Value Partners Group Limited · HKEX:806
Value Partners — H1 2022 Earnings Presentation
21 slides from Value Partners's earnings presentation, Aug 11, 2022
Slide 1: 2022 Interim Results
A company listed on the Hong Kong Stock Exchange Stock code: 806 HK 2022 Interim Results For the period ended 30 June 2022 Results Presentation, 11 August 2022 1
Slide 2: Disclaimer
Disclaimer This document has been prepared by Value Partners Group Limited (the "Company") solely for use at the presentation. The information contained in this presentation has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should
Slide 3: Presenters
Presenters June WONG Nikita NG Chief Executive Officer Finance Director 3
Slide 4: Financial Review
Financial Review Ms. Nikita NG Finance Director
Slide 5: Financial highlights
Financial highlights 1H 2022 1H 2021 (in HK$ million) (Unaudited) (Unaudited) % Change Total revenue 331.9 707.8 -53.1% Revenue Gross management fees 307.3 501.9 -38.8% Gross performance fees 0.9 91.3 -99.0% Cost Total expenses 264.3 250.8 +5.4% Operating (loss)/profit – core operation (44.9) 193.4
Slide 6: Assets under management ("AUM")
Assets under management (“AUM”) AUM movement during 1H 2022 (US$ million) 1H 2022 fund flows: Beginning AUM 10,037 Gross subscriptions: Subscriptions 658 US$0.7 billion Redemptions (1,317) Performance (1,758) Gross redemptions: Dividend distribution US$1.3 billion (128) Ending AUM 7,492 Net ou
Slide 7: AUM analysis
AUM analysis Classification by strategy AUM by strategy: 80% 75% 69% Equities: Continuous inflows 70% 60% into flagship High Dividend 50% Stocks strategy, and also a 40% Chinese mandate from 30% 20% European client 20% 14% 10% 6% 6% 3% 3% 2% 2% Resilient • 0% Fixed income: 2022 1H Absolute Retur
Slide 8: Expense analysis
Expense analysis Total expenses Fixed operating expenses slightly increased by 6% (HK$ million) mainly on staff cost due to Resilient • 1H 2022 Fixed Expenses = 168 general salary increments and also as part of our (US$19mn) • 264 strategic growth plan 1H 2022 121 20 12 15 14 57 3 22 Other fixed
Slide 9: Strong balance sheet and cash deployment strategy
Strong balance sheet and cash deployment strategy 30 Jun 2022 31 Dec 2021 (In HK$ million) (Unaudited) (Audited) Net Assets 4,649 5,265 • Cash & cash equivalents 1,604 1,666 • Investments 2,885 3,461 Resilient • (In HK$ million) Value Partners’ House Money Investments (2018-2022) Maintain a very s
Slide 10: Business and Strategy Updates
Business and Strategy Updates Ms. June WONG Chief Executive Officer
Slide 11: Industry macro trend 1: The growth potential of the wealth management market in Asia
Industry macro trend 1: The growth potential of the wealth management market in Asia Asia Wealth Management AUM is expected to grow from US$10 trillion in 2019 to US$15-$19 trillion in 2025 Source: McKinsey Asian Wealth Management Post COVID-19, June 2020. 11
Slide 12: Industry macro trend 2: Institutional investors are increasingly looking for China asset classes
Industry macro trend 2: Institutional investors are increasingly looking for China asset classes Majority of global institutional investors confirmed the increasing importance of China investments in their portfolios. This is also supported by the strong inflows into China from foreign investors.
Slide 13: Industry macro trend 3: ESG – its rising importance to investors globally
Industry macro trend 3: ESG – its rising importance to investors globally Continued rise in sustainability-mandated investment demand from investors ESG incorporation may no longer be a differentiator for investors, rather, a standard consideration in the investment making process. Sources: Prop
Slide 14: Value Partners' key strategies
Value Partners’ 3 key strategies Strengthening of Asset classes Capture sales & marketing expansion and opportunities channels ESG in China’s market opening 14
Slide 15: Strengthening of sales & marketing channels
Strengthening of sales & marketing channels Hong Kong headquarters Overseas Strengthened management leadership across Foreign client engagement activities fueled the engine different functions of growth o Enhanced Client Portfolio Management team o Inbound requests from institutional investors i
Slide 16: Value Partners' key strategies
Value Partners’ 3 key strategies Strengthening of Asset classes Capture sales & marketing expansion and opportunities channels ESG in China’s market opening 16
Slide 17: Diversification and growth from product suite expansion
Diversification and growth from product suite expansion Asian multi-asset strategy (Asian Income): Flagship high dividend Asian equity ‒ 4 times of AUM growth seen in China / Asian equities strategy: strong net inflows even in the past 3 years1 adverse market condition ‒ New and leading distribu
Slide 18: ESG Journey of Value Partners
ESG Journey of Value Partners Value Partners ESG milestones Value Partners ESG investment framework 2019 - Became UNPRI signatory Negative screening Identify significant 2020 - Proprietary ESG assessment framework ESG violators 2021 - 100% proprietary coverage for equities and listed fixed incom
Slide 19: Value Partners' key growth strategy
Value Partners’ 3 key growth strategy Strengthening of Asset classes Capture sales & marketing expansion and opportunities channels ESG in China’s market opening 19
Slide 20: Value Partners China: pillars for growth in 2022
Value Partners China: 4 pillars for growth in 2022 Pandemic restrictions gradually uplifted: Expand wealth management channel: our book of business is expected to grow onboarded new wealth management in the post-Covid period channel investing into PFM product Institutional Brand recognition: N
Slide 21: Contact information
Contact information Value Partners Group Limited 43rd Floor, The Center 99 Queen’s Road Central, Hong Kong www.valuepartners-group.com ir@vp.com.hk Follow us on social media LinkedIn@ValuePartnersGroup Facebook@ValuePartnersGroup WeChat @惠理集团