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The information on the website you are about to enter is intended for Hong Kong investors only. Non-Hong Kong residents are responsible for observing all applicable laws and regulations of their relevant jurisdictions before accessing the information contained herein. It is your responsibility to be aware of and to observe all applicable laws and regulations of any relevant jurisdiction. By accessing each site, you acknowledged that you have reviewed the site in its entirety including any legal or regulatory rubric.

Risk Warning

Investment involves risks. Past performance is not necessarily a guide to future performance. The value of investments and the income from them may go down as well as up and that you may not get back your original investment. Please refer to the offering documents for details, including the risk factors. You should ensure you fully understand the risks associated with the investment and should also consider your own investment objective and risk tolerance level. If in doubt, please seek independent financial professional advice.

  • The Funds included in this website invest in different investment instruments. Each Fund may have different underlying investments and be exposed to different risks.
  • Some of the Funds invest in emerging markets which may involve a greater risk than developed markets including sharp price movements, liquidity risk and currency risk.
  • Some of the Funds are limited to investment in single or industry sector may open the Funds to higher volatility than diversified portfolios.
  • Some of the Funds invest in securities linked to the China markets and may expose the Funds to additional risks including repatriation risk and uncertainly of taxation policies.
  • Some of the Funds may invest in below investment grade, unrated and high yield debt securities. This exposes the Funds to greater liquidity risk, default risk and price changes due to change in the issuer’s creditworthiness. The Funds invest in fixed income securities which may be impacted by movement in interest rates.
  • All or part of some of the Fund’s fees and expenses may be paid out of capital resulting in an increase in distributable income and effectively a distribution out of capital. Similarly in certain circumstances dividends may be paid out of capital. This amounts to a partial return of an investor’s original investment, or from any capital gains attributable to that original investment, and may result in an immediate decrease of the net asset value per share.
  • It is possible that the entire value of your investment could be lost.
  • You should refer to the offering documents of the respective funds for details, including risk factors. You should not base your investment decision solely on this material.
  • SFC authorization is not a recommendation or endorsement of a product nor does it guarantee the commercial merits of a product or its performance. It does not mean the product is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.

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Information on this website

Value Partners Group Limited (VP) has taken reasonable care to ensure that the information contained on this website is accurate, current, complete, fit for its intended purpose and compliant with relevant legislation and regulations and, where applicable, the laws of the country of your residence as at the date of issue. However, errors or omissions may occur due to circumstances beyond VP’s control and no warranty is given, or representation made, regarding the accuracy, validity or completeness of the information on this website and no liability is accepted by such persons for the accuracy or completeness of such information. You must conduct your own due diligence and investigations rather than relying on any of the information in this website. Any person who acts upon the information contained on this website does so entirely at his own risk.

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Notice relating to the Personal Data (Privacy) Ordinance (the “Ordinance”)

When providing services to our clients and other parties, Value Partners Group Limited and its affiliates (including but not limited to Value Partners Hong Kong Limited and Sensible Asset Management Hong Kong Limited, collectively “Value Partners”, “the Company”) may from time to time require you to supply your personal data for the purposes of opening or continuing portfolio accounts and in the establishment or continuation of investment management and advisory services by the Company.

Failure to supply such data may result in Value Partners being unable to provide investment management and advisory services.

Personal data collected from you may be used by Value Partners within or outside Hong Kong, for the purposes of providing investment management and advisory services and direct marketing. The usage of the personal data may depend upon your relationship with Value Partners, which include but not limited to:

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  • marketing of financial services or related products
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Data held by the Company relating to you will be kept confidential but the Company may from time to time provide information to the following parties for the above purposes:

  • Any agent or third party service provider who provides administrative or securities clearing or other services to Value Partners in connection with the operation of its business
  • Any person to whom Value Partners is under an obligation to make disclosure under the requirements of any law and/ or regulation and/ or codes binding on/ applicable to the Company
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Value Partners intends to use your personal data in direct marketing and Value Partners requires your consent (which includes an indication of no objection) for that purpose. In this connection, your name, contact details, held by Value Partners from time to time may be used by Value Partners in direct marketing of financial services or products offered by Value Partners or co-branded partners.

Pursuant to the Ordinance, you have the right to (a) check whether Value Partners holds any personal data about you, and to access such data, at a reasonable fee, (b) request any inaccurate personal data to be corrected, (c) ascertain Value Partners policies and practices relating to personal data, including the type of personal data Value Partners holds and the main purpose for holding such data and (d) exercise your opt-out right if you do not wish Value Partners to use your personal data for direct marketing purposes. All such requests should be directed to:

The Compliance Officer

Value Partners Group Limited

43rd Floor, The Center, Queen’s Road

Central, Hong Kong

Fund performance (from to )

Investment involves risk. The price of units may go down as well as up and past performance is not indicative of future results. Investors should read the prospectus for details and risk factors in particular those associated with investment in emerging markets and the arrangement in the event that the Fund is delisted. The Fund’s prospectus is available and may be obtained from website. Investors should also note that the Fund is different from typical investment funds, in particular, units in the Fund may only be created or redeemed directly by a participating dealer in large unit sizes. Website has not been reviewed by the Securities and Futures Commission. Issuer: Value Partners Hong Kong Limited and Sensible Asset Management Hong Kong Limited.
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ETF Education
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  • What are ETFs?

    Exchange-traded funds (ETFs) are funds that track indices. When investors buy shares of an ETF, they are buying shares of a portfolio that seeks to replicate the performance of its underlying index. ETFs offer investors a basket of assets just like mutual funds but they trade like stocks on a stock exchange. The combined features of mutual funds of stocks make ETFs a diversified, transparent, low-cost and liquid investment tool that can serve various investment purposes:

    • active trading
    • buy and hold investing
    • core-satelite investing
    • diversification
    • hedging

  • What are the benefits of using ETFs?


    Cost efficiency

    ETFs enjoy lower cost than mutual funds because their nature of tracking an index incurs fewer administrative costs and management costs. Comparing an ETF and an actively managed fund that both invest in the same asset class and market, the cost of investing in the ETF is generally lower.

    Diversification

    ETFs are highly diversified investment vehicles that are made up of a broad portfolio of individual securities. They offer investors access to a wide range of asset classes or markets, including those that may not be easily available to individual investors because of high entry or regulatory requirement.

    Flexibility

    ETFs trade like stocks in stock market. Investors can buy or sell ETF shares at any time during a trading day and ETFs are priced continuously during trading hours. In addition, investors can purchase ETF shares on margin or short sell ETF shares.

    Low manager risk

    ETFs virtually eliminate the exposure to manager risks as they are passive funds that track market or rule-based index.

    Transparency

    ETFs are highly transparent as they often disclose underlying holdings of their portfolios on a daily basis. In most cases, such information is available on public, free websites.

  • How to buy and sell ETFs?

    ETF transactions take place in both primary and secondary markets. In most cases, institutional investors create and redeem ETF creation units at net asset value in primary market while individual or retail investors trade ETF shares at market price in secondary market.

    (i) Primary market

    ETF shares are created in primary market before secondary trading commences on stock exchanges. In general, only certain parties can take part in primary market activities and they include ETF sponsors (fund managers such as Value Partners), participating dealers (“PD”) (institutional investors that are authorized to create and redeem ETF creation units) and market makers (which provide liquidity).

    In the creation mechanism, a PD will apply to the ETF sponsor to create a creation unit, which is typically 50,000 ETF shares or more. After completing the direct purchase from the ETF sponsor, the PD will have an inventory of ETF shares that can be sold in the secondary market. The redemption process works in reverse.

    (ii) Secondary market

    After ETF shares are created by PDs in the primary market, they can then be sold to individual investors in the secondary market, i.e. the stock exchange. Individual investors can buy and sell ETF shares at market price during trading hours of a stock exchange.

  • How are ETFs priced?

    To understand the pricing mechanism of ETFs, it is essential to different between market price of an ETF share and net asset value (“NAV”) per share. Market price is the trading price of an ETF share in the secondary market (i.e. the stock exchange). This is a real-time price determined by trading activity on the stock exchange. For instance, the closing market price of an ETF is the price at which ETF shares were last traded during trading hours. Among the various factors influencing an ETF’s market price, the major ones include price movement of the underlying securities, exchange rate movements and investors’ demand for the ETF.

    Meanwhile, NAV per share is the weighted-average price of an ETF’s underlying securities, deducting fees and expenses of an ETF and then divided by the outstanding number of ETF shares. NAV per share is typically calculated and published after market closes on a daily basis.

    Market price of an ETF is usually similar to its net asset value (NAV) per share. If market price is higher than NAV per share, the ETF is trading at a premium. On the contrary, the ETF is trading at a discount. Premium or discount arises when an ETF’s underlying assets trade at different hours than the stock exchange (e.g. commodities). If the underlying assets trade infrequently, such as bonds, this could also lead to the gap between market price and NAV per value.

  • What is ETF liquidity?

    ETFs are generally perceived as more liquid than mutual funds. However, liquidity of ETFs varies because it is composed of different sources including on-screen liquidity, hidden liquidity and underlying liquidity.

    On-screen liquidity

    This is the most visible source of ETF liquidity as it refers to the trading activity of an ETF in the secondary market. In general, on-screen liquidity is mainly determined by the volume of shares traded. Most investors look at the 30-day or 60-day average daily trading volume to estimate such liquidity while some may evaluate the bid/ask spread. Yet, low trading volume doesn’t necessarily mean low liquidity as the secondary markets do not reflect all sources of potential liquidity.

    Hidden liquidity

    In addition to trading volume in the secondary market, the creation and redemption of ETF units by market makers in the primary market will also move ETF liquidity. Market makers, for example, could boost ETF liquidity by selling its ETF inventory shares on hand. As activities in the primary market are generally hidden from the public, this type of liquidity is called “hidden liquidity”.

    Underlying liquidity

    Another source of ETF liquidity comes from the underlying securities of ETFs. If the underlying securities held by an ETF are more liquid, the ETF is likely to be more liquid.

  • How are ETFs compared with mutual funds?

    ETF Hong Kong Retail Fund
    Pricing Continuous intra-day pricing on secondary market One quote per valuation day after market close
    Liquidity Depend on trading volume and underlying securities Depend on dealing frequency and terms
    Transparency Daily holding disclosure Full holding disclosure only mandatory in annual report
    Fee Relatively low Varies
    Short-selling Yes No
    Limit order Yes No

Investment involves risk. The price of units may go down as well as up and past performance is not indicative of future results. Investors should read the prospectus for details and risk factors in particular those associated with investment in emerging markets and the arrangement in the event that the Fund is delisted. The Fund’s prospectus is available and may be obtained from website. Investors should also note that the Fund is different from typical investment funds, in particular, units in the Fund may only be created or redeemed directly by a participating dealer in large unit sizes. Website has not been reviewed by the Securities and Futures Commission. Issuer: Value Partners Hong Kong Limited and Sensible Asset Management Hong Kong Limited.

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