Value Partners China Greenchip Fund Acc HKD

惠理中華新星基金 Acc 港元

KYG9317M1033

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.

Non-dealing HoursMonthly Savings

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD4,000.00Min. Subscription

1.50%

HKD4,000.00Min. Subscription

HKD

HKD4,000.00Min. Subscription

HKD4,000.00

HKD4,000.00

Daily

16:30

-

*Not include dividends (If applicable)

Fund Performances (including dividend, if any)

1 mth
+2.63%
3 mth
+10.14%
6 mth
+8.61%
1 yr
+18.34%
3 yr
+25.39%
5 yr
+9.12%

Analytical Figures (3 years)

Annualized Return
+7.83%
Annualized Volatility
+17.94%
Sharpe Ratio
+0.36

Fund Information

Fund Houses
Value Partners Ltd.
Launch Date
2002-04-07
Fund Manager
Team managed
Manager Start Date
Team managed
Geographical Focus
Greater 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 2019-11-17)
HKD 1,721,893,326.95
Management Fee
1.50%
Latest Dividend
N.A.

Sector Leaders

    No Funds

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD4,000.00Min. Subscription

1.50%

HKD4,000.00Min. Subscription

HKD

HKD4,000.00Min. Subscription

HKD4,000.00

HKD4,000.00

Daily

16:30

-

Dividend Records

No Dividends

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.

Nature and Extent of Risks

Investment involves risks. Please refer to the Explanatory Memorandum for details including the risk factors.
1.Investment risk
- The Fund is an investment fund. There is no guarantee of the repayment of principal. The Fund’s investment portfolio may fall in value and you may lose a substantial proportion or all of your investment in the Fund.
- The Fund may invest in small and medium sized companies which are less well-established or in their early stages of development. These companies may often experience significant price volatility and potential lack of liquidity due to low trading volume of their securities.
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 Fund’s investments in China-related companies may result in greater volatility than portfolios which comprise broad-based global investments.
4. Risks relating to China A Shares Market
- Stock exchanges in the PRC on which China A Shares are traded are at a developing stage and the market capitalization and trading volume are much lower than those in more developed financial markets.
- 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. For further details, please see risk factor “Liquidity Risk of Investing in China A Shares and China B Shares” below).
- 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 net asset value of the Fund.
5. Risks associated with Stock Connects
- The Stock Connects are novel in nature. The relevant regulations are untested. Moreover, the current regulations are subject to change. The Stock Connects are subject to quota limitations which may restrict the Fund’s ability to invest in China A Shares through the Stock Connects on a timely basis and as a result, the Fund’s ability to access the China 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 Fund’s ability to access the PRC stock markets will be adversely affected. The PRC regulations impose certain restrictions on selling and buying. Hence the Fund may not be able to dispose of holdings of China 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 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 Fund may be subject to a risk of price fluctuations in China A Shares on a day that the PRC markets are open for trading but the Hong Kong market is closed.
- As the Fund is denominated in Hong Kong dollars, the performance of the assets the Fund will be affected by movements in the exchange rate between RMB (i.e. the currency in which China A Shares are traded and settled) and Hong Kong 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 Fund may suffer delays in recovering its losses or may not be able to fully recover its losses. Further, the 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 Fund’s ability to access the PRC shares markets (and hence to pursue its investment strategy) will be adversely affected.
- When investing in eligible China A Shares through the Shenzhen-Hong Kong Stock Connect, the Fund will also be subject to the risks associated with the Small and Medium Enterprise Board of the SZSE and/or ChiNext Board of the SZSE.
6. Risks associated with CAAPs
- The current policy and regulations imposed by the PRC government on the access into the China A Shares by foreign institutional investors via investment quota are subject to change. If any CAAP Issuer has insufficient investment quota, the CAAP Issuer may cease to extend the duration of any CAAPs or to issue further CAAPs and the Fund may be required to dispose of its existing CAAPs. Shareholders should note that there can be no assurance that the Fund may be able to maintain or obtain a sufficient investment in CAAPs. This may have an impact on the Shareholders’ investment in the Fund.
- The Fund will be exposed to the counterparty risk associated with each CAAP Issuer. The Fund may suffer losses potentially equal to the full value of the CAAP if the CAAP Issuer were to become insolvent or fails to perform its payment obligations under the CAAPs.
7. Risks relating to investment in other collective investment schemes
- Investment decisions of the underlying schemes are made at the level of such schemes. There can be no assurance that (i) the selection of the managers of the underlying schemes will result in an effective diversification of investment styles and that positions taken by the underlying schemes will always be consistent; and (ii) the investment objective and strategy of the underlying schemes will be successfully achieved.
- Prospective investors should note that the Fund bears the fees payable to the Manager and its other service providers, as well as, indirectly, a proportionate share of the fees paid by the underlying schemes to their managers and the service providers of the underlying schemes. For the avoidance of doubt, where the Fund invests in an underlying scheme managed by the Manager or any of its Connected Persons, all initial charges on such underlying scheme will be waived.
- There may be potential conflicts of interest where the Fund invests in shares or units of a collective investment scheme managed by the Manager, or any Connected Persons. In the event of such conflicts, the Manager will endeavour to ensure that such conflicts are resolved fairly and all transactions between the Fund and any of them are on an arm’s length basis.
8. Risks associated with A Shares CIS
- Risk related to QFII/RQFII Policy - There can be no assurance that the QFII/RQFII regulations will not be abolished or changed. In the circumstances where the QFII/RQFII licence of the QFII/RQFII holder of A Shares CIS is revoked or terminated or otherwise invalidated, or the investment quota granted by PRC government to the QFII/RQFII holder of A Shares CIS is reduced or withdrawn, all or part of the assets held by the PRC QFII/RQFII custodian for the account of the A Shares CIS will be liquidated and repatriated to a bank account maintained for and on behalf of the A Shares CIS outside of the PRC. Further, under the relevant PRC law, regulations or measures, there are restrictions on repatriation of funds out of the PRC. Thus, the Fund may be exposed, indirectly, to risks associated with remittance and repatriation of monies, through its investment in A Shares CIS. The underlying A Shares CIS may not be able to meet redemption requests and may therefore be subject to reduced liquidity.
- Custodial risks - Lack of adequate custodial systems in the PRC may subject the A Shares CIS to greater custodial risks. The A Shares CIS may also incur losses due to liquidation of the PRC custodian, or a default, act or omission of the PRC custodian in the execution or settlement of any transaction or in the transfer of any funds or securities.
- Other risks - Other factors such as RMB depreciation, restriction or delay in RMB currency conversion, QFII/RQFII investment restriction, illiquidity of the China A Shares market, and delay or disruption in execution of trades or in settlement of trades may also have negative impacts on A Shares CIS. Consequently, the Fund investing in such A Shares CIS may be adversely affected by the risks set out above and may be exposed to potential losses.
9. PRC tax risk
(a) Equity and debt securities except China A Shares via Stock Connects
- The Fund may be exposed to risks associated with changes in current PRC tax laws, regulations and practice, which may have retrospective effect. In particular, there are still uncertainties as to the withholding tax treatment on dividends (currently equal to 10% of any gain) derived from indirect China A Shares and China B Shares investments.
- Prior to 17 November 2014, certain CAAP Issuers have indicated their intention to withhold an amount equal to 10% of any gains representing the PRC tax in respect of any capital gains which would be payable on an actual sale of the underlying China A Shares linked to the CAAPs issued to the Fund. Similarly, for direct investments in China A Shares by A Shares CIS, managers of A Shares CIS may accrue for the 10% withholding tax. If no withholding was made by the CAAP Issuers, the Manager has made withholding income tax provisions for any PRC sourced capital gains from indirect China A Share realized and unrealized prior to 17 November 2014 at a rate of 10%.
- Pursuant to the issuance of the “Notice on the issues of temporary exemption from the imposition of Corporate Income Tax on capital gains derived from the transfer of PRC equity investment assets such as PRC domestic stocks by QFII and RQFII” Caishui [2014] No. 79 on 14 November 2014, by the Ministry of Finance of the PRC, the State of Administration of Taxation of the PRC and the China Securities Regulatory Commission which provides that QFIIs and RQFIIs will be temporarily exempt from PRC tax in respect of any capital gains derived from the trading of PRC equity investment (including China A Shares) with effect from 17 November 2014 and having consulted professional and independent tax advisor, the CAAP Issuers and the Manager will not make any tax provision on realized and unrealized capital gains derived from indirect China A Shares investments through CAAPs from 17 November 2014 onwards. Similarly, for direct investments in China A Shares by certain A Shares CIS, managers of such A Shares CIS may no longer accrue any provision for the 10% withholding tax referred to above from 17 November 2014 onwards.
- In light of the uncertainty on income tax treatment on capital gains derived from indirect China A Shares investments prior to 17 November 2014, any provision for taxation made by the Manager may be excessive or inadequate to meet final PRC tax liabilities on capital gains derived from indirect China A Shares investments. Any excessive provision or inadequate provision for such taxation may impact on the performance and hence the Net Asset Value of the Fund during the period of such excessive or inadequate provision. Consequently, Shareholders may be advantaged or disadvantaged depending upon the final outcome of how capital gains from indirect China A Share investments will be taxed, the level of tax provision and when the Shareholders subscribed and/or redeemed their Shares in/from the Fund.
- Having consulted professional and independent tax advisor, the Manager will not make provisions for any withholding income tax payable by the Fund on PRC sourced capital gains from China B Shares, H Shares and RMB-denominated debt securities issued or listed offshore by PRC issuers. The implication of this is that if the Fund is liable to pay such withholding and other taxes, this may result in an unfavourable impact on the Net Asset Value of the Fund.
(b) China A Shares via Stock Connects
- Dividends received by Hong Kong and overseas investors (including the Fund) from China A Share investment via the Shanghai-Hong Kong Stock Connect will be subject to 10% withholding income tax and the company distributing the dividend has the withholding obligation.
- PRC capital income tax will be temporarily exempted on capital gains derived by Hong Kong and overseas investors (including the Fund) on trading China A Shares through the Shanghai-Hong Kong Stock Connect.
- Having consulted professional and independent tax advisor, no provision for gross realised or unrealised capital gains derived from trading of China A Shares via the Stock Connects is made by the Manager on behalf of the Fund.
- The specific tax regulation in relation to Shenzhen-Hong Kong Stock Connect has not yet been issued. Subject to the formal confirmation by the PRC tax authorities and/ or other regulatory authorities, the same treatments are expected to be applied to Shenzhen-Hong Kong Stock Connect.
10. Liquidity risk of investing in China A Shares and China B Shares
- China A Shares and China B Shares may be subject to trading bands which restrict increases and decreases in the trading price. The Fund if investing through the Stock Connects, CAAP Issuers and A Shares CIS will be prevented from trading China A Shares when they hit the “trading band limit”. If this happens on a particular trading day, the Fund, CAAP Issuers and A Shares CIS may be unable to trade China A Shares. When the Manager trades China B Shares for the account of the Fund, the Manager may also be unable to trade China B Shares due to the “trading band limit”. As a result, the liquidity of the CAAPs, China A Shares, A Shares CIS and China B Shares may be adversely affected which in turn may affect the value of the Fund’s investments.
11. Currency exchange risk
- The Fund is denominated in Hong Kong dollars. Its performance will be affected by movements in the exchange rates between the currencies in which the assets are held and Hong Kong dollars, and any changes in exchange control regulations which may cause difficulties in the repatriation of funds.
12. Credit Risk
- The Fund may invest in securities which are rated below investment grade. The Fund may be subject to additional risks due to the speculative nature of investing in securities with a rating below investment grade such as high yield debt securities, which may be considered speculative and can include securities that are unrated and/or in default.
13. Performance fee risk
- There is no adjustment of equalisation credit or equalisation losses on an individual shareholder basis. A shareholder redeeming shares may still incur performance fee in respect of the shares, even though a loss in investment capital has been suffered by the redeeming shareholder.
14. 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.

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