, such as greater political, tax, economic, foreign exchange, liquidity and regulatory risk.
3. Geographical concentration risk
-The concentration of the Sub-Fund’s investments in China-related companies may result in greater volatility than portfolios which comprise broad-based global investments.
4. Counterparty risk of access products
- The Sub-Fund will invest in CAAPs and will be exposed to the counterparty risk of the issuers of these CAAPs. If an issuer of an access product were to become insolvent, the Sub-Fund would lose its investment up to the full value of that CAAP.
5. QFII Risk
- The current QFII policy and rules are subject to change and any such change could adversely impact the Sub-Fund’s direct investments in A Shares and indirect investments in A Shares through CAAPs.
- The Sub-Fund’s investments made through the QFII Holder are subject to the then prevailing exchange controls and other prevailing requirements of the PRC including rules on investment restrictions, lock-up period and repatriation and remittance of principal and profits. The capacity of the Sub-Fund to make investments, and thus the value of the Sub-Fund, may be affected.
- The current QFII policy and QFII regulations are subject to change, which may take retrospective effect. In addition, there can be no assurance that the QFII regulations will not be abolished. The Sub-Fund, which invests in the PRC markets through the QFII Holder, may be adversely affected as a result of such changes.
- The QFII Holder is not the manager of the Sub-Fund. The QFII Holder is the holding company of the Manager and has obtained the QFII licence and has allocated US$35 million of the QFII quota to the SubFund for its exclusive use.
- The QFII Holder’s QFII licence may be revoked or terminated or otherwise invalidated at any time. In such event, all the assets held by the PRC QFII Custodian for the account of the Sub-Fund will be liquidated and repatriated to a bank account maintained for and on behalf of the Sub-Fund outside of the PRC in accordance with applicable laws and regulations. The Sub-Fund may be required to dispose of its securities holdings and may suffer significant loss as a result of such liquidation and repatriation. As the QFII Holder’s remaining portion of the total amount of US$100 million of the QFII quota (other than the US$35 million of the QFII quota allocated to the Sub-Fund for its exclusive use) is also utilised by parties other than the Sub-Fund, investors should be aware that violations of the QFII regulations on investments arising out of activities related to portions of the QFII quota through which the Sub-Fund invests other than those which are utilised by the Sub-Fund could result in the revocation of or other regulatory action in respect of the QFII quota of the QFII Holder as a whole, including any portion utilised by the Sub-Fund
- The Sub-Fund may also be subject to repatriation restrictions such as lock-up period. In particular, under the QFII regulations, there are foreign exchange control restrictions imposed on the repatriation of funds by the QFII Holder. The Sub-Fund may repatriate capital, dividends, interest and income from the PRC, however any such repatriation is subject to a monthly cumulative limit of 20 per cent. of the total onshore assets managed by the QFII Holder (or managed through its group companies including the Manager) as a QFII as at the end of the preceding year. The restrictions on repatriation of the investment capital and net profits may have impact on the Sub-Fund’s ability to meet the redemption requests of its unitholders.
- Custodians or sub-custodians may be appointed in local markets for purpose of safekeeping assets of the Sub-Fund in those markets. Where the Sub-Fund invests in eligible securities through the QFII Holder’s QFII quota, such securities will be maintained by the PRC QFII Custodian through one or more securities account(s) in the name of “Value Partners Hong Kong Limited – China Convergence Fund” in accordance with PRC law and the Sub-Fund may be subject to custodial risk. If the PRC QFII Custodian defaults, the Sub-Fund may suffer substantial losses. The assets, including cash, held by the PRC QFII Custodian belong to the Sub-Fund as the ultimate beneficial owner, and they are segregated from the assets of the Manager, the QFII Holder, the QFII Custodian, the PRC QFII Custodian, the PRC brokers, and their respective clients. If any of the QFII Holder, the Manager or the PRC brokers is liquidated, the assets (including cash) which belong to the Sub-Fund do not form part of the liquidation assets of the QFII Holder, the Manager, or the PRC brokers. If the PRC QFII Custodian is liquidated, the assets held within the securities account(s) will not form part of its liquidation assets, however, cash held in the cash accounts will form part of its liquidation assets in the PRC and the Sub-Fund will become an unsecured creditor for the amount deposited in the cash accounts. The Sub-Fund may incur losses due to a default, act or omission of the PRC QFII Custodian in the execution or settlement of any transaction or in the transfer of any funds or securities.
- There can be no assurance that the QFII Holder will continue to make available its QFII quota, or the SubFund will be allocated a sufficient portion of QFII quota to meet all applications for subscription to the SubFund. The Sub-Fund’s performance may therefore be affected due to limited investment capabilities, or the Sub-Fund may not be able to fully implement or pursue its investment objective or strategy.
6. Risks associated with Stock Connects
- The current regulations and rules on Stock Connects are subject to change which may have potential retrospective effect. The Stock Connects are subject to quota limitations which may restrict the SubFund’s ability to invest in A Shares through the Stock Connects on a timely basis and as a result, the SubFund’s ability to access the A Shares markets (and hence to pursue its investment strategy) will be adversely affected. Where a suspension in the trading through the Stock Connects is effected, the SubFund’s ability to access the PRC stock markets will be adversely affected. The PRC regulations impose certain restrictions on selling and buying. Hence the Sub-Fund may not be able to dispose of holdings of A Shares in a timely manner. Also, a stock may be recalled from the scope of eligible stocks for trading via the Stock Connects. This may adversely affect the investment portfolio or strategies of the Sub-Fund, for example, when the Manager wishes to purchase a stock which is recalled from the scope of eligible stocks. Due to the differences in trading days, the Sub-Fund may be subject to a risk of price fluctuations in A Shares on a day that the PRC markets are open for trading but the Hong Kong market is closed.
- As the Sub-Fund is denominated in US dollars, the performance of the assets the Sub-Fund will be affected by movements in the exchange rate between RMB (i.e. the currency in which A Shares are traded and settled) and US dollars.
- Trading in securities through the Stock Connects may be subject to clearing and settlement risk. If the PRC clearing house defaults on its obligation to deliver securities / make payment, the Sub-Fund may suffer delays in recovering its losses or may not be able to fully recover its losses. Further, the Sub-Fund’s investments through the Stock Connects are not covered by the Hong Kong’s Investor Compensation Fund or the China Securities Investor Protection Fund (中國證券投資者保護基金) in the PRC.
- The Stock Connects require the development of new information technology systems on the part of the stock exchanges and exchange participants and may be subject to operational risk. If the relevant systems failed to function properly, trading in both Hong Kong and the PRC markets through the Stock Connects could be disrupted. The Sub-Fund’s ability to access the A Shares markets (and hence to pursue its investment strategy) will be adversely affected.
-When investing in eligible A Shares through the Shenzhen-Hong Kong Stock Connect, the Sub-Fund will also be subject to the risks associated with the Small and Medium Enterprise Board of the Shenzhen Stock Exchange (“SZSE”) and/or ChiNext Board of the SZSE.
7. PRC tax risk
- The Sub-Fund may be exposed to risks associated with changes in current PRC tax laws, regulations and practice, which may have retrospective effect. Any increased tax liabilities on the Sub-Fund may adversely affect the Sub-Fund’s value.
- Having consulted professional and independent tax adviser, the Manager will not make provisions for any withholding income tax payable by the Sub-Fund on PRC sourced capital gains from B Shares, H Shares and RMB denominated debt securities issued or listed offshore by PRC issuers. The implication of this is that if the Sub-Fund is liable to pay such withholding and other taxes, this may result in an unfavourable impact on the NAV of the Sub-Fund.
- PRC capital income tax will be temporarily exempted on capital gains derived by Hong Kong and overseas investors (including the Sub-Fund) on trading A Shares through QFII and Stock Connects. As such, having consulted professional and independent tax adviser, currently no provision for gross realised or unrealised capital gains derived from trading of A Shares through QFII, CAAPs (where the CAAPs issuers are QFII) and the Stock Connects is made by the Manager on behalf of the Sub-Fund.
- If no tax provision is made, unitholders may be disadvantaged. Any shortfall between the provision and the actual tax liabilities, which will be debited from the Sub-Fund’s assets, will adversely affect the SubFund’s NAV. Depending on the timing of their subscriptions and/or redemptions, investors may be disadvantaged as a result of any shortfall of tax provision.
8. Currency exchange risk
- The Sub-Fund is denominated in US dollars. Its performance will be affected by movements in the exchange rates between the currencies in which the assets are held and US dollars, and any changes in exchange control regulations which may cause difficulties in the repatriation of funds.
9. 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 Sub-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 Sub-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.
10. Performance fee risk
- 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.

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