The objective of VFMVF1 is to seek long-term earnings from equity growth and income through investing into a balanced and diversified portfolio, including equity, convertible and debt securities in Vietnam. The Fund normally invests approximately 80% of its NAV in equity and 20% in fixed income and cash. The targeting investments are growth stocks among large and midsized market capitalization stocks. The manager will apply a bottom-up approach to pick stocks in consideration of business model, long-term earning, asset value, cash flow potential and quality of management. The Fund may from time to time change the weight of equity and fixed-income investments at around +/-10% NAV from the targeted allocation to get an optimal asset mix in consideration of changes in economic market conditions.

The Vietnam stock market experienced a 4.3% growth in May, marking a strong recovery following a correction in the previous month. Key sectors such as Transport, Software, and Retail attracted significant investment flows, contributing substantially to the VNIndex's overall growth. Additionally, average daily liquidity improved, reaching over VND25,000 billion across all three exchanges, a 3% increase compared to the previous month and a 31% increase since the end of 2023. Despite foreign investors remaining net sellers in May, stocks like MWG, HVN and NLG drew considerable foreign capital, leading to notable price increases over the month. At the end of May, the NAV per share of DCDS rose by 8.7% compared to the end of April, outperforming the VNIndex by 4.4%. The Fund's high-weight sectors, including Residential (+12.8%), Retail (+10.2%), Chemicals (+9.5%), and Software (+9.4%), all showed strong growth. Noteworthy stocks included DPG (+35.1%), TCH (+22.6%), NLG (+19.5%), MWG (+16.3%), DCM (+22.8%), and FPT (+9.4%). The Aviation sector also stood out, thanks to the continued strong recovery of international tourism. Capitalizing on this trend, the Fund strategically invested early in leading sector companies like HVN (+60.7%) and ACV (+23.1%), which demonstrated strong business performance in Q1. This dynamic allocation strategy has driven the Fund's growth to 26.2% year-to-date as of June 12, 2024, outperforming the VNIndex's 15.1% increase by 11.1%. The Fund remains optimistic about the Retail, Materials and Banking sectors, expecting robust profit growth this year. Additionally, the Fund will proactively rebalance its portfolio in response to market developments, exploring new opportunities in the Real Estate sector, anticipating a stronger recovery with the Land Law 2024 coming into effect in early July. The Fund is also considering investments in Industrial stocks, which continue to benefit from international trade and investment, alongside strong FDI inflows.