DCDE – 12/2023
In December 2023, the financial markets experienced significant volatility, primarily driven by the sustained net selling activity of foreign investors. The month saw foreign investors offloading a staggering 10 trillion VND worth of assets, a record high for the year. The influence of foreign transactions reached a peak in December, accounting for 9.86% of all trades – a proportion not seen since April. This surge in net selling by foreign investors exerted considerable downward pressure on many key stocks, posing substantial challenges for market stability and the attraction of new investments.
Amidst these general market fluctuations, the DCDE fund’s net asset value (NAV) grew by 3.8% compared to the previous month. Throughout 2023, the fund maintained a stable growth trajectory, achieving a 23.4% increase over the year. This performance notably outstripped the VN-Index, which it surpassed by 11.2% (an absolute increase of 12.2%). This success is a testament to the fund’s adaptable and effective investment strategy, particularly in times of market turbulence.
A standout in the fund’s investment portfolio for December was its stake in Binh Minh Plastic Joint Stock Company (“BMP”). BMP’s shares surged by 20.2%, underlining the company’s robust growth and appealing dividend payment policy. Known for its consistent dividend payouts, BMP distributes 97 to 99% of its annual after-tax profits to shareholders. In an unprecedented move, the company advanced a cash dividend in December at 65% of par value, the highest it has ever offered. This policy positions Binh Minh Plastics as a model of stable dividend practices in the stock market.
