❗ Market Volatility Heating Up ❗ How to Seize Income Opportunities in Asian Equity and Bond Allocation?

$Value Partners Asian Income Fund MDis (HK0000352291.MF)$

Value Partners Asian Equity & Bond Income Fund: Balanced Offense and Defense

Following the rally in the second quarter, some markets experienced profit-taking, prompting investors to reassess interest rate trends, tech stock valuations, and regional capital flows. Markets that previously outperformed, such as Taiwan and South Korea, saw significant volatility, reflecting the不可忽视 (non-negligible) impact of short-term sentiment and position adjustments on the market.

However, market volatility does not imply a change in long-term investment themes. On the contrary, when markets adjust due to short-term sentiment, it may present opportunities for active management strategies to re-evaluate valuations, adjust allocations, and capture high-quality assets.

Looking back at the first half of the year, Asian technology and AI-related supply chains remained a key market focus. Value Partners continues to monitor structural growth opportunities in the AI hardware ecosystem, covering various segments such as semiconductor equipment, advanced packaging, PCBs, and CCL manufacturers. As cloud service providers continue to expand capital expenditure, demand for AI infrastructure is expected to provide long-term support for the Asian supply chain.

In terms of regional allocation, we flexibly adjusted some South Korean equity positions earlier in response to changes in market sentiment, crowded trades, and risk-return profiles, gradually shifting towards the fundamentally sound and more rationally priced markets of Taiwan (China) and Japan. The sharp decline in South Korean stocks in July largely reflected short-term positioning and liquidity pressures, rather than a reversal in the long-term fundamentals of the AI or memory cycles.

Looking ahead, the market may remain volatile in the short term due to factors such as AI earnings expectations, interest rate trends, and capital flows. However, if corporate earnings gradually materialize, concerns over capital expenditure ease, and Asian market valuations retreat to more reasonable levels, assets with long-term growth momentum and stable cash flows will remain worthy of attention.

In this market environment, the Value Partners Asia Equity & Bond Income Fund seeks to capture income opportunities while diversifying volatility arising from single markets or asset classes through a diversified allocation across Asian equities and bonds. Actively managed by Value Partners' Asia Multi-Asset Investment Team, the fund flexibly allocates across different markets, industries, and asset classes, combining the growth potential of equities with the income generation of bonds to help investors participate more comprehensively in Asian investment opportunities.

For investors looking to deploy capital in Asian markets while prioritizing income potential and portfolio stability, the Value Partners Asia Equity & Bond Income Fund can serve as part of a medium-to-long-term asset allocation strategy. By employing a dual strategy of equities and bonds, the fund helps investors maintain flexibility amid volatile market conditions, allowing them to capture income and growth opportunities across diverse Asian assets.

Investors can now purchase directly on the Futu platform $Value Partners Asian Income Fund MDis (HK0000352291.MF)$ , or opt for a monthly investment plan to build up positions gradually, accumulating Asian income-generating assets step by step and reducing the risk of being affected by short-term market volatility from a single lump-sum entry.

Value Partners Asian Equity & Bond Income Fund: Balanced Offense and Defense · Flexibly Adjusting Asset Allocation to Seek Steady Progress Amidst Market Volatility

The fund's three unique advantages cater to investors seeking income, growth, and volatility control simultaneously.

Won the "Outstanding Award" in the Asian Allocation Category of Mutual Funds (5-Year) as a "Leading Fund" by Bloomberg Businessweek/Chinese Edition for three consecutive years.

Since its establishment in Hong Kong in 1993, Value Partners has been deeply rooted in the Asian market. Over the past 33 years, while market focus has shifted and investment themes have evolved, our emphasis on research, adherence to value investing, and commitment to investor responsibility have remained unchanged.

However, scale is never just a number. It represents investors' choices, partners' support, and trust in Value Partners' professional judgment and long-term commitment. Since its founding in Hong Kong in 1993, Value Partners has remained anchored in Asia, adhering to in-depth research, independent judgment, and long-term investing, continuously refining its investment capabilities and product offerings amidst market changes. $VALUE PARTNERS (00806.HK)$

+This fund is one of the eligible collective investment schemes under Hong Kong's New Capital Investment Entrant Scheme, effective from March 1, 2024. The opinions provided herein are solely those of Value Partners Fund Management (Hong Kong) Limited ("Value Partners") and are subject to change based on market and other conditions. The above information does not constitute any investment advice and should not be regarded as a basis for investment decisions. All information is sourced from materials believed to be reliable, but Value Partners does not guarantee its accuracy. Some statements contained in this document may be considered forward-looking statements; such statements do not guarantee future performance, and actual results or developments may differ materially from these statements. Investments involve risks, including the loss of principal. Fund unit prices may rise or fall. Investors should refer to the fund's explanatory memorandum to understand details and risk factors. This advertisement has not been reviewed by the Securities and Futures Commission. Issuer: Value Partners Fund Management (Hong Kong) Limited.

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