VFMVF1 – 10/2016
In October 2016, Net Asset Value per share (NAVPS) of VF1 has decreased 2.5% compared to its benchmark’s decline of 1.2%. The deterioration occurred mostly in the Steel sectors (HPG), Technology (FPT), Transportation (SKG, VSC). The market-wide deterioration in stock prices reveal the cautious sentiment of investors before significant events that are about to happen, including the United States Election and the rate hike by FED in December that will affect asset prices globally.
However, with regards to results of companies within VF1 portfolio, there were numerous positive information in October. VNM, the largest holding in the portfolio, has shown very good growth with top and bottom line of 9M2016 increased by 18% and 28% y/y, much better than the milk industry in general thanks to extending market share. In retail sector, Mobile World Group (MWG) also recorded revenue and net profit growth rate of 78% and 64% respectively in the first 9 months of 2016 compared to 9 months of 2015, which are all the results of the successful expansion of the stores chain and gaining market share from mom and pop shop.
Weighting of cash & certificates of deposit remains at balance position of 21% NAV compared to the end of September. At the end of October, VFMVF1 has accumulated a return of 20.9% since the beginning of this year, higher than the increase of 13.5% of VF1 Benchmark.