Value Partners sees 2018 net profits drop 89%

Falling_profitsValue Partners saw an 89% decline in net profits to HK$229.5 million (US$29.2 million) last year, the Hong Kong-based asset manager announced in its 2018 annual results. Net profit stood at HK2.05 billion in 2017, but a significant reduction in performance fees underpinned the sharp decline, the firm said in a statement on March 12, 2019. Value Partners’ assets under management also took a 10% hit, declining to US$15 billion as of December 31, 2018. Commenting on the firm’s performance, King Lun Au, the chief executive of Value Partners said last year was one of the most difficult in the group’s history. “Waves of sell-offs swept across financial markets in Asia as fears about the US-China trade war, rising US interest rates and a slowdown in global economic growth ravaged investor sentiment,” he said. Despite the squeeze on Value Partners’ top line, King Lun Au pointed to progress in growing the business. “Highlights include our flagship fund’s recent approval for the Mainland-Hong Kong Mutual Recognition of Funds (MRF) scheme, the launch of our first private debt fund and the establishment of our inaugural private equity fund in the domestic Chinese market,” he said. The chief executive also said that the firm would focus on expanding its alternatives products. ©2019 funds global asia

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