Dragon Capital Vietfund Management (DCVFM) | Fund Factsheet

1800 1203

VFMVFB – 11/2016


The Bond market fluctuated significantly in November 2016 and the yields of under-7-year bonds were in strong upward movements. Within the month, VFMVFB performed necessary actions to protect its investment result, including closing its REPO position and selling the 5-year government bond, which has been held since April 2016. The divestment transaction has been conducted right before the strong surge in bond yields, therefore, the fund’s investment results in this year has been protected. With regards to all those transactions, the fund had retained its accumulated earnings and has a modest growth rate in November. After the divestment of assets, the proportion of cash and cash at bank has increased to 56.6% of total fund assets as of 30 November 2016.

By the end of November 2016, the Net Asset Value per share (NAVPS) of VFMVFB was VND 13,748.9, increased by 0.07% compared to 31 Oct 2016 and by 8.98% compared to 31 December 2015. NAVPS of VFMVFB has grown by 9.6% in the trailing 12-month period and by 37.49% since the fund’s inception. The 0.07% growth of VFMVFB in November has outperformed the HNX Total Return Bond Index – HNXTRB, which has declined by -0.42% in the same period. Considering the current market and the unstable prospects in December, VFMVFB will pursue a secure investment strategy to protect the wealth of the fund’s investors. VFMVFB will maintain a high proportion of cash while actively analyze market trends to time its investment in government bonds as well as seek for opportunity to invest in listed corporate bonds and other assets according the fund’s investment mandate. It is expected that the NAVPS growth of VFMVFB will be higher than 9% for 2016, which is a good performance compared to the 12-month deposit rates of commercial banks in 2016. VFMVFB is in the group of most profitable bond funds in the year.