2023-04-28-港交所-惠理ＥＭＱＱ_2022年度财务报告_70页_739kb

Value Partners EMQQ Emerging Markets Internet & Ecommerce ETF 2022 Annual Report Summary

Fund Basics

• Fund Name: Value Partners EMQQ Emerging Markets Internet & Ecommerce ETF
• Type: Sub-fund of Value Partners ETF Series OFC, HK umbrella open-ended fund.
• Listing Date: 25 July 2022 (trading commenced)
• Stock Code: 03030 (HKD)
• Objective: To replicate performance of EMQQ Emerging Markets Internet & Ecommerce Index before fees and expenses.
• Full replication strategy: Investment in constituent stocks from internet and ecommerce sectors in emerging markets.
• Asset Class: Equity/index funds, distributes total return excluding income distributions.
• Listing Agent: Altus Capital Limited
• Valuation: Based on Net Asset Value (NAV), calculated daily.

Performance

• Time Period: From 22 July 2022 (inception) to 31 December 2022.
• Key Metrics:
  • NAV at 31 December 2022: HK$7.25 per share (listed class).
  • Performance (total return):
    • Sub-fund: -7.1% (in replacement value)
    • Underlying Index: -6.7%
  • Impact: Performance discrepancy due to fees.
• Other Performance Metrics (e.g., US$) showed similar trends.

Investment Portfolio

• Weight Distribution (December 2022):
  • Listed Equities: Majority in China (≈99.7% of average market value).
  • Sectors: Overwhelmingly in Communication Services & Consumer Discretionary.
  • Geographical Focus: High exposure to Chinese internet giants like Tencent, Alibaba.
  • Part of ETF’s goal is to match index composition, e.g., closely tracking China-related stocks.

Management and Operations

• Manager: Value Partners Hong Kong Limited (listed in fund structure).
• Custodian: HSBC Institutional Trust Services (Asia) Limited.
• Auditor: Ernst & Young.
• Custodian Agency: Sensible Asset Management Hong Kong Limited.

Expense and Fees

• Management Fee: 0.99% (included in single management fee arrangement reducing other costs).
• Reporting Currency: Hong Kong Dollar (HKD), all transactions or expenses in line with local regulations.

Operational Highlights

• Net Asset Value (NAV) used for performance and transaction purposes;
• Trading desk and administrative services arranged via participating dealers.
• Handling of shareholder payouts and creation/redemption: Cash-based process through custodian.

Financial Statements Overview

• Auditor Opinion: Clean opinion, no material departure from IFRS standards.
• Key Focus: Existence and valuation of financial assets at fair value through profit or loss.
• No major impairment concerns identified on 31 December 2022.
• Statutory audits indicate overall compliance and reflection of true and fair financial position.

Conclusion
The fund experienced net asset decline and performance lag relative to the target index due to tracking error from fees. Its exposure is concentrated in China (geographically and by stock sector), reflecting high reliance on the performance of a few major Chinese companies in internet and ecommerce. On balance, operations met regulatory and control standards.