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 September 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
-1.39%9.51%16.02%19.72%6.40%7.47%10.10%6.59%10.11%$133.61 mil AUD

Price & Distributions

DateUnit PriceApplication PriceRedemption Price
23/10/20203.00843.01593.0008
22/10/20203.04413.05173.0365
21/10/20203.03973.04733.0321
20/10/20203.02733.03483.0197
19/10/20202.99803.00552.9905
16/10/20203.01063.01813.0030
15/10/20202.98182.98932.9744
14/10/20203.00363.01112.9961
13/10/20203.00273.01022.9952
12/10/20202.99303.00052.9855
9/10/20202.92832.93562.9210
8/10/20202.92922.93652.9218
7/10/20202.90822.91552.9010
6/10/20202.88652.89372.8793
2/10/20202.83342.84052.8263

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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
Cash1.02%
Red Chips1.99%
United States2.06%
Taiwan2.54%
H-shares8.91%
China A-shares17.61%
Hong Kong65.87%
Sector Exposure
Insurance0.93%
Cash1.02%
Industrials2.00%
Information Technology2.54%
Health Care3.83%
Real Estate3.84%
Other Financials4.58%
Banks4.96%
Consumer Staples16.64%
Communication Services17.47%
Consumer Discretionary42.19%
Top 10 Holdings
Tencent Holdings LtdHong KongMedia & Entertainment16.03%
Alibaba Group Holding LtdHong KongRetailing9.74%
Meituan DianpingHong KongRetailing6.47%
Kweichow Moutai Co LtdChina A-sharesFood, Beverage & Tobacco4.91%
Nissin Foods Co LtdHong KongFood, Beverage & Tobacco4.57%
Wuliangye Yibin CoChina A-sharesFood, Beverage & Tobacco4.10%
China Merchants Bank Co LtdH-sharesBanks3.96%
China Xinhua Education GroupHong KongConsumer Services3.48%
Uni-President China Holdings LtdHong KongFood, Beverage & Tobacco3.06%
Chow Tai Fook Jewellery Group LtdHong KongRetailing2.98%
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