Value Partners Classic Fund USD/RMB classes and Morningstar RatingTM1 AUD/CAD/NZD/RMB/HKD hedged classes* As at 30-09-2016 available for C unit Q4 2016 • Value Partners Classic Fund (The “Fund”) primarily invests in markets of the Asia-Pacific region, with a Greater China focus. • The Fund invests in China-related companies and emerging markets which involve certain risks not typically associated with investment in more developed markets, such as greater political, tax, economic, foreign exchange, liquidity and regulatory risks. • The Fund is also subject to concentration risk due to its concentration in Asia-Pacific region, particularly China-related companies. The value of the Fund can be extremely volatile and could go down substantially within a short period of time. It is possible that the entire value of your investment could be lost. • The Fund may also invest in derivatives which can involve material risks, e.g. counterparty default risk, insolvency or liquidity risk, and may expose the Fund to significant losses. • You should not make investment decision on the basis of this material alone. Please read the explanatory memorandum for details and risk factors. A Leader of Value Investing in Asia The concept of value investing was first outlined in Security Analysis in 1934. It is the strategy of investing in securities that are underpriced according to fundamental analysis. For over two decades, Value Partners has aimed to become the Temple of Value Investing in Asia, and gained extensive experience in identifying undervalued investment opportunities. , Value Partners’ Chairman, Co-Chief Investment Officer Dato’ Seri Cheah Cheng Hye About Graham and Dodd & Acting Chief Executive Officer, is recognized globally as one of the most iconic value investors in the industry. He was the first Asian being invited to speak at the world- The renowned economist Benjamin Graham is considered the first renowned Graham and Dodd Breakfast Seminar organized by the Columbia Business proponent of value investing, which School in New York in 2010, as well as the 4th London Value Investor Conference in was refined later in the authoritative May 2015. publication Security Analysis - co- In the July/August 2015 fund manager ranking compiled by Citywire, a London-based authored with his colleague at the prestige industry publication, Dato’ Seri Cheah is ranked the first# among his peers in Columbia Business School, David Dodd. Since then, it has drawn a great the Greater China equity sector in Asia. With over 23 years of experience in investing in following, including Graham’s most Greater China equities, he is also the most experienced fund manager among his distinguished disciple Warren Buffett. 44 peers. Why invest in Value Partners Classic Fund? 1 The flagship value investing product • Launched in 1993 when Value Partners was established, it is one of the longest standing Greater China equity funds • The fund size of this product has grown from less than US$5 million at its inception to around US$1.6 billion to date, which is one of the largest Greater China equity funds2 • A deep-value fund investing in the stockmarkets of the Asia Pacific region, with a Greater China focus. Well recognized in the industry and have won many awards over the years • Managed by the investment team led by Co-CIOs Dato’ Seri Cheah Cheng Hye and Louis So Proven track record 2 • Recorded a solid cumulative return of +2,636% (A Units)3 since the fund’s inception on 1 April 1993. For reference, Hang Seng Index recorded a return of +447% over the same period • Achieved 17 years of positive calendar year return in the past 23 years3 • Relatively low volatility and high return compared with other Greater China equity funds2 • Resilient performance during market volatility and strong rebound during periods of economic recovery Annualized Annualized 1 year 3 years 5 years 10 years return4 volatility4 Value Partners Classic Fund (A Units)3 +10% +30% +58% +131% +15% 22% Hang Seng Index5 +16% +14% +60% +88% +8% 27% Fund performance is quoted as of 30 September 2016. Source: HSBC Institutional Trust Services (Asia) Limited and Bloomberg, in USD, NAV to NAV, with dividends reinvested. Performance data is net of all fees. * The fund may invest in financial derivative instruments (“FDI”) for hedging purposes. In adverse situations, the fund’s use of FDI may become ineffective in hedging and the fund may suffer significant losses. Each hedged share class will hedge the fund’s base currency back to its currency of denomination on a best efforts basis. However, the volatility of the hedged classes measured in the fund’s base currency may be higher than that of the equivalent class denominated in the fund’s base currency. Risks associated with FDI include counterparty risk, credit risk and liquidity risk. Such exposure may lead to a high risk of capital loss. The AUD/CAD/NZD/RMB/HKD Hedged Classes are not recommended for investors whose base currency of investment is not in the aforesaid currencies. # Source: Citywire’s Fund Manager Ranking was published in July/August 2015 issue. Citywire tracks 44 Asian fund managers in the Greater China Equity sector among which 17 managers have more than 7 years’ risk-adjusted performance history. 1. © 2016 Morningstar. All Rights Reserved. Morningstar RatingTM as of 30 September 2016. 2. AUM, annualized return and annualized volatility as of 30 September 2016. Greater China equity funds refer to funds in Morningstar Greater China Equity Fund Category. 3. The Fund (A Units) was launched on 1 April 1993. Calendar year return of A Units: 2011: -17%; 2012: +14%; 2013: +11%; 2014: +14%; 2015: -2%; 2016 (year-to-date): +4%. The Fund (C Units) was launched on 15 October 2009. Calendar return of the C Units: 2011: -18%; 2012: +13%; 2013: +11%; 2014: +13%; 2015: -2%; 2016 (year-to-date): +4%. Investors should note that figures for A Units shown above may differ from those of classes currently available for subscription (C Units), due to differences in launch date of these classes. For C Units, the since launch return is +56%. The Manager does not accept any application for A Units until further notice. New investors and existing unitholders who wish to top up may subscribe in C Units. 4. Annualized return and volatility are calculated from inception. Volatility is a measure of the theoretical risk in terms of standard deviation; in general, the lower the number, the less risky the investment, and vice versa. Value Partners Classic Fund | Q4 2016 Value Partners Classic Fund (A Units) has performed well through several market cycles6 1 April 1993 to 30 September 2016 Year of positive return (17 years of positive return since inception) % Emerging Pre-handover of Failure of Dot-com bubble SARS outbreak in U.S. housing market Markets crashed in Global European US tapering China’s market Hong Kong, red Long-Term burst in 2001 Greater China, peaked in 2005, Financial Crisis, recovery debt crisis and emerging A-share boom chips’ rally, to be Capital subsequent foreclosure surged began in 2009 triggered market capital correction and followed by the Management, market recovery market outflows. 3,600 and followed by the Management, market recovery market outflows. 3,600 the 1994 Asian financial default of Russian in 2004 volatility Global Tequila crisis government bonds markets 3,200 crisis stabilized after 2,800 mid-2013 plunge 2,400 2,000 +2,635.5% 1,600 Value Partners Classic Fund (A Units) 1,200 800 +447.2% Hang Seng Index 400 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Performance of Value Partners Classic Fund and Hang Seng Index 1 January 2001 to 30 September 2016 Post global Post tech Post SARS bubble and credit crisis 911 incident 2016 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD Value Partners +46% +21% +84% +6% +16% +42% +41% -48% +83% +20% -17% +14% +11% +14% -2% +4% Classic Fund (A Units) Hang Seng Index5 -24% -16% +34% +13% +10% +35% +45% -47% +57% +8% -17% +28% +7% +6% -4% +10% Strong on-the-ground research 3 • A team of over 50 investment professionals as one of the biggest local research teams focused on Asian and Greater China equities • Conduct a large number of company visits every year to identify stocks which are undervalued • 360° cross-checking visit with proprietary and original research • Strong capability to identify companies that have strong fundamentals and are under-researched Due diligence process Over 3,500 • Quantitative research (proprietary High listed financial modeling) conviction companies • Qualitative research (on-site company value stocks visits, meeting suppliers) A unique portfolio to capture market growth potential Flexible asset allocation which may include: 4 • Without following any benchmark indices, the portfolio is able to allocate to non-indexed stocks purely based on our original research Equities • Expertise in identifying Greater China stocks with sound fundamentals yet under-researched Dynamic allocation to equity and cash without a preset limit • Others Cash (e.g. index futures7 etc.) 5. Index refers to Hang Seng Price Return Index up to 31 December 2004, thereafter it is the Hang Seng Total Return Index. Hang Seng Total Return Index includes dividend reinvestment whereas Hang Seng Price Return Index does not take into account reinvestment of dividends. 6.on Source: on Value Partners ( 8 and) CICC.143 7. 88The investment | S managerinapore currently (65 intends) 18 to use 38 Folloindex futures us foron hedging purposes only. valuepartners-roupcom Value Partners Classic Fund | Q4 2016 Investment objective and strategy Geographical exposure by listing10 The Fund aims to achieve consistent superior return and uses a Hong Kong 28% bottom-up approach to invest in value stocks in the Asia Pacific H Shares 17% region, particularly those in Greater China region, which the Taiwan 12% Manager believes are being traded at deep discounts to their China A Shares 10% intrinsic value.