Premium China Fund
APIR MAQ0441AU
About the Fund
The Premium China Fund is a managed investment scheme which invests primarily in companies listed in Hong Kong, companies listed in Mainland China, companies listed in Taiwan and companies listed on other stock exchanges but with significant assets, investments, production activities, trading or other business interests in the Greater China region, or which derive a significant part of their revenue from the Greater China region.
Why China?
- Fast growing economy
- Relatively undemanding valuations
- Relatively under-researched
| Fund Inception | 28 October 2005 |
|---|---|
| Management Fees | 2.30% p.a. |
| Performance Fees | 15% performance fee on the outperformance of the Fund over MSCI China Free Index (subject to high-watermark) |
| Minimum Subscription | $25,000 AUD |
| Transaction Costs (Buy/Sell Spread) | ±0.25% |
| Distribution Frequency | Annually |
Performance
Performance Chart for Premium China Fund
Premium China Fund Performance Table
Premium China Fund Performance as at 29 February 2020 (net %)
| 1 month | 3 month | 6 month | 1 year | 3 years p.a. | 5 years p.a. | 7 years p.a. | 10 years p.a. | Inception p.a. | AUM |
|---|---|---|---|---|---|---|---|---|---|
| 1.82% | 3.17% | 7.54% | 9.49% | 10.13% | 5.06% | 8.98% | 6.53% | 9.76% | $169.63 mil AUD |
Price & Distributions
| Date | Unit Price | Application Price | Redemption Price |
|---|---|---|---|
| 26/03/2020 | 2.4281 | 2.4341 | 2.4220 |
| 25/03/2020 | 2.4677 | 2.4738 | 2.4615 |
| 24/03/2020 | 2.3737 | 2.3796 | 2.3677 |
| 23/03/2020 | 2.3331 | 2.3389 | 2.3273 |
| 20/03/2020 | 2.4130 | 2.4191 | 2.4070 |
| 19/03/2020 | 2.2901 | 2.2958 | 2.2843 |
| 18/03/2020 | 2.3703 | 2.3762 | 2.3644 |
| 17/03/2020 | 2.4135 | 2.4196 | 2.4075 |
| 16/03/2020 | 2.3736 | 2.3795 | 2.3676 |
| 13/03/2020 | 2.5036 | 2.5098 | 2.4973 |
| 12/03/2020 | 2.4847 | 2.4909 | 2.4785 |
| 11/03/2020 | 2.5157 | 2.522 | 2.5094 |
| 10/03/2020 | 2.5537 | 2.5601 | 2.5474 |
| 9/03/2020 | 2.4525 | 2.4586 | 2.4464 |
| 6/03/2020 | 2.5776 | 2.584 | 2.5711 |
| 5/03/2020 | 2.6393 | 2.6459 | 2.6327 |
| 4/03/2020 | 2.5633 | 2.5697 | 2.5569 |
| 3/03/2020 | 2.5489 | 2.5553 | 2.5426 |
| 2/03/2020 | 2.5795 | 2.5859 | 2.573 |
Investment Strategy
The Fund aims to achieve the investment objective, primarily by investing in companies across a range of market capitalisations listed in Hong Kong, Mainland China, Macau and Taiwan (Greater China) and companies listed on other exchanges, which have significant assets, investments, production activities, trading or other business interests in the greater china region, or which derive a significant portion or their revenue from the greater china region.
The Fund is managed by Value Partners using a disciplined value-oriented approach supported by intensive, on-the-ground bottom-up fundamental research resulting in a portfolio of individual holdings, which are, in the view of Value Partners, undervalued and of high quality, on either an absolute or relative basis, and which have the potential for capital appreciation.
In addition to direct investment in companies listed in Greater China, the Fund may also invest in cash and short-term money market instruments, convertible securities issued by listed companies, listed unit trusts, shares in mutual fund corporation and other collective investment schemes (including real estate investment trusts). Derivatives including both exchange-traded and over-the-counter, and participatory notes.
| Investment Horizon | 5 or more years |
|---|---|
| Short Selling | The Fund will not engage in short-selling |
| Leverage | The Fund will not borrow, or use derivatives, for the purposes of leveraging or magnifying the Funds exposure to any asset or market. |
| Geographic Limits | The Premium China Fund primarily invests in companies across a range of market capitalisations listed in Hong Kong, Mainland China, Macau and Taiwan (Greater China) and companies listed on other exchanges, which have significant assets, investments, production activities, trading or other business interests in the Greater China region, or derive a significant portion of their revenue from the Greater China region |
| Initial Investment Amount | $25,000 |
| Additional Investment Amount | $10,000 |
| Minimum Holding Amount | $25,000 |
Portfolio Asset Allocation – Limits
| Asset type | Allocation range (%) |
|---|---|
| International listed equities | 0-100 |
| Exchange-traded derivatives | 0-60 |
| Over-the-counter derivatives | 0-50 |
| Cash and cash equivalent investments | 0-20 |
Portfolio Snapshot
Geographical Listing
| Red Chips | 1.49% |
|---|---|
| United States | 1.91% |
| Cash | 4.03% |
| Taiwan | 8.43% |
| A Shares | 14.22% |
| H Shares | 15.00% |
| Hong Kong | 54.92% |
Sector Exposure
| Health Care | 0.98% |
|---|---|
| Other Financials | 1.41% |
| Utilities | 1.54% |
| Energy | 2.26% |
| Real Estate | 3.19% |
| Cash | 4.03% |
| Industrials | 4.09% |
| Insurance | 5.14% |
| Communication Services | 7.49% |
| Banks | 7.94% |
| Information Technology | 10.89% |
| Consumer Staples | 13.57% |
| Consumer Discretionary | 37.47% |
Top 10 Holdings
| Alibaba Group Holding Ltd | Hong Kong | Retailing | 13.25% |
|---|---|---|---|
| Tencent Holdings Ltd | Hong Kong | Media & Entertainment | 7.46% |
| Meituan Dianping | Hong Kong | Retailing | 5.14% |
| WH Group Ltd. | Hong Kong | Food, Beverage & Tobacco | 4.28% |
| Nissin Foods Co Ltd | Hong Kong | Food, Beverage & Tobacco | 3.68% |
| Uni-President China Holdings Ltd | Hong Kong | Food, Beverage & Tobacco | 3.61% |
| Zhejiang Dahua Technology Co Ltd | A Shares | Technology Hardware & Equipment | 3.39% |
| China Construction Bank Corp | H Shares | Banks | 3.24% |
| Ping An Insurance (Group) Co of China Ltd | H Shares | Insurance | 3.04% |
| Merida Industry Co Ltd | Taiwan | Consumer Durables & Apparel | 2.89% |