VALUE PARTNERS MULTI-ASSET FUND SEMI-ANNUAL 2021 REPORT For the six months ended 30 June 2021 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 VALUE PARTNERS MULTI-ASSET FUND (A unit trust established in Hong Kong) CONTENTS Pages General information 2-3 Manager’s report 4-6 Statement of financial position (unaudited) 7 Statement of comprehensive income (unaudited) 8-9 Statement of changes in net assets attributable to unitholders (unaudited) 10-11 Statement of cash flows (unaudited) 12-13 Investment portfolio (unaudited) 14-17 Investment portfolio movements (unaudited) 18 Details in respect of financial derivative instruments (unaudited) 19 Distribution to shareholders (unaudited) 20 SEMI-ANNUAL REPORT 2021 For the six months ended 30 June 2021 1 VALUE PARTNERS MULTI-ASSET FUND (A unit trust established in Hong Kong) GENERAL INFORMATION Manager Legal Advisor Value Partners Hong Kong Limited Deacons 43rd Floor, The Center 5th Floor, Alexandra House 99 Queen’s Road Central 18 Chater Road, Central Hong Kong Hong Kong Directors of the Manager Auditor Dato’ Seri Cheah Cheng Hye PricewaterhouseCoopers Mr. So Chun Ki Louis 22nd Floor, Prince’s Building Mr. Ho Man Kei, Norman 10 Chater Road, Central Hong Kong Trustee HSBC Institutional Trust Services (Asia) Limited Information available from: 1 Queen’s Road Central Value Partners Hong Kong Limited Hong Kong 43rd Floor, The Center 99 Queen’s Road Central Registrar Hong Kong HSBC Trustee (Cayman) Limited Investor hotline : (852) 2143 0688 Principal address: Fax : (852) 2565 7975 Strathvale House Email : [email protected] 90 North Church Street Website : www.valuepartners-group.com George Town Grand Cayman Cayman Islands Registered address: P.O. Box 309 Ugland House George Town Grand Cayman KY1-1104 Cayman Islands SEMI-ANNUAL REPORT 2021 2 For the six months ended 30 June 2021 VALUE PARTNERS MULTI-ASSET FUND (A unit trust established in Hong Kong) GENERAL INFORMATION (Continued) Recent awards and achievements Fund award 2020 • 2020 HKCAMA-Bloomberg Offshore China Fund Awards Best Total Return – Multi-asset Allocation (3- and 1- year): 2nd Runner-up – HKCAMA & Bloomberg Corporate awards 2018 • I&M Professional Investment Awards 2018 House Performance Awards: Offshore China Equity (10-Year) – Insight and Mandate • Benchmark Fund of the Year Awards 2018, Hong Kong Asia ex-Japan Equity House: Best-In-Class – Benchmark • Benchmark Fund of the Year Awards 2018, Hong Kong Greater China Equity House: Outstanding Achiever – Benchmark SEMI-ANNUAL REPORT 2021 For the six months ended 30 June 2021 3 VALUE PARTNERS MULTI-ASSET FUND (A unit trust established in Hong Kong) MANAGER’S REPORT Value Partners Multi-Asset Fund (the “Fund”) aims to achieve capital growth by investing in global markets that are primarily linked to the global trends of economies. Currently, it primarily invests in Asian markets, with a particular focus on China equities, fixed income securities (investment grade and high yield) and other alternative income sources to capture opportunities across different market cycles. This new investment strategy was introduced in June 2018, while the fund was launched on 13 October 2015. Performance overview As at 30 June 2021, the cumulated returns of the Fund are highlighted in the below table: The Fund (Class A Acc USD) Year-to-date +0.5% Since launch +20.3% Top holdings- equities The below table lists the five biggest equity holdings of the Fund as at 30 June 2021: Holdings Industry Country/ Weighting (%) Region Innovent Biologics Inc Health care China 3.8 Tencent Holdings Ltd Communication services China 2.9 Chow Tai Fook Jewellery Consumer discretionary Hong Kong 2.8 Group Ltd Lenovo Group Ltd Information technology China 2.8 AIA Group Ltd Financials Hong Kong 2.7 The above investments made up 15.0% of the Fund as at 30 June 2021. SEMI-ANNUAL REPORT 2021 4 For the six months ended 30 June 2021 VALUE PARTNERS MULTI-ASSET FUND (A unit trust established in Hong Kong) MANAGER’S REPORT (Continued) Top holdings- fixed income The below table lists the five biggest fixed income holdings of the Fund as at 30 June 2021: Holdings Industry Country/ Weighting (%) Region Fortune Star BVI Ltd 5% Capital goods China 0.4 05/18/2026 Jababeka International BV Real estate Indonesia 0.4 6.5% 10/05/2023 West China Cement Ltd Materials China 0.4 4.95% 07/08/2026 Redsun Properties Group Real estate China 0.3 Ltd 10.5% 10/03/2022 Tongfang Aqua Ltd 6.8% Technology, hardware & China 0.3 01/10/2022 equipment The above investments made up 1.8% of the Fund as at 30 June 2021. Value Partners Multi-Asset Fund had indirect exposure to the above bonds through fixed income fund(s) managed by Value Partners. Value Partners Hong Kong Limited 23 August 2021 Source: HSBC Institutional Trust Services (Asia) Limited and Bloomberg as at 30 June 2021. Performance in USD terms on NAV-to-NAV basis with dividends reinvested and net of fees. SEMI-ANNUAL REPORT 2021 For the six months ended 30 June 2021 5 VALUE PARTNERS MULTI-ASSET FUND (A unit trust established in Hong Kong) MANAGER’S REPORT (Continued) Value Partners Multi-Asset Fund – NAV as at 30 June 2021 Classes NAV per unit Class A Acc USD USD12.03 Class A Acc HKD HKD11.88 Class A USD MDis USD9.04 Class A HKD MDis HKD8.94 Class A AUD (Hedged) MDis AUD8.69 Class X Acc USD USD11.58 Performance since launch From 13 October 2015 to 30 June 2021 SEMI-ANNUAL REPORT 2021 6 For the six months ended 30 June 2021 VALUE PARTNERS MULTI-ASSET FUND (A unit trust established in Hong Kong) STATEMENT OF FINANCIAL POSITION (UNAUDITED) AS AT 30 JUNE 2021 30.06.2021 31.12.2020 US$ US$ Assets Financial assets at fair value through profit or loss 55,946,828 60,329,182 Amounts receivable on sale of investments 581,567 – Amounts receivable on issue of units 41,215 26,926 Dividend, interest and other receivables 232,107 156,868 Cash and cash equivalents 670,077 461,132 57,471,794 60,974,108 Total assets Liabilities Financial liabilities at fair value through profit or loss 19,479 2,928 Amounts payable on purchase of investments 302,925 – Amounts payable on redemption of units 104,592 97,902 Management fees payable 81,626 88,206 Trustee fees payable – 6,054 Distribution payable 19,695 23,569 Accruals and other payables 27,557 31,005 Liabilities (excluding net assets attributable to 555,874 249,664 unitholders) 56,915,920 60,724,444 Net assets attributable to unitholders 30.06.2021 31.12.2020 Net asset value per unit – Class A Acc USD with 4,191,575 (31.12.2020: 4,417,951) units outstanding USD12.03 USD11.97 – Class A Acc HKD with 33,407 (31.12.2020: 6,380) units outstanding HKD11.88 HKD11.80 – Class A MDis USD with 94,046 (31.12.2020: 95,493) units outstanding USD9.04 USD9.16 – Class A MDis HKD with 2,667,100 (31.12.2020: 2,885,900) units outstanding HKD8.94 HKD9.05 – Class A AUD (Hedged) MDis with 380,717 (31.12.2020: 518,555) units outstanding AUD8.69 AUD8.85 – Class X Acc USD with 3,944 (31.12.2020: 4,999) units outstanding USD11.58 USD11.42 Note: Semi-annual reports have applied the same accounting policies and methods of computation as are applied in the annual reports of the Fund. SEMI-ANNUAL REPORT 2021 For the six months ended 30 June 2021 7 VALUE PARTNERS MULTI-ASSET FUND (A unit trust established in Hong Kong) STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) FOR THE SIX MONTHS ENDED 30 JUNE 2021 30.06.2021 30.06.2020 US$ US$ Income Dividends 846,308 1,184,238 Interest on bank deposits 182 6,821 Net realised gains/(losses) on investments 5,599,933 (6,381,372) Change in unrealised gains/losses on investments (5,430,458) 538,950 Net foreign exchange losses (20,289) (21,386) Other income 73,543 117,889 1,069,219 (4,554,860) Total net income/(loss) Expenses Management fees Note 2 (517,697) (516,353) Trustee and fund administration fees Note 1 (35,530) (35,488) Transaction costs Note 1 (73,582) (51,311) Safe custody and bank charges Note 1 (2,118) (1,665) Preliminary expenses – (12,046) Auditor’s remuneration (11,910) (12,935) Legal and professional fees (4,207) (50,403) Other operating expenses Note 1 (43,315) (65,641) (688,359) (745,842) Total operating expenses Profit/(loss) before tax 380,860 (5,300,702) Withholding tax on dividends and other investment income (22,221) (9,636) Profit/(loss) after tax and before distributions 358,639 (5,310,338) Distributions to unitholders (119,570) (334,585) Increase/(decrease) in net assets attributable to 239,069 (5,644,923) unitholders from operations SEMI-ANNUAL REPORT 2021 8 For the six months ended 30 June 2021 VALUE PARTNERS MULTI-ASSET FUND (A unit trust established in Hong Kong) STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2021 Note 1 During the period ended 30 June 2021 and 2020, other than trustee and fund administration fees, safe custody and bank charges were paid to the Trustee or its connected persons, other respective amounts paid to the Trustee or its connected persons were as follows: 30.06.2021 30.06.2020 US$ US$ Transaction costs (4,562) (1,116) Annual service fee (1,983) (2,760) Note 2 During the period ended 30 June 2021 and 2020, other than management fees that paid to Manager, no other amounts paid to the Manager or its connected persons.