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VALUE PARTNERS HIGH-DIVIDEND STOCKS FUND

For the six months ended 30 June 2020

2020SEMI-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 Semi-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 HIGH-DIVIDEND STOCKS FUND(A Hong Kong Unit Trust)

SEMI-ANNUAL REPORT 2020For the six months ended 30 June 2020 1

CONTENTS

Pages

General information 2-3

Manager’s report 4-12

Statement of financial position (unaudited) 13-14

Statement of comprehensive income (unaudited) 15-16

Statement of changes in net assets attributable to unitholders (unaudited) 17-18

Statement of cash flows (unaudited) 19-20

Investment portfolio (unaudited) 21-26

Investment portfolio movements (unaudited) 27

Details in respect of derivative financial instruments (unaudited) 28-31

Distribution to redeemable participating shareholders (unaudited) 32


SEMI-ANNUAL REPORT 2020For the six months ended 30 June 20202

GENERAL INFORMATION

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

Trustee, Administrator and CustodianHSBC Institutional Trust Services (Asia) Limited1 Queen’s Road CentralHong Kong

RegistrarHSBC Trustee (Cayman) Limited

Principle address:Strathvale House90 North Church StreetGeorge TownGrand CaymanCayman Islands

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

Legal AdvisorsDeacons5th Floor, Alexandra House18 Chater Road, CentralHong Kong

AuditorPricewaterhouseCoopers22nd Floor, Prince’s Building10 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 High-Dividend Stocks Fund

2017 • Thomson Reuters Lipper Fund Awards 2017 BestAsiaPacificex-JapanEquity(10Years) – Thomson Reuters

Corporate Awards

2018 • I&M Professional Investment Awards 2018 HousePerformanceAwards:OffshoreChinaEquity(10-Year) – Insight and Mandate

• BenchmarkFundoftheYearAwards2018,HongKong Asiaex-JapanEquityHouse:Best-In-Class – Benchmark

• BenchmarkFundoftheYearAwards2018,HongKong GreaterChinaEquityHouse:OutstandingAchiever – Benchmark



MANAGER’S REPORT

Asian (ex-Japan) equities were challenged by the pandemic and had an upturn in the second quarter as the region’s economic recovery has been on track. The risk-on sentiment was also supported by synchronized monetary and fiscal policies, which continued to fire on all cylinders around the globe. The MSCI AC Asia ex-Japan Index fell 4.7%1, while the Fund was down 11.9%.

China: Economic and business recover well

We believe China is among the countries that the recovery progress well as some major sectors, such as consumption and real estate, have already turned to a year-on-year growth.

The nation has provided credit facilities to assist small-scale companies in overcoming the public health crisis over the past months. Such a policy direction appears more direct that businesses are kept alive and labor employed. In our view, an end to a lockdown with business and labor market stability would prevent the country from more serious difficulties from a real recovery.

Investor sentiment was buoyed by the well-contained contagion and improved business backdrop. The increased retail participation in the A-share market is evident by the significant increase in brokerage account opening and margin financing. Like elsewhere, a loosening policy condition in China shall continue to also support inflows into the equity market.

We believe China’s “first-in, first-out” case in the pandemic continues to play out, and the subsequent recovery would provide a tailwind for the equity market.

Taiwan:Beneficiaryofdigitaltransformation

The second quarter of 2020 marked a strong rebound for Taiwan equities. Across the sector, on the back of China’s continuous 5G developments and emerging demand for remote working and e-learning, demand for semiconductors, integrated circuits, and other 5G-related components remained strong. Tougher trade ban on Huawei Technologies turned to surface selective beneficiaries that would secure large orders from the Chinese player. The overall benefits support investor confidence and foreign capital inflow. While the government continued their positive envision for remote-working demand, 5G development and high-performance computing, it expects the U.S.-China tension and the emerging risks of second-waved pandemic to continuously weigh on the performance of the export in the second half of this year.

SouthKorea:Mindfulofpersistedweakdemandandexternalrisks

As a proxy to global demand, Korea’s export saw a sustained weakness in the second quarter. The country’s manufacturing activities, indicated as the Purchasing Managers’ Index, remained far below the 50-mark threshold that separates contraction from expansion for six months in a row2.

The central bank flagged risks that would impede growth this year, such as a second wave of infection and the Sino-U.S. tensions. As a preemptive means to combat the sluggish recovery, the central bank has lowered the key rate to 0.5%, touching the historical low3. We continue to closely monitor the weak global demand and its potential impacts on the country’s economy and corporate outlook. Moreover, we spot some selective structural growth opportunities, such as Samsung Electronics, whereby we can capture the growth of the beneficiaries in this wave of digital transformation.



MANAGER’S REPORT (Continued)

ASEAN:Policyandliquiditysupportflow

Across ASEAN, an additional stimulus package has been introduced in most markets to anchor the economy. In June, Malaysia and Indonesia, for example, announced stimulus packages, though the amount was not as big as those of North Asia.

A surge in global liquidity helped by stimulus measures bolstered risk appetite, resulting in capital inflows to the region. Though, the geographic region’s heavy reliance on external debt makes it vulnerable to the current uncertainties, and we continue to maintain an underweighting position. Compared to its North Asian peers, the ASEAN region also provides limited structural growth opportunities.

Portfoliostrategyreview

The first six months of 2020 is another unfavorable period for high-dividend equity strategy. Such relative underperformance of high dividend strategy does not isolate to Asia but happened globally. In the past 12 months, the dividend strategy has been lackluster around the globe.

Table 1: Comparing performance between high-dividend stocks and broad market

1-yearperformance Highdividendindex Marketindex Difference

World -6.0% 3.4% -9.4%

US -23.7% 7.5% -31.2%

Asia ex-Japan -11.3% 1.9% -13.2%

Performance data as of the end of June 2020

Remarks: High Dividend Index refers to MSCI World High Dividend Yield Net Total Return Index / S&P High Yield Index / MSCI Asia ex-Japan High Dividend Yield Net Total Return Index. Market index refers to MSCI World Index / S&P 500 Index / MSCI Asia ex-Japan Index

We observed there are two key contributors to the underperformance. First, a high-dividend strategy is more focused on the established companies and sectors, which generally offer a stable dividend policy. They are mainly categorized as the old economy stocks and unfortunately have taken most of the negative impacts under the lockdown since the COVID-19 outbreak and literally underperformed.

Secondly, new economy stocks that enjoy structural growth are less affected, and to a certain extent, benefit from the lockdowns. Investors embrace the new economy sectors on the back of higher visibility on growth outlook, although they are generally more expensive and do not pay dividends. This is particularly punishing to high dividend strategies around the globe due to the underweight or zero holdings of such new economy stocks. The valuation difference between the high yield and the growth stocks is now the widest historically in terms of both price-to-earnings and to-book ratios.




Outlook

We believe the turnaround for high dividend stocks has a close link to a broad recovery of the macroeconomic situation and requires the COVID-19 impacts to subside. The depressed valuation and earnings recovery after the pandemic shall drive the upside for high-dividend stocks in the long run.

Our core investment strategy is stringently managing the overall portfolio dividend yield at above 4%. On top of that, we have allocated 15-20% to structural growth stocks. This shall provide a balanced strategy with a combined benefit of stable dividend and a potential upside of structural growth stocks in the current environment.

Value Partners Hong Kong Limited 21 August 2020

1. Source: MSCI, 30 June 2020

2. Source: IHS Markit, 30 June 2020

3. Source: Bank of Korea, 27 May 2020

Fund performance mentioned is referred to Value Partners High-Dividend Stocks Fund (Class A1). All performance figures are sourced from HSBC Institutional Trust Services (Asia) Limited and Bloomberg (Data computed in US$ terms on NAV-to-NAV basis with dividends reinvested) as at 30 June 2020. Performance data is net of all fees. All indices are for reference only.

Individual stock performance is not indicative of fund performance.

The views expressed are the views of Value Partners Hong Kong Limited only and are subject to change based on market and other conditions. The information provided does not constitute investment advice and it should not be relied on as such. All materials have been obtained from sources believed to be reliable, but their 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 of any future performance and actual results or developments may differ materially from those projected.




Top10securitiesholdingsasat30June2020

Stock IndustryValuation (2020 Estimates) Remarks

Alibaba Group(Code: 9988 HK)

Market cap: US$580.4 billion

Retailing Price: HK$209.6P/E: 25.2xP/B: 4.4xYield: 0.0%

We are positive about the long-term performance of Alibaba’s stock price because 1) we believe Alibaba would deliver continued high growth of core commerce, as it continues to improve targeting technology and logistics network and enjoys even better profit growth with operating leverage and narrowed loss from investments in new retails; 2) Its leading cloud service is likely to be another long-term growth driver as more enterprises are starting to embrace cloud services to cut cost and leverage the company’s big data technology; 3) We expect it to spin-off high-value assets (e.g., Ant Financial, 33% owned by Alibaba) to unlock hidden values.

Taiwan Semiconductor Manufacturing(Code: 2330 TT)

Market cap:US$274.5 billion

Semiconductors and Semiconductor Equipment

Price: TWD313.0P/E: 17.4xP/B: 4.1xYield: 3.8%

Taiwan Semiconductor Manufacturing is a world-class independent semiconductor foundry. It provides integrated circuit (“IC”) design houses with integrated services for process design, wafer manufacturing and testing. The company has consistently outperformed competitors in terms of technology and profitability. We think the company is well-positioned to continue to benefit from the growing IC manufacturing outsourcing market and the rising demand for the internet of things trend, AI chips and new application areas.




Top10securitiesholdingsasat30June2020(Continued)


Samsung Electronics(Code: 005935 KS)


Technology, Hardware and Equipment

Price: KRW46,500.0P/E: 8.1xP/B: 1.0xYield: 3.8%

Samsung Electronics is a global leader in semis memory, OLED, smartphones, TVs and home appliances with diversified global customer base. Particularly with regard to its memory business, the company’s market-leading technologies have resulted in a solid global market share. The business is set to benefit from growing storage and processing demand from data consumption and computation under the structural trend of digital transformation globally.

China Construction Bank(Code: 939 HK)


Banks Price: HK$6.3P/E: 5.1xP/B: 0.6xYield: 6.1%

China Construction Bank ranks second in China in terms of assets and deposits. It has one of the best track records among large Chinese banks. The bank is well balanced between growth, profitability, capital adequacy and shareholders returns. The bank has been a consistent leader in core profitability. The bank’s core capital adequacy and reserve coverage are also one of the best among peers. The bank has the largest existing mortgage exposure and longest mortgage duration, making it a defensive play in the banking space.






HKBN(Code: 1310 HK)


Telecom Services

Price: HK$13.6P/E: 27.3xP/B: 3.2xYield: 6.9%

HKBN is a broadband service provider in Hong Kong. It currently stands as the second-largest player in the residential segment with a market share of c.30%. Moreover, following its recent acquisition of WTT, HKBN has also become the second-largest fixed-line operator in the enterprise market. To promote a culture of employee loyalty and competitiveness, as well as drive shareholder alignment, HKBN has launched a series of co-ownership plans. While Hong Kong’s mobile operators are being impacted by a severe loss in Roaming revenues, as a fixed-line operator with contracts at c.2 years, HKBN’s business has shown more resilience versus peers

Far East Horizon(Code: 3360 HK)


Diversified Financials

Price: HK$6.6P/E: 4.6xP/B: 0.6xYield: 6.0%

Far East Horizon is one of the largest financial leasing companies in China. It has a very good track record and delivered industry-leading performance. The company has an industrial operation business, including operating lease (3% of assets), and hospital group (3% of assets; 20,000 beds). They account for 15~20% of its profit and could drive re-rating after spin-off.

Hon Hai Precision Industry(Code: 2317 TT)


Technology, Hardware and Equipment

Price: TWD86.3P/E: 9.6xP/B: 0.9xYield: 5.1%

Hon Hai Precision Industry is a leading electronics manufacturing service provider with nearly one million employees globally. The company designs and manufactures smartphones, PCs, printers, TVs, game consoles and networking products for many global giants, such as Apple, Dell, Hewlett-Packard, Sony, Nokia and Cisco Systems.






China Yongda Automobiles Services Holdings(Code: 3669 HK)


Retailing Price: HK$9.3P/E: 7.9xP/B: 1.2xYield: 3.9%

China Yongda is one of the largest auto dealership groups in China, with an approximate 80% exposure to luxury brands. The company benefits from the ongoing consumption upgrade trend in China and continues to gain market share. The company’s valuation is relatively low compared to its peers, while its high exposure to BMW could provide further upside as it rides on BMW’s strong product cycle.

Haitian International(Code: 1882 HK)


Capital Goods Price: HK$15.7P/E: 11.4xP/B: 1.5xYield: 2.9%

Haitian is China’s largest plastic injection molding machine maker, with over 40% market share. While weakness is surfacing in Overseas demand, which accounts for 30% of Haitian’s revenue, Haitian has recently been seeing a recovery in Domestic China orders. Key demand drivers so far have been medical products and packaging, but 3C and Home appliances have also been seeing some recovery. In light of concerns spanning from Sino-US Trade war, Haitian has been increasing capacity overseas – in 2019 alone, Haitian completed a second assembly workshop in Vietnam and a machining workshop in India at the end of 2019.

11SEMI-ANNUAL REPORT 2020For the six months ended 30 June 2020





Qingdao Port International(Code: 6198 HK)


Transportation Price: HK$4.1P/E: 6.0xP/B: 0.7xYield: 6.1%

Qingdao Port is one of the largest ports in China. It has a diversified business mix, including containers, liquid bulk, dry bulk, logistics, value-added services and financials. This has allowed its business performance to be much less volatile than that of other port operators over the years. As part of the Shandong Port restructuring initiative, prices in the liquid and dry bulks’ space are now being harmonized across various ports in the area, which should put an end to the price wars and prompt ports to strive for higher efficiency.

Note: The above investments made up 37.88% of Value Partners High-Dividend Stocks Fund as at 30 June 2020. The stock prices are based on the closing of 30 June 2020.

Individual stock performance/yield is not necessarily indicative of overall fund performance.

12 SEMI-ANNUAL REPORT 2020For the six months ended 30 June 2020



ValuePartnersHigh-DividendStocksFund–NAVasat30June2020

Classes NAV per unit Class A1 USD USD82.79Class A1 HKDβ (for reference only) HKD641.65Class A Acc RMB Hedged RMB11.90Class A Acc RMB Unhedged RMB14.16Class A2 MDis USD USD9.43Class A2 MDis HKD HKD8.61Class A2 MDis AUD Hedged AUD7.82Class A2 MDis CAD Hedged CAD8.10Class A2 MDis GBP Hedged GBP7.63Class A2 MDis NZD Hedged NZD8.14Class A2 MDis RMB Hedged RMB8.18Class A2 MDis RMB Unhedged RMB8.89Class A2 MDis SGD Hedged SGD8.93Class P MDis RMB RMB10.51Class P MDis RMB Hedged RMB10.60Class P Acc RMB RMB10.55Class P Acc RMB Hedged RMB10.60Class X Acc USD Unhedged USD13.89Class Z USD13.40

Performance since launchFrom2September2002to30June2020

β Investors should note that the base currency of the Fund is in USD. The HKD equivalent NAV per unit for the Fund is for reference only and should not be used for subscription or redemption purpose. Conversion to the base currency of the Fund will normally take place at the prevailing rate (as determined by the Fund’s trustee or Custodian) on the corresponding fund dealing day. Investors should be aware of possible risks resulting from fluctuations of exchange rates against USD.

* Index refers to MSCI AC Asia Pacific (ex-Japan) Index (Total Net Return) up to 30 Apr 2016, thereafter it is the MSCI AC Asia (ex-Japan) Index (Total Net Return) due to a change in investment profile. MSCI (Total Net Return) Indices takes into account of dividend reinvestment after deduction of withholding tax.

# MSCI AC Asia Pacific (ex-Japan) High Dividend Yield Index (Total Net Return) was used up to 30 Apr 2016, thereafter it is the MSCI AC Asia (ex-Japan) High Dividend Yield Index (Total Net Return) due to a change in investment profile. MSCI (Total Net Return) Indices takes into account of dividend reinvestment after deduction of withholding tax.



STATEMENT OF FINANCIAL POSITION (UNAUDITED)AS AT 30 JUNE 2020

30.06.2020 31.12.2019 US$ US$ Assets Financial assets at fair value through profit or loss 1,834,991,633 2,431,433,502Amounts receivable on sales of investments 8,398,246 15,020,626Amounts receivable on issue of units 3,481,098 2,912,252Dividends, interest receivables and other receivables 13,535,766 3,414,910Margin deposits 2,791 2,779Bank balances 22,001,285 47,600,883

Total assets 1,882,410,819 2,500,384,952

LiabilitiesFinancial liabilities at fair value through profit or loss 3,234,284 138,751Amounts payable on purchase of investments 17,128,620 1,673,344Amounts payable on redemption of units 11,728,410 14,123,900Management fees payable 2,005,245 2,642,457Performance fees payable 294 19,784Distribution payable 4,326,537 6,312,414Bank overdrafts 5,831,120 7,958,314Accruals and other payables 305,772 405,684

Liabilities(excludingnetassets attributable to unitholders) 44,560,282 33,274,648

Net assets attributable to unitholders 1,837,850,537 2,467,110,304



STATEMENT OF FINANCIAL POSITION (UNAUDITED) (Continued)AS AT 30 JUNE 2020

30.06.2020 31.12.2019Net asset value per unit

– Class A1 USD with 8,609,933 (31.12.2019: 9,691,588) units outstanding USD82.79 USD94.00– Class A Acc RMB hedged with 1,210,300 (31.12.2019: 1,482,752) units outstanding RMB11.90 RMB13.51– Class A Acc RMB Unhedged with 38,971 (31.12.2019: 189,576) units outstanding RMB14.16 RMB15.79– Class A2 MDis USD with 53,289,779 (31.12.2019: 65,228,879) units outstanding USD9.43 USD11.01– Class A2 MDis HKD with 291,183,232 (31.12.2019: 326,979,435) units outstanding HKD8.61 HKD10.10– Class A2 MDis AUD Hedged with 28,052,573 (31.12.2019: 30,282,243) units outstanding AUD7.82 AUD9.33– Class A2 MDis CAD Hedged with 5,110,872 (31.12.2019: 5,643,627) units outstanding CAD8.10 CAD9.56– Class A2 MDis GBP Hedged with 3,461,435 (31.12.2019: 3,895,730) units outstanding GBP7.63 GBP9.04– Class A2 MDis NZD Hedged with 5,467,739 (31.12.2019: 6,097,145) units outstanding NZD8.14 NZD9.67– Class A2 MDis RMB Hedged with 21,112,973 (31.12.2019: 22,013,967) units outstanding RMB8.18 RMB9.59– Class A2 MDis RMB Unhedged with 1,156,397 (31.12.2019: 950,822) units outstanding RMB8.89 RMB10.23– Class A2 MDis SGD Hedged with 1,838,858 (31.12.2019: 3,157,712) units outstanding SGD8.93 SGD10.49– Class P MDis RMB with 11,118 (31.12.2019: Nil) units outstanding RMB10.51 –– Class P MDis RMB Hedged with 13,507 (31.12.2019: Nil) units outstanding RMB10.60 –– Class P Acc RMB with 1,699 (31.12.2019: Nil) units outstanding RMB10.55 –– Class P Acc RMB Hedged with 1,668 (31.12.2019: Nil) units outstanding RMB10.60 –– Class X Acc USD Unhedged with 570,981 (31.12.2019: 599,786) units outstanding USD13.89 USD15.67– Class Z with 717,815 (31.12.2019: 1,292,713) units outstanding USD13.40 USD15.18

Note: Semi-annual reports have applied the same accounting policies and methods of computation as are applied in the annual reports of the Fund.



STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)FOR THE SIX MONTHS ENDED 30 JUNE 2020

30.06.2020 30.06.2019 US$ US$ Income Dividends 38,947,081 56,474,983Interest on bank deposits 117,787 216,574Net realised (losses)/gains on investments (90,626,100) 3,743,081Change in unrealised gains/losses on investments (223,617,028) 242,723,520Net foreign exchange losses (2,209,148) (969,905)Other income 21,365 35,378

(277,366,043) 302,223,631

Expenses Management fees Note2 (12,108,445) (16,154,733)Transaction costs Note 1 (5,663,029) (3,776,627)Trustee fees Note 1 (1,387,306) (1,811,592)Interest expense Note 1 (100,739) (420,311)Safe custody and bank charges Note 1 (222,222) (241,453)Legal and professional fees (147,889) (20,931)Auditor’s remuneration (19,151) (17,067)Other operating expenses Note1 (516,689) (561,863)

(20,165,470) (23,004,577)

(Loss)/profitbeforetax (297,531,513) 279,219,054 Withholding tax on dividends and other investment income (3,170,229) (4,064,284)

(Loss)/profitaftertaxandbeforedistributions (300,701,742) 275,154,770Distributions to unitholders (31,070,198) (47,022,405)

(Decrease)/increase in net assets attributable to unitholders from operations after distributions (331,771,940) 228,132,365



STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) (Continued)FOR THE SIX MONTHS ENDED 30 JUNE 2020

Note 1 During the period ended 30 June 2020 and 2019, other than trustee fees, interest expense, safe custody and bank charges that paid to the Trustee or their connected persons, other respective amounts paid to the Trustee or their connected persons were as follows:

30.06.2020 30.06.2019 US$ US$ Transaction costs (168,101) (75,971)Other operating expenses (1,989) (2,040)

Note 2 During the period ended 30 June 2020 and 2019, other than management fees that paid to Manager, no other amounts paid to the Manager or their connected persons.



STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS (UNAUDITED)FOR THE SIX MONTHS ENDED 30 JUNE 2020

30.06.2020 30.06.2019 US$ US$ Net assets attributable to unitholders as at 1January 2,467,110,304 2,548,544,757

Issue of units 180,317,581 414,447,763Redemption of units (477,805,408) (596,888,400)

Net decrease from unit transactions (297,487,827) (182,440,637)

(Loss)/profit after tax and before distributions (300,701,742) 275,154,770Distributions to unitholders (31,070,198) (47,022,405)

(Decrease)/increase in net assets attributable to unitholders from operations after distributions (331,771,940) 228,132,365

Netassetsattributabletounitholdersasat30June 1,837,850,537 2,594,236,485



STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS (UNAUDITED) (Continued)FOR THE SIX MONTHS ENDED 30 JUNE 2020

The movement of number of units in issue during the period was as follows:

As at As at 1January Issue Redemption 30JuneNumber of units 2020 of units of units 2020

Class A1 USD 9,691,588 308,399 (1,390,054) 8,609,933Class A Acc RMB Hedged 1,482,752 20,705 (293,157) 1,210,300Class A Acc RMB Unhedged 189,576 38,346 (188,951) 38,971Class A2 MDis 65,228,879 5,561,699 (17,500,799) 53,289,779Class A2 MDis HKD 326,979,435 37,345,426 (73,141,629) 291,183,232Class A2 MDis AUD Hedged 30,282,243 5,942,072 (8,171,742) 28,052,573Class A2 MDis CAD Hedged 5,643,627 896,661 (1,429,416) 5,110,872Class A2 MDis GBP Hedged 3,895,730 614,060 (1,048,355) 3,461,435Class A2 MDis NZD Hedged 6,097,145 606,712 (1,236,118) 5,467,739Class A2 MDis RMB Hedged 22,013,967 4,790,281 (5,691,275) 21,112,973Class A2 MDis RMB Unhedged 950,822 634,476 (428,901) 1,156,397Class A2 MDis SGD Hedged 3,157,712 496,065 (1,814,919) 1,838,858Class P MDis RMB – 22,315 (11,197) 11,118Class P MDis RMB Hedged – 14,154 (647) 13,507Class P Acc RMB – 3,190 (1,491) 1,699Class P Acc RMB Hedged – 3,772 (2,104) 1,668Class X Acc USD Unhedged 599,786 840 (29,645) 570,981Class Z 1,292,713 – (574,898) 717,815

As at As at 1January Issue Redemption 30JuneNumber of units 2019 of units of units 2019

Class A1 USD 11,084,628 569,992 (1,274,634) 10,379,986Class A Acc RMB Hedged 1,387,441 137,300 (223,945) 1,300,796Class A Acc RMB Unhedged 671,830 – (251,447) 420,383Class A2 MDis 76,525,404 11,945,738 (16,914,736) 71,556,406Class A2 MDis HKD 368,877,257 91,592,244 (119,168,701) 341,300,800Class A2 MDis AUD Hedged 34,171,096 10,428,099 (12,672,396) 31,926,799Class A2 MDis CAD Hedged 7,015,669 1,062,563 (1,360,627) 6,717,605Class A2 MDis GBP Hedged 4,178,408 1,222,320 (1,408,436) 3,992,292Class A2 MDis NZD Hedged 6,961,244 2,135,490 (2,473,537) 6,623,197Class A2 MDis RMB Hedged 22,770,857 5,837,061 (4,444,014) 24,163,904Class A2 MDis RMB Unhedged 995,079 247,919 (227,358) 1,015,640Class A2 MDis SGD Hedged 1,975,394 783,691 (281,769) 2,477,316Class X Acc USD Unhedged 841,863 7,783 (14,099) 835,547Class Z 1,758,032 110,855 (654,544) 1,214,343



STATEMENT OF CASH FLOWS (UNAUDITED)FOR THE SIX MONTHS ENDED 30 JUNE 2020

30.06.2020 30.06.2019 US$ US$ Cashflowsfromoperatingactivities (Decrease)/increase in net assets attributable to unitholders from operations (331,771,940) 228,132,365Adjustments for: Dividends and interest on bank deposits (39,064,868) (56,691,557)Distributions to unitholders 31,070,198 47,022,405Withholding tax on dividends and other investment income 3,170,229 4,064,284

(336,596,381) 222,527,497 Decrease/(increase) in financial assets at fair value through profit or loss 596,441,869 (81,973,131)Increase/(decrease) in financial liabilities at fair value through profit or loss 3,095,533 (2,036,745)Decrease in amounts receivable on sales of investments 6,622,380 665,415Increase/(decrease) in amounts payable on purchase of investments 15,455,276 (661,554)Decrease in other receivables 20,119 7,717Decrease in bank overdrafts (2,127,194) –(Increase)/decrease in margin deposits (12) 1,125Decrease in management fees payable (637,212) (284,866)(Decrease)/increase in performance fees payable (19,490) 277(Decrease)/increase in accruals and other payables (99,912) 75,632

Cash generated from operations 282,154,976 138,321,367Dividends and interest on bank deposits received 28,923,893 36,992,650Withholding tax on dividends and other investment income paid (3,170,229) (4,064,284)

Netcashinflowfromoperatingactivities 307,908,640 171,249,733



STATEMENT OF CASH FLOWS (UNAUDITED) (Continued)FOR THE SIX MONTHS ENDED 30 JUNE 2020

30.06.2020 30.06.2019 US$ US$ Cashflowsfromfinancingactivities Proceeds from issue of units 179,748,735 416,676,265Payments on redemption of units (480,200,898) (588,764,656)Distributions paid to unitholders (33,056,075) (47,546,437)

Netcashoutflowfromfinancingactivities (333,508,238) (219,634,828)

Decreaseincashandcashequivalents (25,599,598) (48,385,095) Cash and cash equivalents as at 1 January 47,600,883 102,599,977

Cashandcashequivalentsasat30June, representing bank balances 22,001,285 54,214,882



INVESTMENT PORTFOLIO (UNAUDITED)AS AT 30 JUNE 2020

% of net Holdings Fair value assets US$

FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

Listedequitysecurities

China Suzhou Gold Mantis Construction Decoration Co Ltd A Shares (SZHK) 28,811,206 32,038,720 1.75XCMG Construction Machinery Co Ltd A Shares (SZHK) 10,820,891 9,047,773 0.49

41,086,493 2.24

Hong Kong - H Shares China Construction Bank Corp H Shares 101,421,000 82,049,155 4.46China Life Insurance Co Ltd H Shares 19,482,000 39,213,610 2.13China Longyuan Power Group Corp Ltd H Shares 69,563,000 39,043,275 2.12China Machinery Engineering Corp H Shares 31,134,000 8,194,902 0.45China Merchants Bank Co Ltd H Shares 4,685,000 21,550,027 1.17China Railway Construction Corp Ltd H Shares 24,032,500 18,884,041 1.03China Railway Group Ltd H Shares 19,888,000 10,212,989 0.56China Telecom Corp Ltd H Shares 76,764,000 21,492,949 1.17Huatai Securities Co Ltd H Shares 8,043,600 12,806,909 0.70Ping An Insurance (Group) Co of China Ltd H Shares 2,594,500 25,943,828 1.41Qilu Expressway Co Ltd H Shares 26,224,000 5,447,579 0.30Qingdao Port International Co Ltd H Shares 75,393,000 40,078,082 2.18Sinopharm Group Co Ltd H Shares 14,193,200 36,332,951 1.98

361,250,297 19.66

Hong Kong – Red Chips CGN New Energy Holdings Co Ltd 30,992,000 5,958,193 0.32China Resources Land Ltd 7,004,000 26,523,628 1.44China Resources Power Holdings Co Ltd 21,674,507 25,476,883 1.39China State Construction International Holdings Ltd 19,694,000 11,485,530 0.63China Unicom (Hong Kong) Ltd 8,082,000 4,369,297 0.24Far East Horizon Ltd 54,403,000 46,187,816 2.51

120,001,347 6.53



INVESTMENT PORTFOLIO (UNAUDITED) (Continued)AS AT 30 JUNE 2020


FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)

Listedequitysecurities(Continued) Hong Kong – Others Agile Group Holdings Ltd 9,936,000 11,691,900 0.64Alibaba Group Holding Ltd 4,499,400 121,681,503 6.62China Lilang Ltd 48,324,000 25,937,905 1.41China Yongda Automobiles Services Holdings Ltd 34,954,000 41,988,006 2.28CIFI Holdings (Group) Co Ltd 36,584,968 28,511,384 1.55CK Hutchison Holdings Ltd 3,484,000 22,386,499 1.22Convenience Retail Asia Ltd 20,655,000 9,727,399 0.53CSI Properties Ltd 545,310,000 17,097,335 0.93Far East Consortium International Ltd 104,733,162 34,188,766 1.86FSE Services Group Ltd 8,298,000 3,340,463 0.18Haier Electronics Group Co Ltd 11,218,000 33,941,964 1.85Haitian International Holdings Ltd 19,740,000 40,089,493 2.18HKBN Ltd 30,092,500 52,649,790 2.86JD.com Inc 430,250 12,868,058 0.70Johnson Electric Holdings Ltd 3,157,500 5,597,689 0.30Lee & Man Chemical Co Ltd 33,794,000 13,037,354 0.71Longfor Group Holdings Ltd 2,707,500 12,873,144 0.70SITC International Holdings Co Ltd 12,595,000 13,439,477 0.73Sun Hung Kai Properties Ltd 1,089,000 13,903,443 0.76Tencent Holdings Ltd 487,900 31,387,865 1.71Times China Holdings Ltd 20,889,000 38,595,738 2.10TK Group (Holdings) Ltd 58,164,000 16,885,560 0.92Uni-President China Holdings Ltd 13,839,000 13,784,807 0.75

615,605,542 33.49

Indonesia Acset Indonusa Tbk PT 38,551,800 692,337 0.04Bekasi Fajar Industrial Estate Tbk PT 579,785,300 4,636,654 0.25BFI Finance Indonesia Tbk PT 49,249,800 974,285 0.05Link Net Tbk PT 43,229,700 6,823,346 0.37






Listedequitysecurities(Continued) Indonesia (Continued) PP Persero Tbk PT 78,249,600 4,775,667 0.26Sarana Menara Nusantara Tbk PT 204,854,200 14,658,100 0.80Telekomunikasi Indonesia Persero Tbk PT 32,949,700 7,049,916 0.39

39,610,305 2.16

Philippines Bank of the Philippine Islands 2,518,130 3,637,894 0.20

Singapore Ascendas Real Estate Investment Trust* 4,843,400 11,001,023 0.60DBS Group Holdings Ltd 965,300 14,386,300 0.78Wilmar International Ltd 3,616,300 10,597,691 0.58

35,985,014 1.96

South Korea GS Retail Co Ltd 294,597 8,934,870 0.49Handsome Co Ltd 31,657 921,935 0.05Hansol Chemical Co Ltd 111,807 11,815,037 0.64Hugel Inc 42,553 16,729,939 0.91Kangwon Land Inc 750,776 13,431,088 0.73Korea Investment Holdings Co Ltd 357,347 13,231,605 0.72KT&G Corp 311,363 20,259,845 1.10NAVER Corp 53,082 11,792,908 0.64NCSoft Corp 9,848 7,301,097 0.40POSCO 35,859 5,191,702 0.28Samsung Electronics Co Ltd - Preference Shares 2,815,457 108,934,193 5.93SK Biopharmaceuticals Co Ltd 39,858 1,641,328 0.09Tokai Carbon Korea Co Ltd 95,406 6,874,735 0.37

227,060,282 12.35






Listedequitysecurities(Continued) Taiwan ASE Technology Holding Co Ltd 6,162,000 14,167,444 0.77Asia Vital Components Co Ltd 2,202,000 3,126,777 0.17Chipbond Technology Corp 5,656,000 12,369,254 0.67Delta Electronics Inc 3,731,000 21,255,102 1.16Elan Microelectronics Corp 2,325,000 9,528,689 0.52Genius Electronic Optical Co Ltd 611,000 14,546,629 0.79Hon Hai Precision Industry Co Ltd 15,270,000 44,820,114 2.44ITEQ Corp 2,615,000 13,118,580 0.71MediaTek Inc 605,000 11,913,985 0.65Taiwan Semiconductor Manufacturing Co Ltd 11,088,000 118,037,684 6.42Taiwan Surface Mounting Technology Corp 2,220,000 9,815,659 0.53Taiwan Union Technology Corp 1,991,000 9,717,315 0.53Wistron NeWeb Corp 4,920,480 10,777,461 0.59Zhen Ding Technology Holding Ltd 3,078,000 13,452,248 0.73

306,646,941 16.68

Thailand Bangkok Bank PCL 1,071,200 3,711,495 0.20Bangkok Dusit Medical Services PCL 7,889,600 5,748,203 0.31

9,459,698 0.51

Listed investment fund Hong Kong Value China ETF 273,600 1,153,657 0.06

Unlistedequitysecurity

Hong KongReal Gold Mining Ltd 4,283,500 – –






Unquoteddebtsecurity The United States of America LDK Solar Co Ltd BR Conv 5.535% 12/31/2018 2,427,482 3,916 0.00

Unlisted investment funds

Malabar India Fund Ltd Class 1 Shares* 22,622 33,952,635 1.85Malabar Select Fund Class 1 – Standard Class* 35,775 28,523,268 1.55Value Partners Ireland Fund ICAV – Value Partners Asia ex-Japan Equity Fund Class V GBP Hedged Acc* 38,555 503,426 0.03Value Partners Ireland Fund ICAV – Value Partners Asia ex-Japan Equity Fund Class V GBP Hedged MDis* 38,555 503,426 0.03Value Partners Ireland Fund ICAV – Value Partners Asia ex-Japan Equity Fund Class V SGD Hedged Acc* 68,565 534,018 0.03Value Partners Ireland Fund ICAV – Value Partners Asia ex-Japan Equity Fund Class V SGD Hedged MDis* 68,565 534,018 0.03Value Partners Ireland Fund ICAV – Value Partners Asia ex-Japan Equity Fund Class V USD Unhedged Acc* 50,000 556,000 0.03Value Partners Ireland Fund ICAV – Value Partners Asia ex-Japan Equity Fund Class V USD Unhedged MDis* 50,000 556,000 0.03Value Partners Ireland Fund ICAV – Value Partners Asia ex-Japan Equity Fund Class X USD Unhedged Acc* 700,000 7,819,000 0.42Value Partners Strategic Equity Fund* 189,480 – –

73,481,791 4.00

Currencyforwards 8,456 0.00

Totalfinancialassetsatfairvaluethrough profitorloss 1,834,991,633 99.84





FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS Currencyforwards (3,234,284) (0.18)

Totalfinancialliabilitiesatfairvaluethrough profitorloss (3,234,284) (0.18)

Total investments, net 1,831,757,349 99.66

Total investments, at cost (inclusive of transaction cost) 1,899,727,378

* The Trust and investment funds are not authorized in Hong Kong and not available to the public in Hong Kong.



INVESTMENT PORTFOLIO MOVEMENTS (UNAUDITED)FOR THE SIX MONTHS ENDED 30 JUNE 2020

% of net assets 30.06.2020 31.12.2019 Listedequitysecurities China 2.24 1.56Hong Kong – H shares 19.66 17.10 – Red chips 6.53 6.93 – Others 33.49 28.36Indonesia 2.16 3.67Malaysia – 1.25Philippines 0.20 0.91Singapore 1.96 3.41South Korea 12.35 14.63Taiwan 16.68 14.13Thailand 0.51 0.92

95.78 92.87

Listed investment fundHong Kong 0.06 0.08

Unlistedequitysecurity Hong Kong – –

Unquoteddebtsecurity The United States of America 0.00 0.00

Unlisted investment funds 4.00 4.59Currencyforwards (0.18) 0.17Participation notes – 0.36Listedequitywarrants – 0.47

Total investments, net 99.66 98.54



DETAILS IN RESPECT OF FINANCIAL DERIVATIVE INSTRUMENTS (UNAUDITED)AS AT 30 JUNE 2020

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

Financial assets:

Currencyforwards

Currency Amount Currency Amount sold sold bought bought Settlementdate Counterparty Fairvalue US$

Hong Kong and Shanghai Banking AUD 262,833 USD 181,818 31st July 2020 Corporation Limited 1,571 Hong Kong and Shanghai Banking AUD 24,481 USD 16,979 31st July 2020 Corporation Limited 191 Hong Kong and Shanghai Banking AUD 36,389 USD 25,024 31st July 2020 Corporation Limited 69 Hong Kong and Shanghai Banking AUD 1,008,912 USD 694,661 31st July 2020 Corporation Limited 2,763 Hong Kong and Shanghai Banking AUD 157,338 USD 108,282 31st July 2020 Corporation Limited 382 Hong Kong and Shanghai Banking CNH 108,339 USD 15,309 31st July 2020 Corporation Limited 9 Hong Kong and Shanghai Banking GBP 158,368 USD 196,643 31st July 2020 Corporation Limited 2,074 Hong Kong and Shanghai Banking GBP 87,653 USD 108,892 31st July 2020 Corporation Limited 1,202 Hong Kong and Shanghai Banking NZD 23,580 USD 15,164 31st July 2020 Corporation Limited 43 Hong Kong and Shanghai Banking NZD 29,333 USD 18,905 31st July 2020 Corporation Limited 94 Hong Kong and Shanghai Banking USD 97,458 CNH 690,500 31st July 2020 Corporation Limited 58



DETAILS IN RESPECT OF FINANCIAL DERIVATIVE INSTRUMENTS (UNAUDITED)(Continued)AS AT 30 JUNE 2020

Financial assets (Continued):

Currencyforwards(Continued)


Hong Kong and Shanghai Banking USD 73 CNH 516 31st July 2020 Corporation Limited 0 Hong Kong and Shanghai Banking USD 227 CNH 1,610 31st July 2020 Corporation Limited 0 Hong Kong and Shanghai Banking USD 917 CNH 6,500 31st July 2020 Corporation Limited 0

8,456




Financialliability:

Currencyforwards


Hong Kong and Shanghai Banking SGD 43,080 USD 30,868 30th July 2020 Corporation Limited (1) Hong Kong and Shanghai Banking USD 719 SGD 1,000 30th July 2020 Corporation Limited (3) Hong Kong and Shanghai Banking USD 11,908,456 SGD 16,556,267 30th July 2020 Corporation Limited (44,991) Hong Kong and Shanghai Banking CNH 172,840 USD 24,360 31st July 2020 Corporation Limited (50) Hong Kong and Shanghai Banking CNH 1,767 USD 249 31st July 2020 Corporation Limited (0) Hong Kong and Shanghai Banking CNH 1,759 USD 248 31st July 2020 Corporation Limited (0) Hong Kong and Shanghai Banking USD 154,777,150 AUD 223,038,864 31st July 2020 Corporation Limited (1,820,075) Hong Kong and Shanghai Banking USD 29,316 CAD 39,600 31st July 2020 Corporation Limited (356) Hong Kong and Shanghai Banking USD 444,611 CAD 606,515 31st July 2020 Corporation Limited (1,054) Hong Kong and Shanghai Banking USD 30,459,564 CAD 41,140,027 31st July 2020 Corporation Limited (373,024) Hong Kong and Shanghai Banking USD 24,526,187 CNH 173,432,590 31st July 2020 Corporation Limited (33,113) Hong Kong and Shanghai Banking USD 2,041,206 CNH 14,434,025 31st July 2020 Corporation Limited (2,756)




Financialliability(Continued):

Currencyforwards(Continued)


Hong Kong and Shanghai Banking USD 2,278 CNH 16,110 31st July 2020 Corporation Limited (3) Hong Kong and Shanghai Banking USD 19,162 CNH 135,500 31st July 2020 Corporation Limited (26) Hong Kong and Shanghai Banking USD 147 CNH 1,037 31st July 2020 Corporation Limited (0) Hong Kong and Shanghai Banking USD 4 CNH 25 31st July 2020 Corporation Limited (0) Hong Kong and Shanghai Banking USD 2 CNH 15 31st July 2020 Corporation Limited (0) Hong Kong and Shanghai Banking USD 325 CNH 2,300 31st July 2020 Corporation Limited (0) Hong Kong and Shanghai Banking USD 33,567,312 GBP 26,851,165 31st July 2020 Corporation Limited (578,312) Hong Kong and Shanghai Banking USD 40,625 NZD 62,535 31st July 2020 Corporation Limited (523) Hong Kong and Shanghai Banking USD 18,536 NZD 28,763 31st July 2020 Corporation Limited (91) Hong Kong and Shanghai Banking USD 29,157,039 NZD 44,874,588 31st July 2020 Corporation Limited (379,906)

(3,234,284)



DISTRIBUTION TO REDEEMABLE PARTICIPATING SHAREHOLDERS (UNAUDITED)

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 period ended 30 June 2020, the Fund declared total distributions to redeemable participating shareholders of US$31,070,198 (period ended 30 June 2019: US$47,022,405).

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

01.01.2020 01.01.2019Classes to30.06.2020 to30.06.2019 Frequency Ex-dividenddates*

Class A2 MDis USD USD0.0468 USD0.0514 Monthly Last business day of January to AprilClass A2 MDis USD USD0.0367 USD0.0514 Monthly Last business day of May to JuneClass A2 MDis HKD HKD0.0432 HKD0.0475 Monthly Last business day of January to AprilClass A2 MDis HKD HKD0.0335 HKD0.0475 Monthly Last business day of May to JuneClass A2 MDis AUD Hedged AUD0.0338 AUD0.0444 Monthly Last business day of January to MarchClass A2 MDis AUD Hedged AUD0.0338 AUD0.0430 Monthly Last business day of April Class A2 MDis AUD Hedged AUD0.0305 AUD0.0430 Monthly Last business day of May to JuneClass A2 MDis CAD Hedged CAD0.0387 CAD0.0409 Monthly Last business day of January to MarchClass A2 MDis CAD Hedged CAD0.0387 CAD0.0397 Monthly Last business day of April Class A2 MDis CAD Hedged CAD0.0310 CAD0.0397 Monthly Last business day of May to JuneClass A2 MDis GBP Hedged GBP0.0299 GBP0.0321 Monthly Last business day of January to MarchClass A2 MDis GBP Hedged GBP0.0299 GBP0.0305 Monthly Last business day of AprilClass A2 MDis GBP Hedged GBP0.0286 GBP0.0305 Monthly Last business day of May to JuneClass A2 MDis NZD Hedged NZD0.0373 NZD0.0468 Monthly Last business day of January to MarchClass A2 MDis NZD Hedged NZD0.0373 NZD0.0436 Monthly Last business day of April Class A2 MDis NZD Hedged NZD0.0324 NZD0.0436 Monthly Last business day of May to JuneClass A2 MDis RMB Hedged RMB0.0456 RMB0.0594 Monthly Last business day of January to MarchClass A2 MDis RMB Hedged RMB0.0456 RMB0.0542 Monthly Last business day of April Class A2 MDis RMB Hedged RMB0.0383 RMB0.0542 Monthly Last business day of May to JuneClass A2 MDis RMB Unhedged RMB0.0444 RMB0.0436 Monthly Last business day of January to MarchClass A2 MDis RMB Unhedged RMB0.0444 RMB0.0481 Monthly Last business day of April Class A2 MDis RMB Unhedged RMB0.0352 RMB0.0481 Monthly Last business day of May to JuneClass A2 MDis SGD Hedged SGD0.0425 SGD0.0415 Monthly Last business day of January to MarchClass A2 MDis SGD Hedged SGD0.0425 SGD0.0436 Monthly Last business day of April Class A2 MDis SGD Hedged SGD0.0343 SGD0.0436 Monthly Last business day of May to June

* Last business day of each month in 2020 are 31 January 2020, 28 February 2020, 31 March 2020, 29 April 2020, 29 May 2020 and 30 June 2020.

Last business day of each month in 2019 are 31 January 2019, 28 February 2019, 29 March 2019, 30 April 2019, 31 May 2019 and 28 June 2019.

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