Vietnam Debt Fund SPC, VDeF

Dragon Capital’s Vietnam Debt Fund (VDeF) is a dedicated fixed income fund which focuses on the local currency debt market of Vietnam. The objective is to generate reasonably stable and high returns without taking excessive risks within the frame-work of the Vietnamese fixed income markets. Dragon Capital’s investment performance relies on using proprietary credit analysis and economics analysis to identify securities/strategies which offer good potential. The fund aims to achieve a gross return equivalent or better than 3 out of 4 reference indices, the DC liquid bond index and 1, 2 and 5 year VGB indices. From January 2014, VDeF has merged two sub portfolios into one VDeF B Class, which has a broader mandate including corporate debt.

A Class (Delisted from ISE on 28 January 2014)

Target lower risk with attractive returns above the US money market rate. Investments are mandated to government debt and quasi-sovereign debt with:

- At least 60% of NAV in:

i. VND denominated government debt, or

ii. Deposits or repos with government debt in VND or any OECD currency (new amendment to be approved in May 2012, to provide possibility to stay defensive in rising rate environment. Before only 40% deposits)

- Maximum 40% in Vietnam International bonds, SOE, Municipal debt

- Individual municipal exposure <5%, individual SOE exposure <20% (internal guide line however is 10%), individual exposure to Vietnam international bonds <15%

- Maximum leverage 20%

B Class

Feature higher risk/reward profile with investments broadly ranging from government, quasi-government, private sector corporate debt, equity, and including loans and deposits with:

- 100% in either government, municipal or any corporate senior or junior debt of which 35% can be in other non-VND Asian currencies.

- 100% in either money market instrument, including cash, in any currency.

- Maximum 25% can be in equity linked instruments. Equity as the result from conversion of convertible bond debt may be retained.

- Individual corporate exposure 20% (strong internal guide line however is 10%)

- Maximum leverage 50%

For more information, please contact us.

(as 31 July 2016)
Net Assets Monthly YTD Since Launch
VDeF-B US$45.75m 0.7% 4.7% 117.1%
Fund Information
Structure Cayman registered closed-end fund
Inception Date 30 June 2008
Issued Shares 28,606
Benchmark DC Liquid Bond Index, 1/2/5 year Government Bond Indices
Listed Irish Stock Exchange
Valuation Policy Fair value
NAV Frequency Monthly
Base Currency US$
Annual Management Fee B Class: 1.0% p.a of NAV (Daily accrual)
Performance Fee B Class: 10% over annual average of reference rate 3m US$. Libor +3% with high water mark
Minimum Investment at new issue US$100,000
ISIN B Class: KYG936151136
SEDOL B Class: B3K9234
CUSIP B Class: G93615113
Bloomberg DGCP<GO> or VNDEBTB <GO>
Directors of Fund James Riedel, Erik Juhani Valtonen, Dominic Scriven, Dan Svensson, Le Anh Tuan
Portfolio Manager Dan Svensson
Administrator & Custodian
Standard Chartered Bank
Auditor KPMG Limited
Legal Advisor (Cayman Islands) Maples and Calder
Legal Advisor (Vietnam) Mayer Brown JSM
Legal Advisor (UK) Freshfields Bruckhaus Deringer
Company Secretary & Registrar Maples Secretaries (Cayman) Limited

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