DCDE – 02/2024
Closing out February, the VN-Index recorded an increase of 7.59%, marking its 4th consecutive month of gains. This is also the highest monthly increase the index has seen since July 2023. This performance reflects expectations for Vietnam’s economic recovery, with data from import and production activities continuing to show positive results.
The DCDE fund’s Net Asset Value (NAV) increased by +7.5% compared to January. Compared to VN-Index, which increased by +7.6%, the fund has closely kept pace with the market’s growth. Over the past year, the fund has seen an increase of +36.3%, with an outstanding performance of +14.0% compared to the VN-Index (+22.3%). In the past month, the Fund has increased its allocation to the Banking sector to 31% of its NAV. Stocks in the Banking industry to which the Fund allocates a significant portion of its portfolio have all shown good growth, such as CTG (12.5%), MBB (+11.0%), and VCB (+9.9%).
Notable among the holdings in the DCDE fund’s portfolio is the Vietnam Joint Stock Commercial Bank for Industry and Trade (“CTG”), which have increased by 33% since the beginning of the year. CTG’s 2023 financial report reveals that its pre-tax profit for the fourth quarter of 2023 and for the entire year of 2023 showed positive growth, reaching 7,699 billion VND (up 43% over the same period) and 25,100 billion VND (up 19% compared to the previous year), respectively. CTG has focused on promoting lending to priority industry groups in line with the Government’s orientation for 2023. This strategy has led the bank’s credit growth to reach a high rate of 15.6% — the highest growth rate in the past five years.
In the coming time, the Fund will continue to prioritize allocation to the banking sector with positive information such as forecasting credit growth potential of the banking system this year.
At the same time, the fund continues to look for stock funds with good growth and cash dividends to invest.
In the coming period, the Fund will continue to prioritize allocations to the banking sector, encouraged by positive indicators such as the forecasted potential for credit growth within the banking system this year. Simultaneously, the fund will also seek out stocks with strong growth potential and substantial cash dividends for investment.
