Dragon Capital Vietfund Management (DCVFM) | Fund Factsheet

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VFMVFB – 06/2016


June 2016 marks the third year of operation of VFMVFB since inception date (10/6/2013). After 3 years, VFMVFB has generated a total return of 30.36%, equivalent to the average rate of 9.27% per annum. This rate is significantly higher than the highest interest rate of 12-month deposits during the period from June 2013 to June 2016 (The highest interest rates for each year during this period are: 8.97% (6/2013 to 6/2014), 7.47% (6/2014 to 6/2015) and 6.77% (6/2015 to 6/2016). On this occasion, the fund’s management team would like to express our sincere gratitude to our investors who have entrusted VFM with the responsibility to manage your investment. Once again, we would like to express our commitments and efforts to generate the best results for VFMVFB in the following years.

In June 2016, VFMVFB has conducted repo transactions with regards to holding bonds and utilize the cash gained to invest in long term government bonds. As at 20 June 2016, VFB is holding 2 government bonds and other certificates of deposits issued by consumer finance companies. In June 2016, the fund’s net asset value per share increase by 0.5%, equivalent to the growth of the total return index of the bond market announced by Hanoi Stock Exchange. In June 2016, the fund’s attempt to invest in certificate of deposit and corporate bonds was not successful. However, the fund has succeeded in changing the maturities of its assets under management, which set out the preliminary for achieving long term stable income. Asset allocation of VFB has had considerable change from the end of May to 30 June 2016 as a result of increasing the weight of government bond investment, consequently reducing the weight of the certificate of deposit and cash in the fund’s net asset value.

Net asset value (NAV) of VFMVFB as at 30 June 2016 achieved VND 13,081.2 per share, increase by 0.53% from 31 May 2016 and by 3.68% compared to 31 December 2015. With a 6-month growth rate of 3.68%, VFMVFB is leading the peers group of local bond funds (which consist of the funds that purely invest in bonds and fixed income securities). Most VFB’s growth in June 2016 is generated from interests of bonds and other assets, the capital gain from bond price increase contribute a minor proportion due to the yield of bonds held by VFMVFB slightly decreased within the month. In the third quarter of 2016, VFMVFB will continue seeking for investment opportunities into certificate of deposits and corporate bonds of different maturities under the condition that interest rates continue their stabilizing trends.