Dragon Capital Vietfund Management (DCVFM) | Fund Factsheet

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VFMVF1 – 12/2016


December 2016 was another month of downtrend as a result of foreign investors outflows, causing the VN-Index to drop by 0.03% compared to last month. However, if the contribution from the newly-listed and illiquid stock of Sai Gon Beverages Joint Stock Company (HOSE:SAB) are excluded, VN-Index has decreased by 2.9% in December 2016. Net Asset Value per share (NAVPS) of VF1 has slightly dropped by 1.2% within the month, the main reason came from VNM with a decrease of 9% because of the pressure from foreign investors who were retreating from emerging markets.

For the whole year 2016, VF1 has achieved impressive growth of 19.3%, significantly higher than the growth of VN-Index (14.8%) and VF1 Benchmark (12.8%). This is the result of asset allocation into industries with high growth. 60% of the return came from Retailing, Materials, Capital Goods and Real Estate. The appropriate stock-picks and active investing strategy has significantly contributed to the outstanding performance of VF1.

As of 31 December 2016, the allocation into Cash and Fixed Income instrument has increased to 32.2% as the fund realized its profit of investments in the stocks in Retailing sector. This will become an advantage for VF1, enabling the fund to actively pick new investment opportunities from the wave of IPO and listing of new large-cap company in 2017.