VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND SEMI-ANNUAL 2018 REPORT For the six months ended 30 June 2018 Value Partners Hong Kong Limited 43rd Floor, The Center 99 Queen’s Road Central, Hong Kong Tel: (852) 2880 9263 Fax: (852) 2565 7975 Email: [email protected] Website: www.valuepartners-group.com
In the event of inconsistency, the English text of this Semi-Annual Report shall prevail over the Chinese text. This report shall not constitute an offer to sell or a solicitation of an offer to buy shares in any of the funds. Subscriptions are to be made only on the basis of the information contained in the explanatory memorandum, as supplemented by the latest semi-annual and annual reports. VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) CONTENTS
Pages
General information 2-4
Manager’s report 5-7
Statement of financial position (unaudited) 8-9
Investment portfolio (unaudited) 10-28
Investment portfolio movements (unaudited) 29-31
Distribution to redeemable participating shareholders (unaudited) 32
SEMI-ANNUAL REPORT 2018 For the six months ended 30 June 2018 1 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) GENERAL INFORMATION
Directors Auditor Mr. Roger Anthony Hepper PricewaterhouseCoopers Ms. Jessie Ng P.O. Box 258 (appointed on 1 August 2018) George Town Mr. Mo Chun Wah, Jonathan Grand Cayman, KY1-1104 (resigned on 1 August 2018) Cayman Islands
Manager Legal Advisors Value Partners Hong Kong Limited With respect to Cayman Islands law 43rd Floor, The Center Walkers 99 Queen’s Road Central Walker House, Hong Kong 87 Mary Street, George Town Grand Cayman KY1-9001 Directors of the Manager Cayman Islands Dato’ Seri Cheah Cheng Hye Mr. So Chun Ki Louis With respect to Hong Kong Mr. Ho Man Kei, Norman and International law Deacons Administrator 5th Floor, Alexandra House HSBC Trustee (Cayman) Limited 18 Chater Road Central P.O. Box 484 Hong Kong Strathvale House Ground Floor Information available from: 90 North Church Street Value Partners Hong Kong Limited George Town 43rd Floor, The Center Grand Cayman 99 Queen’s Road Central KY1-1106 Hong Kong Cayman Islands Investor hotline : (852) 2143 0688 Custodian and Administrator’s Agent Fax : (852) 2565 7975 HSBC Institutional Trust Services (Asia) Email : [email protected] Limited Website : www.valuepartners-group.com 1 Queen’s Road Central Hong Kong
Registered and Principal Office P.O. Box 484 Strathvale House Ground Floor 90 North Church Street George Town Grand Cayman KY1-1106 Cayman Islands
SEMI-ANNUAL REPORT 2018 2 For the six months ended 30 June 2018 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) GENERAL INFORMATION (Continued)
Recent awards and achievements
Corporate Awards
2018 • Insights & Mandate Professional Investment Awards 2018 Offshore China Equity (10 Years) – Insights & Mandate
2017 • Benchmark Fund of the Year Awards 2017, Hong Kong Manager of the Year – Greater China Equity (Outstanding Award) Dato’ Seri Cheah Cheng Hye and Mr. Louis So (Value Partners’ Co-CIOs) – Benchmark
• Benchmark Fund of the Year Awards 2017, Hong Kong Manager of the Year – High Yield Fixed Income Mr. Gordon Ip (Value Partners’ CIO, Fixed Income) – Benchmark
• Benchmark Fund of the Year Awards 2017, Hong Kong House Award (ETF) – Commodity ETF (Outstanding Achiever) for Sensible Asset Management – Benchmark
• The 15th China’s Financial Annual Champion Awards 2017 Value Partners: Best Fund House of the Year – Hexun.com
• AsiaHedge Awards 2017 Management Firm of the Year: Value Partners – AsiaHedge
• Listed Company Award of Excellence 2017 Value Partners Group Limited – Best Listed Company (Main Board category) – Hong Kong Economic Journal & PR Asia
• The Asset Benchmark Research Awards 2017 – Asian G3 Bonds Top Investment House Value Partners – Ranked Number 1 in Hedge Fund category – The Asset Benchmark Survey
• The Asset Triple A, Asset Servicing, Investor and Fund Management Awards 2017 Fund Manager of the Year – Long-only Fixed Income (Highly Commended) Mr. Gordon Ip, Value Partners Greater China High Yield Income Fund – The Asset
• Asset Management Awards for Excellence 2017 Best Fund Provider – Greater China Equity – Asian Private Banker
SEMI-ANNUAL REPORT 2018 For the six months ended 30 June 2018 3 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) GENERAL INFORMATION (Continued) Recent awards and achievements (Continued)
Value Partners Greater China High Yield Income Fund
2018 • Fund Selector Asia Awards Hong Kong 2018 High Yield Gold Award Value Partners Greater China High Yield Income – Fund Selector Asia
• 2018 Thomson Reuters Lipper Fund Award – Equity Asia Pacific Ex Japan (5 Years) Value Partners Greater China High Yield Income Fund P Acc USD – Thomson Reuters
• 2018 Thomson Reuters Lipper Fund Award – Bond USD High Yield (3 Years) Value Partners Greater China High Yield Income Fund P Acc USD – Thomson Reuters
• AsianInvestor Asset Management Awards 2018 Best Retail Product – AsianInvestor
2017 • Benchmark Fund of the Year Awards 2017, Hong Kong Other Fixed Income – Best-in-Class – Benchmark
• 2017 HKCAMA – Bloomberg Offshore China Fund Awards Best Total Return – Greater China Fixed Income (3 Years) – HKCAMA & Bloomberg
• 2017 HKCAMA – Bloomberg Offshore China Fund Awards Best Total Return – Greater China Fixed Income (1 Year) – HKCAMA & Bloomberg
• 2017 HKCAMA – Bloomberg Offshore China Fund Awards AUM Growth – Greater China Fixed Income (1 Year) – HKCAMA & Bloomberg
• HFM Asia Performance Awards 2017 Best Fixed Income Fund – HFM Week
• Thomson Reuters Lipper Fund Awards 2017 Best Bond US Dollar – High Yield (3 Years) – Thomson Reuters
SEMI-ANNUAL REPORT 2018 4 For the six months ended 30 June 2018 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) MANAGER’S REPORT
The Asian credit markets started 2018 with a mixed performance in January. Marred by the rising US Treasury yields, investment-grade bonds posted a negative total return in January, even as credit spreads tightened. High-yield bonds, on the other hand, outperformed with positive total return for the month. Within the high yield space, lower-rated issues again outperformed the rest of the pack, thanks to their hefty credit spreads.
Driven by uncertainty over the Fed’s rate hike schedule under the new Fed Chairman Powell and renewed concern over accelerating inflation, the global market underwent a difficult month in February, with both equity and fixed income recording losses during the month. In the Asian credit markets, long-dated high-grade bonds were the worst performers while short-dated high-yield issues, helped by their hefty credit spreads, outperformed.
In March, we saw the typical flight-to-quality environment in which government bond yields were down and credit spreads widened. Fear of a trade war between the US and China drove US Treasury yields down in March, even after the Fed raised rate by 25 basis points during the month. After touching the yearly high of 2.95%, the benchmark 10-year US Treasury note ended the month at around 2.76%. In the Asian credit markets, credit spreads widened and lower-rated quality papers underperformed.
The Asian markets continued to soften in April amid the threat of a potential US-China trade war, rising US Treasury yield and a busy new issuance calendar. During the month, sovereign bonds underperformed as they are the most sensitive to movements in Treasury yields and global fund flow. In corporate bonds, high-grade issues slightly outperformed high-yield ones.
May was an eventful month for the market. Although market sentiment improved as the threat of a potential US-China trade war eased and tensions between the US and North Korea subsided, the rise of a populist government and political turmoil in Italy, and the on-again, off-again talks by Trump on trades and tariffs cast significant doubt on the market. As a result, market sentiment took a dive globally and volatility spiked to a one-month high. In Asia, credit markets continued to be on the soft side with looming supply and a few isolated cases of credit events. For the month, the overall market was flattish with high-grade issues slightly outperforming high-yield ones.
Throughout the quarter, while we remained quite active in both primary and secondary markets, we have raised our cash level to be more defensive in the current environment and to reserve some dry powder for future deals in the pipeline.
SEMI-ANNUAL REPORT 2018 For the six months ended 30 June 2018 5 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) MANAGER’S REPORT (Continued)
In June, global markets continue to be marred by the rising possibility of a US-China trade war. Market sentiment continued to be weak, and volatility remained elevated. Asian credit markets posted a negative total return in June, with high grade outperforming high yield. Trading volumes have shrunk as most participants were on the sidelines looking for clues on the market’s next moves. The overall cash level in the market was high, with many waiting for opportunities to deploy the idle capital. The portfolio was little changed, but we did selectively buy a few high yield names that were subject to forced selling. Outlook
In our view, while the market may remain soft in the face of political noises and a temporarily heavy supply pipeline, we are starting to see attractive value in Asian credits, especially China high yield. Currently, the absolute yield of Chinese high yield bonds is at a new 3-year high, while the 300bps yield differential between China high yield and US high yield is at its widest since September 2015. However, beyond the current turbulence are a fundamentally sound global economy and gradually normalizing global risk-free rates, which are both constructive to credit investments. We will selectively deploy our capital to opportunities that offer an attractive risk-reward tradeoff.
Value Partners Hong Kong Limited 24 August 2018
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 29 June 2018. Performance data is net of all fees.
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 material has 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.
SEMI-ANNUAL REPORT 2018 6 For the six months ended 30 June 2018 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) MANAGER’S REPORT (Continued) Value Partners Greater China High Yield Income Fund – NAV as at 30 June 2018
Classes NAV per share P Acc USD USD15.19 P Acc HKD HKD15.25 P MDis USD USD8.57 P MDis HKD HKD8.62 P MDis SGD Hedged SGD9.33 A MDis AUD Hedged AUD8.45 A MDis CAD Hedged CAD8.54 A MDis EUR Hedged EUR9.21 A MDis GBP Hedged GBP8.81 A MDis NZD Hedged NZD8.80 A MDis RMB Hedged RMB9.69 A MDis RMB Unhedged RMB9.30 A Acc RMB Hedged RMB13.77 A Acc RMB Unhedged RMB13.00 z MDis USD USD9.50 z Acc USD USD12.89
Performance since launch From 28 March 2012 to 30 June 2018
60% Value Partners Greater China High Yield Income Fund (P Acc USD) +51.9% 50%
40%
30%
20%
10%
0%
-10%
4/2012 12/2012 12/2013 12/2014 12/2015 12/2016 12/2017
SEMI-ANNUAL REPORT 2018 For the six months ended 30 June 2018 7 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) STATEMENT OF FINANCIAL POSITION (UNAUDITED) AS AT 30 JUNE 2018
30.06.2018 31.12.2017 US$ US$
Assets Financial assets at fair value through profit or loss 5,142,415,082 4,606,255,427 Amounts receivable on sales of investments 55,308,177 168,523 Amounts receivable on subscription of shares 42,797,917 104,153,240 Dividends, interest and other receivables 10,219,813 2,928,053 Margin deposits 7,133,405 7,082,514 Bank balances 372,349,944 2,115,000
Total assets 5,630,224,338 4,722,702,757
Equity Administrative shares 100 100
Total equity 100 100
Liabilities Financial liabilities at fair value through profit or loss 5,765,630 1,474,303 Amounts payable on purchase of investments 10,715,038 3,129,084 Amounts payable on redemption of shares 89,954,134 7,618,050 Management fee payable 6,756,918 5,486,248 Distributions payable to redeemable participating shareholders 37,746,113 29,417,493 Bank overdrafts – 189,627,819 Accruals and other payables 1,085,357 984,816
Liabilities (excluding net assets attributable to redeemable participating shareholders) 152,023,190 237,737,813
Net assets attributable to redeemable participating shareholders 5,478,201,048 4,484,964,844
SEMI-ANNUAL REPORT 2018 8 For the six months ended 30 June 2018 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) STATEMENT OF FINANCIAL POSITION (UNAUDITED) (Continued) AS AT 30 JUNE 2018
30.06.2018 31.12.2017
Net asset value per share – Class P Acc USD with 10,992,673 (31.12.2017: 9,255,964) shares outstanding USD15.19 USD15.64 – Class P Acc HKD with 23,906,858 (31.12.2017: 18,623,859) shares outstanding HKD15.25 HKD15.63 – Class P MDis USD with 216,488,500 (31.12.2017: 174,446,642) shares outstanding USD8.57 USD9.19 – Class P MDis HKD with 2,231,242,869 (31.12.2017: 1,664,081,894) shares outstanding HKD8.62 HKD9.20 – Class P MDis SGD Hedged with 8,952,662 (31.12.2017: 5,847,763) shares outstanding SGD9.33 SGD10.04 – Class A MDis AUD Hedged with 62,437,752 (31.12.2017: 48,555,505) shares outstanding AUD8.45 AUD9.11 – Class A MDis CAD Hedged with 11,961,891 (31.12.2017: 9,436,598) shares outstanding CAD8.54 CAD9.20 – Class A MDis EUR Hedged with 15,125,488 (31.12.2017: 3,853,696) shares outstanding EUR9.21 EUR9.95 – Class A MDis GBP Hedged with 5,278,074 (31.12.2017: 3,507,042) shares outstanding GBP8.81 GBP9.52 – Class A MDis NZD Hedged with 8,526,461 (31.12.2017: 10,071,159) shares outstanding NZD8.80 NZD9.49 – Class A MDis RMB Hedged with 46,406,269 (31.12.2017: 37,439,711) shares outstanding RMB9.69 RMB10.38 – Class A MDis RMB Unhedged with 4,003,283 (31.12.2017: 5,584,153) shares outstanding RMB9.30 RMB9.82 – Class A Acc RMB Hedged with 2,380,283 (31.12.2017: 1,039,846) shares outstanding RMB13.77 RMB14.06 – Class A Acc RMB Unhedged with 750,000 (31.12.2017: 750,000) shares outstanding RMB13.00 RMB13.16 – Class z MDis USD with 7,825,864 (31.12.2017: 2,041,381) shares outstanding USD9.50 USD10.17 – Class z Acc USD with 287,744 (31.12.2017: 2,205,193) shares outstanding USD12.89 USD13.23
SEMI-ANNUAL REPORT 2018 For the six months ended 30 June 2018 9 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) INVESTMENT PORTFOLIO (UNAUDITED) AS AT 30 JUNE 2018
% of net Holdings Fair value assets US$
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
Listed Equity Securities
Australia Fortescue Metals Group Ltd 730,961 2,369,787 0.05 Paladin Energy Ltd 170,758,096 22,068,349 0.40
24,438,136 0.45
Cayman Islands Ronshine China Holdings Ltd 4,500,000 5,825,948 0.11
Hong Kong – H Shares China Petroleum & Chemical Corp 4,000,000 3,573,044 0.06 China Vanke Co Ltd 2,503,600 8,757,248 0.16 Guangzhou R&F Properties Co Ltd 6,580,800 13,282,941 0.24
25,613,233 0.46
Hong Kong – Red Chips China Overseas Land & Investment Ltd 694,000 2,286,022 0.04
Hong Kong – Others CIFI Holdings Group Co Ltd 4,760,000 3,026,690 0.05 Future Land Development Holdings Ltd 6,364,000 5,757,698 0.10 GCL-Poly Energy Holdings Ltd 32,420,000 3,057,068 0.06 Honghua Group Ltd 50,986,000 4,742,793 0.09 Mongolian Mining Corp 187,693,617 3,061,398 0.06 Shenzhou International Group Holdings Ltd 4,287,000 52,907,042 0.97
72,552,689 1.33
SEMI-ANNUAL REPORT 2018 10 For the six months ended 30 June 2018 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2018
% of net Holdings Fair value assets US$
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)
Listed Equity Securities (Continued)
Indonesia Bumi Resources Tbk PT 207,711,405 3,279,272 0.06 MNC Studios International Tbk PT 398,500,000 12,805,450 0.23
16,084,722 0.29
Japan Nintendo Co Ltd 18,000 5,890,170 0.11
Norway Borr Drilling Ltd 2,000,000 9,567,383 0.17
Singapore Ezion Holdings Ltd 82,460 5,503 0.00 Noble Group Ltd 36,000,000 3,563,964 0.07
3,569,467 0.07
South Korea Samsung Electronics Co Ltd 920,082 38,478,691 0.70 SK Hynix Inc 108,784 8,357,723 0.15
46,836,414 0.85
Taiwan Largan Precision Co Ltd 122,000 17,971,195 0.33
United States Ctrip.com International Ltd 427,363 20,355,300 0.37 Melco Resorts & Entertainment Ltd 330,000 9,240,000 0.17 Thunder Bridge Acquisition Ltd 500,000 5,016,600 0.09
34,611,900 0.63
SEMI-ANNUAL REPORT 2018 For the six months ended 30 June 2018 11 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2018
% of net Holdings Fair value assets US$
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)
Quoted Debt Securities
Angola Angolan Government International Bond 8.25% 05/09/2028 7,400,000 7,508,836 0.14 Angolan Government International Bond 9.375% 05/08/2048 6,600,000 6,756,824 0.12
14,265,660 0.26
Argentina Argentine Republic Government International Bond 0% 12/15/2035 61,500,000 4,442,145 0.08 Stoneway Capital Corp 10% 03/01/2027 4,500,000 4,683,895 0.09
9,126,040 0.17
Australia Barminco Finance Pty Ltd 6.625% 05/15/2022 5,000,000 4,818,406 0.09 Barminco Finance Pty Ltd 6.625% 05/15/2022 25,200,000 24,280,735 0.44 Emeco Pty Ltd 9.25% 03/31/2022 16,046,575 17,715,574 0.32 Macquarie Group Ltd 3.189% 11/28/2023 3,000,000 2,881,304 0.05 Miclyn Express Offshore Pte Ltd 8.75% 11/25/2018 33,200,000 15,486,503 0.28 Paladin Energy Ltd 9% 01/25/2023 32,244,000 30,428,310 0.56 Pilgangoora Operations Pty Ltd 12% 06/21/2022 5,600,000 6,344,800 0.12 Santos Finance Ltd 4.125% 09/14/2027 7,750,000 7,375,178 0.14 Virgin Australia Holdings Ltd 7.875% 10/15/2021 28,575,000 28,952,883 0.53 Virgin Australia Holdings Ltd 8.5% 11/15/2019 11,996,000 12,298,479 0.22
150,582,172 2.75
SEMI-ANNUAL REPORT 2018 12 For the six months ended 30 June 2018 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2018
% of net Holdings Fair value assets US$
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)
Quoted Debt Securities (Continued)
Beralus Eurotorg LLC Via Bonitron DAC 8.75% 10/30/2022 9,000,000 9,091,470 0.17
Bermuda REXLot Holdings Ltd 4.5% 04/17/2019 130,000,000 4,089,688 0.07
Brazil CSN Resources SA 6.5% 07/21/2020 48,385,000 46,747,571 0.85 CSN Resources SA 7.625% 02/13/2023 9,100,000 8,404,918 0.15 Portugal Telecom International Finance BV 6.25% 07/26/2016 4,000,000 334,882 0.01
55,487,371 1.01
British Virgin Islands AMTD Group Co Ltd 5% 03/21/2019 60,950,000 59,086,758 1.08 CENTER TRANCHE B Term Loan 10,000,000 10,275,347 0.19 JIC Zhixin Ltd 3.5% 11/24/2027 2,000,000 1,857,720 0.03 Lai Fung Bonds 2018 Ltd 5.65% 01/18/2023 3,000,000 2,936,805 0.05 Silver Sparkle Ltd 7.875% 08/10/2019 38,720,000 32,405,271 0.59 Yihua Overseas Investment Ltd 8.5% 10/23/2020 31,100,000 28,333,327 0.52
134,895,228 2.46
Canada Canacol Energy Ltd 7.25% 05/03/2025 7,360,000 7,211,395 0.13 Nemaska Lithium Inc 11.25% 05/30/2023 21,000,000 21,860,265 0.40
29,071,660 0.53
SEMI-ANNUAL REPORT 2018 For the six months ended 30 June 2018 13 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2018
% of net Holdings Fair value assets US$
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)
Quoted Debt Securities (Continued)
Cayman Islands Ezdan Sukuk Co Ltd 4.375% 05/18/2021 2,000,000 1,629,528 0.03 Pearl Holding III Ltd 9.5% 12/11/2022 20,800,000 19,534,609 0.36 SAITES PRIVTE NOTE 10.5% 30/01/19 25,000,000 26,093,750 0.47
47,257,887 0.86
China 21Vianet Group Inc 7% 08/17/2020 18,850,000 18,950,303 0.35 Agile Group Holdings Ltd 8.25% PERP 3,191,000 3,298,648 0.06 Anton Oilfield Services Group/Hong Kong 9.75% 12/05/2020 11,340,000 11,538,573 0.21 Bank of Jinzhou 5.5% PERP 5,000,000 4,472,825 0.08 Bank of Qingdao Co Ltd 5.5% PERP 5,800,000 5,307,003 0.10 Baoxin Auto Finance I Ltd 5.625% PERP 5,000,000 4,500,325 0.08 Baoxin Auto Finance I Ltd 6.625% 04/02/2019 3,800,000 3,822,156 0.07 Baoxin Auto Finance I Ltd 8.75% PERP 31,100,000 30,777,363 0.56 Central China Real Estate Ltd 6.875% 10/23/2020 15,900,000 15,735,358 0.29 Central China Real Estate Ltd 8% 01/28/2020 3,000,000 3,109,163 0.06 Central China Real Estate Ltd 8.75% 01/23/2021 11,825,000 12,433,038 0.23 China Aoyuan Property Group Ltd 7.5% 05/10/2021 15,886,000 15,547,416 0.28 China Evergrande Group 4.25% 02/14/2023 637,000,000 73,389,403 1.34 China Evergrande Group 6.25% 06/28/2021 12,961,000 12,194,710 0.22 China Evergrande Group 7.5% 06/28/2023 52,797,000 47,335,502 0.86 China Evergrande Group 8.25% 03/23/2022 25,300,000 24,776,016 0.45 China Evergrande Group 8.75% 06/28/2025 30,929,000 27,302,145 0.50 China Evergrande Group 9.5% 03/29/2024 62,730,000 60,452,518 1.10 China Jinjiang Environment Holding Co Ltd 6% 07/27/2020 21,613,000 20,284,702 0.37 China Mengniu Dairy Co Ltd 0% 06/05/2022 6,000,000 5,746,380 0.11 China Railway Construction Corp Ltd 1.5% 12/21/2021 108,000,000 15,208,552 0.28 China SCE Property Holdings Ltd 10% 07/02/2020 13,200,000 14,473,331 0.26 China SCE Property Holdings Ltd 5.875% 03/10/2022 36,300,000 33,447,596 0.61
SEMI-ANNUAL REPORT 2018 14 For the six months ended 30 June 2018 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2018
% of net Holdings Fair value assets US$
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)
Quoted Debt Securities (Continued)
China (Continued) China SCE Property Holdings Ltd 7.45% 04/17/2021 34,900,000 34,807,408 0.64 China South City Holdings Ltd 10.875% 08/24/2020 17,000,000 15,209,645 0.28 China South City Holdings Ltd 5.75% 03/09/2020 48,230,000 41,035,491 0.75 China South City Holdings Ltd 7.25% 01/25/2021 5,000,000 4,149,526 0.08 Chong Hing Bank Ltd 3.876% 07/26/2027 500,000 489,245 0.01 CIFI Holdings Group Co Ltd 0% 02/12/2019 83,000,000 10,317,398 0.19 CIFI Holdings Group Co Ltd 5.375% PERP 14,150,000 13,413,738 0.24 CIFI Holdings Group Co Ltd 5.375% PERP 9,500,000 8,534,539 0.16 CIFI Holdings Group Co Ltd 5.5% 01/23/2022 3,000,000 2,851,128 0.05 CIFI Holdings Group Co Ltd 5.5% 01/23/2023 2,000,000 1,837,152 0.03 CIFI Holdings Group Co Ltd 6.375% 05/02/2020 28,500,000 28,614,024 0.52 CIFI Holdings Group Co Ltd 6.875% 04/23/2021 31,500,000 31,671,522 0.58 Ctrip.com International Ltd 1.25% 09/15/2022 36,300,000 37,593,944 0.69 Easy Tactic Ltd 7% 04/25/2021 6,600,000 6,505,547 0.12 eHi Car Services Ltd 5.875% 08/14/2022 18,280,000 16,867,768 0.31 Fantasia Holdings Group Co Ltd 10.75% 01/22/2020 38,642,000 39,494,078 0.72 Fantasia Holdings Group Co Ltd 7.25% 02/13/2019 31,700,000 31,736,420 0.58 Fantasia Holdings Group Co Ltd 7.375% 10/04/2021 2,000,000 1,734,236 0.03 Fantasia Holdings Group Co Ltd 8.375% 03/08/2021 30,000,000 27,642,467 0.50 Fantasia Holdings Group Co Ltd 9.5% 05/04/2019 90,400,000 13,823,689 0.25 Franshion Brilliant Ltd 4.875% PERP 20,000,000 17,665,850 0.32 Future Land Development 2.25% 02/10/19 85,000,000 10,719,760 0.20 Future Land Development Holdings Ltd 5% 02/16/2020 14,800,000 14,679,544 0.27 Golden Wheel Tiandi Holdings Co Ltd 7% 01/18/2021 54,340,000 53,420,567 0.98 Golden Wheel Tiandi Holdings Co Ltd 8.25% 11/03/2019 62,115,000 63,005,884 1.15 Grand China Air Hong Kong Ltd 6.375% 03/07/2019 1,500,000 1,458,946 0.03 Green Fortune Capital Ltd 8.75% 09/29/2019 5,000,000 4,963,140 0.09 Greenland Global Investment Ltd 5.25% 02/12/2021 13,000,000 12,516,985 0.23 Greenland Global Investment Ltd 7.125% 03/20/2021 45,000,000 6,783,350 0.12 Guorui Properties Ltd 7% 03/21/2020 4,400,000 4,049,936 0.07
SEMI-ANNUAL REPORT 2018 For the six months ended 30 June 2018 15 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2018
% of net Holdings Fair value assets US$
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)
Quoted Debt Securities (Continued)
China (Continued) HNA Ecotech Panorama Cayman Co Ltd 8% 04/15/2021 6,900,000 7,170,892 0.13 Hong Seng Ltd 7.875% 05/31/2020 32,820,000 29,337,224 0.54 Hong Seng Ltd 8.5% 05/01/2019 8,000,000 7,667,987 0.14 Hong Seng Ltd 8.5% 11/20/2018 23,600,000 23,409,889 0.43 Honghua Group Ltd 7.45% 09/25/2019 11,022,000 11,483,157 0.21 Hontop Energy Singapore via China Wanda International Funding 7.95% 12/14/2020 19,300,000 17,972,803 0.33 Huachen Energy Co Ltd 6.625% 05/18/2020 16,980,000 11,582,044 0.21 Hydoo International Holding Ltd 13.75% 12/15/2018 3,900,000 3,975,278 0.07 Jiangsu Nantong Sanjian International Co Ltd 7.8% 10/26/2020 2,900,000 2,623,765 0.05 Jingrui Holdings Ltd 7.75% 04/12/2020 27,070,000 26,589,282 0.49 Jingrui Holdings Ltd 9.45% 04/23/2021 30,500,000 30,059,504 0.55 Kaisa Group Holdings Ltd 7.25% 06/30/2020 14,501,000 13,519,427 0.25 Kaisa Group Holdings Ltd 7.875% 06/30/2021 21,945,000 19,432,627 0.35 Kaisa Group Holdings Ltd 8.5% 06/30/2022 7,981,000 6,774,273 0.12 Kaisa Group Holdings Ltd 9.375% 06/30/2024 26,533,000 21,421,963 0.39 KWG Property Holding Ltd 5.875% 11/10/2024 3,000,000 2,595,989 0.05 KWG Property Holding Ltd 6% 09/15/2022 5,000,000 4,723,350 0.09 LDK Solar Co Ltd 5.535% 12/31/2018 5,028,379 718,162 0.01 Logan Property Holdings Co Ltd 5.125% 11/02/2018 5,000,000 5,027,923 0.09 Logan Property Holdings Co Ltd 5.25% 02/23/2023 8,500,000 7,364,025 0.13 Logan Property Holdings Co Ltd 5.375% 12/03/2018 20,000,000 20,044,039 0.37 Logan Property Holdings Co Ltd 5.75% 01/03/2022 2,000,000 1,907,482 0.03 Logan Property Holdings Co Ltd 6.125% 04/16/2021 6,500,000 4,734,614 0.09 Luso International Banking Ltd 5.375% 12/28/2027 9,300,000 9,132,308 0.17 Modern Land China Co Ltd 6.875% 10/20/2019 24,170,000 23,491,018 0.43 New Metro Global Ltd 6.5% 04/23/2021 15,800,000 15,562,324 0.28 New Metro Global Ltd 7.5% 03/20/2022 14,400,000 13,990,656 0.26
SEMI-ANNUAL REPORT 2018 16 For the six months ended 30 June 2018 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2018
% of net Holdings Fair value assets US$
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)
Quoted Debt Securities (Continued)
China (Continued) Oceanwide Holdings International 2015 Co Ltd 9.625% 8/11/2020 32,625,000 32,695,574 0.60 Oceanwide Holdings International 2017 Co Ltd 6.5% 07/15/2018 3,000,000 3,048,782 0.06 Oceanwide Holdings International 2017 Co Ltd 7.75% 07/27/2020 44,650,000 40,120,592 0.73 Oceanwide Holdings International 2017 Co Ltd 8.5% 05/28/2019 26,450,000 24,998,042 0.46 Poseidon Finance 1 Ltd 0% 02/01/2025 46,900,000 47,568,325 0.87 Postal Savings Bank of China Co Ltd 4.5% PERP 10,000,000 9,638,950 0.18 Powerlong Real Estate Holdings Ltd 0% 02/11/2019 85,000,000 10,629,806 0.19 Powerlong Real Estate Holdings Ltd 5.95% 07/19/2020 59,600,000 58,446,127 1.07 Powerlong Real Estate Holdings Ltd 6.95% 04/17/2021 7,000,000 6,709,801 0.12 Prime Bloom Holdings Ltd 6.95% 07/05/2022 48,500,000 38,329,294 0.70 Prime Bloom Holdings Ltd 7.5% 12/19/2019 40,950,000 37,137,623 0.68 Redco Group 6.375% 02/27/2019 25,300,000 24,839,645 0.45 Redco Group 7% 11/14/2018 8,200,000 8,210,414 0.15 Reward International Investment Ltd 7.25% 01/25/2020 36,760,000 25,415,690 0.46 Rock International Investment Inc 6.625% 03/27/2020 51,801,000 40,906,969 0.75 Ronshine China Holdings Ltd 6.95% 12/08/2019 10,700,000 10,464,998 0.19 Ronshine China Holdings Ltd 8.25% 02/01/2021 3,000,000 2,871,918 0.05 Shandong Iron And Steel Xinheng International Co Ltd 6.5% 06/14/2021 10,000,000 9,319,889 0.17 Shui On Development Holding Ltd 6.4% PERP 15,535,000 14,720,621 0.27 Shui On Development Holding Ltd 6.875% 03/02/2021 111,750,000 17,072,225 0.31 Sinochem International 4.4% 02/14/21 30,000,000 4,593,835 0.08 Sunac China Holdings Ltd 6.875% 08/08/2020 22,155,000 22,218,542 0.41 Sunac China Holdings Ltd 7.35% 07/19/2021 77,400,000 74,477,054 1.36 Sunac China Holdings Ltd 7.95% 08/08/2022 13,000,000 12,651,968 0.23 Sunac China Holdings Ltd 8.35% 04/19/2023 15,800,000 15,141,741 0.28
SEMI-ANNUAL REPORT 2018 For the six months ended 30 June 2018 17 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2018
% of net Holdings Fair value assets US$
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)
Quoted Debt Securities (Continued)
China (Continued) Sunshine 100 China Holdings Ltd 6.5% 08/11/2021 10,200,000 10,532,492 0.19 Times China Holdings Ltd 5.75% 04/26/2022 3,875,000 3,492,469 0.06 Times China Holdings Ltd 6.25% 01/17/2021 19,300,000 18,892,164 0.34 Times China Holdings Ltd 6.25% 01/23/2020 23,500,000 23,867,703 0.44 Times China Holdings Ltd 6.6% 03/02/2023 28,430,000 25,391,117 0.46 Times China Holdings Ltd 7.85% 06/04/2021 40,600,000 39,893,537 0.73 Top Wise Excellence Enterprise Co Ltd 6% 03/16/2020 3,000,000 2,644,990 0.05 Trillion Chance Ltd 5.25% 10/11/2018 1,288,000 1,296,255 0.02 Tunghsu Venus Holdings Ltd 7% 06/12/2020 35,350,000 26,985,130 0.49 Weibo Corp 1.25% 11/15/2022 42,000,000 42,182,157 0.77 Xin Jiang Guang Hui Industry Investment Group Co Ltd 7.875% 03/30/2020 34,615,000 31,389,488 0.57 Xinyuan Real Estate Co Ltd 7.75% 02/28/2021 48,500,000 42,731,599 0.78 Xinyuan Real Estate Co Ltd 8.125% 08/30/2019 42,690,000 41,639,733 0.76 Xinyuan Real Estate Co Ltd 8.875% 11/22/2020 24,700,000 22,522,153 0.41 Xinyuan Real Estate Co Ltd 9.875% 03/19/2020 570,000 551,905 0.01 Yango Cayman Investment Ltd 6.85% 04/05/2020 19,900,000 18,535,131 0.34 Yango Cayman Investment Ltd 8.5% 02/12/2019 37,700,000 38,059,666 0.69 Yango Cayman Investment Ltd 9.875% 04/19/2021 1,800,000 1,727,809 0.03 Yango Justice International Ltd 7.5% 11/16/2020 6,700,000 6,011,084 0.11 Yango Justice International Ltd 9.5% 09/23/2019 15,000,000 14,952,108 0.27 Yida China Holdings Ltd 6.95% 04/19/2020 71,350,000 58,065,839 1.06 Yingde Gases Investment Ltd 7.25% 02/28/2020 2,760,000 2,833,847 0.05 Yuzhou Properties Co Ltd 5.375% PERP 9,000,000 7,919,611 0.14 Yuzhou Properties Co Ltd 6% 10/25/2023 3,265,000 2,966,786 0.05 Zhenro Properties Group Ltd 8.5% 05/10/2019 30,000,000 29,805,433 0.55 Zhong YI Holdings Ltd 10% 03/29/2021 15,000,000 15,128,667 0.28
2,486,255,256 45.39
SEMI-ANNUAL REPORT 2018 18 For the six months ended 30 June 2018 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2018
% of net Holdings Fair value assets US$
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)
Quoted Debt Securities (Continued)
Colombia Frontera Energy Corp 9.7% 06/25/2023 13,900,000 13,851,867 0.25
France CMA CGM SA 5.25% 01/15/2025 8,000,000 7,685,662 0.14
Great Britain House of Fraser Funding PLC 6.377% 09/15/2020 3,710,000 3,588,605 0.07
Hong Kong AMTD Group Co Ltd 7.625% PERP 63,450,000 56,131,809 1.02 Blue Skyview Co Ltd 7.125% PERP 32,593,000 30,432,709 0.56 Concord New Energy Group Ltd 7.9% 01/23/2021 3,300,000 3,235,560 0.06 Dynamic Mission Investments Ltd 7.5% 03/03/2020 10,300,000 10,241,187 0.19 Estate Sky Ltd 5.75% PERP 19,300,000 17,933,410 0.33 FWD Ltd 5.5% PERP 4,000,000 3,808,216 0.07 Hainan Airlines Hong Kong Co Ltd 6.35% 10/31/2018 3,500,000 3,506,254 0.06 Hsin Chong Group Holdings Ltd 8.5% 01/22/2019 3,500,000 1,609,652 0.03 Jiayuan International Group Ltd 8.25% 11/14/2018 11,400,000 11,267,903 0.21 Jiayuan International Group Ltd 9.75% 09/15/2018 40,630,000 41,465,373 0.76 Jiayuan International Group Ltd 8.125% 01/17/2019 2,900,000 2,886,580 0.05 Landsea Green Group Co Ltd 9.625% 04/25/2020 10,000,000 10,082,185 0.18 LR Capital Global Markets 5% 12/21/2019 19,000,000 18,308,970 0.33 MIE Holdings Corp 7.5% 04/25/2019 4,296,000 3,522,074 0.06 MIE Holdings Corp 7.5% 04/25/2019 38,775,000 31,786,923 0.58 Mingfa Group International Co Ltd 11% 05/18/2020 30,000,000 29,902,990 0.55 New Lion Bridge Co Ltd 9.75% 10/10/2020 32,800,000 33,016,699 0.60 Noble Group Ltd 6% PERP 46,285,000 5,990,230 0.11 Panda Green Energy Group Ltd 8.25% 01/25/2020 34,480,000 28,984,261 0.53
SEMI-ANNUAL REPORT 2018 For the six months ended 30 June 2018 19 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2018
% of net Holdings Fair value assets US$
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)
Quoted Debt Securities (Continued)
Hong Kong (Continued) RH International Finance Ltd 6.5% PERP 16,800,000 14,199,911 0.26 RKP Overseas Finance 2016 A Ltd 7.95% PERP 29,800,000 26,169,789 0.48 SOCAM Development Ltd 6.25% 05/08/2020 13,218,000 12,988,110 0.24 Studio City Finance Ltd 8.5% 12/01/2020 11,150,000 11,308,083 0.21 Top Yield Ventures Ltd 9.75% 05/23/2019 32,800,000 32,666,602 0.60 Tri-control Automation Co Ltd 8.75% 12/11/2018 19,642,000 19,230,953 0.34 VMS CSW 1 Land Holdings Ltd 6.25% 06/22/2020 334,000,000 41,783,191 0.76 WTT Investment Ltd/Hong Kong 5.5% 11/21/2022 7,200,000 6,916,308 0.13
509,375,932 9.30
India Dewan Housing Finance Corp Ltd 8.5% 04/18/2023 120,000,000 1,747,014 0.03 Lodha Developers International Ltd 12% 03/13/2020 2,300,000 2,456,645 0.05 Rolta Americas LLC 8.875% 07/24/2019 29,085,000 11,071,055 0.20 Rolta LLC 10.75% 05/16/2018 19,350,000 2,439,455 0.04
17,714,169 0.32
Indonesia ABM Investama Tbk PT 7.125% 08/01/2022 3,100,000 2,848,961 0.05 Alam Synergy Pte Ltd 6.95% 03/27/2020 3,500,000 3,247,000 0.06 Bakrie Telecom Pte Ltd 11.5% 05/07/2015 2,000,000 25,246 0.00 BLD Investments Pte Ltd 8.625% 03/23/2015 7,000,000 472,500 0.01 Blue Ocean Resources Pte Ltd 6% 12/31/2020 100,000 40,769 0.00 Bukit Makmur Mandiri Utama PT 7.75% 02/13/2022 1,000,000 1,010,353 0.02 Eterna Capital Pte Ltd 7.5% 12/11/2022 5,500,000 5,495,979 0.10 Gajah Tunggal Tbk PT 8.375% 08/10/2022 35,650,000 32,592,636 0.59 Indo Energy Finance II BV 6.375% 01/24/2023 4,000,000 3,898,020 0.07 Innovate Capital Pte Ltd 6% 12/11/2024 2,205,188 1,589,304 0.03 Jababeka International BV 6.5% 10/05/2023 16,500,000 14,286,149 0.26 MNC Investama Tbk PT 9% 05/11/2021 96,520,000 88,581,230 1.62 Theta Capital Pte Ltd 6.75% 10/31/2026 6,000,000 4,348,080 0.08 Theta Capital Pte Ltd 9.625% 06/05/2020 28,800,000 28,732,436 0.52
187,168,663 3.41
SEMI-ANNUAL REPORT 2018 20 For the six months ended 30 June 2018 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2018
% of net Holdings Fair value assets US$
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)
Quoted Debt Securities (Continued)
Japan Mandatory Exchangeable Trust 5.75% 06/01/2019 266,000 56,296,639 1.03 Takata Corp 0.582% 03/26/2021 900,000,000 59,673 0.00 Takata Corp 0.847% 03/06/2019 800,000,000 80,718 0.00 Takata Corp 1.021% 12/15/2017 200,000,000 19,219 0.00
56,456,249 1.03
Luxembourg Unigel Luxembourg SA 10.5% 01/22/2024 29,000,000 30,171,987 0.55
Macau New Cotai LLC/New Cotai Capital Corp 10.625% 05/01/2019 11,701,701 11,720,344 0.21
Malaysia Knight Castle Investments Ltd 7.99% 01/23/2021 5,000,000 4,513,226 0.08 Nam Cheong Ltd 6.5% 07/23/2018 1,750,000 212,499 0.01
4,725,725 0.09
Maldives Republic of Maldives Ministry of Finance and Treasury Bond 7% 06/07/2022 9,000,000 8,409,107 0.15
Mexico Alpha Holding SA de CV 10% 12/19/2022 7,700,000 7,159,811 0.13 Docuformas SAPI de CV 9.25% 10/11/2022 7,903,000 7,353,335 0.14
14,513,146 0.27
SEMI-ANNUAL REPORT 2018 For the six months ended 30 June 2018 21 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2018
% of net Holdings Fair value assets US$
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)
Quoted Debt Securities (Continued)
Mongolia Energy Resources LLC 90,763,797 90,800,517 1.66
Netherlands Sand Hill Petroleum BV 9% 04/13/2022 9,000,000 10,802,272 0.20 Tulip Oil Netherlands Offshore BV 8.5% 10/25/2022 8,400,000 10,099,357 0.19
20,901,629 0.39
Nigeria Fidelity Bank PLC 10.5% 10/16/2022 23,900,000 24,280,090 0.44
Norway Borr Drilling Ltd 3.875% 05/23/2023 8,800,000 8,839,197 0.16 Point Resources AS 8.5% 09/20/2024 15,700,000 16,077,482 0.29
24,916,679 0.45
Russia B&N Bank JSC Via B&N Bonds DAC 8.5% 03/27/2019 11,919,000 12,479,114 0.23 Bank Otkritie Financial Corp OJSC Via OFCB Capital PLC 10% 04/26/2019 24,815,000 7,359,897 0.13 O1 Properties Finance PLC 8.25% 09/27/2021 20,359,000 14,260,716 0.26 Petropavlovsk 2016 Ltd 8.125% 11/14/2022 31,150,000 27,175,632 0.50
61,275,359 1.12
SEMI-ANNUAL REPORT 2018 22 For the six months ended 30 June 2018 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2018
% of net Holdings Fair value assets US$
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)
Quoted Debt Securities (Continued)
Singapore CWT Ltd 3.9% 04/18/2019 2,000,000 1,394,947 0.02 Geo Coal International Pte Ltd 8% 10/04/2022 73,400,000 68,527,056 1.25 Golden Energy & Resources Ltd 9% 02/14/2023 9,000,000 9,097,650 0.17 Hydoo International Holding Ltd 12% 05/09/2020 11,871,000 11,992,678 0.22 Hyflux Ltd 4.2% 08/29/2019 11,000,000 4,227,201 0.08 Hyflux Ltd 4.25% 09/07/2018 6,500,000 3,410,771 0.06 Hyflux Ltd 4.6% 09/23/2019 3,000,000 1,517,934 0.03 ITNL Offshore Pte Ltd 7.5% 01/18/2021 158,000,000 24,215,374 0.44 LMIRT Capital Pte Ltd 4.1% 06/22/2020 1,250,000 849,120 0.01 Medco Platinum Road Pte Ltd 6.75% 01/30/2025 44,100,000 40,327,024 0.74 Soechi Capital Pte Ltd 8.375% 01/31/2023 45,950,000 43,139,047 0.79 SSMS Plantation Holdings Pte Ltd 7.75% 01/23/2023 19,405,000 17,880,904 0.33 Sunac China Holdings Ltd 8.75% 12/05/2019 42,800,000 43,942,177 0.80 TBLA International Pte Ltd 7% 01/24/2023 3,400,000 3,147,595 0.06 Valin Mining Investments Singapore Pte Ltd 0% 11/15/2021 20,200,000 19,630,562 0.36
293,300,040 5.36
South Korea Lotte Shopping Co Ltd 0% 04/04/2023 13,200,000,000 12,158,764 0.22
Ukraine Metinvest BV 7.75% 04/23/2023 5,200,000 4,968,879 0.09
United Kingdom Blue Sky Fliers Co Ltd 6.9% 01/20/2019 12,200,000 12,376,493 0.23
SEMI-ANNUAL REPORT 2018 For the six months ended 30 June 2018 23 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2018
% of net Holdings Fair value assets US$
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)
Quoted Debt Securities (Continued)
United States Denbury Resources Inc 9.25% 03/31/2022 4,000,000 4,327,317 0.08 Depomed Inc 2.5% 09/01/2021 750,000 623,504 0.01 Huazhu Group Ltd 0.375% 11/01/2022 2,000,000 2,272,459 0.04 Tianyun International Holdings Limited CB 6% 01/21/19 4,000,000 4,099,945 0.07
11,323,225 0.20
Venezuela Petroleos de Venezuela SA 9% 11/17/2021 10,100,000 3,485,611 0.06 Petroleos de Venezuela SA 9.75% 05/17/2035 19,000,000 6,952,111 0.13 Venezuela Government International Bond 7% 03/31/2038 8,000,000 2,580,160 0.05
13,017,882 0.24
Vietnam No Va Land Investment Group Corp 5.5% 04/27/2023 14,700,000 15,025,238 0.27 Vinpearl JSC 3.5% 06/14/2023 9,000,000 9,160,250 0.17 VPBank Finance Co Ltd Term Loan 10,000,000 9,815,000 0.18
34,000,488 0.62
SEMI-ANNUAL REPORT 2018 24 For the six months ended 30 June 2018 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2018
% of net Holdings Fair value assets US$
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)
Rights
Indonesia Bumi Resources Tbk PT 0% 12/11/2022 1,000,000 365,000 0.01
Unlisted Investment Funds
Cayman Islands Value Partners Fixed Income SPC – Value Partners Credit Opportunities Fund SP Cl X ACC USD Unhedged Ser 1 697,884 75,566,830 1.38 Value Partners Greater China Preference Shares Income Fund Class X Dist USD Unhedged 411,669 40,985,722 0.75
116,552,552 2.13
Hong Kong Value Partners Choice Investment Funds – Value Partners Asset Allocation Fund Cl B 3,900,000 5,506,362 0.10 Value Partners Fund Series – Value Partners Asian Total Return Bond Fund Class A AUD MDis hedged 652 4,714 0.00 Value Partners Fund Series – Value Partners Asian Total Return Bond Fund Class A CAD MDis hedged 640 4,730 0.00 Value Partners Fund Series – Value Partners Asian Total Return Bond Fund Class A CNY MDis hedged 3,167 4,691 0.00 Value Partners Fund Series – Value Partners Asian Total Return Bond Fund Class A CNY MDis Unhedged 3,163 4,919 0.00 Value Partners Fund Series – Value Partners Asian Total Return Bond Fund Class A HKD ACC Unhedged 3,913 4,921 0.00 Value Partners Fund Series – Value Partners Asian Total Return Bond Fund Class A HKD MDis Unhedged 3,931 4,919 0.00
SEMI-ANNUAL REPORT 2018 For the six months ended 30 June 2018 25 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2018
% of net Holdings Fair value assets US$
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)
Unlisted Investment Funds (Continued)
Hong Kong (Continued) Value Partners Fund Series – Value Partners Asian Total Return Bond Fund Class A NZD MDis hedged 691 4,548 0.00 Value Partners Fund Series – Value Partners Asian Total Return Bond Fund Class A USD ACC Unhedged 499 4,920 0.00 Value Partners Fund Series – Value Partners Asian Total Return Bond Fund Class A USD MDis Unhedged 501 4,918 0.00 Value Partners Fund Series – Value Partners Asian Total Return Bond Fund Class X USD ACC Unhedged 2,488,036 24,631,555 0.45
30,181,197 0.55
Ireland Nomura Cross Asset Momentum UCITS Fund 488,120 48,774,687 0.89 Value Partners Ireland Fund Plc – Value Partners Global Emerging Market Bond Fund US Dollar Class X 3,915,711 39,901,091 0.73 Value Partners Ireland Fund Plc – Value Partners Global Emerging Market Equity Fund US Dollar Class V 1,000,000 10,190,000 0.18
98,865,778 1.80
SEMI-ANNUAL REPORT 2018 26 For the six months ended 30 June 2018 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2018
% of net Holdings Fair value assets US$
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)
Unquoted Debt Securities
China YUZHOU PROP LOAN 3.85%+LIBOR 03/02/2020 Term Loan 19,000,000 18,610,871 0.34 Zoucheng Limin Construction Development Co Ltd 6.5% 12/27/2018 30,000,000 29,726,207 0.54
48,337,078 0.88
Hong Kong Chinlink International Holdings Ltd 12% 12/05/2020 14,000,000 14,506,497 0.27 Essar Steel India Limited Term Loan 48,000,000 30,120,000 0.55 Jiayuan International Group Ltd 8% 10/18/2018 (PRIVATE) 30,000,000 29,693,333 0.54 Kaisa Group Loan 5.60%+LIBOR due 20 Dec 2019 Term Loan 15,000,000 15,109,448 0.28 Powerlong Real Estate Holdings Ltd Term Loan 13,333,333 13,333,333 0.24
102,762,611 1.88
Indonesia Project Rally Term Loan LIBOR+7.5% due 12/12/19 Term Loan 45,000,000 45,159,375 0.82 PT Lippo Karawaci 5.25%+LIBOR due 30/04/19 Term Loan 25,000,000 25,250,000 0.46
70,409,375 1.28
SEMI-ANNUAL REPORT 2018 For the six months ended 30 June 2018 27 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2018
% of net Fair value assets US$
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)
Currency Forwards 870,279 0.02
Total financial assets at fair value through profit or loss 5,142,415,082 93.87
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS
Currency Forwards (5,765,630) (0.10)
Total financial liabilities at fair value through profit or loss (5,765,630) (0.10)
Total investments, net 5,136,649,452 93.77
Total investments, at cost (inclusive of transaction cost) 5,353,596,616
SEMI-ANNUAL REPORT 2018 28 For the six months ended 30 June 2018 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) INVESTMENT PORTFOLIO MOVEMENTS (UNAUDITED) FOR THE PERIOD ENDED 30 JUNE 2018
% of net assets 30.06.2018 31.12.2017
Listed equity securities Australia 0.45 – Cayman Islands 0.11 – Hong Kong – H Shares 0.46 0.45 – Red chips 0.04 – – Others 1.33 1.42 Indonesia 0.29 0.41 Japan 0.11 – Norway 0.17 0.19 Singapore 0.07 – South Korea 0.85 1.12 Taiwan 0.33 0.37 United States 0.63 0.63
4.84 4.59
Rights Indonesia 0.01 0.01
Quoted debt securities Angola 0.26 – Argentina 0.17 0.50 Australia 2.75 3.57 Belarus 0.17 0.49 Bermuda 0.07 0.10 Brazil 1.01 3.79 British Virgin Islands 2.46 – Canada 0.53 – Cayman Islands 0.86 0.49 China 45.39 51.73 Colombia 0.25 0.34 Congo –0.50 Croatia –0.06 France 0.14 – Great Britain 0.07 – Hong Kong 9.30 11.31 India 0.32 1.10
SEMI-ANNUAL REPORT 2018 For the six months ended 30 June 2018 29 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) INVESTMENT PORTFOLIO MOVEMENTS (UNAUDITED) (Continued) FOR THE PERIOD ENDED 30 JUNE 2018
% of net assets 30.06.2018 31.12.2017
Quoted debt securities (Continued) Indonesia 3.41 1.85 Ireland –0.18 Japan 1.03 0.15 Jersey –– Luxembourg 0.55 – Macau 0.21 – Malaysia 0.09 0.02 Maldives 0.15 0.20 Mauritius –0.37 Mexico 0.27 1.05 Mongolia 1.66 1.99 Netherlands 0.39 0.24 Nigeria 0.44 0.99 Norway 0.45 – Oman –0.02 Pakistan –0.29 Qatar –0.02 Russia 1.12 2.61 Singapore 5.36 2.37 South Africa –– South Korea 0.22 0.12 Taiwan –– Tajikistan –0.50 Turkey –0.75 Ukraine 0.09 0.16 United Kingdom 0.23 – United States 0.20 1.17 Venezuela 0.24 0.35 Vietnam 0.62 –
80.48 89.38
Unlisted investment funds Cayman Islands 2.13 2.49 Hong Kong 0.55 0.35 Ireland 1.80 2.26
4.48 5.10
SEMI-ANNUAL REPORT 2018 30 For the six months ended 30 June 2018 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) INVESTMENT PORTFOLIO MOVEMENTS (UNAUDITED) (Continued) FOR THE PERIOD ENDED 30 JUNE 2018
% of net assets 30.06.2018 31.12.2017
Unquoted debt securities China 0.88 1.08 Hong Kong 1.88 0.99 Indonesia 1.28 1.23 United States –0.07
4.04 3.37
Currency forwards (0.08) 0.22
Total investments, net 93.77 102.67
SEMI-ANNUAL REPORT 2018 For the six months ended 30 June 2018 31 VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Incorporated as an exempted company in the Cayman Islands with limited liability) DISTRIBUTION TO REDEEMABLE PARTICIPATING SHAREHOLDERS (UNAUDITED)
In accordance with the Explanatory Memorandum of the Fund, the Manager may determine to make a distribution out of the income and/or capital. During the period ended 30 June 2018, the Fund declared total distributions to redeemable participating shareholders of US$219,819,819 (Period ended 30 June 2017: US$112,809,871).
The table below summarises the dividend distribution made during the reporting period.
01.01.2018 to 01.01.2017 to Classes 30.06.2018 30.06.2017 Frequency Ex-dividend dates*
Class P MDis USD US$0.0632 US$0.0700 Monthly Last business day of January Class P MDis USD US$0.0621 US$0.0700 Monthly Last business day of February Class P MDis USD US$0.0621 US$0.0625 Monthly Last business day of March to June Class P MDis USD HKD0.0632 HKD0.0700 Monthly Last business day of January Class P MDis USD HKD0.0622 HKD0.0700 Monthly Last business day of February Class P MDis USD HKD0.0622 HKD0.0625 Monthly Last business day of March to June Class P MDis SGD Hedged SGD0.0649 SGD0.0700 Monthly Last business day of January to February Class P MDis SGD Hedged SGD0.0649 SGD0.0625 Monthly Last business day of March to May Class P MDis SGD Hedged SGD0.0630 SDG0.0625 Monthly Last business day of June Class A MDis AUD Hedged AUD0.0705 AUD0.0878 Monthly Last business day of January Class A MDis AUD Hedged AUD0.0652 AUD0.0878 Monthly Last business day of February Class A MDis AUD Hedged AUD0.0652 AUD0.0784 Monthly Last business day of March to May Class A MDis AUD Hedged AUD0.0609 AUD0.0784 Monthly Last business day of June Class A MDis CAD Hedged CAD0.0622 CAD0.0766 Monthly Last business day of January to February Class A MDis CAD Hedged CAD0.0622 CAD0.0684 Monthly Last business day of March to May Class A MDis CAD Hedged CAD0.0595 CAD0.0684 Monthly Last business day of June Class A MDis EUR Hedged EUR0.0575 EUR0.0779 Monthly Last business day of January to February Class A MDis EUR Hedged EUR0.0575 EUR0.0696 Monthly Last business day of March to May Class A MDis EUR Hedged EUR0.0482 EUR0.0696 Monthly Last business day of June Class A MDis GBP Hedged GBP0.0606 GBP0.0804 Monthly Last business day of January to February Class A MDis GBP Hedged GBP0.0606 GBP0.0718 Monthly Last business day of March to May Class A MDis GBP Hedged GBP0.0576 GBP0.0718 Monthly Last business day of June Class A MDis NZD Hedged NZD0.0720 NZD0.0884 Monthly Last business day of January to February Class A MDis NZD Hedged NZD0.0720 NZD0.0789 Monthly Last business day of March to May Class A MDis NZD Hedged NZD0.0652 NZD0.0789 Monthly Last business day of June Class A MDis RMB Hedged RMB0.0783 RMB0.0808 Monthly Last business day of January Class A MDis RMB Hedged RMB0.0829 RMB0.0808 Monthly Last business day of February Class A MDis RMB Hedged RMB0.0829 RMB0.0721 Monthly Last business day of March to June Class A MDis RMB Unhedged RMB0.0778 RMB0.0808 Monthly Last business day of January Class A MDis RMB Unhedged RMB0.0640 RMB0.0808 Monthly Last business day of February Class A MDis RMB Unhedged RMB0.0640 RMB0.0721 Monthly Last business day of March to June
* Last business day of each month in 2018 are 31 January 2018, 28 February 2018, 29 March 2018, 30 April 2018, 31 May 2017, 29 June 2018.
Last business day of each month in 2017 are 27 January 2017, 28 February 2017, 31 March 2017, 28 April 2017, 31 May 2017, 30 June 2017. SEMI-ANNUAL REPORT 2018 32 For the six months ended 30 June 2018