Financial Results

Asia’s Value Partners Profits Up In 2023

Amanda Cheesley Deputy Editor 15 August 2023

Asia’s Value Partners Profits Up In 2023

Hong Kong-based Value Partners Group has just released its interim financial results for the first half of 2023.

Asian asset manager Value Partners recorded a turnaround from loss to profit in the first six months of 2023, with a net profit of HK$4.9 million ($0.62 million), an improvement on the HK$428.6 million losses reported over the same period last year.

The improved results were primarily driven by the rebound in investment returns on the group’s proprietary investments, which were mainly seed capital investments in its own funds and effective cost management, the firm said in a statement.

The group’s assets under management stood at $6 billion over this period. In terms of fund flows, the firm captured $675 million in gross subscriptions during the first six months of 2023. Overall fund performance rose, led by two outperforming flagship funds, the Value Partners High-Dividend Stocks Fund and Value Partners Greater China High Yield Income Fund, which posted returns of 8.3 per cent and 4.2 per cent respectively during the review period, the firm continued. Value Partners said it was able to keep rolling out several initiatives to capture growth opportunities in the region.

Enhancing client relationships and tapping new markets
On the wealth management front, the firm said it continued to have support from its banking partners in Hong Kong and overseas, with net inflows in some of its funds, especially high-dividend and multi-asset strategies. It is also putting in resources in Singapore to enhance its Asian wealth management capabilities and capture the rising investors’ interest in South-East Asia. In addition, it formed a strategic partnership with Aldiracita Group in Indonesia, enabling Value Partners to bring investment solutions to the fast-growing Indonesian market.

Expanding the product suite and enhancing ESG capabilities
During the period, the group said it set a plan to grow beyond its traditional long-only equity funds. This includes expanding its mutual fund product suite in other asset classes, including a money market fund and an investment grade bond product, which it expects to roll out later this year. It has also strengthened its alternatives franchise, such as the launch of a Greater Bay Area-focused alternative strategy together with Shenzhen Capital (International) Asset Management Company. The firm said it is also planning to launch an Asian logistics real estate private equity fund in the second half to capture the increasing demand and investment opportunities in the logistics space.

On the ESG product front, in May the firm launched the HKSFC-authorised Asia ex-Japan-focused food and nutrition thematic ESG fund â€“the Value Partners Asian Food and Nutrition Fund. It is its first fund under Article 8 under the EU’s Sustainable Financial Disclosure Regulation (SFDR), forming part of its ESG buildout. Value Partners said it is looking to upgrade its other funds to be SFDR Article 8 compliant in the next 12 months to meet the expectations and requirements of global investors.

Mainland China remains a key market for Value Partners, and it said it is continuing to expand its reach in different segments there. “We maintain an optimistic outlook on Asian investment markets over the longer term with growth potential while anticipating more demand for Asia assets from investors,” June Wong, CEO at Value Partners Group, said.

“As a pioneer in Asia investing, Value Partners is strategically positioned to capture these opportunities with our professional investment capabilities and wide range of high-quality investment solutions. We are now poised to capitalise on the market opportunities,” she added.

Value Partners, which was founded in 1993, has $6.4 billion of assets under management and is listed on the Main Board of the Hong Kong Stock Exchange. Besides its London office, the firm has headquarters in Hong Kong, and offices in Shanghai, Shenzhen, Beijing, Kuala Lumpur and Singapore. Its strategies cover equities, fixed income, multi-asset, and alternatives for institutional and individual clients in Asia Pacific, EMEA and the US.

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