VinaWealth Equity Opportunity Fund (VEOF)

The opportunity within reach

VinaWealth Equity Opportunity Fund – VEOF

VEOF is the right investment choice for investors who want to:

 Capitalize on opportunities presented by Vietnam’s growing stock market
 Achieve long-term capital growth
Strike the right risk-return balance for their portfolio
 Enjoy the benefits of professional management

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INFORMATION
Fund Name VinaWealth Equity Opportunity Fund (VEOF)
Fund Management Company VinaWealth Fund Management JSC
Investment Methodology Fundamental research & analysis
Fund Objective Maximize returns by investing primarily into large-cap, listed stocks. The core of the portfolio will be value stocks, enhanced by opportunistic investments into growth stocks.
Minimum investment Normal investor: VND 2,000,000
VinaSave investor: VND 200,000
Trading frequency Weekly, on Tuesdays (except for public holidays)
Benchmark Return Outperform the VN Index
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

A. Objective

VEOF’s investment objective is to maximize return via both capital appreciation and dividend yield from the underlying invested assets. The fund
manager will invest into a diversified portfolio of listed companies in order to mitigate risk while achieving the investment objective.

B. Strategy

  • VEOF’s investment strategy is a hybrid of value and growth stocks, predominantly large capitalization stocks listed on Vietnam’s exchanges.
  • The fund will invest into a diversified portfolio of attractive, high-performing sectors, including energy, food, technology, public utilities and industrial materials. For the short term, the fund will not invest into the banking sector due to limited opportunities.
  • Investment decisions are based on bottom-up, fundamental equity research, stock market analysis and macro-economic analysis. VEOF will seek companies with sound fundamentals, good growth potential and strong corporate governance.

VEOF’s investment strategy will be evaluated and shifted periodically to achieve the investment objective. The strategy and tactics may experience style drift as required to respond to changing market conditions and take advantage of opportunities to maximize return to investors.

VinaWealth VEOF Market Capitalization

C. Asset Allocation Strategy

The fund’s long-term, underlying strategy is to allocate 90% to 95% of assets into listed equity in order to maximize shareholder return.

Depending on market fluctuations as well as macro-economic analysis, the fund’s asset allocation may differ temporarily from this target. The manager will take this action in order to adapt appropriately to market conditions and protect investor returns.

VinaWealth VEOF Market Capitalization

  • Attractive risk-adjusted return. The fund can achieve attractive investment returns relative to the market due to its active management strategy that enables the manager to quickly react to market changes and capitalize on good investment opportunities. The fund also invests into a diversified portfolio of equities and other assets, to reduce risk
  • High liquidity. VEOF 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 calendar days.
  • Professional management. VEOF is managed by a dedicated team of investment professionals who have on-the-ground experience, expertise, market information, insights and resources to capitalize on investment opportunities and deliver optimum returns to investors. Standard Chartered (Vietnam), a leading global bank, has been appointed to provide custodian, administration and transfer agency services to the fund, ensuring the highest professional standards and integrity are applied in managing the fund’s assets and operations.
  • Low investment threshold: VEOF accepts minimum investment amounts of VND 2 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.
  • Reasonable fees. VEOF’s annual management fee is quite reasonable for an actively managed equity 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 longer than 2 years can be redeemed free of charge.
  • Information transparency and investor protection. VEOF operates according to regulations issued by the Vietnam State Securities Commission (SSC). Additionally, the fund is supervised by an independent Custodian Bank and a Board of Representatives who ensure the fund management company adheres to laws and professional standards in operating the fund reports its operations regularly to SSC and discloses information on a timely basis. Investors may access information at any time via VinaWealth’s website or by contacting VinaWealth directly.

VinaWealth Guidance For Investing Into Veof

Opening a VEOF trading account

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

  • Domestic (Vietnamese) investors: Notarized copy of identification card (ID) and a personal bank account
  • Foreign (non-Vietnamese) investors: Notarized passport copy, a capital contribution 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.
  • Institutional (both Vietnamese and non-Vietnamese) investors: Business bank account, IICA, STC (for foreign institutions), current business license, and other specific requirements may apply. VinaWealth will assist institutional investors with account opening procedures.

Trading frequency and time for VEOF

Important information for investors regarding trading for VEOF:

  • 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.vn

Notice regarding payments for trading VEOF

  • 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.
  • The payment to purchase VEOF units should not be impacted by bank transfer fees. Any bank transfer fees (if applicable) should be borne by the investor.
  • Details for transferring money to purchase VEOF fund units:
    • Name: VEOF
    • Account number: 90228298404
    • Bank: STANDARD CHARTERED (Vietnam) 
    • Transfer amount: Amount of money used to purchase fund units
    • Transfer memo: [Investor’s name] – [Trading code] – Purchase VEOF

Weekly NAV movement

Important Notices

  • Investors should read the fund 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 risks including: market risk, inflation, liquidity, credit risk, operational risk, investment strategy risk. Investors should read about these risks and the fund management company’s proposed risk mitigation strategies in the fund prospectus.
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