Within China, the team likes large banks such as Bank of China and China Construction Bank.
Share noted that while Chinese banks usually pay solid dividends of about 7%, the risk associated with the sector is high. She disclosed that Value Partners is aware of concerns, such as nonperforming loans. Philip Li, one of the senior managers at the fund, confirmed that these factors have been duly considered.
Ho also favours the Chinese real estate sector. He has a large exposure to China Vanke, a company that the team likes for its management style, prudent land acquisition strategy and cheap access to offshore financing channels.
The Value Partners fund can also invest in bonds. Currently the portfolio is 83.6% equity, 2.7% fixed income, 2.4% cash and 11.3% other.
A snapshot of the two funds:
| Schroder Fund | Value Partners Fund | |
| Launch | 17 January, 2000 | 2 September, 2002 |
| AUM | $2.98bn | $3.99bn |
| Number of holdings | 54 | 130 |
| Top regions |
China – 28.6% Hong Kong – 19.9% India – 16.7% Taiwan – 14% Thailand – 5.2% |
China – 55.5% Hong Kong – 15% Singapore – 8.8% South Korea – 8.7% Taiwan – 3.5%
|
| Top sectors |
Technology – 26.5% Financial services – 17.6% Real estate – 14.1% Consumer cyclical – 13.2% Industrials – 8.5%
|
Financial services – 24.8% Real estate – 24.5% Consumer cyclical – 18.3% Industrials – 11.9% Utilities – 6.3%
|
| Top holdings |
Taiwan Semiconductor – 6.27% AIA Group – 4.57% Tencent Holdings – 4% China Mobile – 2.94% Swire Properties – 2.29% |
Bank of China H shares – 4.68% China Construction Bank H shares – 3.94% CK Hutchison – 2.58% SK Telecom – 2.37% AmorePacific Corp – 2.2%
|
