VinaWealth Enhanced Fixed Income Fund (VFF)

Lower Risk. Steady Growth

VinaWealth Enhanced Fixed Income Fund – VFF

Product Information

The VinaWealth Enhanced Fixed Income Fund is an actively managed bond fund that invests into bonds, valuable papers and other low-risk instruments designed to generate stable, attractive returns over the medium to long term.

Why should invest into VFF?

  • Low investment risk
  • Stable return in the long term
  • Potential capital appreciation
  • New investment channel for portfolio diversification
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INFORMATION
Fund Name VinaWealth Enhanced Fixed Income Fund (VFF)
Fund Management Company VinaWealth Fund Management JSC
Structure Public, open-ended fund regulated by Vietnam State Securities Commission (SSC)
Fund Objective Average 3-month deposit rate, interest payable on maturity, by 4 state-owned commercial banks, including Vietcombank , BIDV, VietinBank and Agribank
Minimum investment Normal investor: VND 2,000,000
VinaSave investor: VND 200,000
Trading frequency Weekly, on Tuesdays (except for public holidays)
Target Portfolio At least 80% of the fund’s assets must be invested into bonds and other valuable papers defined by regulations.
Fees
  • Purchase fee:

– 0% for all products and fund programs

  • Selling fee:

– VinaFlex: 2.5% if the fund unit holding time less than 1 year, 1% if more than 1 year;
– VinaSave: 2.0% if the fund unit holding time less than 2 years, 0% if more than 2 years.

Custodian Bank, Fund Administrator and Transfer Agency Standard Chartered (Vietnam)
Auditor Ernst & Young Vietnam

Investment Objective

To offer a low-risk investment option that achieves an annual rate of return higher than the 12-month term deposit rate offered by Vietcombank, via investment into a diversified portfolio of fixed income securities and active, professional management.

Investment Strategy

VFF invests predominately into fixed income securities that have stable returns and lower risks, primarily government bonds, government-backed bonds, CDs and other valuable papers traded in the banking system. From time to time, the fund manager may also look for opportunities to invest a small portion of the fund into stocks and other instruments that have the potential to enhance return without exposing the fund to excessive risk.

VFF INVESTMENT STYLE CLASSIFICATION

VFF INVESTMENT STYLE CLASSIFICATION
VFF INVESTMENT STYLE CLASSIFICATION

VinaWealth’s experienced investment team, the VinaWealth investment committee, and the custodian bank monitor VFF’s portfolio and investment activities daily to ensure the fund meets its target return, maintains its low risk profile and adheres to prevailing regulations.

Investment instruments

  • Government bonds, government-backed bonds, and municipal bonds
  • Listed bonds of corporations and other institutions that meet Vietnamese regulations for issuing and listing bonds in Vietnam
  • Deposits at domestic and overseas credit institutions permitted by Vietnamese law
  • Money market instruments, foreign currency, valuable papers, other traded instruments allowed by Vietnamese banking regulations
  • Stocks listed and traded on Vietnam’s stock exchanges
  • Derivative securities listed and traded on Vietnam’s stock exchanges

STRUCTURE OF THE FUND’S TARGET PORTFOLIO

STRUCTURE OF THE FUND’S TARGET PORTFOLIO
STRUCTURE OF THE FUND’S TARGET PORTFOLIO

Steady return

VFF’s investment objective is to achieve a stable rate of return while protecting capital. VFF targets to generate an annual rate of return that is higher than Vietcombank’s 12-month term deposit rate.

Low risk

  • VFF invests predominantly into lower-risk instruments such as government bonds, government-backed bonds, corporate bonds from leading companies, money market instruments, and bank valuable papers.
  • Due to the fund’s scale, VFF is able to diversify its investment portfolio in order to mitigate risks while maximizing return.

High liquidity

VFF is an open-ended fund, which means that the fund admits new investments and also redeems investments for investors who wish to withdraw money. At any time, investors may ask to redeem their fund units at the current net asset value (NAV) of the fund. Under normal circumstances, investors can expect to receive their redeemed proceeds within 7 days.

Low investment threshold

VFF accepts minimum investment amounts of VND2 million and, in some cases, even less (please see the fund prospectus for additional details). The fund’s low threshold is flexible enough to accommodate both individual and institutional investors.

Professional management

VFF is actively managed by VinaWealth’s experienced fixed income team, which has nearly 20 years of experience investing into fixed income in Vietnam. By participating in an actively managed fund, investors do not have to spend inordinate amounts of time researching or managing their own investments.

Reasonable fees

  • VFF’s 1% annual management fee is quite reasonable for a managed fund.
  • The maximum subscription fee is 0.75% of the subscribed amount, and, in some cases, may be as low as 0% (please see the fund prospectus for additional details).
  • For long-term investors, there is essentially no redemption fee, since all fund units held over two years can be redeemed free of charge.

A. Steps required for investing into VFF

Steps required for investing into VFF
Steps required for investing into VFF

B. Opening a VFF trading account

Individual, institutional, domestic, and foreign investors can all invest into VEF. To begin, investors need to open a fund trading account with an authorized distributor. An account opening application includes:

  • Domestic (Vietnamese) investors: Notarized copy of identification card (ID) and a bank account
  • Foreign (non-Vietnamese) investors: Notarized copy of the passport, an indirect investment capital account (IICA), and notarized copy of the certificate verifying the investor’s securities trading code (STC) issued by the Vietnam Securities Depository (VSD). VinaWealth will assist foreign investors to apply for the IICA and STC. Please contact VinaWealth for additional details.

C. Trading frequency and time for VFF

Important information for investors regarding trading for VFF:

  • Trading frequency: Weekly, on Tuesdays (T day)
  • Closing of trading orders: Monday morning,10:30am (T-1 day)
  • NAV information: Available every Friday, published on VinaWealth’s website at www.vinawealth.com.vn

D. Notice regarding payments for trading VFF

  • The fund does not accept payments in cash.
  • Money used to purchase fund units must be transferred from a bank account bearing the investor’s name, or a bank account of an authorized individual or organization who has received the power of attorney to act on behalf of the investor.
  • Bank transfer fees (if applicable) should be borne by the investor.
  • Details for transferring money to purchase VFF fund units:
    • Name: VFF
    • Account number: 09193748004
    • Bank: STANDARD CHARTERED (Vietnam) 
    • Amount*: Amount of money used to purchase fund units
    • Transfer memo:  [Investor’s name] – [Trading code] – Purchase CCQ VFF

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Weekly NAV movement


Important Notices

  • Investors should read the fund’s prospectus and charter before purchasing fund units and should be aware of the associated fees.
  • Fund units are not cash, term deposits, valuable papers, or fixed income debt instruments as specified by commercial banks. Capital invested into the fund is not guaranteed.
  • Fund units are a type of investment security but differ from common stock issued by listed companies. Investors should understand the differences between fund units and stock before deciding to invest into the fund.
  • The NAV of the fund will fluctuate depending on investment performance and value of the assets held by the fund. Therefore, the NAV per unit of the fund will fluctuate and the value of each investor’s investment will change accordingly.
  • Investments into the fund may be subjected to the following: market risk, inflation, liquidity, credit risk, operational risk, investment strategy risk, and other risks not listed here. Investors should read about these risks and the Manager’s proposed risk mitigation strategies in the fund’s prospectus.
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