Hong Kong’s Value Partners sees explosive first half growth

19 August 2014   Category: News, Asia, Global, Hong Kong   By Derek Au

Hong Kong-based asset manager Value Partners saw its profit surge more than 40 times in the first half of the year, thanks to an increase in revenue from management fees on the back of growing AUM.

In the first six months of the year, the profit attributable to equity holders of Value Partners reached HK$141 million (US$18.2 million), up 41.6 times from a year earlier, while its revenue rose 24% to HK$444 million.

As of the end of June, the group’s average AUM jumped 12% from a year earlier to US$10.2 billion, prompting its gross management fees to rise 17% to HK$341 million. Performance fees increased 42% to HK$22 million due to strong fund performance.

The growth momentum of AUM appears to have been sustained going into the second half of the year. Improvement in fund performance and net sales sent the group’s AUM to an all-time high of US$10.7 billion as of the end of July.

Outlining its future ambitions, Value Partners said it is planning to unveil new products including an RQFII equity fund, and will utilise its recently obtained US$100 million in QFII quota to enrich existing products. The group said it is going to develop more fixed-income products covering Asia-Pacific and other regions, as it anticipates investment appetite for high-yielding products to increase on the back of the inflationary environment, according to a statement.

Besides promoting ties with major local banks and securities houses, the group said it is also “actively pursuing Chinese institutional investors including insurance companies and sovereign wealth funds”.

Addressing the group’s future initiatives, Timothy Tse, chief executive officer of Value Partners, said: “On our way to becoming a world-class asset manager in Asia, we will continue to proactively position ourselves to achieve investment performance, expand our fund platform, enhance fund sales and strengthen our geographical presence.”