Vietnam Balanced Fund
|Target Return (%)||15%/annum|
|Target Size||USD 100mn|
|Investment Focus||Listed equity, corporate bond, and structured debt (Mezzanine/convertible bond)|
|Fund Structure||Open-ended fund (semi-annual subscription and redemption)|
|Fee Structure||1.5% Management fee
20% Performance fee (above a high water mark)
|Min. Subscription||USD 250,000 for individual
USD 5,000,000 for institution
Track Record: VEH versus VN Index
Vietnam Balanced Fund (VBF) invests primarily in Vietnam listed equity, corporate bond and structured debt. The fund is subject to investment, equities, foreign currency risk and the risks of investing in emerging markets specific to Vietnam market. VBF's investments are concentrated in Vietnam, and the value of the fund may be more volatile. This fund can invest in derivative instruments which may involve additional risks (for example, leverage may cause greater volatility). Investors may suffer substantial loss of their investment in the fund. Investors should not invest in the fund solely based on the information provided in this document and should read the prospectus (including potential risks involved) for details.
The fund aims to achieve stable dividend yield and long-term capital growth through investing primarily in securities and debts of companies having their head office or exercising a predominant part of their activities in Vietnam
Why Invest in Vietnam and Why Now
- Valuations are extremely attractive with many listed companies trading at less than 10x P/E with high dividend rate between 7-12%.
- Credit tightening in bank lending and lack of an alternative credit supply are opportunity for funding gap in the capital markets. Yields are attractive with good risk-adjusted for many corporate bonds (8-12%) and structured debt products (14-20%).
- Vietnam is the biggest beneficiary of the US-China Trade War as companies shifting manufacturing base to Vietnam driven industrial park and real estate investment opportunity.
- Free Trade Agreements (FTA) involving more than 50 partners will add 2-3% of Vietnam's GDP growth over the next 5 years. Foreign Direct Investment (FDI), driven by young and low-wage workforce, Vietnam has attracted on average US$20 billion in FDI/annum.
- Rise of the middle class and low urbanization rate are compelling investment opportunity for consumers and real estate. Vietnam is also a front-runner to join MSCI's Emerging Markets Index that will lead to a signification stock market surged