Dragon Capital Vietfund Management (DCVFM) | Fund Factsheet

1800 1203

VFMVFB – 08/2016


In August 2016, VFMVFB has invested in a 5-year government bond at the start of the month and maintained the position of another 5-year bond that was invested in April 2016, together with the Certificates of Deposits. The fund has continued to conduct REPO transaction with regards to the holding 5-year bond and deposit the funds received in the commercial banks. The investment into 5-year government bonds at the right time has generated good return for the fund when the yield of 5-year bond significantly dropped in August 2016. As at August 31st 2016, the allocation of the fund into Bonds, Deposits and Certificates of Deposits are 41%, 35% and 21% respectively. In comparison to the end of July, the proportion of bond investment has increased, while allocation into deposit decreased.

The Net Asset Value (NAV) per share of VFMVFB as at August 31st 2016 has achieved VND 13,356.2, increased by 1.43% compared to July 31st 2016 and by 5.86% compared to December 31st 2015. This growth of VFMVFB’s NAV per share in August is the highest monthly growth in the first 8 months of 2016, outperforming the growth of HNX Total Return Bond Index (0.95%). After 8 months, VFMVFB’s NAV per share has increased by 5.86% since December 31st 2015, which is higher than the index’s YTD return of 5.69%. August was also the first month that VFB has beaten the index in terms of accumulated yearly return. This performance resulted from the capital gains of the holding bonds as their yield is having a downward trend. Under the circumstances of macro economy and monetary policies in the last 6 months of 2016, VFMVFB will continue to keep a large proportion of its asset in highly liquid government bonds and actively look for the opportunities to improve the funds’ return from the holding of the mentioned bonds.