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 Inception28 October 2005
Management Fees2.30% p.a.
Performance Fees15% 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 30 April 2020 (net %)

1 month3 month6 month1 year3 years p.a.5 years p.a.7 years p.a.10 years p.a.Inception p.a.AUM
1.04%-1.72%1.28%1.21%6.14%-0.52%9.03%5.69%9.37%$129.86 mil AUD

Price & Distributions

DateUnit PriceApplication PriceRedemption Price
27/05/20202.46052.46672.4544
26/05/20202.45822.46432.4520
25/05/20202.45262.45872.4464
22/05/20202.43352.43962.4274
21/05/20202.52372.53002.5174
20/05/20202.53622.54262.5299
19/05/20202.53302.53932.5266
18/05/20202.52262.52892.5163
15/05/20202.53662.54292.5303
14/05/20202.54172.54812.5354
13/05/20202.54542.55182.5391
12/05/20202.52252.52882.5162
11/05/20202.54682.55312.5404
08/05/20202.49832.50462.4921
07/05/20202.48872.49502.4825

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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 Horizon5 or more years
Short SellingThe Fund will not engage in short-selling
LeverageThe Fund will not borrow, or use derivatives, for the purposes of leveraging or magnifying the Funds exposure to any asset or market.
Geographic LimitsThe 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 typeAllocation range (%)
International listed equities0-100
Exchange-traded derivatives0-60
Over-the-counter derivatives0-50
Cash and cash equivalent investments0-20

Portfolio Snapshot

Geographical Listing
Cash1.60%
Red Chips4.88%
Taiwan5.79%
China A-shares8.26%
H Shares15.83%
Hong Kong63.63%
Sector Exposure
Utilities0.61%
Industrials1.31%
Cash1.60%
Energy1.60%
Other Financials1.74%
Insurance3.02%
Health Care3.84%
Information Technology5.28%
Real Estate5.46%
Banks9.36%
Communication Services14.68%
Consumer Staples18.05%
Consumer Discretionary33.45%
Top 10 Holdings
Tencent Holdings LtdHong KongMedia & Entertainment14.68%
Alibaba Group Holding LtdHong KongRetailing10.90%
Uni-President China Holdings LtdHong KongFood, Beverage & Tobacco4.32%
Kweichow Moutai Co LtdChina A-sharesFood, Beverage & Tobacco4.27%
China Merchants Bank Co LtdH-sharesBanks4.15%
Nissin Foods Co LtdHong KongFood, Beverage & Tobacco4.07%
China Xinhua Education GroupHong KongConsumer Services3.53%
China Construction Bank CorpH-sharesBanks3.21%
Chow Tai Fook Jewellery GroupHong KongRetailing3.02%
Meituan DianpingHong KongRetailing3.01%
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