Dragon Capital Vietfund Management (DCVFM) | Fund Factsheet

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VFMVF1 – 10/2017


At the end of October, NAV per share of VF1 increased 2.5% in comparison to last month, which results in the growth of 24.6% YTD, higher than the benchmark 1.8%.

Sectors that contributed the most to this growth are Retails (MWG +11%), Food and Beverage (SAB + 5,9%). The 9-month financial statement of Mobile World Investment Corporation (MWG) continues to show the high growth of electrical appliances (+197%) and mobile phone (+19%), which helped to achieve a profit growth of +34% YoY. Furthermore, MWG is expanding its retail chain Bach Hoa Xanh in Ho Chi Minh City. Currently, there are 233 Bach Hoa Xanh groceries in the following Districts: 12, Binh Tan, Tan Binh, Tan Phu, Go Vap, Hoc Mon and Binh Chanh with an average revenue of VND 700 mil – 1bn per store per day. In order to increase its capital and proceed new investments, the corporation has asked its shareholders’ permission to issue VND1.200 bn worth of 5-year bond with yield below 6.8%. This is a reasonable move of the firm to use intermediate-term loans instead of short-term to finance its project.

By the end of October, the weight of equity in VF1 portfolio is 83.5%, Certificate of Deposit is 9.6% and 6.9% are cash and equivalents. The amount of liquidity money increased 3.1% from last month to prepare for future investment opportunities.