VALUE Partners, the fund management group that specialises in Hong Kong's smaller stocks, is lowering the minimum investment in its flagship fund. Investors will be able to take a stake in the fund for a minimum of US$10,000 - down from the previous minimum of $100,000. The fund, which has about $93 million under management, typically seeks out stocks with a market capitalisation of less than $1 billion. The company claims that as only 50 of the territory's 530 listed stocks are well known there is plenty of scope for finding bargains. Michelle Yap, marketing manger, said: 'The fund invests in out-of-favour stocks on a long-term basis. It relies on its own research, seeking fundamental value that has been overlooked by the market. 'Some have found our minimum subscription too high. Now, we are making changes to make our services more affordable.' The company is dividing the fund into 'A' unit holders - for those with a minimum of $100,000 - and 'B' units for $10,000. But B unit holders will face higher initial and annual fees. Charges are principally based on a performance fee which is set at 15 per cent of profits. If in any one year, a loss is incurred, the loss must be recovered before the fund can start charging a performance fee. In addition, there is a subscription of one per cent for A and 3 per cent for B and an annual charge of 0.75 per cent for A and 1 per cent for B. Holders of A units who redeem within 12 months, and B units who redeem within 24 months, are also charged a redemption fee of 1.5 per cent. The fund has been a consistently strong performer with gains of about 21 per cent during the past six months, 47 per cent over 12 months and more than 100 per cent for three years. Ms Yap said fund's top five holdings were: Fountain Set, the textile group; Elec & Eltek, the printed circuit board producer; Wah Kwong, the shipping group; Theme International, the boutique chain; and construction group Wai Kee.