VFMVF4 – 10/2017
By the end of October 2017, VF4 fund’s growth is 0.61% in comparison to last month, cumulative from January, VF4’s growth is 24.2%. VNINDEX’s growth in the same period is 29.6%. Sectors that contributed the most to this growth in October are Retails (+10.49%), Banks (+4.09%) and Real Estate (+3.88%). VNINDEX is still showing a remarkable growth and achieved 837 points as of 31/10. The increase in growth was due to blue-chip stocks with their outstanding profit in third quarter financial statement, for example, Vinamilk (After-tax profit: VND8,551.04 bn, +13.69% YoY), MWG (ATP: VND1,653.7 bn, +35.4% YoY) ACB (ATP: VND1,526.9 bn, +53.2%). Furthermore, the outlook of APEC conference in November gives a positive attitude towards market sentiment since its members accounted for ¾ of Vietnam’s import and export in terms of value. The conference also helps Pacific countries to discuss and establish a common ground for TPP-11 agreement.
The consumer goods sector, particularly retails, is blooming due to an increase in average income per head. According to the National Statistics Office, the average income at the end of 2016 was 2.200 USD per person, in which the middle-income group had a significant hike. The revenue from retails adjusted to inflation this month is 9.7%, highest level since March 2015. Mobile World Investment Corporation (HoSE: MWG), one of the biggest players in retail sector, accounted for a large proportion in VF4 portfolio. Since January, MWG achieved VND1,600 bn after-tax profit, +36% YoY. Currently, MWG has 1,779 stores over the country, in which 1,058 stores are Mobile World, 531 are Dien may Xanh and 190 are Bach hoa Xanh. MWG is expanding its Bach hoa Xanh grocery chain and expects to have 350 stores in 2017. In addition, MWG just acquired Phuc An Khang pharmacy retail chain in order to expand its product in the future from 2018 to 2020.
VF4 is holding 7% of the portfolio as cash and plans to use this money for future investment opportunities.
