VIETNAM – THE NEW CHINA?
Population (mn)
GDP (bn USD)
Labor Force (mn)
%
Internet Users
VIETNAM FUND
VIETNAM AT A GLANCE
Since the introduction of market reforms that opened up the country to foreign investment in the late 1980s, Vietnam has become one of the world’s fastest-growing economies, averaging annual GDP growth rates of 7-8% throughout the twenties.
Agribusiness production has nearly doubled over the past two decades, transforming Vietnam into one of the largest exporters of rice and shrimp globally.
Currently, Vietnam is in the midst of a transformation from a manual labor/agrarian-based economy towards one fueled by skilled-labor. Agriculture production has decreased 5% to account for 20% of GDP over the last five years, while the government has begun to provide incentives for hi-tech companies, such as Intel, Canon, and Samsung, to bring skilled manufacturing jobs to Vietnam.
Vietnam hosts two large stock exchanges; the Ho Chi Minh City Stock Exchange (HOSE), Vietnam’s largest stock exchange, and the Hanoi Stock Exchange (HNX). The third exchange, UPCoM (Unlisted Public Company Market) is the market at HNX for public companies not listed yet.
INVESTMENT STRATEGY
The Vietnam Fund has been created to offer investors high returns from growth in equity markets in Vietnam whilst offering a portfolio that has low correlation with global equity markets. The fund aims to achieve long-term capital appreciation for investors by capturing value in growth companies over the next 5-7 years predominantly targeting the small to medium size company segment. Vietnam has very compelling growth prospects with an attractively valued market that has significant room to grow.
Competitive labor costs combined with improvements in human capital as well as economic and trade environments present a strong case for market development. Vietnam has had a stable currency and increasing foreign reserves over the past two years and high GDP growth rates are being supported by fiscal and monetary policy.
MOST RECENT POST
Manager Comment Q4 2019 – Vietnam Fund
The AFC Vietnam Fund gained +2.3% in December with a NAV of USD 1,789.27, bringing the return since inception to +78.9%. This represents an annualized return of +10.1% p.a. The Ho Chi Minh City VN Index in USD lost −0.9%, while the Hanoi VH Index gained +0.1% (in USD...
ASSET ALLOCATION
- Industrials 33%
- Consumer Discretionary 19%
- Financials 13%
- Consumer Staples 12%
- Materials 10%
- Cash 5%
- Utilities 5%
- Healthcare 2%
- Communications 2%
- Energy 1%
FUND PARTICULARS
Investment Profile
Investment Focus
Investment Objective
Investment Horizon
Risk Level (1-7)
Management
Fund Type
Fund Structure
Inception
Base Currency
Currency Class
Minimal Init. Investment
Frontier Markets
Vietnam
Public Equities
5+ Years
4
Single Managed
Open Ended Investment Company
Segregated Accounts
December 2013
USD
USD, ISIN code KYG0133A1673
$10,000 or lower when dealt via »»
Dealing
Prenotice (Buy)
Prenotice (Sell)
Cut-off Time
Load Fee
Annual Management Fee
Performance Fee
Income Distribution
Domicile
Custodian
Administrator
Audit
Monthly
5 Business Days
30 Calendar Days
5:00PM ADT
Up to 5%
1.8%
12.5% (HWM)
Accumulation
Cayman Islands
Viet Capital Securities
Custom House
Ernst & Young
Inquiring more information or subscription details - Vietnam Fund
Disclaimer: FMG (MALTA) Ltd. (“FMG”) is licensed by the Malta Financial Services Authority (“MFSA”) as a category 2 Investment Services Provider as provided in the Investment Services Act Chapter 370 of the Laws of Malta. FMG is authorized to act as a full scope alternative investment fund manager (“AIFM”) in terms of Directive 2011/61/EU of the European Parliament and of the Council on alternative investment fund managers (“AIFMD”). This summary is for information purposes only and does not constitute an offer to sell or a solicitation to buy. Citizens or residents of the United States and India may not invest in these Funds. All Funds may not be marketed to Swiss citizens or residents except those considered as “regulated qualified investors” by the Swiss Collective Investment Schemes Act and the Swiss Collective Investment Schemes Ordinance. All Funds are not to be marketed to EU or EEA investors. Investors who wish to obtain information on these funds will only be provided any such materials upon receipt of an appropriate reverse solicitation request in accordance with the requirements of the EU AIFM Directive, Swiss Law and/or national law in their home jurisdiction. Opinions and estimates constitute the manager’s judgment and are subject to change without notice. Past performance is not indicative of future results. Investments in Emerging Markets should be considered high risk where a portion or total loss of capital is conceivable. The synthetic risk-indicator illustrated herein comprises 60 months returns calculated in USD and is updated once per annum. No assurance can be given that the investment objective will be achieved or that an investor will receive a return of all or part of his/her initial capital, and investment results can fluctuate substantially over any given time period. Please refer to the relative fund’s prospectus which contains brief descriptions of certain risks associated with investing in the fund. FMG funds or third-party funds marketed by FMG are aimed at experienced investors and you have to ensure you are able to invest in such funds. Questions should be directed to your local representative or financial advisor. This document may not be reproduced, distributed, or published for any purpose without the prior written consent of the manager. All information contained in this communication is as provided by FMG (MALTA) Ltd. Return chart: Vietnam Fund ISIN KYG0133A1673, VN Index (USD). Exposure chart updated January 2020. Data Sources: Bloomberg & AFC Ltd., Copyright (C) 2022 FMG. All rights reserved.