VFMVF4 – 11/2016
In November 2016, Net Asset Value per share (NAVPS) of VFMVF4 has decreased by 0.2% compared to the market decline of 1.6%. The less severe decline compared to market is attributed to the appropriate asset allocation in the sectors with impressive growth of business earnings. In November, Retail sector has grown by 11.1%, with a major contribution from the industry leader Mobile World (HOSE: MWG). In other sectors, the decline in value occurred as a result of macroeconomics event, specifically the US President election that caused a net outflow of funds from emerging market. In November, the Asian financial markets including Korea, Taiwan and India had accumulated USD 8.7 billion of net outflows. The Vietnamese stock market are also negatively affected with an outflow of USD 68 million. The two ETFs which specialized in Vietnamese stocks: Vaneck ETF and FTSE ETF are withdrawn by the amounts of USD 24 million and USD 9.4 million respectively. It is forecasted that the macro condition will continue to be volatile in December when the US Federal Reserve is forecasted to raise federal funds rate, causing the fund to continue its outflowing trend from emerging market.
In the first 10 months of 2016, Mobile World Investment Corporation (HOSE: MWG) continues its impressive growth with its revenue achieved VND 35,029 billion, completed 103% of 2016 plan and increased 76% YoY. The net profit after tax (NPAT) after 10 months of 2016 achieved VND 1,330 billion, completing 96% of 2016 plan and grown 57% YoY. Moreover, MWG has opened 469 new stores across the country, in which the Thegioididong.com chain accounted for 365 stores and Dien May XANH accounted for 104 stores. Accumulated to the end of October 2016, MWG has opened 1,102 stores across the country.
In November, VF4 has decrease its cash position to 18.7% compared to 28.8% in the last month, took advantage of the market downtrend to buy in good-fundamental stocks at reasonable price. The fund will continue to seek opportunity of investment from not only listed companies on HOSE and HNX but also unlisted companies from UpCOM or traded OTC if these companies satisfy the investment goals and requirements of the funds. At the end of November, VF4 has its NAVPS grown by 17.9% year-to-date while the market has increased by 14.9%.