Dragon Capital Vietfund Management (DCVFM) | Fund Factsheet

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VFMVFB – 02/2016

19/10/2017

In late January and early February 2016 VFMVFB has bought and sold bonds. VFMVFB sold the short term bond (1-year, which was bought on 12/29/2015) and bought a bond with tenor of 5 years (4.67 years of remaining life date of the transaction). The bond swap benefits performance of the fund in February 2016. Realizing profit (capital gain and interest) of the above 5-year bond investment which held in 30 days earned an annualized returns of 14.47%.

There is a large difference between the VFMVFB’s asset allocation at 29 Feb 2016 and at the end of January 2016 dues to the fund held cash after selling bonds at the end of January. Government guaranteed bond held the largest weight in the fund’s total assets at the end of February, while investment in certificates of deposits accounted for the second largest.

Net asset value of VFB at 29 February 2016 is VND12,804.9/fund unit, an increase of 1.13% in comparison to corresponding figure at the end of last month and YTD fund unit performance of VFMVFB is 1.49%. This growth rate is 17 basis points higher than performance of Hanoi Stock Exchange Total Return Composite Bond Index in the same reporting period (YTD 1.32%).

On 15 March 2016, the Circular No. 16/2016 / TT-BTC amending the provisions of Circular No. 183/2011 / TT-BTC which regulates open-ended fund’s investment restrictions will become effective. The provisions of the new circular allow bond fund to hold more than 49% of its total assets in cash and to invest over 40% of its assets in large investment items. Those are reasonable adjustments to reduce the impact of market risk to a bond fund’s performance and widen investment limits. VFMVFB will take advantage of this adjustment to change its asset allocation to maximize returns to investors.