Dragon Capital Vietfund Management (DCVFM) | Fund Factsheet

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VFMVFB – 04/2016


On April 8, 2016, VFMVFB has purchased a Vietnam Government bond (VGB) with tenor of 5 years after divesting its 10-year bonds on 31 March, 2016. VFMVFB bought VND50 billion face value of a 5-year bond through transactions on the Hanoi Stock Exchange. The investment in 5-year bond has brought the fund a capital gain as of 30 April 2016 thanks to the downward movement of 5-year bond yields during the last week of April 2016. With this transaction, the VFMVFB turnover after 4 months of 2016 was 499%. With the investment in government bonds mentioned above, the weight of investment in government bond is the highest among fund assets, accounting for 51.8% of the total asset value of the fund as of 30 April 2016. VFMVFB fund’s asset allocations were not changed significantly over the first 4 months of 2016, the weights of government bonds and certificates of deposit in the total net asset value of the fund are not strongly volatile (except for the time of VGB selling).

Fund net asset value (NAV) at 30 April, 2016 reached 12877.08 VNĐ /unit, increased 59.47 VND/unit (equivalent tso a growth of 0.46% MoM) and up 2.07% compared to the value as of 31 December 2015. Growth in April (0.46% from the previous month) is the highest growth rate in the first 4 months of 2016. The growth in the first four months of 2016 of the Total Return Composite Bond Index issued by Hanoi Stock Exchange (HNX TRC Bond Index) is impressive (increased 2.62% YTD) due to the addition of long-term bonds to the basket of bonds which is used to calculate the index. As the State Treasury focuses on the issuance of bonds with long maturities, the proportion of the value of the long maturity bonds in the basket will increase over time and thus will boost performance of the index. As at 30 April 2016, the fund’s NAV/unit YTD growth is 2.07%, lower than the performance of HNX TRC Bond Index (2.62%).