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Fund returns help Value Partners first half results

The first quarter market rebound and investor demand for fixed income funds gave a slight boost to assets under management, the firm said.

Value Partners’ assets under management reached $18.1bn in the first half, a 5% rise compared to the corresponding period last year, according to the firm’s interim results.

The Hong Kong-based asset manager noted that the first half of 2019 AUM growth was bolstered by positive fund returns of $1.58bn and net subscriptions of $1.76bn.

“During the first half of 2019, we recorded net subscriptions of $1.8bn, compared to the $1.2bn net inflows for full-year 2018,” said a spokeswoman for the firm in an email response. She cited the first quarter market recovery and investor demands for the firm’s fixed income funds as drivers.

More specifically, results were boosted by the firm’s Greater China High Yield Income Fund, which “generated stable income amid heightened geopolitical uncertainties and a prolonged low interest rate era”,” she added.

Net profit rose 29% to HKD$250.9m ($32m) in the first half of 2019, compared to HKD$194.3m in the first half of last year.

“Global financial markets experienced a turbulent ride in the first half of 2019 primarily due to the U.S.- China trade overhang and sluggish global economic growth,” said King Au, president of Value Partners Group, quoted in the financial statement.

“However, we recorded a double-digit year-on-year increase in profit attributable to owners of the company and ended the first half with a boost in assets under management.”

Mainland China business

The AUM of the mainland China business reached $1.5bn at the end of June, accounting for 8% of the group’s gross AUM.

Via its private fund management (PFM) licence, which enables a manager to launch funds onshore in China, the China Stars Private Equity Investment Fund and  the China Ruiying Private Equity Investment Fund completed registration during the first half of 2019 and are ready for sale, according to the records of the Asset Management Association of China.

The firm received a PFM license in November 2017. With the two new products, it now manages six PFM funds for sale onshore in China, according to the financial statement.

Also during the first half, the Value Partners Classic Fund was launched in China through the Mutual Recognition of Funds scheme.

In total, the firm manages 13 funds approved for sale by Hong Kong’s regulator and in Singapore, the regulator has approved 17 funds for sale to professional investors, FE data shows.

In other markets, a Boston office was opened earlier this year to serve North American institutional clients. In Malaysia, management is planning to launch shariah-compliant funds and Southeast Asia-focused smart ETFs.

Greater China High Yield Fund vs the category average

Source: FE. Three year performance in US dollars. The fund does not use a benchmark.




Part of the Mark Allen Group.