Value Partners Q4 2014 Commentary

Funds Menu

For Non-Professional Investors

September 2013

Funds Menu January 2015

For Non-Professional Investors

Pages

Value Partners Classic Fund 5-12

Value Partners High-Dividend Stocks Fund 13-14

Value Partners Intelligent Funds - China Convergence Fund 15-16

Value Partners Intelligent Funds - Chinese Mainland Focus Fund 17-18

Value Partners China Greenchip Fund Limited 19-20

Value Partners Taiwan Fund 21-22

Value Partners Greater China High Yield Income Fund 23-24

Value Partners China A-Share Select Fund 25-26

Contents

Please pay particular attention to the risk of investment in China and other markets in the Asian region and in companies with medium or small capitalization. The value of the funds can be extremely volatile and could go down substantially within a short period of time. It is possible that the entire value of your investment could be lost.

Value Partners High-Dividend Stocks Fund and Value Partners Greater China High Yield Income Fund may invest in higher-yielding debt and equity securities that are below investment grade; additionally, Value Partners Greater China High Yield Income Fund may invest in debt securities issued by special purpose vehicles. Such investments can involve material risks, e.g. counterparty risk, liquidity risk, credit risk and default risk, and may expose the Fund to significant losses.

Investors should note that there is no guarantee that the underlying securities in Value Partners High-Dividend Stocks Fund and Value Partners Greater China High Yield Income Fund will pay out dividends. Therefore, there is no guarantee that those funds investment strategies will succeed. There is also no guarantee of dividend or distribution payments during the period an investor holds units in such funds, and a positive dividend yield does not represent/imply positive return.

Value Partners China A-Share Select Fund intends to invest predominantly in China A Shares directly, via its Managers RQFII quota. Investors will be subject to certain risks including repatriation risk, custodial risk, regulatory risk and risks associated with the Managers RQFII status. In addition, the RQFII policy and rules are relatively new and there may be uncertainty in implementation and such policy and rules are subject to change. All these may adversely impact the fund. The fund and its primary investments are denominated in RMB. RMB is currently not a freely convertible currency and is subject to foreign exchange control policies, as well as repatriation restrictions imposed by the PRC government. Investors whose base currencies of investments are not in RMB should take into account the potential risk of loss arising from fluctuations in value between such currencies and the RMB.

The funds may also invest in derivatives which can involve material risks, e.g. counterparty default risk, insolvency or liquidity risk, and may expose the funds to significant losses.

You should not make investment decision on the basis of this material alone. Please read the explanatory memorandum for details and risk factors.

2

Value Partners Fund Offerings

Asia Pacific China Taiwan

Classic Fund

A value fund investing primarily in a broad mandate in the Asia-Pacific markets with an emphasis on Greater China equities.

China Convergence Fund

A value fund mainly investing primarily in China A, B and H shares.

Taiwan Fund

A value fund mainly investing in undervalued Taiwan and Taiwan-related entities.

High-Dividend Stocks Fund

A value fund mainly investing in relatively high yielding investment in Asian region.

Chinese Mainland Focus Fund

A value fund mainly investing in Mainland China related investments and investments that we believe would be boosted by the appreciation of Renminbi.

China Greenchip Fund

A value fund investing primarily in undervalued small-cap entities with a focus on Greater China.

China A-Share Select Fund

A fund predominately investing in RMB-denominated equities in the PRC utilizing the Managers RQFII quota.

Absolute return long-biased strategy

China

Greater China High Yield Income Fund

A fund that aims to provide regular income through primarily investing in Greater China debt securities.

Fixed income strategy

CIES

Eligible*

* Value Partners China Greenchip Fund Limited is one of the eligible collective

investment schemes for the purpose of the Hong Kong Capital Investment Entrant

Scheme (CIES).The CIES was suspended by the Hong Kong Government with effect

from 15 January 2015 until further notice.

3

Upd

ated

to e

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f Dec

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r 20

14

Rec

ent p

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2003

2010

2004

2009

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: Inv

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vest

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andu

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ails

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risk

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inve

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Info

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relia

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alue

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tner

s Lim

ited

does

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cura

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plet

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s of t

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form

atio

n pr

ovid

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y th

ird

part

ies.

Thi

s rep

ort h

as n

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revi

ewed

by

the

Secu

ritie

s and

Fut

ures

Com

mis

sion

. Iss

uer:

Val

ue P

artn

ers L

imite

d

4

Value Partners ClassiC Fund

Investment objective

The fund aims to achieve consistent superior return and uses a bottom-up approach to invest in value stocks in the Asia Pacific region, particularly those in Greater China region, which the Manager believes are being traded at deep discounts to their intrinsic value.

Annualized return and volatility are calculated from inception. Volatility is a measure of the theoretical risk in terms of standard deviation; in general, the lower the number, the less risky the investment, and vice versa.

Performance update 2

A Units (USD)

Hang Seng Index 3

B Units (USD)

C Units (USD)

One month +4.6% -1.6% +4.5% +4.7%One year +13.5% +5.5% +13.0% +13.3%Three years +43.8% +43.5% +41.7% +42.4%Five years +43.2% +28.5% +39.7% +42.2%Since launch +2,570.3% +417.3% +1,113.9% +53.1% Annualized return +16.3% +7.8% +14.3% +8.5% Annualized volatility 21.8% 27.0% 22.7% 18.8%

Performance since launch (with dividends reinvested) 2

%

0

400

800

1200

1600

2000

2400

2800

20142012201020082006200420022000199819961993

+2,570.3%

+417.3%

Value Partners Classic Fund (A Units, USD)Hong Kong Hang Seng Index 3

NAV per unit : A Units - USD267.03 B Units - USD121.39 C Units - USD15.31Fund size : USD1,466 million

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual2003 +6.2% +4.9% +0.7% -2.2% +9.3% +4.5% +9.8% +6.9% +6.3% +8.5% +1.4% +6.5% +83.6%2004 +2.9% +4.5% +0.1% -2.9% -6.1% -0.8% -0.1% -0.1% +4.2% +0.7% +3.9% +0.0% +5.8%2005 +0.7% +3.4% -1.1% +0.3% -1.2% +4.0% +1.6% -0.1% +3.1% -1.9% +3.8% +2.5% +15.9%2006 +9.2% +3.5% +6.7% +4.6% -5.6% -2.6% +3.2% +0.7% +0.8% +5.0% +6.4% +4.6% +41.8%2007 +2.1% +2.5% +2.5% +5.0% +3.7% +4.8% +12.6% -7.4% +10.5% +8.9% -9.6% +1.6% +41.1%2008 -14.0% +6.1% -9.5% +10.9% -2.2% -8.3% -5.3% -8.6% -11.0% -31.0% +5.2% +13.4% -47.9%2009 -3.2% -0.2% +8.2% +8.2% +20.1% +1.3% +11.5% +0.1% +2.5% +7.5% +5.9% +2.2% +82.9%2010 -5.8% +2.2% +7.1% +3.1% -6.1% +1.1% +5.0% +0.2% +10.5% +3.8% -0.7% -0.7% +20.2%2011 -1.5% -1.6% +5.4% +3.5% -1.3% -3.2% +2.8% -7.5% -19.8% +15.3% -7.8% +1.0% -17.2%2012 +7.8% +6.3% -5.7% +1.6% -10.2% -2.1% -1.3% +1.7% +6.4% +2.3% +1.9% +5.9% +14.0%2013 +7.9% -2.5% -2.9% +0.6% +1.2% -9.0% +2.3% +0.5% +2.2% +6.2% +4.8% +0.4% +11.2%2014 -5.5% +2.3% -4.0% -1.6% +2.0% +4.6% +6.2% +3.0% -1.5% +1.6% +1.9% +4.6% +13.5%

Value Partners Classic Fund A Units (USD): Monthly performance from 1 Jan 2003 to 31 Dec 2014 2

31 deCember 2014 2 Pages

Annual performance 2

A Units (USD)

B Units (USD)

C Units (USD)

2003 +83.6% +83.1% N/A2004 +5.8% +5.6% N/A2005 +15.9% +15.6% N/A2006 +41.8% +41.2% N/A2007 +41.1% +40.4% N/A2008 -47.9% -48.1% N/A2009 +82.9% +82.0% +7.7% 4

2010 +20.2% +19.6% +21.2%2011 -17.2% -17.6% -17.6%2012 +14.0% +13.4% +13.4%2013 +11.2% +10.6% +10.8%2014 +13.5% +13.0% +13.3%

9th Floor, Nexxus Building, 41 Connaught Road Central, Hong Kong Tel : (852) 2880 9263 Fax : (852) 2565 7975Email : [email protected] Website : www.valuepartners.com.hk

HHHHMorningstar RatingTM1

As at 31-12-2014

NAVs & codes

Classes 5 NAV ISIN BloombergA Units (USD) 267.03 KYG9316N1025 VLPARAI KYB Units (USD) 121.39 KYG931701018 VLPARBI KYC Units (USD) 15.31 KYG9316N1280 VLPARCI KYC Units (HKD) 6 118.7352 KYG9316N1280 VLPARCI KYC Units (AUD) Hedged 12.42 KYG9316N1363 VLCHAUD KYC Units (CAD) Hedged 12.24 KYG9316N1447 VLCHCAD KYC Units (NZD) Hedged 12.28 KYG9316N1512 VLCHNZD KY

ValuePartnersClassicFund(thefund)primarilyinvestsinstockmarketsoftheAsia-Pacificregion,withaGreaterChinafocus. PleasepayparticularattentiontotheriskofinvestmentinChinaandothermarketsintheAsianregionandincompanies

with medium or small capitalization. The value of the fund can be extremely volatile and could go down substantially within a short period of time. It is possible that the entire value of your investment could be lost.

The fundmayalso invest inderivativeswhichcan involvematerial risks,e.g.counterpartydefault risk, insolvencyorliquidityrisk,andmayexposethefundtosignificantlosses.

Youshouldnotmakeinvestmentdecisiononthebasisofthismaterialalone.Pleasereadtheexplanatorymemorandumfor details and risk factors.

5

Value Partners Classic Fund31 deCember 2014

1. 2014 Morningstar, Inc. All Rights Reserved (for A Units). 2. Source: HSBC Institutional Trust Services (Asia) Limited and Bloomberg, in USD, NAV to NAV, with dividends reinvested. Performance data is net of all fees. 3. Index refers to Hang Seng Price Return Index up to 31 Dec 2004, thereafter it is the Hang Seng Total Return Index. Hang Seng Total Return Index includes dividend reinvestment whereas Hang Seng Price Return Index does not take into account reinvestment of dividends. 4. Calculated based on the since inception return of C Untis. 5. The fund may invest in financial derivative instruments (FDI) for hedging purposes. In adverse situations, the funds use of FDI may become ineffective in hedging and the fund may suffer significant losses. Each hedged share class will hedge the funds base currency back to its currency of denomination on a best efforts basis. However, the volatility of the hedged classes measured in the funds base currency may be higher than that of the equivalent class denominated in the funds base currency. Risks associated with FDI include counterparty risk, credit risk and liquidity risk. Such exposure may lead to a high risk of capital loss. The AUD/CAD/NZD Hedged Classes are not recommended for investors whose base currency of investment is not in the aforesaid currencies. 6. Investors should note that the base currency of C Units is in USD. The HKD is for reference only and should not be used for subscription or redemption purpose. Conversion to the base currency of C Units will normally take place at the prevailing rate (as determined by the Funds Trustee or Custodian) on the corresponding fund dealing day. Investor should be aware of possible risks resulting from fluctuations of exchange rates against USD. 7. Classification is based on Global Industry Classification Standard (GICS). 8. Exposure refers to net exposure (long exposure minus short exposure). Due to rounding, percentages shown may not add up to 100%. 9. Cash refers to net cash on hand excluding cash for collaterals and margins. 10. The profile is based on market consensus forecast as derived from S&P Capital IQ and Bloomberg. Note that the managers internal estimates may differ significantly from S&P Capital IQ and Bloomberg estimates. 11. Performance fee will only be charged if the NAV at the end of the financial year or upon realization of units exceeds the high watermark, which is the all-time year-end high of the funds NAV. If in any one year, the fund suffers a loss, no performance fee can be charged in subsequent years until the loss is recovered fully (the high-on-high principle). 12. Class A Units of the fund selected as one of the top 100 funds based on fund size, track record, Morningstars Star rating and one year absolute ranking as at month end Oct 2011. 13. Value Partners Classic Fund is not authorized as a hedge fund by the Securities and Futures Commission (SFC) in Hong Kong according to the Code on Unit Trusts and Mutual Funds. SFC authorization is not a recommendation or endorsement of a scheme nor does it guarantee the commercial merits of a scheme or its performance. It does not mean the scheme is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.Investors should note investment involves risk. The price of units may go down as well as up and past performance is not indicative of future results. Investors should read the explanatory memorandum for details and risk factors in particular those associated with investment in emerging markets. Information in this report has been obtained from sources believed to be reliable but Value Partners Limited does not guarantee the accuracy or completeness of the information provided by third parties. This report has not been reviewed by the SFC. Issuer: Value Partners Limited.

Top 10 securities holdings

Name Industry 7 %Luye Pharma Pharmaceuticals,

biotechnology & life sciences8.4

Chongqing Changan Automobile

Automobiles & components 8.1

PetroChina Energy 6.5China Life Insurance Insurance 5.1China Vanke Real estate 4.8Ping An Insurance Insurance 4.8Tasly Pharmaceutical Pharmaceuticals,


Industrial & Commercial Bank Of China

Banks 3.4

CGN Power Utilities 3.3China Taiping Insurance Insurance 2.5

These stocks constitute 51% of the fund. The top ten securities holdings only include companies and/ or REITs the fund invested, excluding any index tracking fund or ETF.

Portfolio characteristics

As at 31 Dec 2014 2015 10Price/earnings ratio 13.8 timesPrice/book ratio 2.4 timesDividend yield 2.5%

Geographicalexposurebylisting8

25%H Shares23%Hong Kong

16%China A Shares15%Red Chips

11%China B Shares5%Taiwan

3%Others2%Singapore2%9Cash

Sector exposure 7 8

18%Health care17%Consumer discretionary

14%Insurance13%Utilities

10%Information technology8%Energy

6%Real estate5%Banks5%Others

4%Telecom services2%9Cash

Value Partners Investment TeamChairman & Co-Chief Investment Officer: Cheah Cheng HyeDeputyChairman&Co-ChiefInvestmentOfficer:Louis SoDeputyChiefInvestmentOfficer:Renee HungSenior Investment Director: Norman Ho, CFAInvestment Directors: Eric Chow; Alan Wang, CFASenior Fund Managers: Doris Ho; Kyu Ho; Lai Voon San; Michelle Yu, CFA; Yu Xiao Bo

Fund factsManager: Value Partners LimitedBase currency: USDTrustee: Bank of Bermuda (Cayman) LimitedCustodian: HSBC Institutional Trust Services (Asia) LimitedLaunch date: A Units (USD) - 1 Apr 1993 B Units (USD) - 15 May 1996 C Units (USD) - 15 Oct 2009 C Units (AUD/CAD/NZD) - 17 Mar 2014A, B and C units are invested in the same fund, A and B units were no longer issued from 12 Apr 2002 and 15 Oct 2009 respectively. Only C units are currently available. Unit price is published daily in the South China Morning Post, the Hong Kong Economic Journal and the Hong Kong Economic Times.

Fee structureA Units B Units C Units

Minimum subscription Closed Closed USD10,000 or equivalent Minimum subsequent subscription Nil Nil

USD5,000 or equivalent

Subscription fee Closed Closed up to 5%Management fee 0.75% p.a. 1.25% p.a. 1.25% p.a.Performance fee 11 15% of profit (High-on-high principle)Redemption fee Nil

Dealing day DailyredemptionDaily

redemption Daily dealing

Recent awardsFund of the Year Awards 2011OutstandingAchieverGreaterChinaEquitycategory 12~ Benchmark

2011 - Long-Term Performance Award (10 years) 13~ AsiaHedge Awards 2011

GREATER CHINAEQUITY

OUTSTANDING ACHIEVER

VP

CF_

Mas

ter_

2014

12

6

9th Floor, Nexxus Building, 41 Connaught Road Central, Hong Kong Tel: (852) 2880-9263 Fax: (852) 2565-7975

Email: [email protected] Website: www.valuepartners.com.hk

Value Partners Classic Fund Commentary / Fourth Quarter 2014 (including Yearend 2014 Summary)

Value Partners Classic Fund (the Fund) primarily invests in stock markets of the Asia-Pacific region, with a Greater China focus.

Please pay particular attention to the risk of investment in China and other markets in the Asian region and in companies with medium or small capitalization. The value of the Fund can be extremely volatile and could go down substantially within a short period of time. It is possible that the entire value of your investment could be lost.

The Fund may also invest in derivatives which can involve material risks, e.g. counterparty default risk, insolvency or liquidity risk, and may expose the Fund to significant losses.

You should not make investment decisions on the basis of this material alone. Please read the explanatory memorandum for details and risk factors.

Value Partners Classic Fund (the Fund) finished 2014 on a high after a relatively volatile year. Chinese equities drifted lower in the first half of the year, only to rally towards the end as the Shanghai-Hong Kong Stock Connect and a loosening monetary stance helped drive equity markets higher. The Fund delivered a positive return of 13.5% for the year. For reference, the Hang Seng Index gained 5.5% for the year while the MSCI China Index rose 8.0%. China reforms and supportive macros The China story continues to remain compelling as we are only in the early stage of reform programs announced in 2013. While investors are still wrestling with the reality that Chinas growth continues to slow, we think that this could be a positive factor in delaying the recognition of reform dividends. In 2014, China tackled some of the more difficult aspects on its reform agenda, such as raising SOE (state-owned enterprise) profitability and efficiency. SOE reform measures are expected to continue, notably in the areas of asset divestment, industry consolidation, mixed ownership and equity incentive schemes. Furthermore, the Communist Party had its recent Fourth Plenum focusing on rule of law for the first time. The blueprint improves judicial procedures and the separation of judicial and administrative functions. These changes will play a significant role in Chinas long-term economic growth and political stability, benefiting those who are doing business in China. These types of reforms are not easy to execute and demonstrate the significant political clout and determination of the current administration. From a macro perspective, a stronger US dollar environment and lower commodity prices will aid to maintain low inflation in China and leave room for further interest rate cuts. A more accommodative monetary policy environment is suitable in a time of significant reform. This will help minimize financial market shocks as the rapid pace of reforms may expose its weakest links. We expect the Chinese government to continue providing support to domestic growth by continuing infrastructure projects and housing stimulus plans to maintain economic growth rate at around 7% to 7.5%. Performance driven by A shares and stock selection in 2014 From a portfolio strategy perspective, the Fund has remained fully invested throughout much of the year, underpinning our positive view on equity markets. We have further engaged in our high conviction ideas and remained aggressive in employing our active strategy. In 2014, our significant additions in A shares and stock selection were the key performance drivers of the Fund.

7

At the beginning of 2014, our portfolio started with an exposure of approximately 10% in Chinese A shares. With the anticipated launch of the Shanghai-Hong Kong Stock Connect and low market valuations, we recognized potentials for strong A-share performance. With the support from our Shanghai research team since 2009, we significantly increased the Funds A-share exposure to 27%1 as of the end of October ahead of the official launch of the Stock Connect. We favored stocks that are dually listed in the Shanghai and Hong Kong stock exchanges, as well as selected companies that are cheaper in the A-share market. We also favored high-yielding stocks and unique opportunities available in the A-share market. Despite the lukewarm take-up of the Stock Connect, we were able to take advantage of the broader A-share rally. The CSI 300 Index has gained 52.1% (in US$ terms) over the year, particularly spurred by interest rate cuts and recovering retail participation in the domestic stockmarket in the final month. From a stock selection perspective, our positions in China healthcare, properties and energy have particularly yielded a positive impact on the portfolio. Going forward, we will continue to find attractive value stocks, especially in old economy sectors including banking, insurance and property. Healthcare, as one of the few new economy sectors, will however remain one of our favorites. Investment case study Lijun International Pharmaceutical Lijun International Pharmaceutical (Lijun) is a healthcare company that has been one of our top holdings and key performance contributors. It is one of the top three largest makers of infusion products in China. Intravenous infusion solutions are a critical component of Chinas developing healthcare system, and Lijun has experienced stable double-digit growth in the past five years. While Lijuns competitors focus on the lower end of the market, Lijun pioneers in producing non-PVC soft bag injections with a market share of over 30%. The advantages of non-PVC soft bag injections over traditional glass-based injection bottles include lower weight for transportation and lower risk of breakage. Therefore, we expect non-PVC soft bags to grow faster than the overall market. In addition, Lijun operates the largest single-factory production facility for large-volume infusion products, giving it cost advantage with economies of scale. Lijuns strong branding and low-cost production also help the company to generate a gross margin of over 50% in the first half of 2014. On the back of an experienced management team and the capacity for further expansion, we are hopeful that Lijun will continue to deliver strong earnings growth. While the overall healthcare sector has performed strongly in the past two years, Lijun is currently trading at 12.7 times of 2015 forward price-to-earnings ratio, which is reasonable given its business prospects. Amidst a volatile environment, we believe this is a good time for Value Partners to thrive further as our region is refocusing on stock picking and fundamental value. While we expect markets to remain somewhat volatile, we are optimistic about the outlook for Chinese equities. We are also well-positioned to take advantage of market fluctuations. Corporate update Value Partners has continued to grow from strength to strength in 2014. Our assets under management (AUM) have grown by more than 20% in 2014 to over US$12.6 billion. Our performance also continued to win us industry accolades. Among our numerous awards in 2014 include Asian Fund House of the Year and Asset Management Company of the Year (Hong Kong) 2. In addition, we are pleased to report that Value Partners Group has won the Enterprise Award in the DHL/SCMP Hong Kong Business Awards 2014, a distinguished title given to entrepreneurs and companies that have made important contributions to Hong Kong and the neighboring Pearl River Delta. This is the second time that we were given this renowned title after receiving it in 2005, from a different judging panel. Meanwhile, in the Benchmark Fund of the Year Awards 2014, we were named the Outstanding Achiever in the China Equity and High Yield Fixed Income categories.

8

Value Partners leading position in Asian fund management is also reflected in the industry leadership role played by our Chairman and Co-Chief Investment Officer, Dato Cheah Cheng Hye. In 2014, Dato Cheah was invited to speak at many industry events in Hong Kong, Shanghai and Singapore, organized by professional and public organizations, including the Hong Kong Securities and Futures Commission (SFC); the CFA Institute; The Hong Kong Society of Financial Analysts; and Business China Singapore, a government-supported group seeking to strengthen business ties between Singapore and China. Dato Cheah spoke mainly on investing and corporate governance. Also, from early 2014, Dato Cheah delivered a speech at various gatherings entitled Chinese stocks: From Ugly Duckling to Beautiful Princess, predicting a renaissance for the Chinese equity market, arising from President Xi Jinpings program emphasizing deregulation, market-opening, a growing role for private enterprise and much improved corporate governance. We are beginning to see the renaissance in action. In closing this report, wed like to convey our heartfelt thanks to our investors for their continued support and the confidence they have placed in us. The recovery of value stocks showed that our value discipline has once again borne fruit as we stay true to our convictions. We look forward to achieving new highs and bringing another prosperous year for investors. Value Partners Investment Team 9 January 2015 1 Including exposure from both direct A-share investment and indirect investment through China A-Share Access Products (CAAPs). 2 Value Partners was named Asian Fund House of the Year in AsianInvestors Investment Performance Awards 2014 and Asset Management Company of the Year (Hong Kong) in The Asset Triple A Investor and Fund Management Awards 2014. Fund performance mentioned referred to Value Partners Classic Fund A Unit. All performance figures are sourced from HSBC Institutional Trust Services (Asia) Limited and Bloomberg (Data computed in US$ terms on NAV-to-NAV basis with dividends reinvested) as at 31 December 2014. Performance data is net of all fees. Individual stock performance is not indicative of fund performance. Investors should note that investment involves risk. The price of units may go down as well as up and past performance is not indicative of future results. Investors should read the explanatory memorandum for details and risk factors in particular those associated with investment in emerging markets. This commentary has not been reviewed by the Securities and Futures Commission. Issuer: Value Partners Limited.

9

Val

ue P

artn

ers C

lass

ic F

und:

10

bigg

est h

oldi

ngs o

f sec

uriti

es a

s at 3

1 D

ecem

ber

2014

S

tock

In

dust

ry

Val

uatio

n

(201

5 Es

timat

es)

Rem

arks

CG

N P

ower

(C

ode:

181

6 H

K)

Mar

ket c

ap:

US$

19.8

bill

ion

Nuc

lear

pow

er

prod

ucer

Pr

ice:

HK

$3.3

7 P/

E: 1

9.0x

P/

B: 2

.0x

Yie

ld: 1

.7%

List

ed in

Hon

g K

ong

in D

ecem

ber

2014

, CG

N P

ower

is th

e le

adin

g nu

clea

r po

wer

pro

duce

r in

C

hina

with

the

bigg

est t

otal

inst

alle

d ca

paci

ty a

s of

Jun

e 20

14.

Its n

ucle

ar p

ower

sta

tions

are

st

rate

gica

lly lo

cate

d in

eco

nom

ical

ly d

evel

oped

regi

ons

in C

hina

that

hav

e a

stro

ng d

eman

d fo

r el

ectri

city

. W

ithin

Chi

nas

ene

rgy

spec

trum

, nuc

lear

pow

er is

uni

que

in th

at it

has

the

low

est

earn

ings

vol

atili

ty.

As t

he C

hine

se g

over

nmen

t sup

ports

cle

an e

nerg

y de

velo

pmen

t, C

GN

Pow

er

is w

ell

posi

tione

d to

ben

efit

from

the

pot

entia

l gr

owth

of

the

nucl

ear

pow

er i

ndus

try i

n th

e co

min

g ye

ars.

Chi

na L

ife In

sura

nce

(Cod

e: 2

628

HK

) M

arke

t cap

: U

S$14

3.8

billi

on

Insu

ranc

e Pr

ice:

HK

$30.

45

P/EV

*: 1

.3x

Yie

ld: 1

.7%

Chi

na L

ife I

nsur

ance

(C

hina

Life

),

toge

ther

with

its

sub

sidi

arie

s, is

the

lar

gest

int

egra

ted

insu

rer i

n C

hina

. It

has t

he m

ost e

xten

sive

dis

tribu

tion

and

serv

ice

netw

ork

amon

g al

l ins

uran

ce

com

pani

es i

n C

hina

, co

verin

g lif

e in

sura

nce,

pro

perty

& c

asua

lty i

nsur

ance

, pe

nsio

n pl

ans

(cor

pora

te a

nnui

ty),

asse

t man

agem

ent a

nd in

dust

rial i

nves

tmen

t. F

ollo

win

g its

man

agem

ent's

ef

forts

to

scal

e do

wn

banc

assu

ranc

e an

d fo

cus

on g

row

ing

agen

cy o

ver

the

past

few

yea

rs,

Chi

na L

ife is

fina

lly a

ble

to e

xecu

te o

n its

muc

h ne

eded

cha

nges

and

rest

ore

its g

row

th p

rofil

e.

Mea

nwhi

le,

it is

exp

ecte

d to

ben

efit

from

bet

ter

inve

stm

ent

retu

rns

and

impr

ovin

g bu

sine

ss

perf

orm

ance

am

idst

rate

cut

cyc

les.

Chi

na T

aipi

ng In

sura

nce

(Cod

e: 9

66 H

K)

Mar

ket c

ap:

US$

8.9

billi

on

Insu

ranc

e Pr

ice:

HK

$22.

20

P/EV

*: 1

.0x

Yie

ld: 0

.0%

Chi

na T

aipi

ng In

sura

nce

(C

TI)

eng

ages

in th

e un

derw

ritin

g of

dire

ct li

fe in

sura

nce

busi

ness

, pr

oper

ty a

nd c

asua

lty i

nsur

ance

bus

ines

s, an

d re

insu

ranc

e bu

sine

ss.

The

com

pany

has

see

n pe

er-b

eatin

g gr

owth

in

life

NB

V (

new

bus

ines

s va

lue)

in

2014

on

the

back

of

spec

ific

adva

ntag

es in

term

s of

its

larg

e sc

ale

agen

t rec

ruitm

ent.

W

ith a

foc

us o

n lif

e in

sura

nce,

it is

al

so w

ell p

ositi

oned

to b

enef

it fr

om m

easu

res

by th

e C

hine

se g

over

nmen

t to

let t

he in

sura

nce

indu

stry

pla

y a

bigg

er ro

le in

the

soci

al se

curit

y ne

twor

k in

the

med

ium

to lo

ng te

rm.

Chi

na V

anke

(C

ode:

000

002

CH

) M

arke

t cap

: U

S$24

.7 b

illio

n

Rea

l est

ate

Pric

e: C

NY

13.9

0 P/

E: 7

.4x

P/B

: 1.5

x Y

ield

: 3.7

%

Chi

na V

anke

is C

hina

s la

rges

t dev

elop

er o

f res

iden

tial p

rope

rties

in te

rms

of c

ontra

cted

sal

es.

It ha

s ov

er 3

00 p

roje

cts

that

are

loc

ated

in

over

60

citie

s in

mai

nlan

d C

hina

. W

e se

e C

hina

V

anke

s la

nd b

ank

as o

ne o

f th

e m

ost d

iver

sifie

d am

ong

its p

eers

, whi

ch m

ay h

elp

it de

liver

fa

ster

sal

es g

row

th.

In 2

014,

its

con

tract

ed s

ales

ros

e 26

% d

espi

te a

dec

line

in t

he o

vera

ll C

hine

se p

rope

rty m

arke

t, w

hich

furth

er s

olid

ifies

its

lead

ing

posi

tion

in th

e in

dust

ry.

Bei

ng th

e la

rges

t hom

ebui

lder

in C

hina

, it m

ay b

enef

it fr

om th

e m

ore

acco

mm

odat

ive

polic

y en

viro

nmen

t in

Chi

na s

ince

mid

-201

4, a

nd t

he i

nter

est

rate

cut

s in

Nov

embe

r 20

14 h

as f

urth

er h

elpe

d re

vivi

ng h

omeb

uyer

s c

onfid

ence

.

10

Sto

ck

Indu

stry

V

alua

tion

(2

015

Estim

ates

) R

emar

ks

Cho

ngqi

ng C

hang

an

Aut

omob

ile

(Cod

e: 2

0062

5 C

H)

Mar

ket c

ap:

US$

12.0

bill

ion

Aut

o m

anuf

actu

rer

Pric

e: H

K$1

7.56

P/

E: 7

.0x

P/B

: 2.1

x Y

ield

: 2.1

%

Cho

ngqi

ng C

hang

an A

utom

obile

(C

hang

an)

is

one

of t

he l

arge

st a

utom

aker

s in

Chi

na.

It

owns

a jo

int v

entu

re w

ith F

ord.

The

join

t ven

ture

Cha

ngan

For

d ha

s co

ntrib

uted

to th

e m

ajor

ity

of th

e co

mpa

nys

pro

fits

and

laun

ched

in 2

013

two

loca

lly m

anuf

actu

red

spor

ts u

tility

veh

icle

s (S

UV

) mod

els,

aim

ing

to p

artic

ipat

e in

the

fast

est-g

row

ing

pass

enge

r veh

icle

seg

men

t. F

ord

is

dete

rmin

ed to

ram

p up

pro

duct

ion

capa

city

to d

oubl

e th

eir

curr

ent p

rodu

ctio

n vo

lum

e by

201

5 an

d al

so e

xpec

ts t

o br

ing

mor

e ne

w m

odel

s to

Chi

na a

nd g

ain

mar

ket

shar

e.

In 2

014,

the

co

mpa

ny d

eliv

ered

a sa

les v

olum

e gr

owth

of a

bout

20%

, con

tinui

ng to

shin

e am

ong

peer

s.

Indu

stria

l & C

omm

erci

al

Ban

k of

Chi

na

(Cod

e: 1

398

HK

) M

arke

t cap

: U

S$27

1.0

billi

on

Ban

ks

Pric

e: H

K$5

.66

P/E:

5.5

x P/

B: 1

.0x

Yie

ld: 6

.4%

Indu

stria

l & C

omm

erci

al B

ank

of C

hina

(I

CB

C)

is th

e la

rges

t com

mer

cial

ban

k in

Chi

na in

te

rms

of a

sset

s an

d de

posi

ts.

An

exte

nsiv

e ne

twor

k of

ove

r 17

,000

bra

nche

s an

d a

huge

cu

stom

er b

ase

give

s it

both

sca

le a

nd fu

ndin

g ad

vant

ages

. IC

BC

has

a li

quid

bal

ance

she

et, l

ow

expo

sure

to in

terb

ank,

exc

ess r

eser

ves a

nd in

dust

ry h

igh

capi

tal a

dequ

acy.

Luye

Pha

rma

Gro

up

(Cod

e: 2

186

HK

) M

arke

t cap

: U

S$4.

3 bi

llion

Dru

g m

anuf

actu

rer

and

dist

ribut

or

Pric

e: H

K$9

.99

P/E:

27.

1x

P/B

: 4.2

x Y

ield

: 0.1

%

Luye

Pha

rma

Gro

up (

Luy

e Ph

arm

a)

is a

lead

ing

phar

mac

eutic

al c

ompa

ny w

hich

foc

uses

on

the

man

ufac

turin

g an

d se

lling

of

phar

mac

eutic

al p

rodu

cts

in t

hree

of

the

fast

est

grow

ing

ther

apeu

tic a

reas

in C

hina

incl

udin

g on

colo

gy, c

ardi

ovas

cula

r sy

stem

, and

alim

enta

ry tr

act a

nd

met

abol

ism

. In

the

first

hal

f of 2

014,

the

grou

ps

natio

nwid

e di

strib

utio

n ne

twor

k en

able

d it

to

sell

its p

rodu

cts

to o

ver

8,00

0 ho

spita

ls in

the

PRC

. G

iven

its

stro

ng p

rodu

ct p

ipel

ine,

pro

ven

R&

D c

apab

ilitie

s an

d sa

les

and

mar

ketin

g ne

twor

ks, L

uye

is w

ell p

ositi

oned

to c

ontin

ue g

aini

ng

mar

ket s

hare

des

pite

an

incr

easi

ngly

com

petit

ive

mar

ket e

nviro

nmen

t.

11

Sto

ck

Indu

stry

V

alua

tion

(2

015

Estim

ates

) R

emar

ks

Petro

Chi

na

(Cod

e: 8

57 H

K)

Mar

ket c

ap:

US$

305.

4 bi

llion

Ener

gy

Pric

e: H

K$8

.60

P/E:

10.

7x

P/B

: 1.0

x Y

ield

: 4.3

%

Petro

Chi

na is

the

larg

est i

nteg

rate

d oi

l com

pany

in A

sia

by m

arke

t cap

italiz

atio

n.

It ha

s cr

ude

rese

rves

of

near

ly 1

1 bi

llion

bar

rels

and

gas

res

erve

s of

ove

r 69

,000

bill

ion

cubi

c fe

et.

Its

dow

nstre

am a

sset

s co

nsis

t of

refin

ing,

and

a s

ervi

ce-s

tatio

n m

arke

ting

netw

ork

of o

ver

20,0

00

stat

ions

. Pe

troC

hina

is e

xpec

ted

to b

enef

it fr

om g

row

th in

gas

usa

ge a

s Chi

na ta

rget

s to

dive

rsify

th

eir

ener

gy r

elia

nce

from

coa

l. T

he S

OE

refo

rm u

nder

goin

g w

ill a

lso

push

the

com

pany

to

adop

t mea

sure

s for

bet

ter c

ost c

ontro

l and

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12

Value Partners HigH-DiViDenD stocks FunD

Investment objectiveThe fund aims to provide capital appreciation to unitholders by investing primarily in a portfolio of relatively higher yielding debt and equity securities in Asian region.

ValuePartnersHigh-DividendStocksFund(thefund)primarilyinvestsinstockmarketsoftheAsia-Pacificregion,withaGreaterChinafocus.

The fundwillprimarily invest inhigher-yieldingequitiesanddebtsecurities,whilemaintaininga flexibleallocation tootherassetsincludinggold,REITsandcash.

The fundmay invest inhigher-yieldingdebtandequitysecurities thatarebelow investmentgrade.Such investmentscan involvematerialrisks,e.g.counterpartyrisk,liquidityrisk,creditriskanddefaultrisk,andmayexposethefundtosignificantlosses.

Investorsshouldnotethatthereisnoguaranteethattheunderlyingsecuritiesinthefundwillpayoutdividends.Therefore,thereisnoguaranteethatthefundsinvestmentstrategieswillsucceed.Thereisalsonoguaranteeofdividendordistributionpaymentsduringtheperiodaninvestorholdsunitsinthefund,andapositivedividendyielddoesnotrepresent/implypositivereturn.

PleasepayparticularattentiontotheriskofinvestmentinChinaandothermarketsintheAsianregionandincompanieswithmediumorsmallcapitalization.Thevalueofthefundcanbeextremelyvolatileandcouldgodownsubstantiallywithinashortperiodoftime.Itispossiblethattheentirevalueofyourinvestmentcouldbelost.

Thefundmayalsoinvestinderivativeswhichcaninvolvematerialrisks,e.g.counterpartydefaultrisk,insolvencyorliquidityrisk,andmayexposethefundtosignificantlosses.

Youshouldnotmakeinvestmentdecisiononthebasisofthismaterialalone.Pleasereadtheexplanatorymemorandumfordetailsandriskfactors.

NAVperunit: ClassA1(USD)-USD74.64 ClassA2MDis(USD)-USD11.56Fundsize: USD2,888.5million

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual2003 +6.2% +7.1% -3.2% -2.0% +8.8% +4.6% +14.4% +8.0% +4.8% +4.2% +2.2% +6.0% +79.7%2004 +5.0% +5.0% -0.5% -2.5% -4.2% -1.3% +1.2% -0.3% +2.5% -0.6% +5.2% -0.5% +8.9%2005 +1.4% +3.8% -2.0% +0.5% -0.6% +3.0% +2.4% -1.1% +1.7% -1.0% +2.7% +0.9% +12.2%2006 +4.0% +6.7% +3.6% +6.3% -5.2% -3.3% +5.1% +0.6% +2.4% +3.3% +5.4% +2.3% +35.0%2007 +3.8% +7.1% -1.5% +4.1% +6.6% +3.0% +8.4% -1.3% +5.0% +8.6% -7.9% +2.5% +44.2%2008 -14.3% +3.3% -5.6% +8.3% -3.6% -8.1% -3.4% -8.4% -10.5% -29.4% +6.6% +11.3% -46.8%2009 -3.0% +1.2% +7.5% +8.9% +18.9% +5.4% +9.2% -3.8% +3.3% +10.2% +3.9% +2.1% +82.8%2010 -1.6% +0.2% +7.0% +5.1% -6.4% +3.5% +2.4% +1.5% +8.0% +5.6% +0.0% -1.2% +25.8%2011 +0.4% -1.6% +2.6% +5.7% -2.3% -2.1% +2.5% -5.2% -15.1% +9.2% -4.7% +0.2% -11.9%2012 +7.5% +4.7% -1.7% +2.2% -6.5% +1.5% +2.4% +0.4% +5.5% +3.1% +1.7% +2.4% +25.2%2013 +3.7% +0.4% -0.8% +1.5% +1.7% -5.6% +2.3% -0.1% +2.5% +2.7% +1.6% -1.5% +8.1%2014 -4.4% +1.8% +0.7% +0.2% +3.8% +1.8% +5.9% +1.2% -4.1% +0.3% +1.8% +0.6% +9.4%

ValuePartnersHigh-DividendStocksFund-ClassA1(USD):Monthlyperformancefrom1Jan2003to31Dec20142

31 December 2014 2 Pages

* IndexreferstoMSCIACAsiaPacific(ex-Japan)TotalReturnIndex.^ Annualizedreturnandvolatilityarecalculatedfrominceptionon2Sep2002.Volatility isameasureof the theoretical risk in termsof standarddeviation; ingeneral,thelowerthenumber,thelessriskytheinvestment,andviceversa.

Performanceupdate2

ClassA1(USD)

Index*ClassA2MDis

(USD)One month +0.6% -2.1% +0.6%One year +9.4% +2.8% +9.4%Three years +48.1% +30.0% N/AFive years +64.3% +29.7% N/ASince launch +654.1% +303.3% +26.1% Annualized return ^ +17.8% +12.0% +10.9% Annualized volatility ^ 19.0% 21.1% N/A

Performancesincelaunch(withdividendsreinvested) 2

201420132012201120102009200820072006200520042002

+654.1%

+303.3%

The fund (Class A1, USD)Index*

%

0

200

400

600

800

-100

NAVs&codes

Classes4 NAV ISIN BloombergClass A1 USD 74.64 KYG931731056 VALASHY KYClass A1 HKD 7 578.8631 KYG931731056 VALASHY KYClass A2 MDis USD 11.56 KYG9318L1041 VALHYA2 KYClass A2 MDis HKD 10.56 KYG9318L1538 VALHA2H KYClass A2 MDis AUD Hedged 10.56 KYG9318L1207 VALHA2A KYClass A2 MDis CAD Hedged 10.60 KYG9318L1389 VALHA2C KYClass A2 MDis NZD Hedged 10.57 KYG9318L1462 VALHA2N KY

9thFloor,NexxusBuilding,41ConnaughtRoadCentral,HongKongTel:(852)28809263Fax:(852)25657975Email:[email protected]:www.valuepartners.com.hk

HHHHHMorningstar RatingTM1

As at 31-12-2014

DividendinformationClassA2MDis3

Classes4 Dividendperunit5

Annualizedyield6

Ex-dividenddate

Class A2 MDis USD 0.0499 5.2% 31-12-2014Class A2 MDis HKD 0.0458 5.2% 31-12-2014Class A2 MDis AUD Hedged 0.0639 7.3% 31-12-2014Class A2 MDis CAD Hedged 0.0503 5.7% 31-12-2014Class A2 MDis NZD Hedged 0.0641 7.3% 31-12-2014

13

ValuePartnersHigh-DividendStocksFund31 December 2014

Portfoliocharacteristics

1.2014Morningstar, Inc.AllRightsReserved (forClassA1).2.Source:HSBC InstitutionalTrustServices (Asia) LimitedandBloomberg, inUSD,NAV toNAV,with dividend reinvested.Performancedataisnetofallfees.3.TheManagercurrentlyintendstomakemonthlydividenddistributioninrespectoftheA2MDisClasses;actualdividendpayoutwillbesubjecttotheManagersdiscretion.Distributionmaybepaid fromcapital of the fund. Investors shouldnote thatwhere thepayment of distributionsarepaid out of capital, this represents andamounts to a returnorwithdrawalofpartoftheamountthathavebeenoriginallyinvestedorcapitalgainsattributabletothatandmayresultinanimmediatedecreaseinthevalueofunits.ForA1Classunits,Managerwillreviewdividenddistributionatitsdiscretiononceayear(lastdividendpayoutdate:21Nov2005).Pleaserefertotheexplanatorymemorandumformoredetails.4.Thefundmayinvestinfinancialderivativeinstruments(FDI)forhedgingpurposes.Inadversesituations,thefundsuseofFDImaybecomeineffectiveinhedgingandthefundmaysuffersignificantlosses.Eachhedgedshareclasswillhedgethefundsbasecurrencybacktoitscurrencyofdenominationonabesteffortsbasis.However,thevolatilityofthehedgedclassesmeasuredinthefundsbasecurrencymaybehigherthanthatoftheequivalentclassdenominatedinthefundsbasecurrency.RisksassociatedwithFDIincludecounterpartyrisk,creditriskandliquidityrisk.Suchexposuremayleadtoahighriskofcapitalloss.TheAUD/CAD/NZDHedgedClassesarenotrecommendedforinvestorswhosebasecurrencyofinvestmentisnotintheaforesaidcurrencies.5.Thereceivingbankmaychargeafeeforincomingpayments.Suchfeeswillreducetheactualamountofdividendsreceivedbytheinvestor.6.AnnualizedyieldofClassA2MDisiscalculatedasfollows:(dividendamount/NAVasofex-dividenddate)x12.Investorsshouldnotethatyieldfiguresareestimatedandforreferenceonlyanddonotrepresenttheperformanceofthefund,andthatthereisnoguaranteeastotheactualfrequencyand/oramountofdividendpayments.7.InvestorsshouldnotethatthebasecurrencyofthefundisinUSD.TheHKDequivalentNAVperunitisforreferenceonlyandshouldnotbeusedforsubscriptionorredemptionpurpose.Conversiontothebasecurrencyofthefundwillnormallytakeplaceattheprevailingrate(asdeterminedbythefundsTrusteeorCustodian)onthecorrespondingfunddealingday.InvestorsshouldbeawareofpossiblerisksresultingfromfluctuationsofexchangeratesagainstUSD.8.ClassificationisbasedonGlobalIndustryClassificationStandard (GICS).9.Exposure refers tonetexposure (longexposureminusshortexposure).Due to rounding,percentagesshownmaynotaddup to100%.10.Others include0.5%cash forcollateralsandmargins.11.Cashreferstonetcashonhandexcludingcashforcollateralsandmargins.12.TheprofileisbasedonmarketconsensusforecastasderivedfromS&PCapitalIQandBloomberg.NotethatthemanagersinternalestimatesmaydiffersignificantlyfromS&PCapitalIQandBloombergestimates.Investorsshouldnotethatallyieldfiguresareforreferenceonlyanddonotrepresenttheactualperformanceofthefundorthedividendyieldreceivedbyinvestors,nordoesapositiveyieldimplyapositivereturn.Dividendyieldiscalculatedbasedontheequityportionofthefund,whereasYieldtomaturity/putiscalculatedbasedonthedebtportionofthefundbytakingtheaverageofyieldsofindividualholdings(beingthehigheroftheyieldtomaturityandyieldtoputofeachbond/convertiblebond)afterexcludingevent-driveninvestmentwithextremelyhighyield.13.PerformancefeewillonlybechargediftheNAVattheendofthefinancialyearoruponrealizationofunitsexceedsthehighwatermark,whichistheall-timeyear-endhighofthefundsNAV.Ifinanyoneyear,thefundsuffersaloss,noperformancefeecanbechargedinsubsequentyearsuntilthelossisrecoveredfully(thehigh-on-highprinciple).14.Basedondataasofyear-end2013.15.The2014MorningstarawardwasbasedondataofeligiblefundsintheirrespectiveMorningstarcategoryupto31Dec2013.16.Basedondataasof30Sep2013.Investors shouldnote investment involves risk.Thepriceof unitsmaygodownaswell as upandpast performance is not indicativeof future results. Investors should read theexplanatorymemorandumfordetailsandriskfactorsinparticularthoseassociatedwithinvestmentinemergingmarkets.InformationinthisreporthasbeenobtainedfromsourcesbelievedtobereliablebutValuePartnersLimiteddoesnotguaranteetheaccuracyorcompletenessoftheinformationprovidedbythirdparties.ThisreporthasnotbeenreviewedbytheSecuritiesandFuturesCommission.Issuer:ValuePartnersLimited.

Top10securitiesholdings

ValuePartnersInvestmentTeam

Name Industry8 %Bank of China Banks 4.9China Construction Bank Banks 3.7China Vanke (Stock code: 000002CH - A shares)

Real estate 3.6

Daqin Railway Transportation 2.9Amorepacific Corp. Household & personal

products2.6

Agricultural Bank of China Banks 2.4China Vanke (Stock code: 2202HK - H shares)

Real estate 2.3

Samsung Electronics Technology, hardware & equipment

2.3

China Power Utilities 2.2Samsung Fire & Marine Insurance Insurance 2.1These stocks constitute 29%of the fund.The top ten securities holdingsonlyincludecompaniesand/orREITsthefundinvested,excludinganyindextrackingfundorETF.

Asat31Dec2014 201512

Price/earnings ratio 8.5 timesPrice/book ratio 1.3 timesDividend yield 5.0%Yield to maturity/put 10.2%

Manager: Value Partners LimitedBase currency: USDTrustee: Bank of Bermuda (Cayman) LimitedCustodian: HSBC Institutional Trust Services (Asia) LimitedLaunch date: Class A1 (USD) - 2 Sep 2002 Class A2 MDis (USD) - 28 Sep 2012 Class A2 MDis (AUD/CAD/NZD) - 23 Sep 2013Dividend policy 3: Class A2 MDis aim at monthly distribution,

subject to Managers discretionUnitprice ispublisheddaily in theSouthChinaMorningPost, theHongKongEconomicJournalandtheHongKongEconomicTimes.

Fundfacts

Recentawards

Chairman&Co-ChiefInvestmentOfficer:Cheah Cheng HyeDeputyChairman&Co-ChiefInvestmentOfficer:Louis SoDeputyChiefInvestmentOfficer:Renee HungSeniorInvestmentDirector:Norman Ho, CFAInvestmentDirectors:Eric Chow; Alan Wang, CFASeniorFundManagers: Doris Ho; Kyu Ho; Lai Voon San; Michelle Yu, CFA; Yu Xiao Bo


24%H Shares16%South Korea16%Hong Kong

10%China A Shares8%Red Chips

7%Singapore5%Bonds5%10Others

4%Taiwan2%11Cash2%Thailand

Sectorexposure89

16%Consumer discretionary15%Banks

13%Real estate12%Industrials

8%Information technology5%Bonds5%Telecom services5%Energy5%Utilities

3%Insurance3%Consumer staples3%Materials3%10Others3%REITs

2%11Cash

Feestructure

ClassA1 ClassA2MDis

Minimum subscription USD10,000 or HKD equivalent 7USD10,000 / HKD80,000 /AUD10,000 / CAD10,000 /

NZD10,000

Minimum subsequent subscription

USD5,000 or HKD equivalent 7

USD5,000 / HKD40,000 /AUD5,000 / CAD5,000 /

NZD5,000Subscription fee Up to 5%Management fee 1.25% p.a.Performance fee 13 15% of profit (High-on-high principle)Redemption fee NilDealing day Daily

LipperFundAwards2014(HongKong)BestAsiaPacific(Ex-Japan)Equity 5YearsCategory 14~Lipper

MorningstarHongKongFundAwards201415BestAsiaEx-JapanEquityFund~ Morningstar

FundoftheYearAwards2013OutstandingAchieverAsiaPacificEquityCategory 16~Benchmark

HD

F_M

aste

r_20

1412

(R)

Shortexposureincludes:SouthKorea,-1.8%.TheFunds%inAsharescategorywasrevisedduetore-classificationofoneChinesepropertystocklistedinHongKong.

Totalshortexposureis-1.8%.Shortexposureincludes:Consumerstaples,-1.8%.

14

China ConvergenCe Funda Sub-Fund of Value Partners Intelligent Funds

Investment objectiveThe fund aims to provide unitholders with long-term capital appreciation by investing primarily in A and B shares listed on the stock exchanges of Shanghai and Shenzhen, as well as H shares listed in Hong Kong.Note: On inception, in Jul 2000, the funds objective was to invest primarily in B shares. In Jul 2001, the mandate was extended to include H shares. In Mar 2005, the mandate was further extended to include China A shares.

PleasepayparticularattentiontotheriskofinvestmentinChinaandothermarketsintheAsianregionandincompanieswithmediumorsmallcapitalization.Thevalueof the fundcanbeextremelyvolatileandcouldgodownsubstantiallywithinashortperiodoftime.Itispossiblethattheentirevalueofyourinvestmentcouldbelost.




NAVperunit: USD146.89Fundsize: USD342.1million

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual2003 +9.5% +2.4% +0.0% +1.1% +7.8% +4.1% +11.3% +4.5% +2.3% +14.5% +1.6% +9.0% +92.1%2004 +2.4% +6.7% +1.0% -11.0% +1.3% -4.3% +1.0% -1.3% +5.7% -0.2% +3.7% -2.9% +0.8%2005 +1.9% +6.8% +1.3% +0.4% -4.0% -0.7% +0.7% -0.3% +1.0% -5.4% +0.9% +1.6% +3.9%2006 +16.5% +4.8% +8.5% +3.6% +0.7% -2.3% -0.3% +1.8% +3.8% +5.5% +11.6% +11.5% +86.9%2007 +3.5% +3.2% +3.8% +11.8% +8.0% +2.8% +11.7% +0.8% +7.6% +11.8% -12.5% -4.0% +56.6%2008 -15.7% +7.4% -11.5% +9.2% -4.4% -12.3% -2.4% -8.8% -9.9% -15.6% +0.2% +10.2% -45.2%2009 -3.0% -2.3% +12.4% +11.6% +17.9% +4.3% +11.9% -7.0% +4.6% +8.4% +6.8% +1.5% +87.1%2010 -6.1% +2.4% +6.2% +2.3% -4.8% +1.6% +3.9% +1.6% +10.8% +4.5% +1.2% -2.6% +21.3%2011 -3.2% -0.9% +4.8% +2.2% -2.5% -2.4% +1.5% -7.3% -19.4% +13.5% -7.6% -0.3% -22.4%2012 +7.6% +6.6% -5.5% +1.0% -8.4% -3.8% -3.5% +0.6% +5.8% +2.7% +0.1% +7.4% +9.3%2013 +7.5% -2.0% -2.9% -0.6% +2.7% -9.9% +3.5% +1.8% +2.2% +3.9% +5.6% -1.8% +9.2%2014 -5.6% +1.0% -3.6% -1.0% +1.2% +3.4% +8.8% +1.3% -1.2% +3.2% +1.6% +5.4% +14.6%

Monthlyperformancefrom1Jan2003to31Dec20142

31 deCember 20142 Pages

Annualized return and volatility are calculated from inception on 14 Jul 2000. Volatility is a measure of the theoretical risk in terms of standard deviation; in general, the lower the number, the less risky the investment, and vice versa.

Performanceupdate2

ChinaConvergenceFund

MSCIChinaIndex3

One month +5.4% +1.2%One year +14.6% +8.0%Three years +36.8% +37.3%Five years +28.8% +17.3%Since launch +1,368.9% +173.7% Annualized return +20.4% +7.2% Annualized volatility 25.9% 27.3%

%

0

400

800

1200

1600

-200

20142012201020082006200420022000

+1,368.9%

+173.7%

China Convergence FundMSCI China Index 3


HHHHMorningstar RatingTM1

As at 31-12-2014

15

ChinaConvergenceFund:ASub-FundofValuePartnersIntelligentFunds31 deCember 2014


1. 2014 Morningstar, Inc. All Rights Reserved. 2.Source: HSBC Institutional Trust Services (Asia) Limited and Bloomberg, in USD, NAV to NAV, with dividends reinvested. Performance data is net of all fees. 3.Starting from Jul 2009, the MSCI China Index will be used as the reference index for the entire history of the fund. Hang Seng H Shares Index, Shanghai Composite Index and Shenzhen Composite Index were no longer shown for comparison. 4. Classification is based on Global Industry Classification Standard (GICS). 5.Exposure refers to net exposure (long exposure minus short exposure). Due to rounding, percentages shown may not add up to 100%. 6. Cash refers to net cash on hand excluding cash for collaterals and margins. 7.The profile is based on market consensus forecast as derived from S&P Capital IQ and Bloomberg. Note that the managers internal estimates may differ significantly from S&P Capital IQ and Bloomberg estimates. 8. Performance fee will only be charged if the NAV at the end of the financial year or upon realization of units exceeds the high watermark, which is the all-time year-end high of the funds NAV. If in any one year, the fund suffers a loss, no performance fee can be charged in subsequent years until the loss is recovered fully (the high-on-high principle). 9.Based on fund size, track record, Morningstars Star rating and one year absolute ranking as at month end Oct 2010.Investors should note investment involves risk. The price of units may go down as well as up and past performance is not indicative of future results. Investors should read the explanatory memorandum for details and risk factors in particular those associated with investment in emerging markets. Information in this report has been obtained from sources believed to be reliable but Value Partners Limited does not guarantee the accuracy or completeness of the information provided by third parties. This report has not been reviewed by the Securities and Futures Commission. Issuer: Value Partners Limited.


Name Industry4 %China Vanke (Stock code: 000002CH - A shares)

Real estate 6.7

Chongqing Changan Automobile Automobiles & components 6.2Inner Mongolia Yili Industrial Food, beverage & tobacco 5.3CGN Power Utilities 3.3New China Life Insurance Insurance 3.1Ping An Insurance Insurance 2.9Sunac China Real estate 2.8China Vanke (Stock code: 2202HK - H shares)

Real estate 2.8

ZTE Corp. Technology, hardware & equipment

2.7

Huadian Fuxin Energy Utilities 2.6

These stocks constitute 38% of the fund. The top ten securities holdings only include companies and/ or REITs the fund invested, excluding any index tracking fund or ETF. Fee structure

Asat31Dec2014 20157

Price/earnings ratio 12.2 timesPrice/book ratio 2.0 timesDividend yield 2.6%

Manager: Value Partners LimitedBase currency: USDTrustee: Bank of Bermuda (Cayman) LimitedCustodian: HSBC Institutional Trust Services (Asia) LimitedLaunch date: 14 Jul 2000Bloomberg and VAPAICB KY / KYG9317Q1047ISIN codes:

Unit price is published daily in the South China Morning Post, the Hong Kong Economic Journal and the Hong Kong Economic Times.

Fund facts

Geographicalexposurebylisting5Minimum subscription USD10,000Minimum subsequent subscription USD5,000

Subscription fee Up to 5%Management fee 1.25% p.a.Performance fee 8 15% of profit (High-on-high principle)Redemption fee NilDealing day Daily

37%H Shares35%China A Shares

17%Hong Kong12%China B Shares

5%Red Chips1%Others

-8%6CashValuePartnersInvestmentTeamChairman&Co-ChiefInvestmentOfficer:Cheah Cheng HyeDeputyChairman&Co-ChiefInvestmentOfficer:Louis SoDeputyChiefInvestmentOfficer:Renee HungSeniorInvestmentDirector:Norman Ho, CFAInvestmentDirectors:Eric Chow; Alan Wang, CFA; SeniorFundManagers: Doris Ho; Kyu Ho; Lai Voon San; Michelle Yu, CFA; Yu Xiao Bo

Recentawards

Morningstar2010FundAwards(HongKong) BestGreaterChinaEquityFund~ Morningstar

Top100FundsoftheYear2010 ChinaEquity9

~ Benchmark Magazine

Sectorexposure45

18%Real estate14%Utilities14%Industrials

13%Consumer discretionary10%Insurance

9%Health care9%Consumer staples

7%Information technology5%Energy

4%Materials3%Other financials

-8%6Cash

CC

F_M

aste

r_20

1412

16

Chinese Mainland FoCus FundA Sub-Fund of Value Partners Intelligent Funds

Investment objectiveThe fund aims to achieve medium to long-term capital appreciation by investing primarily in investments which are related to the Mainland of the Peoples Republic of China (PRC) and investments whose value the Manager believes would be boosted by a Renminbi (RMB) appreciation. The Manager will also invest in investments whose value the Manager believes would increase even if the RMB exchange rate remains unchanged.

PleasepayparticularattentiontotheriskofinvestmentinChinaandothermarketsintheAsianregionandincompanieswithmediumorsmallcapitalization.Thevalueof the fundcanbeextremelyvolatileandcouldgodownsubstantiallywithinashortperiodoftime.Itispossiblethattheentirevalueofyourinvestmentcouldbelost.



Annualized return and volatility are calculated from inception on 27 Nov 2003. Volatility is a measure of the theoretical risk in terms of standard deviation; in general, the lower the number, the less risky the investment, and vice versa.

Performanceupdate2


NAVperunit: USD40.63Fundsize: USD141.4million

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual2003 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A +3.9% +3.9%2004 +5.5% +7.6% -0.3% -11.3% +0.7% -3.4% +1.9% -1.4% +4.6% +1.4% +6.0% -1.7% +8.4%2005 +1.6% +4.9% -3.3% +0.7% -2.6% +1.6% +1.6% +0.5% +1.8% -3.0% +4.5% +3.3% +11.6%2006 +12.3% +2.8% +7.9% +2.0% -5.1% -0.6% +0.6% +1.3% +1.6% +4.4% +7.6% +6.3% +48.1%2007 +1.5% +3.7% +4.4% +5.3% +5.0% +3.3% +15.8% -3.1% +8.6% +12.9% -8.7% -0.9% +56.0%2008 -17.5% +5.7% -10.1% +10.1% -2.9% -11.0% -2.7% -7.8% -9.9% -16.2% -0.5% +9.9% -44.8%2009 -3.2% -2.1% +11.8% +11.4% +17.7% +3.4% +12.3% -7.1% +5.2% +8.8% +6.7% +1.8% +86.0%2010 -5.7% +1.9% +6.5% +2.8% -4.7% +1.5% +4.9% +1.7% +10.6% +6.4% -1.1% -2.0% +23.9%2011 -2.5% -0.9% +4.8% +3.4% -1.2% -2.2% +1.8% -7.6% -19.5% +15.6% -7.8% +0.6% -17.8%2012 +6.7% +6.8% -5.7% +1.4% -8.6% -3.5% -2.7% +0.7% +5.5% +4.5% +1.4% +6.0% +11.6%2013 +8.1% -3.2% -3.3% -0.1% +0.4% -8.8% +2.4% +4.5% +2.9% +4.1% +4.5% -2.3% +8.3%2014 -5.7% -1.7% -2.4% -1.8% +1.4% +4.0% +7.7% +0.4% -2.0% +2.8% +1.8% +6.5% +10.6%

Monthlyperformancefrom27Nov2003to31Dec20142

31 deCeMber 20142 Pages

ChineseMainland Focus Fund

MSCIChina Index3

One month +6.5% +1.2%One year +10.6% +8.0%Three years +33.7% +37.3%Five years +36.2% +17.3%Since launch +306.3% +316.8% Annualized return +13.5% +13.7% Annualized volatility 21.8% 27.0%

%

0

100

200

300

400

500

600

20142013201220112010200920082007200620052003

Chinese Mainland Focus FundMSCI China Index 3

+316.8%+306.3%


HHHHHMorningstar RatingTM1

As at 31-12-2014

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ChineseMainlandFocusFund:ASub-FundofValuePartnersIntelligentFunds31 deCeMber 2014


1. 2014 Morningstar, Inc. All Rights Reserved. 2.Source: HSBC Institutional Trust Services (Asia) Limited and Bloomberg, in USD, NAV to NAV, with dividends reinvested. Performance data is net of all fees.3.Starting from Jul 2009, the MSCI China Index will be used as the reference index for the entire history of the fund. Hang Seng H Shares Index, Shanghai Composite Index and Shenzhen Composite Index were no longer shown for comparison. 4.Classification is based on Global Industry Classification Standard (GICS).5.Exposure refers to net exposure (long exposure minus short exposure). Due to rounding, percentages shown may not add up to 100%. 6. Cash refers to net cash on hand excluding cash for collaterals and margins. 7.The profile is based on market consensus forecast as derived from S&P Capital IQ and Bloomberg. Note that the managers internal estimates may differ significantly from S&P Capital IQ and Bloomberg estimates.8.Performance fee will only be charged if the NAV at the end of the financial year or upon realization of units exceeds the high watermark, which is the all-time year-end high of the funds NAV. If in any one year, the fund suffers a loss, no performance fee can be charged in subsequent years until the loss is recovered fully (the high-on-high principle).9.Based on data as of year-end 2012. 10.Based on data as of year-end 2011. 11.Based on fund size, track record, Morningstars Star rating and one year absolute ranking as at month end Oct 2010.Investors should note investment involves risk. The price of units may go down as well as up and past performance is not indicative of future results. Investors should read the explanatory memorandum for details and risk factors in particular those associated with investment in emerging markets. Information in this report has been obtained from sources believed to be reliable but Value Partners Limited does not guarantee the accuracy or completeness of the information provided by third parties. This report has not been reviewed by the Securities and Futures Commission. Issuer: Value Partners Limited.


Name Industry4 %Ping An Insurance Insurance 7.6China Vanke (Stock code: 000002CH - A shares)

Real estate 6.7

Chongqing Changan Automobile

Automobiles & components 6.4

Midea Group Consumer durables & apparel 5.6Inner Mongolia Yili Industrial Food, beverage & tobacco 5.5CGN Power Utilities 3.3Tasly Pharmaceutical Pharmaceuticals,


Sunac China Real estate 2.9China Vanke (Stock code: 2202HK - H shares)

Real estate 2.8

Huadian Fuxin Energy Utilities 2.7These stocks constitute 47% of the fund. The top ten securities holdings only include companies and/ or REITs the fund invested, excluding any index tracking fund or ETF.

Fee structure

Asat31Dec2014 20157

Price/earnings ratio 11.5 timesPrice/book ratio 2.0 timesDividend yield 2.9%

Manager: Value Partners LimitedBase currency: USDTrustee: Bank of Bermuda (Cayman) LimitedCustodian: HSBC Institutional Trust Services (Asia) LimitedLaunch date: 27 Nov 2003Bloomberg and VAPAICM KY / KYG9317Q1120ISIN codes:

Unit price is published daily in the South China Morning Post, the Hong Kong Economic Journal and the Hong Kong Economic Times.

Fund facts


Sectorexposure45

Minimum subscription USD10,000Minimum subsequent subscription USD5,000Subscription fee Up to 5%Management fee 1.25% p.a.

Performance fee 8 15% of profit(High-on-high principle)Redemption fee NilDealing day Daily

41%China A Shares31%H Shares

18%Hong Kong12%China B Shares

3%Red Chips2%United States

1%Others-8%6Cash

19%Consumer discretionary16%Real estate

15%Utilities13%Health care

12%Insurance9%Industrials9%Consumer staples

6%Information technology4%Energy4%Materials

2%Other financials-8%6Cash

ValuePartnersInvestmentTeamChairman&Co-ChiefInvestmentOfficer:Cheah Cheng HyeDeputyChairman&Co-ChiefInvestmentOfficer:Louis SoDeputyChiefInvestmentOfficer:Renee HungSeniorInvestmentDirector:Norman Ho, CFAInvestmentDirectors:Eric Chow; Alan Wang, CFASeniorFundManagers: Doris Ho; Kyu Ho; Lai Voon San; Michelle Yu, CFA; Yu Xiao Bo

Recentawards

LipperFundAwards2013(HongKong)BestChinaEquityFund(5Years)9 ~ Lipper

LipperFundAwards2012(HongKong)BestChinaEquityFund(3Years)10 ~ Lipper

Top100FundsoftheYear2010 ChinaEquityBestinClass 11

~ Benchmark Magazine

CM

F_M

aste

r_20

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Value Partners China GreenChiP Fund limited

Investment objectiveThe fund aims to achieve medium-term capital growth by means of investing in companies established in Greater China or which derive a majority of their revenue from business related to Greater China, whether in the form of direct investment in, or trade with, Greater China. This includes companies incorporated and/or listed outside Greater China.

PleasepayparticularattentiontotheriskofinvestmentinChinaandothermarketsintheAsianregionandincompanies withmediumorsmallcapitalization.Thevalueofthefundcanbeextremelyvolatileandcouldgodownsubstantiallywithina shortperiodoftime.Itispossiblethattheentirevalueofyourinvestmentcouldbelost.

The fundmayalso invest inderivativeswhichcan involvematerial risks,e.g.counterpartydefault risk, insolvencyor liquidityrisk,andmayexposethefundtosignificantlosses.

Youshouldnotmakeinvestmentdecisiononthebasisofthismaterialalone.Pleasereadtheexplanatorymemorandumfor detailsandriskfactors.

NAVpershare: ClassA-HKD60.92 ClassA2QDis-HKD11.30Fundsize: USD675.72million(HKD5,243.6million)

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual2003 +7.3% +7.1% -3.5% -1.5% +10.9% +5.9% +12.7% +6.2% +2.2% +9.5% +3.0% +5.0% +85.6%2004 +1.4% +6.3% -1.2% -8.7% -1.1% -2.8% +0.8% -0.3% +3.7% +0.6% +5.4% -1.6% +1.5%2005 +1.2% +4.2% -2.7% -1.1% -1.4% +1.6% +1.1% +0.0% +11.0% -3.2% +3.6% +1.5% +16.1%2006 +10.7% +4.0% +9.2% +0.5% -3.7% -1.6% +1.9% +1.4% +1.4% +3.7% +6.7% +3.6% +43.7%2007 +3.1% +4.8% +3.8% +4.7% +9.6% +5.7% +9.7% -9.1% +3.6% +5.8% -7.4% -1.0% +36.3%2008 -18.6% +1.4% -9.6% +10.2% -2.2% -11.8% -5.7% -10.0% -12.1% -26.1% +0.8% +7.8% -57.4%2009 +0.2% -0.2% +10.2% +13.1% +25.0% +1.9% +14.0% -4.8% +6.9% +7.9% +6.2% +2.5% +116.7%2010 -1.3% +3.0% +8.1% +4.2% -5.4% +0.9% +4.2% +1.7% +13.4% +4.2% +1.3% -0.5% +37.8%2011 -2.6% -2.9% +4.0% +2.7% -2.5% -5.0% +5.1% -10.5% -17.2% +8.8% -3.4% -2.1% -25.0%2012 +6.0% +10.5% -3.9% -2.4% -4.6% -3.2% -0.5% +3.7% +6.3% +3.1% +4.9% +3.7% +24.8%2013 +6.4% +0.0% -2.2% +1.2% +3.3% -8.9% +1.8% +1.7% +3.0% +4.8% +4.5% +0.7% +16.5%2014 -3.0% +4.0% -2.6% -1.2% +1.9% +2.9% +1.1% +0.6% -1.8% +0.6% +0.6% -0.4% +2.4%

ValuePartnersChinaGreenchipFundLimitedClassA(HKD):Monthlyperformancefrom1Jan2003to31Dec20142

31 deCember 20142 PaGes

ClassA(HKD)

MSCIChina Index

HangSeng Index3

ClassA2QDis(HKD)

One month -0.4% +1.2% -1.6% -0.4%One year +2.4% +8.0% +5.5% +2.0%Three years +48.8% +36.6% +42.6% N/AFive years +53.8% +17.3% +

Documents

Value Partners Q4 2014 Commentary