Dragon Capital Vietfund Management (DCVFM) | Fund Factsheet

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VFMVFB – 03/2017

19/10/2017

Concluding the first quarter of 2017, Net Asset Value per share (NAVPS) of VFB has increased by 2.11% YTD and 10.09% YoY. The NAVPS achieved 14,110.98 as of 31 March 2017. In March, VFB’s NAVPS has increased by 0.1% (17.74 VND per share) compared to 28th of February. This return outperform our internal benchmark (HNX 3-year Bond Total Return – HNX 3Y TRI), which declined by 0.20%. In the first quarter of 2017, VFB’s NAVPS growth (2.11%) outperformed the benchmark return (1.66%) by 0.45%. This result is attributed to the divestment of VFB from 5-year government bond under the circumstances that 5-year bond yield was rallying in March (which increased by 16.8 basis point in the month). After realizing the profit for that trade (2.82% gain in 10.9 weeks, equivalent to annualized return of 13.57%), VFB changed its investment to other bond terms. Within this period, VFB also invested in the Certificate of Deposits issued by consumer finance company, changing its allocation to CDs to 26.74% as of 31 March, compared to the 42.9% weight as of 28 February 2017. The Fund’s allocation in Government Bonds reached 63.73%, compared to 52.78% as of the end of February. These significant changes in VFBb’s allocation was resulted from a strong surge of the Fund’s total assets after a large net subscription of 8.991 million fund shares.

It is expected that in the near future, VFB will continue to invest in Goverment Bonds and to actively seek for trading opportunities under the circumstances of yield fluctuations on secondary market. Besides, the next goal for VFB in the upcoming months is also looking for corporate bonds investment opportunities.