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GREATER CHINA HIGH YIELD INCOME FUNDVALUE PARTNERS

For the year ended 31 December 2019

2019 ANNUALREPORT

Value Partners Hong Kong Limited43rd Floor, The Center 99 Queen’s Road Central, Hong KongTel: (852) 2880 9263 Fax: (852) 2565 7975Email: [email protected]: www.valuepartners-group.com

In the event of inconsistency, the English text of this Annual Report shall prevail over the Chinese text. This report shall not constitute an offer to sell or a solicitation of an offer to buy shares in any of the funds. Subscriptions are to be made only on the basis of the information contained in the explanatory memorandum, as supplemented by the latest semi-annual and annual reports.

VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND(Incorporated as an exempted company in the Cayman Islands with limited liability)

ANNUAL REPORT 2019For the year ended 31 December 2019 1

CONTENTS

Pages

General information 2-4

Manager’s report 5-7

Statement of responsibilities of the Directors and the Manager 8

Custodian’s report 9

Independent auditor’s report 10-13

Statement of financial position 14

Statement of comprehensive income 15

Statement of changes in net assets attributable to redeemable participating shareholders 16

Statement of cash flows 17-18

Notes to the financial statements 19-62

Investment portfolio (unaudited) 63-82

Investment portfolio movements (unaudited) 83-85

Performance record (unaudited) 86-88


ANNUAL REPORT 2019For the year ended 31 December 20192

GENERAL INFORMATION

DirectorsMs. Cheung Hor Yee Patricia (appointed on 17 January 2020)Ms. Wong Ngai Sze, Icy (appointed on 15 April 2020)Mr. Lam Wai Sing Wilson (appointed on 22 April 2020)Mr. Roger Anthony Hepper (resigned on 2 April 2020)Ms. Ng Chit Sze, Jessie (resigned on 15 April 2020)

ManagerValue Partners Hong Kong Limited43rd Floor, The Center99 Queen’s Road CentralHong Kong

Directors of the ManagerDato’ Seri Cheah Cheng HyeMr. So Chun Ki LouisMr. Ho Man Kei, Norman

Custodian and Administrator’s AgentHSBC Institutional Trust Services (Asia) Limited1 Queen’s Road CentralHong Kong

Administrator, Registered and PrincipalOfficeHSBC Trustee (Cayman) Limited

Principle address:Strathvale House90 North Church StreetGeorge TownGrand CaymanCayman Islands

Registered address: P.O. Box 309Ugland HouseGeorge TownGrand CaymanKY1-1104Cayman Islands

AuditorPricewaterhouseCoopersP.O. Box 25818, Forum Lane Camana BayGrand CaymanKY1-1104Cayman Islands

Legal AdvisorsWith respect to Cayman Islands lawMaples and CalderP.O. Box 309Ugland HouseGrand CaymanKY1-1104Cayman Islands

With respect to Hong Kong andInternational lawDeacons5th Floor, Alexandra House18 Chater Road, CentralHong Kong

Information available from:Value Partners Hong Kong Limited43rd Floor, The Center99 Queen’s Road CentralHong Kong

Investor hotline : (852) 2143 0688Fax : (852) 2565 7975Email : [email protected] : www.valuepartners-group.com



GENERAL INFORMATION (Continued)

Recent awards and achievements

Value Partners Greater China High Yield Income Fund

2019 • 2019 HKCAMA-Bloomberg Offshore China Fund Awards – Best Total Return – Greater China Fixed Income 3-Year – HKCAMA & Bloomberg

• 2019 HKCAMA-Bloomberg Offshore China Fund Awards – Best Total Return – Greater China Fixed Income 5-Year – HKCAMA & Bloomberg

• Lipper Fund Awards 2019 – Hong Kong Best US Dollar Bond Fund: High Yield (3 Years) –Refinitiv

• Lipper Fund Awards 2019 – Hong Kong Best US Dollar Bond Fund: High Yield (5 Years) –Refinitiv

• Fund Selector Asia Awards Hong Kong 2019 High Yield Fund – Platinum Winner – Fund Selector Asia



GENERAL INFORMATION (Continued)

Recent awards and achievements (Continued)

Corporate Awards

2019 • Top Investment House in Asian G3 Bonds (Hedge Fund category) – The Asset Benchmark Research Awards 2019 • Top Investment House in Asian Local Currency Bond (Hedge Fund category) – The Asset Benchmark Research Awards 2019 • The Most Astute Investors in Asian G3 Bonds for Hong Kong Ranked the 5th : Mr. Jason YAN (Senior Fund Manager)

Highly Commended titles: Mr.GordonIP(ChiefInvestmentOfficer,FixedIncome) Ms. Elaine HU (Senior Fund Manager) Mr. Edwin KAM (Senior Fund Manager) – The Asset Benchmark Research Awards 2019

• The Asset Triple A Asset Servicing, Institutional Investor and Insurance Awards 2019 Fund Manager of the Year – Fixed Income High Yield (Greater China) Mr. Gordon IP – The Asset



MANAGER’S REPORT

In the beginning of the year, the ongoing US-China trade talks and a potentially less aggressive Fed all contributed to a strong January for Asian credits. High yield issues outperformed their high grade peers during the month, with lower-rated names, in particular, leading the way in terms of performance.

Into the second quarter, Asian credit markets took a breather, finishing slightly up for the month in April. After hitting a recent low of around 2.4%1, the 10-year Treasury yield struggled to stay at that level and ended the month about 10bps higher1 as the market was uncertain about the direction of the Fed’s next rate move.

However, in the month of May, US-China trade talks went into a stalemate, with the U.S. imposing additional tariffs on Chinese goods before it went beyond trade to pursue a global ban on Chinese tech giant Huawei Technologies. Risk appetite took a deep dive and flight-to-quality sentiment drove money to safer assets such as U.S. Treasuries, U.S. dollar and Japanese yen. Benchmark 10-year Treasury yield hit a one-year low and ended the month around 2.14%1. During the month, investment-grade issues outperformed high-yield ones.

Meanwhile investors spent June awaiting the outcome from the bilateral meeting between Chinese President Xi Jinping and U.S. President Donald Trump at the G20 Osaka Summit and the outcome turned out positive. Hence investors’ yield-seeking buying and abundant liquidity lent support to the markets. Going into July, both high-grade and high-yield bond markets in Asia posted a moderate gain. Some of our short-dated positions returned principal to the Fund.

Market sentiment then reversed in August, as flight-to-quality money flow fueled a strong rally in the U.S. Treasury market. In August, the US.10-year yield declined to a multi-year low around 1.5%1 and credit spreads further widened. Due to their longer duration and more defensive nature, Asian investment grade credits outperformed Asian high yield. For September, the U.S. Treasury market gave up some recent gains during the month and the benchmark 10-year Treasury yield ended the month slightly higher. Into November, Asian credit markets posted returns largely coming from accrued income. As U.S. Treasury yield rose during the month, Asian credit spreads tightened slightly, and both high grade and high yield issues recorded comparable performance. The market was buoyed by the expectation of reaching a Phase 1 deal to address U.S.-China trade disputes.

As the year came to a close in December, Phase One U.S.-China trade deal, global risk assets, including Asian credits, rallied. High yield outperformed investment grade. In particular, B-rated credits posted the most gain as investors migrated down the credit curve to chase yields.



MANAGER’S REPORT (Continued)

Outlook

We are cautiously optimistic about Asian credits in 2020. Compared to similar U.S. high yield, Asian names are still offering a good yield premium. A Phase One U.S.-China trade deal would bolster investor sentiment and increase appetite for risks. On the other hand, we do not expect 2020 would be a year of smooth sailing as markets increasingly focus on the development beyond the Phase One trade deal. The rich valuation of U.S. equities and credits could be another source of potential sell-off if the U.S. economy fails to keep up with its recent strength. We continue to expect low global rates with a rising proportion of negative rate products in the market. On a relative basis, credits in emerging markets including Asia at least provide a cheap valuation and strong current income that will serve as a cushion to offset some of the potential global shocks.

Value Partners Hong Kong Limited23 April 2020

1. Source: Bloomberg, 31 December 2019

PerformancefiguresaresourcedfromHSBCInstitutionalTrustServices(Asia)LimitedandBloombergasof31December2019in USD, NAV to NAV, with dividends reinvested. Performance data is net of all fees. All indices are for reference only.

TheviewsexpressedaretheviewsofValuePartnersHongKongLimitedonlyandaresubjecttochangebasedonmarketandother conditions. The information provided does not constitute investment advice and it should not be relied on as such. All material has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. This material contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees ofanyfutureperformanceandactualresultsordevelopmentsmaydiffermateriallyfromthoseprojected.



MANAGER’S REPORT (Continued)

Value Partners Greater China High Yield Income Fund – NAV as at 31 December 2019

Classes NAV per unitP Acc USD USD16.28P Acc HKD HKD16.21P MDis USD USD8.03P MDis HKD HKD8.02P MDis SGD Hedged SGD8.71A Acc EUR Hedged EUR10.38A MDis AUD Hedged AUD7.83A MDis CAD Hedged CAD7.95A MDis EUR Hedged EUR8.57A MDis GBP Hedged GBP8.17A MDis NZD Hedged NZD8.17A Acc RMB Hedged RMB14.81A Acc RMB Unhedged RMB14.63A MDis RMB Hedged RMB8.99A MDis RMB Unhedged RMB9.21z MDis USD USD8.96z Acc USD USD13.92

Performance since launchFrom 28 March 2012 to 31 December 2019



STATEMENT OF RESPONSIBILITIES OF THE MANAGER AND THE TRUSTEE

Directors’ and Manager’s responsibilities

The Directors and the Manager, Value Partners Hong Kong Limited, (the “Management”) is required by the Code on Unit Trusts and Mutual Funds established by the Securities and Futures Commission of Hong Kong and the amended and restated Memorandum and Articles of Association dated 5 March 2012 (as amended) to prepare financial statements for each annual accounting period which give a true and fair view of the financial position of Value Partners Greater China High Yield Income Fund (the “Fund”) at the end of that period and of the transactions for the period then ended. In preparing these financial statements, the Management is required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are prudent and reasonable; and

• prepare the financial statements on the basis that the Fund will continue in operation unless it is inappropriate to presume this.

The Management is also required to manage the Fund in accordance with the amended and restated Memorandum and Articles of Association dated 5 March 2012 (as amended) and take reasonable steps for the prevention and detection of fraud and other irregularities.

9ANNUAL REPORT 2019For the year ended 31 December 2019


CUSTODIAN’S REPORT

We hereby confirm that, in our opinion, the Manager, Value Partners Hong Kong Limited has, in all material respects, managed Value Partners Greater China High Yield Income Fund in accordance with the provisions of the amended and restated Memorandum and Articles of Association dated 5 March 2012 (as amended) for the year ended 31 December 2019.

For and on behalf ofHSBC Institutional Trust Services (Asia) Limited

Custodian23 April 2020



INDEPENDENT AUDITOR’S REPORT TO THE BOARD OF DIRECTORS OF VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND

Our opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of Value Partners Greater China High Yield Income Fund (the “Fund”) as at 31 December 2019, and its financial transactions and its cash flows for the year then ended in accordance with International Financial Reporting Standards.

What we have audited

The Fund’s financial statements, which are set out on pages 14 to 62, comprise:

• the statement of financial position as at 31 December 2019;

• the statement of comprehensive income for the year then ended;

• the statement of changes in net assets attributable to redeemable participating shareholders for the year then ended;

• the statement of cash flows for the year then ended; and

• the notes to the financial statements, which include a summary of significant accounting policies.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (“ISAs”). Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Fund in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code.



INDEPENDENT AUDITOR’S REPORT TO THE BOARD OF DIRECTORS OF VALUE PARTNERS GREATER CHINA HIGH YIELD INCOME FUND (Continued)

Other Information

The Directors and the Manager (the “management”) are responsible for the other information. The other information comprises the General information, Manager’s report, Statement of responsibilities of the Directors and the Manager, Custodian’s report, Investment portfolio, Investment portfolio movements and Performance record (but does not include the Fund’s financial statements and our auditor’s report thereon).

Our opinion on the Fund’s financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Fund’s financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilitiesofmanagementforthefinancialstatements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Fund’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Fund or to cease operations, or has no realistic alternative but to do so.

In addition, management is required to ensure that the financial statements have been properly prepared in accordance with the relevant disclosure provisions of the Memorandum and Articles of Association dated 5 March 2012 (as amended) (the “Memorandum and Articles of Association”) and Appendix E of the Code on Unit Trusts and Mutual Funds issued by the Securities and Futures Commission of Hong Kong (the “SFC Code”).




Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. In addition, we are required to assess whether the financial statements of the Fund have been properly prepared, in all material respects, in accordance with the relevant disclosure provisions of the Memorandum and Articles of Association and the SFC Code.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.




Auditor’sresponsibilitiesfortheauditofthefinancialstatements(Continued)

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Fund’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Fund to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Other Matter

This report, including the opinion, has been prepared for and only for the Fund in accordance with the terms of our engagement letter and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Report on other legal and regulatory requirements

In our opinion, the financial statements have been properly prepared, in all material respects, in accordance with the relevant disclosure provisions of the Memorandum and Articles of Association and the SFC Code.

PricewaterhouseCoopersP.O. Box 258,18 Forum Lane,Camana Bay,Grand Cayman, KY1-1104,Cayman Islands

23 April 2020



STATEMENT OF FINANCIAL POSITIONAS AT 31 DECEMBER 2019

2019 2018 Note US$ US$

AssetsFinancial assets at fair value through profit or loss 4(d) 6,238,632,455 4,841,171,589Amounts receivable on sales of investments 13,530,715 –Amounts receivable on subscription of shares 7,722,993 16,329,378Dividend, interest receivable and other receivables 97,852,540 51,470,604Margin deposits 5,761,304 15,744,788Bank balances 39,411,561 235,476,456

Total assets 6,402,911,568 5,160,192,815

Equity Administrative shares 6 100 100

Total equity 100 100

LiabilitiesFinancial liabilities at fair value through profit or loss 4(d) 4,435,352 5,899,775Amounts payable on purchase of investments 14,007,016 65,299,690Amounts payable on redemption of shares 28,770,514 23,833,242Management fee payable 7,954,488 6,248,428Distributions payable to redeemable participating shareholders 37,579,736 36,229,384Bank overdrafts 198,743,688 –Accruals and other payables 943,948 655,982

Liabilities (excluding net assets attributable to redeemable participating shareholders) 292,434,742 138,166,501

Net assets attributable to redeemable participating shareholders 6 6,110,476,726 5,022,026,214

Signed by:Director

The notes on pages 19 to 62 are an integral part of these financial statements.



STATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED 31 DECEMBER 2019

2019 2018 Note US$ US$

Income Dividend income 6,851,873 8,307,688Net realised gains /(losses) on investments 25,174,102 (72,548,520)Change in unrealised gains/losses on investments 573,138,188 (202,916,546)Interest on deposits 7(h) 2,588,802 82,592Net foreign exchange losses (3,218,679) (2,995,454)Other income 1,931,280 1,995,943

606,465,566 (268,074,297)

Expenses Management fees 7(a) (95,010,538) (79,556,366)Administration and custodian fees 7(b) (8,574,123) (7,181,351)Safe custody and bank charges 7(h) (737,796) (525,265)Interest expenses 7(h) (3,203,053) (825,146)Transaction costs 7(h) (695,636) (921,271)Auditor’s remuneration (69,588) (42,400)Legal and professional fees (1,629,607) (183,460)Other operating expenses (1,449,478) (2,362,234)

(111,369,819) (91,597,493)

Profit/(loss)beforetax 495,095,747 (359,671,790)

Withholding tax on dividends and other investment income 8(c) (363,961) (603,640)

Profit/(loss)aftertaxandbeforedistributions 494,731,786 (360,275,430)

Distributions to redeemable participating shareholders 9 (506,489,690) (435,536,913)

Decrease in net assets attributable to redeemable participating shareholders from operations (11,757,904) (795,812,343)




STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TOREDEEMABLE PARTICIPATING SHAREHOLDERSFOR THE YEAR ENDED 31 DECEMBER 2019

2019 2018 US$ US$

Net assets attributable to redeemable participating shareholders as at 1 January 5,022,026,214 4,484,964,844

Issue of shares 4,562,135,176 4,683,251,566Redemption of shares (3,461,926,760) (3,350,377,853)

Net increase from capital transactions 1,100,208,416 1,332,873,713

Profit/(loss) after tax and before distributions 494,731,786 (360,275,430)Distributions to redeemable participating shareholders (506,489,690) (435,536,913)

Decrease in net assets attributable to redeemable participating shareholders from operations after distributions (11,757,904) (795,812,343)

Net assets attributable to redeemable participating shareholders as at 31 December 6,110,476,726 5,022,026,214




STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 31 DECEMBER 2019

2019 2018 US$ US$

Cashflowsfromoperatingactivities Decrease in net assets attributable to redeemable participating shareholders from operations (11,757,904) (795,812,343)Adjustments for: Dividend income (6,851,873) (8,307,688)Interest on deposits (2,588,802) (82,592)Distribution to redeemable participating shareholders 506,489,690 435,536,913Withholding tax on dividends and other investment income 363,961 603,640Interest expenses 3,203,053 825,146

488,858,125 (367,236,924) Increase in financial assets at fair value through profit or loss (1,397,460,866) (234,916,162)(Decrease)/increase in financial liabilities at fair value through profit or loss (1,464,423) 4,425,472Decrease/(increase) in margin deposits 9,983,484 (8,662,274)(Increase)/decrease in amounts receivable on sales of investments (13,530,715) 168,523(Decrease)/increase in amounts payable on purchase of investments (51,292,674) 62,170,606Increase in other receivables (46,398,769) (48,584,615)Increase/(decrease) in bank overdrafts 198,743,688 (189,627,819)Increase in management fees payable 1,706,060 762,180Increase/(decrease) in accruals and other payables 267,213 (211,216)

Cash used in operations (810,588,877) (781,712,229)Dividend received 6,851,873 8,349,752Interest on deposits received 2,605,635 82,592Interest expense paid (3,182,300) (942,764)Withholding tax on dividends and other investment income (363,961) (603,640)

Netcashoutflowfromoperatingactivities (804,677,630) (774,826,289)



STATEMENT OF CASH FLOWS (Continued)FOR THE YEAR ENDED 31 DECEMBER 2019

2019 2018 US$ US$

Cashflowsfromfinancingactivities Distributions paid to redeemable participating shareholders (505,139,338) (428,725,022)Proceeds from issue of redeemable participating shares 4,570,741,561 4,771,075,428Payments on redemption of redeemable participating shares (3,456,989,488) (3,334,162,661)

Netcashinflowfromfinancingactivities 608,612,735 1,008,187,745

Net(decrease)/increaseincashandcashequivalents (196,064,895) 233,361,456

Cash and cash equivalents as at 1 January 235,476,456 2,115,000

Cash and cash equivalents as at 31 December, representing bank balances 39,411,561 235,476,456




NOTES TO THE FINANCIAL STATEMENTS

1 GENERAL INFORMATION

Value Partners Greater China High Yield Income Fund (the “Fund”) is an open-ended investment company incorporated as an exempted company with limited liability in the Cayman Islands on 3 February 2012 (date of incorporation). The Fund is registered under the Mutual Funds Law (revised) of the Cayman Islands, governed by the laws of the Cayman Islands and regulated by the Cayman Islands Monetary Authority. With effect from 20 June 2013, the Fund is authorised by the Securities and Futures Commission of Hong Kong and is required to comply with the Code on Unit Trusts and Mutual Funds established by the Securities and Futures Commission of Hong Kong (the “Code”).

The Fund’s investment objective is to provide regular income (monthly) as well as capital appreciation for investors. The Fund’s investment activities are managed by Value Partners Hong Kong Limited (the “Manager”). The Fund’s administration is delegated to HSBC Institutional Trust Services (Asia) Limited, an affiliate of HSBC Trustee (Cayman) Limited (the “Administrator”). The registered and principal office of the Fund is P.O. Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands and Strathvale House, 90 North Church Street, George Town, Grand Cayman, Cayman Islands.

2 SIGNIFICANT ACCOUNTING POLICIESThe principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

(a) Basis of preparation

The financial statements of Value Partners Greater China High Yield Income Fund have been prepared in accordance with International Financial Reporting Standards (“IFRS”). The financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets and financial liabilities (including derivative financial instruments) at fair value through profit or loss.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires the Board of Directors to exercise its judgement in the process of applying the Fund’s accounting policies.

All reference to net assets throughout this document refers to net assets attributable to redeemable participating shareholders unless otherwise stated.

Standards and amendments to existing standards effective 1 January 2019

There are no standards, amendments to standards or interpretations that are effective for annual periods beginning on 1 January 2019 that have a material effect on the financial statements of the Fund.



NOTES TO THE FINANCIAL STATEMENTS (Continued)

2 SIGNIFICANT ACCOUNTING POLICIES (Continued)

(a) Basis of preparation (Continued)

Standards that are not yet effective and have not been early adopted by the Fund

A number of new standards, amendments to standards and interpretations are effective for annual periods beginning on or after 1 January 2020, and have not been early adopted in preparing these financial statements. None of these are expected to have a material effect on the financial statements of the Fund.

(b) Investment entity

The Fund has been deemed to meet the definition of an investment entity per IFRS 10 as the following conditions exist:

(i) The Fund has multiple investments;

(ii) The Fund obtained funding for the purpose of providing investors with investment management services;

(iii) The Fund’s business purpose, which was communicated directly to investors, is investing solely for returns from capital appreciation and investment income; and

(iv) The performance of investments made through the investee funds are measured and evaluated on a fair value basis.

The Fund meets all of the typical characteristics of an investment entity and management believes it is an investment entity. The Fund is required to account for unconsolidated structured entities at fair value through profit and loss.

(c) Interest in unconsolidated structured entities

A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity.

The Fund considers all of its investments in investee funds to be investments in unconsolidated structured entities. The Fund invests in investee funds whose objectives range from achieving medium to long term capital growth and whose investment strategy does not include the use of leverage. The investee funds are managed by the group companies of the Manager who apply various investment strategies to accomplish the respective investment objectives of the Investee Funds.

The change in fair value of each investee fund is included in the statement of comprehensive income.





(d) Financialassetsandliabilitiesatfairvaluethroughprofitorloss

(i) Classification

– Assets

The Fund classifies its investments based on both the Fund’s business model for managing those financial assets and the contractual cash flow characteristics of the financial assets. The portfolio of financial assets is managed and performance is evaluated on a fair value basis. The Fund is primarily focused on fair value information and uses that information to assess the assets’ performance and to make decisions. The Fund has not taken the option to irrevocably designate any equity securities as fair value through other comprehensive income. The contractual cash flows of the Fund’s debt securities are solely principal and interest, however, these securities are neither held for the purpose of collecting contractual cash flows nor held both for collecting contractual cash flows and for sale. The collection of contractual cash flows is only incidental to achieving the Fund’s business model’s objective.

–Liabilities

The Fund short sales in which a borrowed security is sold in anticipation of a decline in the market value of that security, or it may use short sales for various arbitrage transactions. Short sales are held for trading and are consequently classified as financial liabilities at fair value through profit or loss. Derivative contracts that have a negative fair value are presented as liabilities at fair value through profit or loss.

As such, the Fund classifies all of its investment portfolio as financial assets or liabilities as fair value through profit or loss.

The Fund’s policy requires management to evaluate the information about these financial assets and liabilities on a fair value basis together with other related financial information.

All derivatives are carried in assets when amounts are receivable by the Fund and in liabilities when amounts are payable by the Fund.

(ii) Recognition/derecognition

Regular purchases and sales of investments are recognised on the trade date – the date on which the Fund commits to purchase or sell the investment. Investments are derecognised when the rights to receive cash flows from the investments have expired or the Fund has transferred substantially all risks and rewards of ownership.





(d) Financialassetsandliabilitiesatfairvaluethroughprofitorloss(Continued)

(iii) MeasurementFinancial assets and liabilities at fair value through profit or loss are initially recognised at fair value. Transaction costs are expensed in the statement of comprehensive income. Subsequent to initial recognition, all financial assets and liabilities at fair value through profit or loss are measured at fair value. Gains and losses arising from changes in the fair value through profit or loss are presented in the statement of comprehensive income in the year in which they arise.

(iv) Fair value estimationFair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value of financial assets and liabilities traded in active markets (such as publicly traded derivatives and trading securities) are based on last traded prices at the close of trading on the reporting date. An active market is a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

Debt securities are fair valued based on quoted prices inclusive of accrued interest. The fair value of debt securities not quoted in an active market may be determined by the Fund using reputable pricing sources (such as pricing agencies) or indicative prices from bond/debt market makers. Broker quotes as obtained from the pricing sources may be indicative and not executable or binding. The Fund would exercise judgement and estimates on the quantity and quality of pricing sources used. Where no market data is available, the Fund may value positions using its own models, which are usually based on valuation methods and techniques generally recognised as standard within the industry. Refer to note 4(d) for the details of valuation techniques used.

Investments in investee funds are stated at fair value based on the net asset value per unit/shares of the respective funds as determined by the administrators of the relevant funds or stated at last traded prices if the investee funds are listed or traded on an exchange. When trading of financial assets and liabilities is suspended, the investment is valued at the manager’s estimate of its fair value.

Over-the-counter derivatives that are not traded in an active market is determined by using broker quotes or valuation techniques.

(e) Income

Dividends are recognised when the right to receive payment is established.

Interest income on bank deposits is recognised on a time-proportionate basis using the effective interest method. Interest income earned from debt securities is grouped under net realised gain on investments or unrealised gain on investments.

Interest income on debt securities is recognised in the statement of comprehensive income within “net realised gains/(losses) on investment” and “change in unrealised gains/losses on investments” which depends on whether the Fund holds that debt security as at year end.





(f) Expenses

Expenses are accounted for on an accrual basis.

(g) Transaction costs

Transaction costs are costs incurred to acquire financial assets or liabilities at fair value through profit or loss. They include fees and commissions paid to agents, advisors, brokers and dealers. Transaction costs when incurred, are immediately recognised in profit or loss as an expense.

(h) Distributions payable to redeemable participating shareholders

Proposed distributions to redeemable participating shareholders are recognised in the statement of comprehensive income when they are appropriately authorised and no longer at the discretion of the Fund. The distribution on the redeemable shares is recognised as a finance cost in the statement of comprehensive income.

(i) Offsettingfinancialinstruments

Financial assets and liabilities are offset and the net amount reported in the statement of financial position where the Fund currently has a legally enforceable right to set-off the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Fund or the counterparty.

(j) Foreign currency translation

The financial statements are presented in the United States dollar, which is the Fund’s functional and presentation currency.

The Fund has adopted the United States dollar as the functional currency of the Fund since the subscriptions and redemptions of the Fund are mainly transacted in United States dollars. In addition, performance measurement and reporting to the redeemable participating shareholders as well as settlement of fees and expenses are carried out in the United States dollars.

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income.





(k) Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of 3 months or less. Bank overdrafts are shown in current liabilities in the statement of financial position.

(l) Collaterals

Cash collaterals provided by the Fund are identified in the statement of financial position as margin deposits and are not included as a component of cash and cash equivalents.

(m) Redeemable participating shares

The net asset value per share is computed for each dealing day. The price at which shares are issued or redeemed is calculated by reference to the net asset value per share as at the close of business on the relevant dealing day.

Shares of the Fund are redeemable at the options of the redeemable participating shareholders and are classified as financial liabilities in the statement of financial position which represents the net assets attributable to redeemable participating shareholders (or “net asset value” or “net assets” or “NAV”). The shares are carried at the redemption amount that is payable at the reporting date if the redeemable participating shareholders exercise their right to redeem their shares of the Fund.

(n) Financial assets at amortised cost

Financial assets at amortised cost are recognised initially at fair value and subsequently measured at amortised cost. At each reporting date, the Fund shall measure the loss allowance on these financial assets at an amount equal to the lifetime expected credit losses if the credit risk has increased significantly since initial recognition. If, at the reporting date, the credit risk has not increased significantly since initial recognition, the Fund shall measure the loss allowance at an amount equal to 12-month expected credit losses. Significant financial difficulties of the counter parties, probability that the counter parties will enter bankruptcy or financial reorganisation, and default in payments are all considered indicators that a loss allowance may be required. If the credit risk increases to the point that it is considered to be credit impaired, interest income will be calculated based on the gross carrying amount adjusted for the loss allowance. A significant increase in credit risk is defined by management as any contractual payment which is more than 30 days past due. Any contractual payment which is more than 90 days past due is considered credit impaired.




3 CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS

The Manager makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities are outlined below.

Fairvalueoffinancialinstrumentsnotquotedinanactivemarket

The Fund holds financial instruments that are not traded or quoted in an active market. The Fund uses its judgement to select the appropriate methods and make assumptions based on market conditions existing at the end of each reporting period to estimate the fair value of such financial instruments. (See Note 4(d) for further details)

Valuation techniques include the market approach using prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities such as net asset values as provided by fund administrators, broker quotes and last transacted price. Broker quotes obtained from the pricing sources (such as pricing agencies or bond/debt market makers) may be indicative and not executable or binding. The Fund would exercise judgement and estimates on the quantity and quality of pricing sources uses. Where no market data is available, the Fund may value positions using its own models. Although best estimate is used in estimating fair values, there are inherent limitations in any valuation technique. Estimated fair values may differ from the values that would have been used if a readily available market existed.




4 FINANCIAL RISK MANAGEMENT

The Fund’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, price risk and interest rate risk), credit and counterparty risk and liquidity risk.

The risks and respective risk management policies employed by the Fund to manage these risks are discussed below:

(a) Market risk

(i) Foreignexchangerisk

The Fund may hold assets denominated in currencies other than the United States dollar, the functional currency, it may therefore be exposed to foreign exchange risk. The Fund’s overall currency positions are monitored on a daily basis by the Manager.

The table below includes both monetary and non-monetary assets and liabilities held in foreign currencies together with the percentage of reasonable possible change in foreign exchange rates and the estimated impact on net assets. Non-monetary investments include equity securities and equity related derivatives. Monetary investments include debt securities and currency forwarding.

Total net foreign currency exposures Non- Monetary Estimated monetary netassets/ Percentage impacton net assets (liabilities) change net assets US$ US$ % US$ equivalent equivalent

As at 31 December 2019Australian dollar 9,723,852 426,243,938 +/-5 +/-21,798,390Canadian dollar – 72,205,691 +/-5 +/-3,610,285Euro – 187,905,282 +/-5 +/-9,395,264Hong Kong dollar* 116,685,589 (100,123,411) +/-0 –Indonesian rupiah 12,469,575 – +/-5 +/-623,479New Zealand dollar – 60,678,812 +/-5 +/-3,033,941Pound sterling – 81,492,978 +/-5 +/-4,074,649Renminbi – 458,508,323 +/-5 +/-22,925,416Singapore dollar 1,671,806 97,902,435 +/-5 +/-4,978,712

140,550,822 1,284,814,048

* The Hong Kong dollar is currently linked to the United States dollar, the functional currency, within a narrow range, andisthereforenotexposedtosignificantforeignexchangerisk.




4 FINANCIAL RISK MANAGEMENT (Continued)

(a) Market risk (Continued)

(i) Foreignexchangerisk(Continued) Total net foreign currency exposures Non- Monetary Estimated monetary netassets/ Percentage impacton net assets (liabilities) change net assets US$ US$ % US$ equivalent equivalent

As at 31 December 2018Australian dollar 17,796,664 324,494,443 +/-5 +/-17,114,555Canadian dollar 4,635 59,143,555 +/-5 +/-2,957,410Euro – 140,685,830 +/-5 +/-7,034,292Hong Kong dollar* 56,397,737 276,029,301 +/-0 –Indian rupees – 1,620,240 +/-5 +/-81,012Indonesian rupiah 10,133,951 – +/-5 +/-506,698Japanese yen – 225,097 +/-5 +/-11,255New Zealand dollar 4,566 48,189,838 +/-5 +/-2,409,720Norwegian krone 4,921,464 (7,707,917) +/-5 -/+139,323Pound sterling 912,202 62,434,970 +/-5 +/-3,167,359Renminbi 9,562 75,203,028 +/-5 +/-3,760,630Singapore dollar 3,076,077 79,271,163 +/-5 +/-4,117,362South Korean won 31,977,417 (45,034,754) +/-5 -/+652,867

125,234,275 1,014,554,794

* The Hong Kong dollar is currently linked to the United States dollar, the functional currency, within a narrow range, andisthereforenotexposedtosignificantforeignexchangerisk.






(ii) Pricerisk

The Manager manages price risk primarily through diversification of the portfolio and through a careful selection of securities and other financial instruments within specified limits as stated in the Explanatory Memorandum. The Fund’s overall market positions are monitored on a daily basis by the Manager.

As at 31 December 2019 and 2018, the Fund had no exposure to a single security greater than 10% of net asset.

The country analysis below is based on the country where the issuer is domiciled or operate:

% of net assets 2019 2018

Financialassetsatfairvaluethroughprofitorloss

Listed equity securities Australia 0.16 0.35Hong Kong – H Shares 0.21 0.20 – Others 1.70 0.93Indonesia 0.20 0.20Norway – 0.10Singapore 0.03 0.04South Korea – 0.64The United States of America 1.04 0.35

3.34 2.81

Unlisted equity securities Hong Kong 0.29 –The United States of America 0.20 –

0.49 –






(ii) Pricerisk(Continued)


Financialassetsatfairvaluethroughprofitorloss (Continued)

Quoted debt securities Angola – 0.12Argentina 0.31 0.26Australia 0.59 1.43Bermuda – 0.81Brazil 0.48 1.81British Virgin Islands – 0.52Canada – 0.46Cayman Islands 0.20 0.36China 66.38 47.21Germany 0.03 –Great Britain 0.17 0.06Hong Kong 5.93 8.46Hungary 0.08 –India 1.25 0.55Indonesia 5.61 4.24Ireland – 0.23Japan – 0.83Kazakhstan 0.23 –Luxembourg – 0.53Macao 0.05 0.05Malaysia – 0.07Maldives – 0.16Mexico 0.30 0.30Mongolia 1.24 2.14Netherlands – 0.32Nigeria – 0.50Norway – 0.10Russia 0.42 1.34Singapore 1.01 3.73Spain – 0.08Sri Lanka 0.85 –Taiwan – 0.03









Quoted debt securities (Continued)The United States of America 0.44 0.74Turkey – 0.07Ukraine – 0.34United Arab Emirates 0.14 –Venezuela 0.19 0.19Vietnam – 0.28

85.90 78.32

Unlisted investment funds Cayman Islands 3.14 2.73Hong Kong 1.33 0.50Ireland 0.83 5.71

5.30 8.94

Unquoted debt securitiesAustralia 1.85 0.77British Virgin Islands 0.69 0.85Cayman Islands 0.15 –China 2.64 0.60Great Britain – 0.59Hong Kong 1.18 1.91Indonesia 0.00 0.50Japan – –Luxembourg 0.37 –The United States of America – 1.05

6.88 6.27









Currency forwards 0.19 0.06

102.10 96.40

Financialliabilitiesatfairvaluethroughprofitorloss

Currency forwards (0.07) (0.12)

As at 31 December 2019 and 2018, the Fund had no notional exposure to a single individual derivative security greater than 10% of the total notional exposure of the Fund’s investments.

As the Fund predominantly invests in debt securities and related financial instruments, the market risk sensitivity analysis on these investments is covered under interest rate risk in note 4(a)(iii). As at 31 December 2019 and 2018, the Fund also held investments other than debt securities and was susceptible to market price risk arising from uncertainties about future value of these investments. These investments, including listed equity securities and investment funds are publicly traded. If the prices of these investments had increased/decreased by 10%, the Fund’s profits for the year would have resulted in an increase/decrease of US$55,777,999 (2018: US$ 59,017,202). Details about the derivatives held by the Fund are shown in note 4(e).

(iii) Interestraterisk

Interest rate risk arises from the effects of fluctuations in the prevailing levels of market interest rates on the fair value of financial assets and liabilities and future cash flows. The Fund holds fixed interest securities that expose it to fair value interest rate risk. The deposits with brokers, overdrafts with bank and cash and cash equivalents expose the Fund to cash flow interest rate risk.

The table below summarises the Fund’s exposure to interest rate risk, categorised by the earlier of contractual repricing and maturity dates.






(iii) Interestraterisk(Continued)

Interest bearing Less than Over Non-interest 1 year 1 to 5 years 5 years bearing Total US$ US$ US$ US$ US$

As at 31 December 2019 Assets Financial assets at fair value through profit or loss 1,286,587,063 3,973,097,940 409,634,488 569,312,964 6,238,632,455Margin deposits 5,761,304 – – – 5,761,304Bank balances 39,411,561 – – – 39,411,561

1,331,759,928 3,973,097,940 409,634,488 569,312,964 6,283,805,320

Liabilities Financial liabilities at fair value through profit or loss – – – (4,435,352) (4,435,352)Bank overdraft (198,743,688) – – – (198,743,688)

(198,743,688) – – (4,435,352) (203,179,040)

Interest sensitivity gap 1,133,016,240 3,973,097,940 409,634,488







Interest bearing Less than Over Non-interest 1 year 1 to 5 years 5 years bearing Total US$ US$ US$ US$ US$

As at 31 December 2018 Assets Financial assets at fair value through profit or loss 1,051,441,030 2,682,976,181 513,515,506 593,238,872 4,841,171,589Margin deposits 15,744,788 – – – 15,744,788Bank balances 235,476,456 – – – 235,476,456

1,302,662,274 2,682,976,181 513,515,506 593,238,872 5,092,392,833

Liabilities Financial liabilities at fair value through profit or loss – – – (5,899,775) (5,899,775)

– – – (5,899,775) (5,899,775)

Interest sensitivity gap 1,302,662,274 2,682,976,181 513,515,506

Financial assets and liabilities not disclosed in the above table are non-interest bearing.

Fair value interest rate risk

The table below summarises the sensitivity of the Fund’s net assets to interest rate movements.

The analysis is based on the assumptions that the interest rate increased/decreased by the stated percentage with all other variables held constant.







Estimated impact Percentage change on net assets 2019 2018 2019 2018 % % US$ US$

-71,644,468/ -37,165,767/Interest rate +/-0.5 +/-0.5 +72,507,772 +37,657,313

Cashflowinterestraterisk

As at 31 December 2019, if the interest rates on interest bearing net assets had been 50 (2018: 50) basis points higher/lower with all other variables held constant, the net assets would have been approximately US$767,854 lower/higher (2018: US$1,256,106 lower/higher).

(b) Credit and counterparty risk

The Fund limits its exposure to credit risk by transacting the majority of its securities and contractual commitment activities with broker-dealers, banks and regulated exchanges that the Manager considers to be well established. All transactions are settled/paid for upon delivery using approved and reputable brokers. The risk of default is considered minimal since delivery of securities sold is only made when the broker has received payment. In a purchase, payment is made when the securities have been received by the broker. If either party fails to meet its obligation, the trade will fail.





(b) Credit and counterparty risk (Continued)

The table below summarises the credit quality of the Fund’s portfolio of debt securities held in long position as at the reporting date. The credit ratings are referenced to the ratings issued by Moody’s, S&P and Fitch.

2019 2018 US$ US$

Creditrating(Moody’s/S&P/Fitch)A1/A+ 28,079,719 –Baa1/BBB+ 65,688,668 3,736,743Baa2/BBB 14,045,811 –Baa3/BBB- 39,989,252 –Ba1/BB+ 3,477,359 3,433,637 Ba2/BB 131,823,078 9,243,042Ba3/BB- 646,333,959 69,351,291B1/B+ 1,090,996,068 342,702,598B2/B 1,518,904,789 495,845,471B3/B- 509,179,657 467,897,775Caa1/CCC+/CCC 299,003,246 166,235,625Caa2/CCC 54,497,467 46,667,352Caa3/CCC-/CCC 18,937,200 7,705,367C/D 6,206,020 –Unrated* 1,242,157,198 2,635,113,816

5,669,319,491 4,247,932,717

* In order to monitor the credit quality of the “Unrated” debt securities, the Manager, on the basis of internal research, preparesitsownassessment.TheManagerreviewsthekeyfinancialmetricsoftheissueandstructuralfeaturesofthe instruments and concludes these “Unrated” debt securities in general have a relatively low risk of default. The Managerconsidersthereisnosignificantriskontheunrateddebtsecuritiesatthereportingdateastherewaslimitedhistory of default on the unrated debt securities in the past. As at 31 December 2019, except for 17 debt securities (2018:6)ofUS$29,290,691(2018:US$5,971,332)whichwere indefault.Refer toNote4(d) for furtherdetailsonthose defaulted debt securities.






The table below summarises the unrated debt securities as stated in the table above by their issuers’ credit rating as at the reporting date.

2019 2018 US$ US$

Creditrating(Moody’s/S&P/Fitch)Ba2 3,955,736 –B1 – 11,669,424B2 – 34,540,344B3 50,179,234 153,261,622Caa1 – 6,471,882Unrated 1,188,022,228 2,429,170,544

1,242,157,198 2,635,113,816






The table below shows the exposures to major counterparties as at the reporting date. The credit ratings are referenced to the ratings issued by Moody’s.

2019 2018 US$ US$

Counterparty Bank balances Aa2 – 135,257,793 Aa3 39,252,535 – A1 159,026 – A2 – 100,218,663Margin deposits Aa3 115,347 – A1 1,255,013 846,744 A2 – 6,697,044 A3 4,390,944 8,201,000Financial assets at fair value through profit or loss Aa2 – 4,839,268,214 Aa3 6,238,632,455 – A1 – 249,660 A3 – 1,653,715Amounts receivable on sales of investments Aa3 13,530,715 –Amounts receivable on subscription of shares Unrated 7,722,993 16,329,378

The Fund measures credit risk and expected credit losses using probability of default, exposure at default and loss given default. Management consider both historical analysis and forward looking information in determining any expected credit loss. At 31 December 2019 and 31 December 2018, all amounts receivable on sales of investments, amounts receivable on subscription of shares, dividends, interest receivable and other receivables, margin deposits and bank balances held with counterparties with a credit rating of A3 or higher and are due to be settled within 1 week. Management consider the probability of default to be close to zero as the counterparties have a strong capacity to meet their contractual obligations in the near term. As a result, no loss allowance has been recognised based on 12-month expected credit losses as any such impairment would be wholly insignificant to the Fund.

The maximum exposure to credit risk at the reporting date is the carrying amount of the financial assets as shown in the statement of financial position.





(c) Liquidity risk

The Fund issues Class P Shares, Class z Shares and Class A Shares. All shares are exposed to daily redemptions. The Manager may limit the total redemption on any dealing day to 10% of the Fund’s net assets.

The table below analyses the Fund’s financial liabilities based on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. The table below reflects captions of the statement of financial position items and shows how much of the net assets can be redeemed if the Manager does not exercise the 10% redemption gate.

Less than 3 month 2019 2018 US$ US$

Financial liabilities at fair value through profit or loss – Derivatives 4,435,352 5,899,775Amounts payable on purchases of investments 14,007,016 65,299,690Amounts payable on redemption of shares 28,770,514 23,833,242Management fee payable 7,954,488 6,248,428Distributions payable to redeemable participating shareholders 37,579,736 36,229,384Bank overdrafts 198,743,688 –Accruals and other payables 943,948 655,982Net assets attributable to redeemable participating shareholders 6,110,476,726 5,022,026,214

6,402,911,468 5,160,192,715

Disclosure is required whenever there is a master netting arrangement irrespective of whether any balances have actually been offset in accordance with IAS 32 “Financial Instruments: Presentation”. As at 31 December 2019, the Fund was subject to two (2018: three) passive hedging arrangements. The arrangement gives the Fund and the counterparts the legally enforceable right to set-off certain financial assets and liabilities.

The Fund and its counterparty have elected to settle all the financial assets and liabilities on a gross basis. Although, each party has the option to settle the financial assets and liabilities below on a net basis in the event of default of the other party. Accordingly, all the financial assets and liabilities has been recognised in the statement of financial position on a gross basis.





(c) Liquidity risk (Continued)

The following table presents the Fund’s financial assets and liabilities eligible to offsetting had the Fund elected to enforce the master netting agreement and similar agreements at the reporting date. The amount to be offset is limited to the absolute value of financial assets or financial liabilities within the same counterparty.

2019 2018 US$ US$Financial assetsCurrency forwards 11,532,975 3,066,857Margin deposits 5,761,304 15,744,788

Financial liabilitiesCurrency forwards (4,435,352) (5,899,775)

Net amount 12,858,927 12,911,870

As at 31 December 2019, margin deposits aggregated to US$1,255,013 (2018: US$4,746,744) was pledged as collateral for purchase of investments.

Capital management

The capital of the Fund is represented by the net assets attributable to unitholders which is subject to daily subscriptions and redemptions of redeemable units. The Fund’s objective for capital management is to provide returns and long-term capital growth for unitholders.

In order to maintain the capital structure, the Manager performs the following:

– Monitor subscriptions and redemptions activities relative to liquid assets;

– To protect the interest of unitholders and in exceptional circumstances, the Manager may limit the total number of units redeemed on any redemption day to 10% in aggregate of the total number of units in issue; and

– Monitor fund investment guidelines and restrictions, in accordance with the Explanatory Memorandum.





(c) Liquidity risk (Continued)

Capital management (Continued)

The markets in which the Fund invests may be relatively illiquid and the liquidity of these markets may fluctuate substantially over time. Investment of the Fund’s assets in relatively illiquid securities may restrict the ability of the Fund to dispose of its investments at a price and time that it wishes. The risk of illiquidity also arises in the case of over-the-counter transactions.

Below presents a list of investors who held more than 10% of the net assets of the Fund:

Investor % of net assets

As at 31 December 2019 Investor 1 11.14

As at 31 December 2018 Investor 1 18.47Investor 2 10.97

(d) Fair value estimation

The following table analyses within the fair value hierarchy the Fund’s financial assets and liabilities (by class) measured at fair value at the reporting date.

Level 1 Level 2 Level 3 Total US$ US$ US$ US$

As at 31 December 2019Financial assets at fair value throughprofitorlossListed equity securities 202,542,732 – 1,671,806* 204,214,538Unlisted equity securities – – 29,999,902 29,999,902Quoted debt securities – 5,083,272,473 165,661,290 5,248,933,763Unlisted investment funds – 273,565,549 50,000,000 323,565,549Unquoted debt securities – – 420,385,728 420,385,728Currency forwards – 11,532,975 – 11,532,975

202,542,732 5,368,370,997 667,718,726 6,238,632,455

Financial liabilities at fair value throughprofitorloss Currency forwards – (4,435,352) – (4,435,352)





(d) Fair value estimation (Continued)

Level 1 Level 2 Level 3 Total US$ US$ US$ US$

As at 31 December 2018Financial assets at fair value throughprofitorlossListed equity securities 139,429,063 1,487,779 – 140,916,842Quoted debt securities – 3,856,651,092 76,564,901 3,933,215,993Unlisted investment funds – 449,255,173 – 449,255,173Unquoted debt securities – – 314,716,724 314,716,724Currency forwards – 3,066,857 – 3,066,857

139,429,063 4,310,460,901 391,281,625 4,841,171,589

Financial liabilities at fair value throughprofitorloss Currency forwards – (5,899,775) – (5,899,775)

* Asat31December2019,listedequitysecuritiesincludeoneinvestment(2018:Nil)whosetradingwassuspended.

Investments whose values are based on quoted market prices or broker quotes in active markets, and therefore classified within level 1, include listed equity securities. The Fund does not adjust the quoted price for these instruments.

Financial instruments that trade in markets that are not considered to be active and are valued based on quoted market prices or broker quotes, or financial instruments for which there is no active market and are valued based on valuation models supported by observable inputs are classified within level 2.

Investments classified within level 3 have significant unobservable inputs, which are valued using model or based on quotes where no trade has been observed. Such investments are usually valued based on quotation provided by relevant market maker but no transaction has been observed. The level 3 debt securities that amounts to US$586,047,018 (2018: US$391,281,625) consists of defaulted debt securities, single broker quote debt securities and unquoted debt securities. The issuers of those defaulted debt securities failed to promptly make interest payment when due.






The table below summarises the key unobservable inputs adopted by the Manager in determining the fair value. Fair value Valuation technique Unobservable inputs US$

As at 31 December 2019Listed equity security 1,671,806 Last transacted price –Unlisted equity securities 29,999,902 Last transacted price –Defaulted debt securities 29,290,691 Quoted price –Single quoted debt securities 136,370,599 Quoted price –Unlisted investment funds 50,000,000 Net asset value per unit –Unquoted debt securities 420,385,728 Last transacted price – from over-the- counter market

As at 31 December 2018 Defaulted debt securities 5,971,332 Quoted price –Single quoted debt securities 70,593,569 Quoted price –Unquoted debt securities 314,716,724 Last transacted price – from over-the- counter market

Valuation techniques use observable data, to the extent practicable. However, areas such as credit risk (both own and counterparty), volatilities and correlations require management to make estimates. Changes in assumptions about these factors could affect the reported fair value of financial instruments. The sensitivity to unobservable inputs is based on management’s expectation of reasonable possible shifts in these inputs, taking into consideration historical volatility and estimations of future market movements.

The determination of what constitutes ‘observable’ requires significant judgement by the Board of Directors. The Board of Directors considers observable data to be market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The estimates and assumptions made have a significant risk of causing a material adjustment to the carrying amounts of the investments.

The Fund uses its judgement to select the appropriate methods and make assumptions based on market conditions existing at the end of each reporting period. The Manager considers that changes in the inputs to the valuation models would not have a significant effect on the net asset value of the Fund. No quantitative analysis has been presented.






The following table presents the transfers between levels for the year ended 31 December 2019 and 31 December 2018.

Level 1 Level 2 Level 3 US$ US$ US$ 2019Transfer from level 1 to 3 (2,140,105) – 2,140,105Transfer from level 2 to 3 – (13,528,128) 13,528,128Transfer from level 3 to 2 – 5,883 (5,883) 2018 Transfer from level 3 to 2 – 91,099,070 (91,099,070)Transfer from level 2 to 3 – (20,555,214) 20,555,214

The following tables present the movement in level 3 investments for the year. Transfers between levels of the fair value hierarchy are deemed to have occurred at the beginning of the reporting period.

2019 2018 US$ US$

Opening balance 391,281,625 320,888,249Purchase 523,779,225 358,040,310Sales (271,451,099) (201,034,999)Transfer from level 1 to 3 2,140,105 –Transfer from level 2 to 3 13,528,128 20,555,214Transfer from level 3 to 2 (5,883) (91,099,070)Gains/(losses) recognised in profit and loss 8,446,625 (16,068,079)

Closing balance 667,718,726 391,281,625

Changes in unrealised gains/losses for the year included in the statement of comprehensive income for investments held at the end of the year 6,148,264 (12,930,596)

Other assets and liabilities are carried at amortised cost and their carrying values are a reasonable approximation of fair value.





(e) Derivativefinancialinstruments

The Fund’s derivative financial instruments at the reporting date are detailed as follows:

Notional amount Fair value long/(short) Assets Liabilities US$ US$ As at 31 December 2019Counterparty A: Currency forwards AUD485,009,175 4,392,681 –Currency forwards CAD96,057,615 575,506 –Currency forwards CNH2,242,086,723 2,090,882 –Currency forwards EUR182,374,548 2,172,743 –Currency forwards GBP61,645,810 664,443 –Currency forwards NZD93,162,057 1,007,866 –Currency forwards SGD117,113,968 628,854 –Currency forwards (AUD2,229,951) – (18,790)Currency forwards (CAD1,259,777) – (6,696)Currency forwards (CNH1,000,000,000) – (3,608,269)Currency forwards (EUR1,905,833) – (16,702)Currency forwards (GBP107,245) – (1,149)Currency forwards (NZD2,342,596) – (20,848)Currency forwards (SGD668,717) – (3,651)

11,532,975 (3,676,105)

Counterparty B: Currency forwards (AUD29,000,000) – (618,625)Currency forwards (EUR18,000,000) – (140,622)

– (759,247)





(e) Derivativefinancialinstruments(Continued)

Notional amount Fair value long/(short) Assets Liabilities US$ US$ As at 31 December 2018Counterparty A: Currency forwards AUD241,290 411 –Currency forwards (AUD53,990) 165 –Currency forwards (CAD4,208) 9 –Currency forwards CNH495,008,877 82,133 –Currency forwards EUR150,000 523 –Currency forwards GBP49,233,725 329,428 –Currency forwards (NOK67,000,000) 424,503 –Currency forwards NZD1,000 – –Currency forwards (NZD38,034) 128 –Currency forwards SGD93,313,096 326,182 –Currency forwards (AUD947,774) – (1,608)Currency forwards AUD435,590,833 – (2,104,013)Currency forwards CAD80,930,152 – (542,286)Currency forwards (CNH200,000,000) – (358,434)Currency forwards EUR127,488,681 – (325,591)Currency forwards (EUR508,508) – (396)Currency forwards (GBP126,276) – (976)Currency forwards (NZD31,932) – (14)Currency forwards NZD72,274,492 – (493,428)

1,163,482 (3,826,746)

Counterparty B: Currency forwards (AUD99,000,000) 415,193 –Currency forwards (GBP24,490,000) 1,238,522 –Currency forwards AUD70,000,000 – (1,543,115)

1,653,715 (1,543,115)





(e) Derivativefinancialinstruments(Continued)

Notional amount Fair value long/(short) Assets Liabilities US$ US$ As at 31 December 2018 (Continued)Counterparty C: Currency forwards (EUR18,000,000) 249,660 –Currency forwards (KRW50,050,000,000) – (529,914)

249,660 (529,914)

5 INVESTMENTS IN UNCONSOLIDATED STRUCTURED ENTITIES

Unconsolidated structured entities consist of investments in investee funds which are subject to the terms and conditions of the respective investee funds’ offering documents and are susceptible to market price risk arising from uncertainties about future values of those structured entities. The Manager makes investment decisions after extensive due diligence of the underlying fund, its strategy and the overall quality of the underlying fund’s manager.

The Fund’s holding in investee funds, as a percentage of the respective structured entity’s total net asset value, will vary from time to time dependent on the volume of subscriptions and redemptions at structured entities level. It is possible that the Fund may, at any point in time, hold a majority of a structured entity’s total shares in issue.




5 INVESTMENTS IN UNCONSOLIDATED STRUCTURED ENTITIES (Continued)

The table below summaries the Fund’s holdings in Investee Funds as at the reporting date:

% of Ownership Place of DealingInvestee funds Fund manager 2019 2018 Incorporation Frequency

Nomura Cross Asset Nomura Alternative – 21.90% Ireland Daily* Momentum UCITS Fund Investment Management (Europe) LimitedValue Partners Fixed Income Value Partners 95.18% 58.00% Cayman Islands Quarterly SPC – Value Partners Credit Hong Kong Opportunities Fund SP Limited Value Partners Greater China Value Partner 6.25% 29.93% Cayman Islands Daily* Preference Shares Income Hong Kong Funds LimitedValue Partners Ireland Fund Value Partners 77.33% 79.66% Ireland Daily*ß

ICAV – Value Partners Hong Kong Global Emerging Market Limited Bond FundValue Partners Ireland Fund Value Partners – 39.13% Ireland Daily*ß

ICAV – Value Partners Hong Kong Global Emerging Market Limited Equity FundValue Partners Ireland Fund Value Partners – 46.97% Ireland Daily*ß

ICAV – Value Partners Asia Hong Kong ex-Japan Equity Fund LimitedHSBC Global Liquidity Funds HSBC Global – 0.56% Ireland Daily* plc – US Dollar Liquidity Asset Management Fund (USA) Inc.Value Partners Fund Series – Value Partners 49.72% 46.94% Hong Kong Daily* Value Partners Asian Total Hong Kong Return Bond Fund Limited Value Partners Asia Principal Value Partners 57.93% – Cayman Islands Quarterly Credit Fund Limited Private Equity Fund PartnershipICBC Investment Funds SPC ICBC Assets Management – 12.69% Cayman Islands Daily* – ICBC USD Enhanced (Global) Company Liquidity Fund Limited

* The manager of the Investee Funds also has the ability to limit daily redemptions and withhold the requested amount Under extraordinary circumstances, the Manager of the Investee Funds also has the ability to suspend redemptions.

ß On 8 May 2019, Value Partners Ireland Fund plc’s name was changed to Value Partners Ireland Fund ICAV.





Movements in the fair value of the investee funds’ portfolio and corresponding movements in the fair value of the investee funds may expose the Fund to a loss. The Fund’s maximum exposure to loss from its interests in structured entities is equal to the total fair value of its investments in structured entities. Once the Fund has disposed of its shares/units in a structured entity, the Fund ceases to be exposed to any risk from that structured entity.

The exposure to investments in investee funds at fair value is disclosed in the following table. These investments are included in financial assets at fair value through profit or loss in the statement of financial position.

% of Fair value net assets US$

As at 31 December 2019Value Partners Asia Principal Credit Fund Limited Partnership 50,000,000 0.82Value Partners Fixed Income SPC – Value Partners Credit Opportunities Fund SP Class X Acc USD 126,598,524 2.07Value Partners Fixed Income SPC – Value Partners Credit Opportunities Fund SP Class Z Acc USD 10,194,073 0.17Value Partners Fund Series – Value Partners Asian Total Return Bond Fund Class X Acc USD Unhedged 81,232,087 1.33Value Partners Greater China Preference Shares Income Fund Class X Dist USD Unhedged 5,114,361 0.08Value Partners Ireland Fund ICAV-Value Partners Global Emerging Market Bond Fund USD Class X Acc 50,426,504 0.83

323,565,549 5.30






As at 31 December 2018HSBC Global Liquidity Funds plc – US Dollar Liquidity Fund Class F 180,833,116 3.60ICBC Investment Funds SPC – ICBC USD Enhanced Liquidity Fund SP Class A (Accumulation) Shares 20,106,701 0.40Nomura Cross Asset Momentum UCITS Fund 47,432,015 0.94Value Partners Ireland Fund plc – Value Partners Asia ex-Japan Equity Fund Class V USD Unhedged MDis Units 467,000 0.01Value Partners Ireland Fund plc – Value Partners Asia ex-Japan Equity Fund Class V GBP Hedgd Acc Units 456,101 0.01Value Partners Ireland Fund plc – Value Partners Asia ex-Japan Equity Fund Class V GBP Hedged MDis Units 456,101 0.01Value Partners Ireland Fund plc – Value Partners Asia ex-Japan Equity Fund Class V SGD Hedged Acc Units 467,986 0.01Value Partners Ireland Fund plc – Value Partners Asia ex-Japan Equity Fund Class V SGD Hedged MDis Units 467,986 0.01Value Partners Ireland Fund plc – Value Partners Asia ex-Japan Equity Fund Class V USD Unhedged Acc Units 467,000 0.01Value Partners Ireland Fund plc – Value Partners Asia ex-Japan Equity Fund Class X USD Unhedged Acc Units 6,545,000 0.13Value Partners Ireland Fund plc – Value Partners Global Emerging Market Equity Fund US Dollar Class V 9,510,000 0.19Value Partners Ireland Fund plc-Value Partners Global Emerging Market Bond Fund USD Class X Acc 39,666,148 0.79Value Partners Fund Series – Value Partners Asian Total Return Bond Fund Class A AUD MDis Hedged 4,579 0.00Value Partners Fund Series – Value Partners Asian Total Return Bond Fund Class A CAD MDis Hedged 4,635 0.00Value Partners Fund Series – Value Partners Asian Total Return Bond Fund Class A CNY MDis Hedged 4,577 0.00Value Partners Fund Series – Value Partners Asian Total Return Bond Fund Class A CNY MDis Unhedged 4,985 0.00Value Partners Fund Series – Value Partners Asian Total Return Bond Fund Class A HKD Acc Unhedged 4,982 0.00Value Partners Fund Series – Value Partners Asian Total Return Bond Fund Class A HKD MDis Unhedged 4,978 0.00






As at 31 December 2018 (Continued)Value Partners Fund Series – Value Partners Asian Total Return Bond Fund Class A NZD MDis Hedged 4,566 0.00Value Partners Fund Series – Value Partners Asian Total Return Bond Fund Class A USD Acc Unhedged 4,980 0.00Value Partners Fund Series – Value Partners Asian Total Return Bond Fund Class A USD MDis Unhedged 4,981 0.00Value Partners Fund Series – Value Partners Asian Total Return Bond Fund Class X USD Acc Unhedged 25,104,282 0.50Value Partners Fixed Income SPC – Value Partners Credit Opportunities Fund SP Class X ACC USD Unhedged 75,769,216 1.50Value Partners Greater China Preference Shares Income Fund Class X Dist USD Unhedged 41,463,258 0.83

449,255,173 8.94

Total purchases and total sales in structured entities during the year ended 31 December 2019 were US$130,000,000 (2018: US$240,837,242) and US$319,065,301 (2018: US$16,076,076) respectively. As at 31 December 2019, there were no capital commitment obligations and no amounts due to structured entities for unsettled purchases.

During the year ended 31 December 2019, total net gain of US$12,649,558 (2018: US$356,596) was incurred on investments in Investee Funds.




6 SHARE CAPITAL

The authorised share capital of the Fund is US$5,000,000 divided into 100 administrative shares of a nominal or par value of US$1.00 each and 4,999,900,000 redeemable participating shares of a nominal or par value of US$0.001.

Administrative shares

Number of shares Share capital Total US$ US$

As at 1 January 2018, 31 December 2018 and 31 December 2019 100 100 100

Each administrative share carries one vote. Except when there are no redeemable participating shares in issue and outstanding, the administrative shares do not carry any right to vote. Administrative shares are not entitled to dividends. In the case of winding up of the Fund, administrative shares carry the right to receive the nominal amount paid up thereon after repayment of the nominal amount of the redeemable participating shares. The administrative shares are held by the Manager.

Redeemable participating shares

The redeemable participating shares are issued in different classes. Class z Shares are offered primarily for investment by institutional and/or professional investors. RMB Shares are only offered for investment by professional investors. The management fees charged to Class P Shares, Class z Shares, Class A Shares and RMB Shares are different as disclosed in note 7(a). Class P Shares, Class z Shares, Class A Shares and RMB Shares are subject to daily redemptions.

The Fund may enter into certain currency related transactions in order to hedge the currency exposure of the assets of the Fund attributable to a particular class into the class currency of the relevant class. Any financial instruments used to implement such strategies with respect to one or more classes shall be assets/liabilities of the Fund as a whole but will be attributable to the relevant classes and the gains/losses on and the costs of the relevant financial instruments will accrue solely to the relevant class.

All issued redeemable participating shares are fully paid. The Fund’s redeemable participating shares are subject to a minimum holding and minimum subscription amount. The Manager has the discretion to waive the requirement for a minimum holding and/or minimum redemption amount of redeemable participating shares (in whole or in part), whether generally or in a particular case.




6 SHARE CAPITAL (Continued)

Redeemable participating shares (Continued)

The Fund offers classes of redeemable participating share that accumulate income or pay regular dividends out of net current income or on occasion make payments out of capital. The Manager currently does not aim to pay dividends with respect to Class P Acc Shares, Class z Acc Shares and Class A Acc Shares (collectively referred to as “Accumulation Classes”). Therefore, any net income and net realised profits attributable to the participating shares of the Accumulation Classes will be reflected in their respective Net Asset Values.

For Class P MDis Shares, Class z MDis Shares and Class A MDis Shares (collectively referred to as the “Distribution Classes”), the Manager aims to declare and pay monthly dividends equal to all or substantially all of the net income attributable to each of the Distribution Classes.

There is neither a guarantee that such dividends will be made nor will there be a target level of dividend payout. Dividends will be declared on the last business day of each calendar month or on such date as may be determined by the Manager, or such other time or frequency as the Manager considers appropriate. The Manager will also have the discretion to determine if and to what extent dividends paid include realised capital gains and/or are paid out of share premium attributable to the relevant Distribution Class.

The dividends paid during the year amounted to US$506,489,690 (2018: US$435,536,913) and are presented as finance cost, the dividend payable as at the reporting date was US$37,579,736 (2018: US$36,229,384).

In the case of winding up of the Fund, redeemable participating shares carry the right to receive the nominal amount paid up thereon and, after repayment of the nominal amount of the administrative shares, any balance then remaining.

The movement of number of shares in issue during the year was as follows:

Class PNumber of shares USD Acc USD MDis HKD Acc HKD MDis As at 1 January 2019 13,723,470 196,293,148 23,104,355 2,283,326,397Issue of shares 21,719,678 170,911,990 98,560,530 1,197,379,330Redemption of shares (20,917,812) (131,528,385) (38,445,984) (1,313,703,009)

As at 31 December 2019 14,525,336 235,676,753 83,218,901 2,167,002,718

As at 1 January 2018 9,255,964 174,446,642 18,623,859 1,664,081,894Issue of shares 12,523,581 183,838,131 15,361,531 1,676,970,847Redemption of shares (8,056,075) (161,991,625) (10,881,035) (1,057,726,344)

As at 31 December 2018 13,723,470 196,293,148 23,104,355 2,283,326,397






Class P Class A SGD Hedged AUD Hedged CAD Hedged EUR AccNumber of shares MDis MDis MDis Hedged As at 1 January 2019 10,657,783 54,894,690 10,096,456 863,857Issue of shares 5,088,240 32,851,082 6,271,063 9,277,145Redemption of shares (2,393,743) (26,114,787) (4,459,341) (2,611,286)

As at 31 December 2019 13,352,280 61,630,985 11,908,178 7,529,716

As at 1 January 2018 5,847,763 48,555,505 9,436,598 –Issue of shares 5,516,097 42,880,874 7,922,713 942,858Redemption of shares (706,077) (36,541,689) (7,262,855) (79,001)

As at 31 December 2018 10,657,783 54,894,690 10,096,456 863,857

Class A EUR Hedged GBP Hedged NZD Hedged MDis RMBNumber of shares MDis MDis MDis Hedged

As at 1 January 2019 13,763,311 5,994,015 8,736,650 47,013,749Issue of shares 3,000,002 4,401,728 7,770,243 67,434,857Redemption of shares (4,784,727) (2,874,929) (5,374,677) (14,574,361)

As at 31 December 2019 11,978,586 7,520,814 11,132,216 99,874,245

As at 1 January 2018 3,853,696 3,507,042 10,071,159 37,439,711Issue of shares 13,969,785 3,526,382 6,596,238 21,321,043Redemption of shares (4,060,170) (1,039,409) (7,930,747) (11,747,005)

As at 31 December 2018 13,763,311 5,994,015 8,736,650 47,013,749






Class A MDis RMB Acc RMB Acc RMBNumber of shares Unhedged Hedged Unhedged As at 1 January 2019 4,120,500 4,978,451 750,000Issue of shares 87,416 100,071,027 –Redemption of shares (1,993,506) (13,738,921) –

As at 31 December 2019 2,214,410 91,310,557 750,000

As at 1 January 2018 5,584,153 1,039,846 750,000Issue of shares 4,284,036 3,938,605 –Redemption of shares (5,747,689) – –

As at 31 December 2018 4,120,500 4,978,451 750,000

Class zNumber of shares USD MDis USD Acc As at 1 January 2019 6,352,734 2,059,414Issue of shares 33,451,436 16,902,285Redemption of shares (6,761,747) (10,990,216)

As at 31 December 2019 33,042,423 7,971,483

As at 1 January 2018 2,041,381 2,205,193Issue of shares 6,975,011 11,154,025Redemption of shares (2,663,658) (11,299,804)

As at 31 December 2018 6,352,734 2,059,414






The year-end prices of shares as of 31 December are as follows:

2019 2018

Net asset value per sharesClass P USD Acc Shares USD16.28 USD14.88Class P USD MDis Shares USD8.03 USD8.03Class P HKD Acc Shares HKD16.21 HKD14.90Class P HKD MDis Shares HKD8.02 HKD8.05Class P SGD Hedged MDis Shares SGD8.71 SGD8.73Class A AUD Hedged MDis Shares AUD7.83 AUD7.89Class A CAD Hedged MDis Shares CAD7.95 CAD7.97Class A EUR Hedged Acc Shares EUR10.38 EUR9.78Class A EUR Hedged MDis Shares EUR8.57 EUR8.60Class A GBP Hedged MDis Shares GBP8.17 GBP8.21Class A NZD Hedged MDis Shares NZD8.17 NZD8.22Class A MDis RMB Hedged Shares RMB8.99 RMB9.04Class A MDis RMB Unhedged Shares RMB9.21 RMB9.07Class A Acc RMB Hedged Shares RMB14.81 RMB13.54Class A Acc RMB Unhedged Shares RMB14.63 RMB13.21Class z USD MDis Shares USD8.96 USD8.92Class z USD Acc Shares USD13.92 USD12.66

7 RELATED PARTY TRANSACTIONS/TRANSACTIONS WITH THEMANAGER, THE CUSTODIAN AND THEIR CONNECTED PERSONS

The following is a summary of significant related party transactions and transactions with the Manager, the Custodian and their connected persons. All such transactions were entered into in the ordinary course of business and on normal commercial terms.

(a) Management fee

The Manager is entitled to receive a management fee which represents 1.0% per annum of the net asset value of the Fund attributable to Class z Shares and 1.5% per annum of the net asset value of the Fund attributable to Class P Shares and Class A Shares. The management fee is calculated and accrued daily and payable monthly in arrears.




7 RELATED PARTY TRANSACTIONS/TRANSACTIONS WITH THEMANAGER, THE CUSTODIAN AND THEIR CONNECTED PERSONS (Continued)

(b) Administration and custody fees

The Administrator and Custodian are entitled to receive administration and custody fees which represent 0.17% per annum on the first US$400 million of the net asset value of the Fund, 0.15% per annum on the next US$400 million of the net asset value of the Fund and 0.13% per annum thereafter, subject to a monthly minimum fee of US$5,000 per month.

The administration and custody fees are calculated daily and accrued monthly and payable monthly in arrears.

(c) Directors’fees/refund

There was a refund of US$5,767 from directors’ for the year ended 31 December 2019 (2018: directors’ fees expenses of US$6,831).

(d) The Manager and its related parties’ holdings in the Fund

The Manager held 100 administrative shares of the Fund as at 31 December 2019 and 2018.

The Manager and its related parties held shares of Fund as follows:

As at Issue Redemption As at 1 January of shares of shares 31 December Year 2019 Class P USD Acc Shares Director of the Manager – 248,756 – 248,756

Class P USD MDis Shares Bright Starlight Limited* 291,715 – – 291,715

Class P HKD MDis Shares Director of the Manager – 2,912,020 – 2,912,020

* BrightStarlightLimitedisindirectlybutwholly-ownedbyacompanyincorporatedintheBritishVirginIslands,asthetrusteeforadiscretionarytrust,thediscretionaryobjectsofwhichincludecertainmembersofthefamilyofadirectorof the Manager’s parent company.





(d) The Manager and its related parties’ holdings in the Fund (Continued)

As at Issue Redemption As at 1 January of shares of shares 31 December Year 2018

Class P USD MDis Shares Bright Starlight Limited* – 291,715 – 291,715

* BrightStarlightLimitedisindirectlybutwholly-ownedbyacompanyincorporatedintheBritishVirginIslands,asthetrusteeforadiscretionarytrust,thediscretionaryobjectsofwhichincludecertainmembersofthefamilyofadirectorof the Manager’s parent company.

(e) Preliminary charges

The Manager is entitled to receive a preliminary charge on issue of shares which represents up to 3% of the subscription price for Class z Shares and up to 5% of the subscription price for Class P Shares, Class A Shares and RMB Shares. For the year ended 31 December 2019, total preliminary charges on issue of participating shares, amounting to US$12,583,424 (2018: US$12,331,340) were received by the Manager. The preliminary charges are not reflected in the financial statements of the Fund.

(f) Investment in fund managed by the Manager

During the year and as of 31 December 2019 and 2018, the Fund invested in other funds, which are also managed by the Manager and its related party. Refer to Note 5 for further details.

In accordance with the investee fund’s Private Placing Memorandum, no management fee is charged to the share class that the Fund has invested in.

(g) CrosstradeswithfundsmanagedbytheManagerand/oritsassociates

During the year ended 31 December 2019 and 2018, the Fund has transacted with other funds which are also managed by the Manager and/or its associates. The Fund purchased and sold investments amounting to US$88,710,655 and US$51,181,046 respectively (2018: US$2,754,580 and US$nil respectively) from such funds. The transactions were carried out at fair value of the investments on the date of the transactions.





(h) Other transactions and balances with the Custodian and its related parties

In addition to the administration and custodian fees of US$9,260,020 (2018: US$7,659,549), as disclosed in Note 7(b), the Fund had the following additional transactions with the Custodian and its related parties which also serve as a distributor of the Fund and nominees for the Fund’s investors. All such transactions were entered into in the ordinary course of business and were on normal commercial terms.

2019 2018 US$ US$

Interest income 2,588,802 905,899Transaction costs* (97,344) (242,696)Safe custody and bank charges (737,796) (525,265)Company secretary and registered office fees (6,500) (6,500)Annual service fees (16,923) –Interest expenses (3,203,053) (187,602)

* The Fund paid commission to a related parties of the Custodian for the purchases and sales of investments. The total aggregate value and the average commission rate of these transactions for the year ended 31 December 2019 areUS$8,466,504and0.18%respectively(2018:US$93,647,754and0.20%respectively).Fortheyearended31December2019,thesetransactionsrepresent0.05%(2018:0.82%)ofthetotalpurchasesandsalesofinvestmentsof the Fund.

In addition to the administration and custodian fees payable of US$726,285 (2018: US$565,246), as disclosed in Note 7(b), the Fund had the following additional balances with the Custodian and its related parties.

2019 2018 US$ US$ Bank balances 39,252,535 135,257,793Bank overdrafts (198,743,688) –Interest income receivable 2,123 18,956Transaction costs payable (6,067) (2,509)Company secretary and registered office fees payable (1,625) (1,625)Interest expense payable (23,280) (2,527)




8 TAXATION

(a) Cayman Islands

The Fund has obtained an undertaking from the Governor-in-Council of the Cayman Islands that, in accordance with Section 6 of the Tax Concessions Law (2011 Revision) of the Cayman Islands, for a period of 20 years from 3 February 2012, no laws thereafter enacted in the Cayman Islands imposing any tax or duty on income, capital assets, gains or appreciations will apply to the Fund.

(b) Hong Kong

No provision for Hong Kong profits tax has been made as the dividend and interest income and realised gains on sale of investments of the Fund are excluded from the charge to profits tax under Section 14, 26 or 26A of the Hong Kong Inland Revenue Ordinance.

(c) Other jurisdictions

Overseas withholding tax was charged on certain dividend and investment income received during the years ended 31 December 2019 and 2018.

9 DISTRIBUTION TO REDEEMABLE PARTICIPATING SHAREHOLDERS

In accordance with the Explanatory Memorandum of the Fund, the Manager may determine to make a distribution out of the income and/or capital. During the year ended 31 December 2019, the Fund declared total distributions to redeemable participating shareholders of US$506,489,690 (2018: US$435,536,913).

The table below summarises the dividend distribution made during the reporting period.

Classes 2019 2018 Frequency Ex-dividend dates*

Class P USD MDis Shares USD0.0621 USD0.0632 Monthly Last business day of JanuaryClass P USD MDis Shares USD0.0621 USD0.0621 Monthly Last business day of February to SeptemberClass P USD MDis Shares USD0.0573 USD0.0621 Monthly Last business day of October to DecemberClass P HKD MDis Shares HKD0.0622 HKD0.0632 Monthly Last business day of JanuaryClass P HKD MDis Shares HKD0.0622 HKD0.0622 Monthly Last business day of February to SeptemberClass P HKD MDis Shares HKD0.0576 HKD0.0622 Monthly Last business day of October to DecemberClass P SGD Hedged MDis Shares SGD0.0630 SGD0.0649 Monthly Last business day of January to MarchClass P SGD Hedged MDis Shares SGD0.0625 SGD0.0649 Monthly Last business day of April to MayClass P SGD Hedged MDis Shares SGD0.0625 SGD0.0630 Monthly Last business day of June to SeptemberClass P SGD Hedged MDis Shares SGD0.0604 SGD0.0630 Monthly Last business day of October to DecemberClass A AUD Hedged MDis Shares AUD0.0609 AUD0.0705 Monthly Last business day of JanuaryClass A AUD Hedged MDis Shares AUD0.0609 AUD0.0652 Monthly Last business day of February to MarchClass A AUD Hedged MDis Shares AUD0.0578 AUD0.0652 Monthly Last business day of April to MayClass A AUD Hedged MDis Shares AUD0.0578 AUD0.0609 Monthly Last business day of June to SeptemberClass A AUD Hedged MDis Shares AUD0.0527 AUD0.0609 Monthly Last business day of October to December




9 DISTRIBUTION TO REDEEMABLE PARTICIPATING SHAREHOLDERS (Continued)

Classes 2019 2018 Frequency Ex-dividend dates*

Class A CAD Hedged MDis Shares CAD0.0595 CAD0.0622 Monthly Last business day of January to MarchClass A CAD Hedged MDis Shares CAD0.0571 CAD0.0622 Monthly Last business day of April to MayClass A CAD Hedged MDis Shares CAD0.0571 CAD0.0595 Monthly Last business day of June to SeptemberClass A CAD Hedged MDis Shares CAD0.0551 CAD0.0595 Monthly Last business day of October to DecemberClass A EUR Hedged MDis Shares EUR0.0482 EUR0.0575 Monthly Last business day of January to MarchClass A EUR Hedged MDis Shares EUR0.0450 EUR0.0575 Monthly Last business day of April to MayClass A EUR Hedged MDis Shares EUR0.0450 EUR0.0482 Monthly Last business day of June to SeptemberClass A EUR Hedged MDis Shares EUR0.0431 EUR0.0482 Monthly Last business day of October to DecemberClass A GBP Hedged MDis Shares GBP0.0576 GBP0.0606 Monthly Last business day of January to MarchClass A GBP Hedged MDis Shares GBP0.0522 GBP0.0606 Monthly Last business day of April to MayClass A GBP Hedged MDis Shares GBP0.0522 GBP0.0576 Monthly Last business day of June to SeptemberClass A GBP Hedged MDis Shares GBP0.0497 GBP0.0576 Monthly Last business day of October to DecemberClass A NZD Hedged MDis Shares NZD0.0652 NZD0.0720 Monthly Last business day of January to MarchClass A NZD Hedged MDis Shares NZD0.0602 NZD0.0720 Monthly Last business day of April to MayClass A NZD Hedged MDis Shares NZD0.0602 NZD0.0652 Monthly Last business day of June to SeptemberClass A NZD Hedged MDis Shares NZD0.0549 NZD0.0652 Monthly Last business day of October to DecemberClass A MDis RMB Hedged Shares RMB0.0829 RMB0.0783 Monthly Last business day of JanuaryClass A MDis RMB Hedged Shares RMB0.0829 RMB0.0829 Monthly Last business day of February to MarchClass A MDis RMB Hedged Shares RMB0.0716 RMB0.0829 Monthly Last business day of April to SeptemberClass A MDis RMB Hedged Shares RMB0.0691 RMB0.0829 Monthly Last business day of October to DecemberClass A MDis RMB Unhedged Shares RMB0.0640 RMB0.0778 Monthly Last business day of JanuaryClass A MDis RMB Unhedged Shares RMB0.0640 RMB0.0640 Monthly Last business day of February to MarchClass A MDis RMB Unhedged Shares RMB0.0701 RMB0.0640 Monthly Last business day of April to SeptemberClass A MDis RMB Unhedged Shares RMB0.0666 RMB0.0640 Monthly Last business day of October to DecemberClass z USD MDis Shares USD0.0698 – Monthly Last business day of January to JuneClass z USD MDis Shares USD0.0698 USD0.0698 Monthly Last business day of July to SeptemberClass z USD MDis Shares USD0.0639 USD0.0698 Monthly Last business day of October to December

* Lastbusinessdayofeachmonthin2019are31January2019,28February2019,29March2019,30April2019,31May2019,28June2019,31July2019,30August2019,30September2019,31October2019,29November2019and 31 December 2019.

Lastbusinessdayofeachmonthin2018are31January2018,28February2018,29March2018,30April2018,31May2018,29June2018,31July2018,31August2018,28September2018,31October2018,30November2018and 31 December 2018.




10 SOFT COMMISSION ARRANGEMENTS

The Manager and/or any company associated with it and its delegates may enter into soft dollars/ commission sharing arrangements with brokers through which brokerage transactions are entered on behalf of clients under management. The Manager may receive, and are entitled to retain, research products and services (known as soft dollar benefits) which are of demonstrable benefit to the Sub-fund (as may be permitted under applicable rules and regulations) from brokers and other persons through whom investment transactions are carried out (the “brokers”). Soft dollars may be received from them provided that the quality of transaction execution is consistent with best execution standards and brokerage rates are not in excess of the customary full-service brokerage rates.

Such soft dollar benefits may include research and advisory services; economic and political analysis; portfolio analysis, including valuation and performance measurement; market analysis, data and quotation services and software incidental to the above goods and services; clearing and custodian services and investment related publications. For the avoidance of doubt, soft dollar benefits do not include travel, accommodation, entertainment, general administrative goods and services, general office equipment or premises, membership fees, employee salaries or direct money payments.

The Manager will consider many judgemental factors deemed relevant in determining whether a broker will provide best execution. In general, investment orders will be allocated to brokers based on the range and overall quality of services offered by the broker. The core factors in determining the quality of services are the execution performance and capability of the broker. Other factors, such as the quality and quantity of research and investment ideas offered, access to potential investee companies and commission rate charges, would also be taken into consideration. Soft dollar benefits received from brokers should not be a determinant factor on allocating orders among brokers. The Manager has implemented policies and procedures to ensure that transactions executed with brokers pursuant to a soft dollar commission sharing arrangement are conducted in the best execution standard. Soft dollars benefits received by the Manager are used to facilitate in the Manager’s investment management process, such benefits assist the Manager in fulfilling its overall duty to clients and may be used in servicing any or all of the Manager’s client accounts over which the Manager exercises investment discretion. The Manager does not usually attempt to allocate/ attribute the soft dollar benefits to individual client account, as goods and services obtained may be beneficial to all clients in general, including those client accounts that do not generate credit to acquire the soft dollar benefits.




11 SUBSEQUENT EVENT

In March 2020, the World Health Organisation (WHO) recognised the Coronavirus (“COVID-19”) outbreak as a Global Pandemic. This has resulted in significant market volatility and declines in global markets and disruptions to commerce and travel. All of the Fund’s investments are subject to market fluctuations and risks inherent in them and may be adversely affected by the COVID-19 outbreak. As at 31 December 2019, the total fair value of the Fund’s investments amounted to US$6,234,197,103 (Note 4(d)), of which Level 3 investments amounted to US$667,718,726. Subsequent to 31 December 2019, the Fund has experienced a reduction in the net asset value. The duration of this outbreak remains unknown as of the date of issuance of these financial statements. Management will continue to monitor the development of the COVID-19 outbreak and assess the impact as the situation evolves.

12 APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved by the directors on 23 April 2020.



INVESTMENT PORTFOLIO (UNAUDITED)AS AT 31 DECEMBER 2019

% of Holdings Fair value net assets US$ FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS Listed equity securities Australia Paladin Energy Ltd 140,205,164 9,723,852 0.16

Hong Kong - H Shares Guangzhou R&F Properties Co Ltd H SHARES 6,580,800 12,152,316 0.20Times Neighborhood Holdings Ltd 1,153,846 718,639 0.01

12,870,955 0.21

Hong Kong - Others Alibaba Group Holding Ltd 1,933,120 51,436,336 0.84CIFI Holdings Group Co Ltd 8,000,000 6,770,128 0.11Honghua Group Ltd 50,986,000 3,470,150 0.06Mongolian Mining Corp 16,769,361 1,399,753 0.02Ronshine China Holdings Ltd 4,500,000 6,229,493 0.10Shenzhou International Group Holdings Ltd 1,950,000 28,521,988 0.47Times China Holdings Ltd 3,000,000 5,986,786 0.10

103,814,634 1.70

Indonesia Bumi Resources Tbk PT 207,711,405 987,499 0.01MNC Studios International Tbk PT 398,500,000 11,482,076 0.19

12,469,575 0.20

Singapore Noble Group Ltd* 36,000,000 1,671,806 0.03



INVESTMENT PORTFOLIO (UNAUDITED) (Continued)AS AT 31 DECEMBER 2019

% of Holdings Fair value net assets US$ FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)

Listed equity securities (Continued) The United States of America Alibaba Group Holding Ltd ADR 147,590 31,303,839 0.51AMTD International Inc ADR 2,034,551 18,026,122 0.30Trip.com Group Ltd ADR 427,363 14,333,755 0.23

63,663,716 1.04

Unlisted equity securities

Hong Kong – Others Lenovo Enterprise Technology Company Limited Pfd 123,287 17,999,902 0.29

The United States of America AMTD International Inc. Class A ordinary 1,666,666 12,000,000 0.20

Quoted debt securities

Argentina Stoneway Capital Corp 10% 3/1/2027 31,500,000 18,937,200 0.31

Australia Paladin Energy Ltd 10% 1/25/2023 38,644,000 30,632,442 0.50Pilgangoora Operations Pty Ltd 12% 6/21/2022 5,200,000 5,538,017 0.09

36,170,459 0.59

Brazil Odebrecht Offshore Drilling Finance Ltd 7.72% 12/1/2026 13,102,774 3,292,727 0.05Oi SA 10% 7/27/2025 27,498,000 25,989,338 0.43

29,282,065 0.48





Quoted debt securities (Continued) Cayman Islands Pearl Holding III Ltd 9.5% 12/11/2022 20,800,000 12,088,602 0.20

China 21Vianet Group Inc 7.875% 10/15/2021 9,000,000 9,150,345 0.15Agile Group Holdings Ltd 7.875% PERP 8,200,000 8,537,871 0.14Alaer Tongzhong State-owned Assets Management Co Ltd 6.95% 4/11/2022 20,000,000 3,019,624 0.05Anton Oilfield Services Group/Hong Kong 9.75% 12/5/2020 13,340,000 13,834,136 0.23Baoxin Auto Finance I Ltd 7.9% 2/9/2020 2,100,000 2,133,605 0.04Beijing Originwater Technology Co Ltd 4.83% 3/6/2020 50,000,000 7,416,669 0.12Beijing Originwater Technology Co Ltd 5.28% 11/3/2020 50,000,000 6,877,551 0.11CAR Inc 6% 2/11/2021 1,000,000 949,353 0.02CAR Inc 6.125% 2/4/2020 5,300,000 5,392,805 0.09CAR Inc 8.875% 5/10/2022 14,000,000 13,088,361 0.21Central China Real Estate Ltd 6.75% 11/8/2021 3,500,000 3,528,131 0.06Central China Real Estate Ltd 6.875% 8/8/2022 17,000,000 17,371,263 0.28Central China Real Estate Ltd 8.75% 1/23/2021 5,000,000 5,307,164 0.09CFLD Cayman Investment Ltd 8.6% 4/8/2024 35,000,000 36,796,822 0.60CFLD Cayman Investment Ltd 8.625% 2/28/2021 15,500,000 16,319,466 0.27CFLD Cayman Investment Ltd 9% 7/31/2021 42,400,000 45,429,904 0.74Champion Sincerity Holdings Ltd 7.75% PERP 6,000,000 6,425,218 0.11 Champion Sincerity Holdings Ltd 8.125% PERP 4,000,000 4,344,497 0.07Chengdu Economic & Technological Development Zone State-Owned Assets Investment 7.5% 2/12/2022 13,000,000 13,582,378 0.22China Aoyuan Group Ltd 7.95% 9/7/2021 12,700,000 13,516,800 0.22China Conch Venture Holdings International Ltd 0% 9/5/2023 23,000,000 3,196,486 0.05China Development Bank 3.45% 9/20/2029 90,000,000 12,919,995 0.21China Evergrande Group 4.25% 2/14/2023 292,000,000 34,838,098 0.57China Evergrande Group 6.25% 6/28/2021 9,000,000 8,514,637 0.14





Quoted debt securities (Continued)

China (Continued) China Evergrande Group 8% 6/27/2020 14,000,000 14,011,604 0.23China Evergrande Group 8.25% 3/23/2022 34,700,000 33,316,453 0.55China Evergrande Group 8.75% 6/28/2025 12,200,000 10,508,826 0.17China Evergrande Group 8.9% 5/24/2021 35,000,000 34,198,403 0.56China Evergrande Group 9.5% 3/29/2024 53,730,000 50,291,161 0.82China Evergrande Group 9.5% 4/11/2022 9,100,000 8,893,804 0.15China Government Bond 3.29% 5/23/2029 70,000,000 10,200,972 0.17China Government Bond 3.86% 7/22/2049 20,000,000 2,999,030 0.05China Grand Automotive Services Ltd 8.625% 4/8/2022 7,000,000 6,039,498 0.10China Hongqiao Group Ltd 7.125% 7/22/2022 19,340,000 17,842,093 0.29China Hongqiao Group Ltd 7.375% 5/2/2023 15,273,000 13,423,480 0.22China Huarong International Holdings Ltd 4.06613% 3/19/2020 7,000,000 7,006,734 0.11China Jinjiang Environment Holding Co Ltd 6% 7/27/2020 30,546,000 30,994,924 0.51China SCE Group Holdings Ltd 5.875% 3/10/2022 16,305,000 16,598,076 0.27China SCE Group Holdings Ltd 7.25% 4/19/2023 36,500,000 38,477,752 0.63China SCE Group Holdings Ltd 7.375% 4/9/2024 20,200,000 20,865,158 0.34China SCE Group Holdings Ltd 8.75% 1/15/2021 22,000,000 23,624,859 0.39China South City Holdings Ltd 10.875% 8/24/2020 26,600,000 27,326,568 0.45China South City Holdings Ltd 11.5% 2/12/2022 16,000,000 15,705,111 0.26China South City Holdings Ltd 11.875% 3/27/2021 18,500,000 18,873,643 0.31China South City Holdings Ltd 5.75% 3/9/2020 52,730,000 52,998,864 0.87China South City Holdings Ltd 7.25% 1/25/2021 8,000,000 7,818,773 0.13China South City Holdings Ltd 7.25% 11/20/2022 6,000,000 5,162,682 0.08 Chongqing Banan Economic Park Development & Construction Co 4.68% 11/9/2021 60,000,000 8,507,437 0.14Chongqing Energy Investment Group Co Ltd 5.625% 3/18/2022 4,000,000 3,959,975 0.06Chongqing Yingdi Industrial Group Co Ltd 7% 11/7/2024 25,000,000 3,669,846 0.06 Chuxiong Autonomous Development & Investment Co Ltd 6.6% 3/29/2020 20,000,000 720,611 0.01






China (Continued) Dawn Victor Ltd 8.45% 7/14/2020 12,000,000 6,791,933 0.11Dr Peng Holding HongKong Ltd 5.05% 6/1/2020 18,663,000 12,124,200 0.20Easy Tactic Ltd 8.125% 2/27/2023 60,310,000 63,638,274 1.04Easy Tactic Ltd 8.625% 2/27/2024 24,300,000 25,960,379 0.43Easy Tactic Ltd 8.75% 1/10/2021 29,300,000 31,362,500 0.51Easy Tactic Ltd 9.125% 7/28/2022 51,700,000 56,520,573 0.92eHi Car Services Ltd 5.875% 8/14/2022 29,580,000 26,237,686 0.43Eternal Asia Supply Chain Management Ltd 6.5% 3/30/2020 20,000,000 2,985,863 0.05Eternal Asia Supply Chain Management Ltd 8% 8/21/2021 20,000,000 2,932,648 0.05Fantasia Holdings Group Co Ltd 11.75% 4/17/2022 54,400,000 57,096,759 0.93Fantasia Holdings Group Co Ltd 11.875% 9/11/2020 68,000,000 10,280,741 0.17Fantasia Holdings Group Co Ltd 12.25% 10/18/2022 6,000,000 6,499,952 0.11Fantasia Holdings Group Co Ltd 15% 12/18/2021 45,500,000 49,721,338 0.81Fantasia Holdings Group Co Ltd 7.95% 7/5/2022 1,000,000 980,807 0.02Fantasia Holdings Group Co Ltd 8.375% 3/8/2021 42,700,000 44,118,417 0.72First FZ Bond Ltd 6.9% 11/16/2020 10,000,000 9,635,950 0.16Fujian San’An Group Co Ltd 5.5% 3/14/2020 60,000,000 8,961,304 0.15GCL New Energy Holdings Ltd 7.1% 1/30/2021 26,070,000 19,562,682 0.32Golden Wheel Tiandi Holdings Co Ltd 7% 1/18/2021 75,440,000 74,367,578 1.22Granda Century Ltd 7.5% 9/11/2021 11,000,000 11,247,463 0.18Guanghui Investment GR (Ser MTN) (REG) 7.5% 08/29/2021 20,000,000 2,930,880 0.05Guangxi Financial Investment Group Co Ltd 5.75% 1/23/2021 3,560,000 3,477,359 0.06Guangxi Liuzhou Dongcheng Investment Development Group Co Ltd 7% 9/30/2022 10,000,000 10,175,774 0.17Guangzhou Fangyuan Real Estate Development Co Ltd 13.5% 4/17/2021 27,700,000 28,452,332 0.47






China (Continued) Guiyang Baiyun Industry Development Investment Co Ltd 7.5% 3/6/2026 35,000,000 5,510,092 0.09Guizhou Guilong Industrial Group Co Ltd 7.8% 4/28/2022 20,000,000 2,294,826 0.04Haikou Meilan International Airport Co Ltd 5.25% 9/6/2019 16,770,000 10,907,457 0.18Haimen Zhongnan Investment Development International Co Ltd 10.875% 6/18/2022 42,950,000 43,186,959 0.71Hainan Airlines Hong Kong Co Ltd 12% 10/29/2020 6,925,000 6,959,914 0.11Hejun Shunze Investment Co Ltd 11% 9/20/2020 9,650,000 10,090,533 0.17Hejun Shunze Investment Co Ltd 12% 4/25/2021 44,400,000 45,889,176 0.75HNA Ecotech Panorama Cayman Co Ltd 8% 4/15/2021 8,940,000 8,344,658 0.14HNA Group International Co Ltd 6.25% 10/5/2021 1,430,000 961,762 0.02Hong Seng Ltd 7.875% 5/31/2020 31,400,000 31,496,437 0.52Honghua Group Ltd 6.375% 8/1/2022 2,000,000 2,063,425 0.03Huachen Energy Co Ltd 6.625% 5/18/2020 18,780,000 9,933,084 0.16Hunan Loudi Economic & Technological Development Investment Construction Co Ltd 6.36% 3/13/2022 20,000,000 1,826,552 0.03Hydoo International Holding Ltd 12% 5/9/2020 11,871,000 11,685,911 0.19Jiangsu Dafeng Harbor Holdings Ltd 7% 4/29/2020 30,000,000 4,491,944 0.07Jiangsu Nantong Sanjian International Co Ltd 7.8% 10/26/2020 21,200,000 15,429,855 0.25Jilin Railway Investment & Development Co Ltd 6.8% 7/30/2020 30,000,000 4,385,130 0.07Jinan Hi-tech Holding Group Co Ltd 4.5% 10/9/2022 3,000,000 3,029,880 0.05Jingrui Holdings Ltd 10.875% 10/4/2021 13,000,000 12,612,356 0.21Jingrui Holdings Ltd 13% 7/31/2020 24,125,000 25,381,618 0.42Jingrui Holdings Ltd 7.75% 4/12/2020 21,820,000 21,971,364 0.36Jingrui Holdings Ltd 9.45% 4/23/2021 38,700,000 36,830,016 0.60






China (Continued) Jiuding Group Finance Co Ltd 6.5% 7/25/2020 1,000,000 968,587 0.02Kaisa Group Holdings Ltd 10.875% 7/23/2023 12,500,000 13,195,490 0.22Kaisa Group Holdings Ltd 11.25% 4/9/2022 55,059,000 58,887,528 0.96Kaisa Group Holdings Ltd 11.5% 1/30/2023 21,750,000 23,841,540 0.39Kaisa Group Holdings Ltd 11.75% 2/26/2021 19,300,000 21,064,572 0.34Kaisa Group Holdings Ltd 11.95% 10/22/2022 13,800,000 14,768,265 0.24Kaisa Group Holdings Ltd 8.5% 6/30/2022 15,500,000 15,692,750 0.26Kaisa Group Holdings Ltd 9.375% 6/30/2024 13,033,000 12,416,936 0.20Kangmei Pharmaceutical Co Ltd 5.2% 7/17/2022 10,000,000 635,529 0.01Kangmei Pharmaceutical Co Ltd 6.1% 3/28/2021 50,000,000 3,233,241 0.05Knight Castle Investments Ltd 7.99% 1/23/2021 5,000,000 2,473,286 0.04Kunming Iron & Steel Holdings Co Ltd 5.78% 4/26/2020 29,900,000 4,436,829 0.07Kunzhi Ltd 5.89463% 5/21/2021 2,419,000 1,066,754 0.02KWG Group Holdings Ltd 5.875% 11/10/2024 35,100,000 33,843,873 0.55KWG Group Holdings Ltd 7.4% 3/5/2024 5,000,000 5,241,122 0.09KWG Group Holdings Ltd 7.875% 9/1/2023 50,260,000 54,195,861 0.89Landsea Green Group Co Ltd 9.625% 4/25/2020 10,000,000 10,076,408 0.17LDK Solar Co Ltd BR Conv 5.535% 12/31/2018 (PIK) 5,028,379 8,111 0.00Lianyungang Xiangyun Investment Co Ltd 7.03% 3/4/2026 30,000,000 4,624,230 0.08Logan Property Holdings Co Ltd 6.125% 4/16/2021 5,500,000 4,223,217 0.07MIE Holdings Corp 13.75% 4/12/2022 43,065,000 28,425,984 0.47Modern Land China Co Ltd 12.85% 10/25/2021 61,500,000 60,828,932 1.00Modern Land China Co Ltd 15.5% 7/2/2020 4,200,000 4,613,152 0.08Modern Land China Co Ltd 7.95% 3/5/2021 27,800,000 26,745,731 0.44Nanshan Group Co Ltd 5.75% 4/12/2021 10,000,000 1,485,285 0.02NEW Dian Group Pte Ltd 7.375% 4/23/2021 17,300,000 17,211,088 0.28New Metro Global Ltd 6.5% 4/23/2021 20,000,000 20,187,956 0.33New Metro Global Ltd 7.5% 12/16/2021 20,000,000 20,200,300 0.33NIO Inc 4.5% 2/1/2024 5,000,000 2,524,550 0.04Nuoxi Capital Ltd 5.35% 1/24/2023 5,000,000 1,968,510 0.03






China (Continued) Oceanwide Holdings International 2017 Co Ltd 7.75% 7/27/2020 37,150,000 32,172,375 0.53OFILM Group Co Ltd 5.27% 9/11/2020 10,000,000 1,439,028 0.02Powerlong Real Estate Holdings Ltd 5.95% 7/19/2020 19,800,000 20,392,713 0.33Powerlong Real Estate Holdings Ltd 7.125% 11/8/2022 16,700,000 17,114,654 0.28Prime Bloom Holdings Ltd 6.95% 7/5/2022 28,025,000 14,829,366 0.24Radiance Capital Investments Ltd 11.75% 10/31/2021 11,500,000 11,583,142 0.19Red Star Macalline Holding Group Co Ltd 6.35% 8/2/2020 50,000,000 7,299,994 0.12Red Star Macalline Holding Group Co Ltd 6.8% 4/26/2021 30,000,000 4,506,218 0.07Redco Group 11% 8/29/2020 27,650,000 28,700,639 0.47Redco Group 13.5% 1/21/2020 28,200,000 29,975,613 0.49Redco Properties Group Ltd 11.5% 12/8/2020 17,000,000 17,124,922 0.28Redsun Properties Group Ltd 10.5% 10/3/2022 41,700,000 43,375,784 0.71Redsun Properties Group Ltd 11.5% 3/4/2021 57,400,000 61,187,539 1.00Redsun Properties Group Ltd 13% 10/30/2021 28,000,000 29,423,178 0.48Redsun Properties Group Ltd 13.5% 12/3/2020 67,000,000 70,978,460 1.16Redsun Properties Group Ltd 9.95% 4/11/2022 47,760,000 48,552,869 0.79Reward International Investment Ltd 7.25% 1/25/2020 30,760,000 6,346,711 0.10RiseSun Real Estate Development Co Ltd 7.5% 11/21/2022 50,000,000 7,137,144 0.12Rock International Investment Inc 6.625% 3/27/2020 58,491,000 30,040,487 0.49RongXingDa Development BVI Ltd 8% 4/24/2022 21,610,000 20,505,489 0.34Ronshine China Holdings Ltd 10.5% 3/1/2022 58,100,000 64,209,796 1.05Ronshine China Holdings Ltd 11.25% 8/22/2021 64,787,000 71,777,679 1.17Ronshine China Holdings Ltd 11.5% 7/3/2020 23,800,000 25,866,580 0.42Ronshine China Holdings Ltd 8.1% 6/9/2023 20,900,000 21,466,390 0.35Ronshine China Holdings Ltd 8.75% 10/25/2022 5,000,000 5,282,408 0.09






China (Continued) Ronshine China Holdings Ltd 8.95% 1/22/2023 20,000,000 21,732,783 0.36Scenery Journey Ltd 13.75% 11/6/2023 19,000,000 19,838,032 0.32Scenery Journey Ltd 9% 3/6/2021 46,950,000 47,548,612 0.78SDOE International Finance I Co Ltd 5.45% 10/24/2020 1,000,000 972,308 0.02Seazen Holdings Co Ltd 5.25% 4/14/2022 31,000,000 4,578,933 0.08Seazen Holdings Co Ltd 6% 7/13/2022 30,000,000 4,375,240 0.07Seazen Holdings Co Ltd 6.3% 5/17/2022 50,000,000 7,383,013 0.12Seazen Holdings Co Ltd 7% 12/17/2020 10,000,000 1,418,411 0.02Seazen Holdings Co Ltd 7% 3/26/2023 30,000,000 4,355,398 0.07Seazen Holdings Co Ltd 7.39% 9/17/2021 10,000,000 1,456,582 0.02Seazen Holdings Co Ltd 7.43% 10/15/2021 90,000,000 12,992,097 0.21Shaanxi Xixian New Area Jinghe New City Development & Construction Group Co Ltd 7.75% 6/27/2022 5,000,000 5,004,331 0.08Shandong Honghe Holdings Group Co Ltd 8.5% 6/23/2021 4,000,000 256,307 0.00Shandong Iron And Steel Xinheng International Co Ltd 6.5% 6/14/2021 10,000,000 9,954,194 0.16Shandong Iron And Steel Xinheng International Co Ltd 6.85% 9/25/2022 7,000,000 6,993,467 0.11Sichuan Languang Development Co Ltd 7.5% 7/11/2021 30,000,000 4,475,936 0.07Sunac China Holdings Ltd 7.25% 6/14/2022 4,175,000 4,384,246 0.07Sunac China Holdings Ltd 7.35% 7/19/2021 27,280,000 28,823,093 0.47Sunac China Holdings Ltd 7.5% 2/1/2024 27,500,000 28,650,325 0.47Sunac China Holdings Ltd 7.875% 2/15/2022 63,170,000 67,556,525 1.11Sunac China Holdings Ltd 7.95% 8/8/2022 10,000,000 10,756,692 0.18Sunac China Holdings Ltd 8.35% 4/19/2023 8,465,000 9,142,031 0.15Tahoe Group Co Ltd 7.5% 7/5/2020 120,000,000 16,395,391 0.27Tahoe Group Co Ltd 7.5% 9/8/2020 99,000,000 14,261,645 0.23Tahoe Group Global Co Ltd 7.875% 1/17/2021 14,800,000 11,164,498 0.18Tengchong City Yuezhou Water Investment Development Co Ltd 6.2% 3/30/2026 50,000,000 7,128,955 0.12






China (Continued) Tianjin Water Investment Group Co Ltd 6.6% 7/28/2021 160,000,000 9,130,372 0.15Tianrui Group Co Ltd 8% 1/15/2021 53,000,000 7,820,326 0.13Times China Holdings Ltd 6.75% 7/16/2023 7,000,000 7,355,582 0.12Tongfang Aqua 2017 Ltd 5.375% 3/29/2021 800,000 752,965 0.01Tongfang Aqua Ltd 6.8% 1/10/2022 45,900,000 42,364,782 0.69Top Wise Excellence Enterprise Co Ltd 6% 3/16/2020 34,700,000 5,799,862 0.09Tsinghua Unic Ltd 4.75% 1/31/2021 22,721,000 20,559,406 0.34Tunghsu Optoelectronic Technology Co Ltd 5.09% 11/17/2021 10,000,000 359,097 0.01Tus Environmental Science And Technology Development Co Ltd 5.07% 10/18/2020 50,000,000 6,981,207 0.11Tuspark Forward Ltd 7.9% 3/7/2021 2,500,000 2,237,467 0.04Tuspark Forward Ltd 7.95% 8/15/2021 5,000,000 4,427,067 0.07Wanda Properties Overseas Ltd 6.95% 12/5/2022 21,908,000 21,855,190 0.36Weibo Corp 1.25% 11/15/2022 38,000,000 35,931,934 0.59Weifang Binhai Investment Development Co Ltd 5.8% 12/2/2020 10,000,000 10,067,989 0.16Xiangtan Jiuhua Economic Construction Investment Co Ltd 6.38% 10/18/2024 10,000,000 1,419,622 0.02Xiangtan Wanlou Xincheng Development Construction Investment Co Ltd 6.9% 1/14/2022 20,000,000 1,906,196 0.03Xin Jiang Guang Hui Industry Investment Group Co Ltd 7.875% 3/30/2020 35,645,000 33,611,676 0.55Xingyi Xinheng Urban Construction Investment Co Ltd 5.4% 12/16/2022 90,000,000 7,540,632 0.12Xinhu BVI 2018 Holding Co Ltd 11% 12/20/2021 6,000,000 5,500,327 0.09Xinhu BVI 2018 Holding Co Ltd 11% 3/14/2022 37,000,000 33,490,714 0.55Xinhu BVI Holding Co Ltd 6% 3/1/2020 4,000,000 3,863,360 0.06Xinyuan Real Estate Co Ltd 7.75% 2/28/2021 44,500,000 38,375,428 0.63Xinyuan Real Estate Co Ltd 8.875% 11/22/2020 25,700,000 22,565,489 0.37






China (Continued) Xinyuan Real Estate Co Ltd 9.875% 3/19/2020 21,570,000 21,095,011 0.35Yancheng High-tech Zone Investment Group Co Ltd 7.5% 10/13/2020 14,000,000 14,254,847 0.23Yango Cayman Investment Ltd 9.875% 4/19/2021 55,600,000 56,016,722 0.92Yango Group Co Ltd 7.5% 11/2/2021 35,000,000 5,127,363 0.08Yango Group Co Ltd 7.5% 7/27/2021 100,000,000 14,863,357 0.24Yango Justice International Ltd 10% 2/12/2023 28,250,000 29,050,856 0.48Yango Justice International Ltd 10.25% 3/18/2022 35,654,000 37,908,808 0.62Yango Justice International Ltd 12% 7/2/2020 13,600,000 14,729,163 0.24Yango Justice International Ltd 7.5% 11/16/2020 30,700,000 30,837,076 0.50Yango Justice International Ltd 9.5% 4/3/2021 62,400,000 64,450,603 1.05Yida China Holdings Ltd 6.95% 4/19/2020 41,100,000 31,069,874 0.51Yihua Overseas Investment Ltd 8.5% 10/23/2020 13,800,000 7,495,726 0.12Yuzhou Properties Co Ltd 6% 10/25/2023 14,435,000 14,284,443 0.23Yuzhou Properties Co Ltd 8.3% 5/27/2025 12,000,000 12,433,427 0.20Yuzhou Properties Co Ltd 8.375% 10/30/2024 6,670,000 7,035,789 0.12Yuzhou Properties Co Ltd 8.5% 2/26/2024 38,000,000 40,777,188 0.67Yuzhou Properties Co Ltd 8.5% 2/4/2023 31,200,000 34,257,860 0.56YY Inc 0.75% 6/15/2025 6,200,000 5,639,479 0.09YY Inc 1.375% 6/15/2026 6,960,000 6,314,050 0.10Zhenjiang Transportation Industry Group Co Ltd 7% 11/28/2022 5,000,000 5,032,483 0.08Zhenro Properties Group Ltd 10.25% PERP 13,000,000 13,883,437 0.23Zhenro Properties Group Ltd 10.5% 6/28/2020 23,100,000 23,642,272 0.39Zhenro Properties Group Ltd 12.5% 1/2/2021 12,200,000 13,331,340 0.22Zhenro Properties Group Ltd 8.7% 8/3/2022 2,200,000 2,285,551 0.04Zhenro Properties Group Ltd 9.15% 3/8/2022 13,000,000 13,800,031 0.23Zhenro Properties Group Ltd 9.15% 5/6/2023 21,000,000 21,924,822 0.36Zhongliang Holdings Group Co Ltd 11.5% 9/26/2021 2,500,000 2,654,518 0.04Zunyi Road & Bridge Construction Group Ltd 8% 2/1/2022 18,000,000 18,567,420 0.30

4,056,527,903 66.38






Germany Commerzbank AG 7% PERP 1,800,000 1,959,722 0.03

Great Britain Barclays PLC 7.75% PERP 5,500,000 6,032,864 0.10Barclays PLC 8% PERP 3,600,000 4,052,972 0.06House of Fraser Funding PLC 6.51175% 9/15/2020 6,665,000 497,831 0.01New Look Secured Issuer PLC 6.5% 7/1/2022 500,000 31,807 0.00

10,615,474 0.17

Hong Kong AMTD Group Co Ltd 5% 3/8/2022 18,285,000 19,390,135 0.32AMTD Group Co Ltd 5% 9/8/2022 39,665,000 40,560,217 0.66AMTD Group Co Ltd 7.625% PERP 700,000 695,562 0.01Blue Skyview Co Ltd 7.125% PERP 56,926,000 35,117,939 0.57China Overseas Finance Investment Cayman V Ltd 0% 1/5/2023 3,000,000 3,340,740 0.05Concord New Energy Group Ltd 7.9% 1/23/2021 300,000 317,032 0.01Dynamic Mission Investments Ltd 7.5% 3/3/2020 9,000,000 9,235,200 0.15Estate Sky Ltd 5.75% PERP 19,300,000 18,279,126 0.30Hong Yang Group Co Ltd 11.5% 8/1/2021 35,000,000 37,416,108 0.61Hsin Chong Group Holdings Ltd 8.5% 1/22/2019 3,970,000 682,959 0.01Hsin Chong Group Holdings Ltd 8.75% 5/18/2018 780,000 136,050 0.00Mingfa Group International Co Ltd 11% 5/18/2020 30,000,000 30,431,817 0.50New Lion Bridge Co Ltd 9.75% 10/10/2020 31,700,000 29,036,170 0.48Panda Green Energy Group Ltd 8.25% 1/25/2020 124,965,000 121,585,946 1.99REXLot Holdings Ltd 4.5% 4/17/2019 130,000,000 1,556,915 0.03RH International Finance Ltd 6.5% PERP 16,800,000 14,479,640 0.24

362,261,556 5.93






Hungary Sand Hill Petroleum BV 9% 4/13/2022 4,300,000 4,633,285 0.08

India ITNL Offshore Pte Ltd 7.5% 1/18/2021 25,200,000 1,254,342 0.02Jaiprakash Power Ventures Ltd 7% 5/15/2017 27,898,000 489,820 0.01Lodha Developers International Ltd 12% 3/13/2020 18,588,000 16,490,140 0.27Rolta Americas LLC 8.875% 7/24/2019 (REGS) 36,085,000 5,197,864 0.09Rolta Americas LLC 8.875% 7/24/2019 (144A) 4,000,000 576,180 0.01Rolta LLC 10.75% 5/16/2018 20,800,000 2,022,924 0.03Vedanta Resources Finance II PLC 8% 4/23/2023 16,500,000 16,717,158 0.27Vedanta Resources Finance II PLC 9.25% 4/23/2026 8,151,000 8,282,820 0.14Vedanta Resources Ltd 6.125% 8/9/2024 7,250,000 6,809,343 0.11Vedanta Resources Ltd 6.375% 7/30/2022 13,500,000 13,656,054 0.22Vedanta Resources Ltd 7.125% 5/31/2023 5,000,000 4,985,708 0.08

76,482,353 1.25

Indonesia ABM Investama Tbk PT 7.125% 8/1/2022 4,500,000 3,917,374 0.06Alam Synergy Pte Ltd 11.5% 4/22/2021 13,100,000 13,507,432 0.22Alam Synergy Pte Ltd 6.625% 4/24/2022 41,703,000 36,648,591 0.60Bakrie Telecom Pte Ltd 11.5% 5/7/2015 2,000,000 23,260 0.00Bumi Resources Tbk PT 0% 12/11/2022 1,000,000 558,380 0.01Eterna Capital Pte Ltd 7.5% 12/11/2022 8,322,937 6,630,634 0.11Eterna Capital Pte Ltd 8% 12/11/2022 6,821,444 3,880,106 0.06Gajah Tunggal Tbk PT 8.375% 8/10/2022 14,000,000 12,837,189 0.21Indika Energy Capital III Pte Ltd 5.875% 11/9/2024 2,000,000 1,948,612 0.03Innovate Capital Pte Ltd 6% 12/11/2024 123,908,370 50,179,234 0.82JGC Ventures Pte Ltd 10.75% 8/30/2021 19,000,000 20,524,977 0.34






Indonesia (Continued) Medco Platinum Road Pte Ltd 6.75% 1/30/2025 5,000,000 5,225,162 0.09MNC Investama Tbk PT 9% 5/11/2021 97,500,000 82,794,075 1.36Project Rally Term Loan LIBOR 7.5% 12/12/19 38,250,000 35,381,250 0.58Soechi Capital Pte Ltd 8.375% 1/31/2023 55,940,000 50,792,875 0.83Theta Capital Pte Ltd 6.75% 10/31/2026 19,536,000 17,720,666 0.29

342,569,817 5.61

Kazakhstan Nostrum Oil & Gas Finance BV 7% 2/16/2025 9,171,000 4,636,124 0.08Nostrum Oil & Gas Finance BV 8% 7/25/2022 18,300,000 9,494,070 0.15

14,130,194 0.23

Macao Studio City Finance Ltd 7.25% 2/11/2024 3,000,000 3,263,113 0.05

Mexico Petroleos Mexicanos 6.35% 2/12/2048 2,200,000 2,181,054 0.04Petroleos Mexicanos 6.49% 1/23/2027 3,600,000 3,895,010 0.06Petroleos Mexicanos 6.5% 1/23/2029 2,200,000 2,376,259 0.04Petroleos Mexicanos 6.84% 1/23/2030 5,800,000 6,317,128 0.10Petroleos Mexicanos 7.69% 1/23/2050 3,200,000 3,571,884 0.06

18,341,335 0.30

Mongolia Mongolian Mining Corp/Energy Resources LLC 9.25% 4/15/2024 72,750,000 68,069,103 1.11






Mongolia (Continued) Mongolian Mortgage Corp Hfc LLC 9.75% 1/29/2022 7,500,000 7,622,600 0.13

75,691,703 1.24

Russia Bank Otkritie Financial Corp OJSC Via OFCB Capital PLC 10% 4/26/2019 24,815,000 2,573,564 0.04Credit Bank of Moscow Via CBOM Finance PLC 8.875% PERP 25,341,000 22,948,883 0.38

25,522,447 0.42

Singapore Geo Coal International Pte Ltd 8% 10/4/2022 66,950,000 42,388,277 0.69Hyflux Ltd 4.2% 8/29/2019 11,000,000 2,638,766 0.04Hyflux Ltd 4.25% 9/7/2018 6,500,000 1,276,383 0.02Hyflux Ltd 4.6% 9/23/2019 3,000,000 679,065 0.01Lippo Malls Indonesia Retail Trust 7% PERP 4,250,000 2,811,126 0.05Miclyn Express Offshore Pte Ltd 8.75% 11/25/2018 33,200,000 9,781,384 0.16Oxley MTN Pte Ltd 6.375% 4/21/2021 2,133,000 2,096,410 0.04

61,671,411 1.01

SriLanka Sri Lanka Government International Bond 6.35% 6/28/2024 5,000,000 5,135,196 0.08Sri Lanka Government International Bond 6.85% 11/3/2025 25,000,000 25,321,653 0.41Sri Lanka Government International Bond 7.55% 3/28/2030 14,500,000 14,941,368 0.25






SriLanka(Continued) Sri Lanka Government International Bond 7.85% 3/14/2029 5,000,000 5,187,210 0.09SriLankan Airlines Ltd 7% 6/25/2024 1,000,000 991,346 0.02

51,576,773 0.85

The United States of America KKR REIGN I Ltd 5% 5/30/2049 25,000,000 25,107,639 0.41New Cotai LLC / New Cotai Capital Corp 10.625% 5/1/2019 4,134,912 1,904,727 0.03

27,012,366 0.44

United Arab Emirates Borr Drilling Ltd 3.875% 5/23/2023 6,200,000 4,733,661 0.08NMC Health Jersey Ltd 1.875% 4/30/2025 5,000,000 3,955,736 0.06

8,689,397 0.14

Venezuela Petroleos de Venezuela SA 6% 5/16/2024 4,000,000 324,280 0.01Petroleos de Venezuela SA 9% 11/17/2021 11,100,000 894,771 0.01Petroleos de Venezuela SA 9.75% 5/17/2035 19,000,000 1,560,850 0.03Venezuela Government International Bond 11.75% 10/21/2026 4,000,000 475,600 0.01






Venezuela (Continued) Venezuela Government International Bond 11.95% 8/5/2031 16,000,000 1,943,840 0.03Venezuela Government International Bond 7% 3/31/2038 21,000,000 2,507,820 0.04Venezuela Government International Bond 7.65% 4/21/2025 7,000,000 801,640 0.01Venezuela Government International Bond 8.25% 10/13/2024 4,000,000 479,440 0.01Venezuela Government International Bond 9% 5/7/2023 17,100,000 2,041,227 0.03Venezuela Government International Bond 9.25% 5/7/2028 4,000,000 477,120 0.01

11,506,588 0.19

Unlisted investment funds

Cayman Islands Value Partners Asia Principal Credit Fund Limited Partnership 500,000 50,000,000 0.82Value Partners Fixed Income SPC – Value Partners Credit Opportunities Fund SP Class X Acc USD 1,151,524 126,598,524 2.07Value Partners Fixed Income SPC – Value Partners Credit Opportunities Fund SP Class Z Acc USD 95,602 10,194,073 0.17Value Partners Greater China Preference Shares Income Fund Class X Dist USD Unhedged 48,852 5,114,361 0.08

191,906,958 3.14





Unlisted investment funds (Continued)

Hong Kong Value Partners Fund Series – Value Partners Asian Total Return Bond Fund Class X Acc USD Unhedged 7,063,660 81,232,087 1.33

Ireland Value Partners Ireland Fund ICAV-Value Partners Global Emerging Market Bond Fund USD Class X Acc 4,347,112 50,426,504 0.83

Unquoted debt securities

Australia AM 9 Hunter Loan 7,908,750 7,080,727 0.12Marrylands Private Note 22% 03/31/2022 20,939,086 16,194,633 0.26Persephone Co. Pty Ltd. TERM LOAN 11% due Oct 2021 80,000,000 72,337,362 1.18Project Cobbitty Cobbitty 1 pty Ltd 11% 03/31/2022 25,000,000 17,749,213 0.29

113,361,935 1.85

British Virgin Islands VMS CSW 1 Land Holdings Ltd 8.25% 6/22/2021 334,000,000 42,121,813 0.69

Cayman Islands Signum Millenia I Limited Term Loan 8.5% 9/14/2020 8,700,000 8,828,929 0.15





Unquoted debt securities (Continued)

China Hainan Airline Term Loan 9.5% 10/24/2021 59,000,000 59,299,163 0.97Jiayuan 11.375% Senior Secured Notes due 2022 50,000,000 50,932,118 0.83Jumbo Fortune Enterprises Ltd 8.5% 10/3/2021 9,000,000 8,365,750 0.14MIE Holdings Corporation 15% Senior Note Due 2020 28,000,000 30,858,333 0.51Yuzhou Properties Co Term Loan due 03/02/2020 10,450,000 10,421,492 0.17Zhong YI Holdings Ltd 10% 3/29/2021 15,000,000 1,485,527 0.02

161,362,383 2.64

Hong Kong Chinlink International Holdings Ltd 13% 8/30/2021 28,000,000 29,395,333 0.48EV Wanchai 1 Holdings Ltd 8.155% 11/29/2020 352,500,000 42,550,869 0.70

71,946,202 1.18

Indonesia Azion Bao Pte Ltd 0% 12/31/2022 56,000 14,466 0.00

Japan TKJP Corp 0.582% 3/26/2021 900,000,000 – –TKJP Corp 0.847% 3/6/2019 800,000,000 – –TKJP Corp 1.021% 12/15/2017 200,000,000 – –

– –

Luxembourg Deutsche Bank Luxembourg SA 0% 4/2/2022 25,000,000 22,750,000 0.37





Currency forwards 11,532,975 0.19

Totalfinancialassetsatfairvaluethrough profitorloss 6,238,632,455 102.10

FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS

Currency forwards (4,435,352) (0.07)

Totalfinancialliabilitiesatfairvaluethrough profitorloss (4,435,352) (0.07)

Total investments, net 6,234,197,103 102.03

Total investments, at cost (inclusive of transaction cost) 6,342,450,602

* The trading of the equity securities has been suspended.



INVESTMENT PORTFOLIO MOVEMENTS (UNAUDITED)FOR THE YEAR ENDED 31 DECEMBER 2019


Listed equity securities Australia 0.16 0.35Hong Kong – H Shares 0.21 0.20– Others 1.70 0.93Indonesia 0.20 0.20Norway – 0.10Singapore 0.03 0.04South Korea – 0.64The United States of America 1.04 0.35

3.34 2.81

Unlisted equity securities Hong Kong 0.29 –The United States of America 0.20 –

0.49 –

Quoted debt securities Angola – 0.12Argentina 0.31 0.26Australia 0.59 1.43Bermuda – 0.81Brazil 0.48 1.81British Virgin Islands – 0.52Canada – 0.46Cayman Islands 0.20 0.36China 66.38 47.21Germany 0.03 –Great Britain 0.17 0.06Hong Kong 5.93 8.46Hungary 0.08 –India 1.25 0.55Indonesia 5.61 4.24Ireland – 0.23Japan – 0.83Kazakhstan 0.23 –Luxembourg – 0.53Macao 0.05 0.05Malaysia – 0.07



INVESTMENT PORTFOLIO MOVEMENTS (UNAUDITED) (Continued)FOR THE YEAR ENDED 31 DECEMBER 2019


Quoted debt securities (Continued) Maldives – 0.16Mexico 0.30 0.30Mongolia 1.24 2.14Netherlands – 0.32Nigeria – 0.50Norway – 0.10Russia 0.42 1.34Singapore 1.01 3.73Spain – 0.08Sri Lanka 0.85 –Taiwan – 0.03The United States of America 0.44 0.74Turkey – 0.07Ukraine – 0.34United Arab Emirates 0.14 –Venezuela 0.19 0.19Vietnam – 0.28

85.90 78.32

Unlisted investment funds Cayman Islands 3.14 2.73Hong Kong 1.33 0.50Ireland 0.83 5.71

5.30 8.94

Unquoted debt securities Australia 1.85 0.77British Virgin Islands 0.69 0.85Cayman Islands 0.15 –China 2.64 0.60Great Britain – 0.59Hong Kong 1.18 1.91Indonesia 0.00 0.50Japan – –Luxembourg 0.37 –The United States of America – 1.05

6.88 6.27



INVESTMENT PORTFOLIO MOVEMENTS (UNAUDITED) (Continued)FOR THE YEAR ENDED 31 DECEMBER 2019


Currency forwards 0.12 (0.06)

Total investments, net 102.03 96.28



PERFORMANCE RECORD (UNAUDITED)

Net assets (at last traded price)

2019 2018 2017 Net assets US$6,110,476,726 US$5,022,026,214 US$4,484,964,844 Net asset value per share Class P USD Acc Shares USD16.28 USD14.88 USD15.64USD MDis Shares USD8.03 USD8.03 USD9.19HKD Acc Shares HKD16.21 HKD14.90 HKD15.63HKD MDis Shares HKD8.02 HKD8.05 HKD9.20SGD Hedged MDis Shares SGD8.71 SGD8.73 SGD10.04

Class A AUD Hedged MDis Shares AUD7.83 AUD7.89 AUD9.11CAD Hedged MDis Shares CAD7.95 CAD7.97 CAD9.20EUR Hedged Acc Shares EUR10.38 EUR9.78 –EUR Hedged MDis Shares EUR8.57 EUR8.60 EUR9.95GBP Hedged MDis Shares GBP8.17 GBP8.21 GBP9.52NZD Hedged MDis Shares NZD8.17 NZD8.22 NZD9.49MDis RMB Hedged Shares RMB8.99 RMB9.04 RMB10.38MDis RMB Unhedged Shares RMB9.21 RMB9.07 RMB9.82Acc RMB Hedged Shares RMB14.81 RMB13.54 RMB14.06Acc RMB Unhedged Shares RMB14.63 RMB13.21 RMB13.16 Class z USD MDis Shares USD8.96 USD8.92 USD10.17USD Acc Shares USD13.92 USD12.66 USD13.23



PERFORMANCE RECORD (UNAUDITED) (Continued)

Performance record since inception

Highest issue price per share Class P Class z Class A SGD AUD CAD USD USD HKD HKD Hedged USD USD Hedged Hedged Acc MDis Acc MDis MDis MDis Acc MDis MDis Shares Shares Shares Shares Shares Shares Shares Shares Shares 2019 US$16.28 US$8.48 HK$16.21 HK$8.52 SGD9.20 US$9.43 US$13.92 AUD8.32 CAD8.412018 US$15.94 US$9.37 HK$15.94 HK$9.39 SGD10.23 US$10.38 US$13.50 AUD9.29 CAD9.372017 US$15.67 US$9.58 HK$15.68 HK$9.55 SGD10.47 US$10.55 US$13.27 AUD9.57 CAD9.642016 US$14.21 US$9.25 HK$14.10 HK$9.19 SGD10.09 US$10.12 US$11.96 AUD9.32 CAD9.362015 US$12.54 US$9.42 HK$12.44 HK$9.36 SGD10.09 US$10.12 US$10.44 AUD9.62 CAD9.652014 US$12.09 US$9.78 HK$11.99 HK$9.73 SGD10.15 US$10.04 – AUD10.00 CAD10.042013 US$11.69 US$10.68 HK$11.60 HK$10.63 – – – AUD10.14 CAD10.182012 (since inception) US$11.30 US$10.62 HK$11.20 HK$10.57 – – – – –

Highest issue price per share Class A EUR EUR GBP NZD MDis MDis Acc Acc Hedged Hedged Hedged Hedged RMB RMB RMB RMB Acc MDis MDis MDis Hedged Unhedged Hedged Unhedged Shares Shares Shares Shares Shares Shares Shares Shares 2019 EUR10.47 EUR9.05 GBP8.64 NZD8.66 RMB9.51 RMB9.65 RMB14.81 RMB14.792018 EUR10.18 EUR10.12 GBP9.69 NZD9.68 RMB10.61 RMB10.00 RMB14.35 RMB13.552017 – EUR10.46 GBP10.01 NZD9.93 RMB10.73 RMB10.90 RMB14.09 RMB13.702016 – EUR10.20 GBP9.76 NZD9.62 RMB10.17 RMB10.50 RMB12.39 RMB12.792015 – EUR10.53 GBP10.11 NZD9.79 RMB10.03 RMB9.75 RMB10.69 RMB10.402014 – – – NZD10.05 RMB10.25 RMB9.98 – –2013 – – – NZD10.20 – – – –2012 (since inception) – – – – – – – –



PERFORMANCE RECORD (UNAUDITED) (Continued)

Performance record since inception (Continued)

Lowest redemption price per share Class P Class z Class A SGD AUD CAD USD USD HKD HKD Hedged USD USD Hedged Hedged Acc MDis Acc MDis MDis MDis Acc MDis MDis Shares Shares Shares Shares Shares Shares Shares Shares Shares 2019 US$14.85 US$7.96 HK$14.88 HK$7.97 SGD8.63 US$8.88 US$12.63 AUD7.77 CAD7.882018 US$14.79 US$8.03 HK$14.79 HK$8.05 SGD8.73 US$8.92 US$12.57 AUD7.89 CAD7.972017 US$14.23 US$9.09 HK$14.12 HK$9.03 SGD9.92 US$9.97 US$11.98 AUD9.09 CAD9.172016 US$11.93 US$8.30 HK$11.88 HK$8.29 SGD9.01 US$9.01 US$10.00 AUD8.43 CAD8.462015 US$11.00 US$8.47 HK$10.91 HK$8.42 SGD9.12 US$9.15 US$10.00 AUD8.62 CAD8.662014 US$11.19 US$8.97 HK$11.12 HK$8.93 SGD9.57 US$9.60 – AUD9.16 CAD9.202013 US$10.66 US$9.50 HK$10.58 HK$9.46 – – – AUD9.90 CAD9.952012 (since inception) US$9.84 US$9.68 HK$9.82 HK$9.67 – – – – –

Lowest redemption price per share Class A EUR EUR GBP NZD MDis MDis Acc Acc Hedged Hedged Hedged Hedged RMB RMB RMB RMB Acc MDis MDis MDis Hedged Unhedged Hedged Unhedged Shares Shares Shares Shares Shares Shares Shares Shares 2019 EUR9.76 EUR8.49 GBP8.10 NZD8.10 RMB8.91 RMB8.97 RMB13.51 RMB13.072018 EUR9.75 EUR8.60 GBP8.21 NZD8.22 RMB9.04 RMB9.07 RMB13.44 RMB12.712017 – EUR9.93 GBP9.51 NZD9.42 RMB10.01 RMB9.82 RMB12.42 RMB12.602016 – EUR9.26 GBP8.85 NZD8.65 RMB9.02 RMB8.98 RMB10.22 RMB10.052015 – EUR9.46 GBP9.06 NZD8.83 RMB9.01 RMB8.90 RMB9.87 RMB9.612014 – – – NZD9.25 RMB9.45 RMB9.34 – –2013 – – – NZD9.80 – – – –2012 (since inception) – – – – – – – –

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