Corporate News

Convoy Asset Management Partners with Zeal Asset Management to
Launch "Voyage Zelec China Fund"

(Hong Kong, 6 September 2010) - Convoy Asset Management Limited ("CAM") (a sister company of Convoy Financial Services Holdings Limited; stock code: 1019), has initiated a partnership with Zeal Asset Management Limited ("Zeal Asset Management") to launch the Voyage Zelec China Fund. This fund is to primarily invest in stocks listed in Hong Kong with a China focus and B-shares listed in Shenzhen and Shanghai with high growth potential guided by a value investing philosophy. Convoy Asset Management is to be the sole distributor of "Voyage Zelec China Fund".

Voyage Zelec China Fund employs a systematic value investment approach
Through its investment advisory experience over the past year, CAM has observed that most China funds have picked constituent stocks of the Morgan Stanley Capital International (MSCI) China Index. The top 10 holdings of some funds are almost identical to the top 10 stocks of the MSCI China Index. As the constituent stocks of the MSCI China Index may not optimally reflect the actual economic growth potential in China, CAM has invited a top fund management team, Zeal Asset Management, with plenty of fund management experience in the Greater China Region, to set up the Voyage Zelec China Fund. The fund will not follow any indices but uses a disciplined value investing approach and, through company visits and on-site evaluation, will investigate quality "non-mainstream" stocks that may be overlooked in the market. By investing in such potential targets promising potential returns for fund holders can be created.

Bringing institutional experience to the investing public
Mr. Eric Ng, Managing Director of Convoy Asset Management, said, "Previously, a non-index tracking fund such as the Voyage Zelec China Fund primarily served institutional or hedge fund investors who can invest significant amounts. By working with Zeal Asset Management, we introduce the same asset management model and investment management service to retail investors. Compared with many other funds in China with hugh fund size, Voyage Zelec China Fund is able to flexibly invest in different companies based on bottom-up fundamental research. Its aim is to generate higher potential return and capitalise on the 'value investing' philosophy without overlooking liquidity risk."

The fund management team of Zeal Asset Management brings extensive investment management experience, being among the first batch of fund managers who were involved in equity investment and engage in fundamental research within China. Mr. Franco Ngan, Chief Executive Officer, and Mr. Jacky Choi, Chief Investment Officer, boast excellent track records in managing signature value funds.

"We are very glad to have the opportunity to work with Convoy on this exciting fund. China, being one of the biggest and one of the most promising emerging markets is indeed an ideal place for experienced value investors who possess strong research capability to practice value-investing. We are confident that the strong combination of CAM and Zeal Asset Management will bring a very strong value proposition to all fund investors in Hong Kong, who are looking for first class financial planning services as well as a well-designed fund to help them capture the huge opportunity in China market," said Mr. Franco Ngan, Chief Executive Officer of Zeal Asset Management.

"Many lesser-known companies, which are often less gigantic in size are in fact growing very rapidly. They are increasingly becoming a significant driver of the country's economy. However, as these companies are usually not as big as the state-owned companies and are not well publicized by media and sell-side brokers, they are often not covered by major indices and therefore are not showing up on mainstream fund houses' research radar screens. Our objective is to help investors capture the attractive opportunities in this under-researched segment of the market by investing in the non-mainstream stocks selected through our vigorous value-style research," said Mr. Jacky Choi, Chief Investment Officer of Zeal Asset Management.

The IPO period of the Voyage Zelec China Fund is from 6 to 17 September 2010. The minimum subscription amount is HKD50,000. Subscription Fee equates to a maximum of 5% of Net Asset Value. The fund will charge a management fee of 1.75% per year and a performance fee of 15% per year (high water mark).

Mr. Eric Ng, Managing Director of Convoy Asset Management (right) and Mr. Franco Ngan, Chief Executive Officer of Zeal Asset Management (left) both expect the brand new model and investment philosophy of the Voyage Zelec China Fund to bring a whole new investment experience to investors.