Fund Statistics 1

Data/RatioVEF2VNIndex
Annualised return (%)11.56
10.37
Minimum (%)-29.35-26.00
Maximum (%)21.7817.05
Stand Dev (%)21.7721.23
Tracking Error (%)8.04-
Sharpe Ratio0.460.42
Treynor Ratio (%)12.1110.37
Jensen's Alpha (%)1.66-
Information Ratio0.15-
Beta0.95-
Portfolio Turnover Rate (%)352.33-

1. All calculations based on 124 historic monthly time weighted returns of the portfolio. Data annualised.
2. All data are as of 29/2/2024
3. By UCITS definition, from 01/07/2021 to 30/06/2022

Performance (%)

All in US$ - %1 Month3 Month1 Year2 Years3 Years5 YearsSince Inception
30 September 2013
VEF-A7.2913.6129.14-21.5811.3236.43212.45
VN Index6.6313.0120.03-19.574.6732.76179.52
All in EUR - %1 MonthYTD1 Year2 Years3 Years5 YearsSince 05 July 2018
VEF-B7.3515.2226.97-17.8127.4946.4266.00

(As at 29/02/2024)

Fund Performance (%)

(As at 29/02/2024)

Monthly Return (%)

JanFebMarAprMayJunJulAugSepOctNovDecYTD
2013-0.321.670.732.09
201411.684.520.54-1.31-5.241.535.018.14-1.710.85-3.99-1.7618.31
20152.520.65-4.131.421.340.735.83-4.853.097.64-0.73-0.3213.25
2016-3.863.214.662.282.337.444.865.311.52-3.16-3.94-2.0019.36
20174.53-0.834.32-0.594.406.18-2.28-0.084.271.1611.173.6041.35
20185.852.204.30-8.40-4.29-2.26-1.334.245.43-9.030.380.87-3.43
2019-2.114.98-1.51-0.99-1.231.862.63-0.402.06-0.49-4.14-0.43-0.09
2020-4.55-4.85-29.3521.7811.37-3.90-3.1212.33.791.8811.078.6216.08
2021-1.3010.050.878.7612.106.78-4.751.641.986.992.280.0054.10
2022-2.953.11-0.58-6.92-7.93-7.76-0.507.85-14.74-15.17-2.745.31-37.49
20238.48-10.484.510.572.065.089.76-0.73-4.70-11.9410.273.0313.83
20242.787.2910.27

(As at 29/02/2024)

Past Performance Scenarios

A Shares

B Shares


  • DC Developing Markets Strategies plc was incorporated on 30 May 2013 and the Fund was launched on 30 September 2013.

  • The A Shares were launched on 30 September 2013, the B Shares were launched on 2 July 2018 and the C Shares were launched on 15 January 2024.

  • You should be aware that past performance is not a guide to future performance.

  • Performance is calculated in US Dollars for A Shares, Euros for B Shares and British Pounds for C Shares.

  • Performance is net of fees (excluding entry and exit charge).

  • The Fund is managed in reference to the VN-Index from 10 August 2021.

  • There is insufficient data for C Shares to provide a useful indication of past performance to investors.

Forward Looking Performance Scenarios

A Shares
Investment of USD 10,000
As of 29 Feb 2024
B Shares
Investment of EUR 10,000
As of 29 Feb 2024
C Shares
Investment of GBP 10,000
As of 29 Feb 2024
Scenarios
1 year3 years5 years1 year3 years5 years1 year3 years5 years
Stress scenarioWhat you might get back after costs5,102 USD
3,023 USD2,033 USD5,163 EUR 3,090 EUR2,096 EUR4,818 GBP
2700 GBP1,737 GBP
Average return each year-46.3%
-31.7%-26.5%
-45.7%-31.2%-26.1%-49.3%-34.3%-28.8%
Unfavourable scenarioWhat you might get back after costs7,361 USD6,432 USD6,010 USD7,366 EUR 6,541 EUR 6,229 EUR 7,235 GBP 6,292 GBP 5,883 GBP
Average return each year-22.5%-12.12%-8.8%-22.5%
-11.7%-8.1%-23.8%-12.8%-9.1%
Moderate scenarioWhat you might get back after costs9,915 USD10,743 USD11,640 USD10,036 EUR 11,149 EUR12,386 EUR 9,974.GBP 10,944 GBP
12,008 GBP
Average return each year4.4%4.2%
4.2%5.6%5.5%5.5%5.0%4.8%4.8%
Favourable scenarioWhat you might get back after costs13,240 USD17,788 USD22,350 USD13,573 EUR 18,864 EUR24,450 EUR13,646 GBP 18,891 GBP
24,324 GBP
Average return each year39.4%23.3%18.7%42.9%25.7%20.8%43.6%25.8%
20.7%

(As at 29/02/2024)
Note: The C Shares performance scenarios are based on historical A Shares data and expressed in GBP.

Top 10 Holdings

NameTickerSectorNAV (%)
1 MB BankMBBBanks9.06
2 FPT CorporationFPTTechnology8.95
3 VietcombankVCBBanks6.89
4 Phu Nhuan JewelryPNJRetail6.40
5 SacombankSTBBanks6.05
6 FPT RetailFRTRetail4.70
7 Hoa Phat GroupHPGMaterials4.39
8 BIDV BankBIDBank4.13
9 VietinbankCTGBanks3.77
10 PV DrillingPVDEnergy3.72

(As at 29/2/2024)

Sector Allocation (%) - 29/2/2024

Market Cap Distribution (%) - 29/2/2024

Fund Information

Legal FormIrish Plc., Umbrella Fund
TypeOpen - ended, UCITS V
ManagerWaystone Management Company (IE) Limited
Investment ManagerDragon Capital Management (HK) Limited
Duration of FundUnlimited
Registered for DistributionBelgium, Finland, France, Germany, Greece, Italy, Luxembourg, Norway, Singapore, Spain, Sweden, Switzerland, UK
Valuation of the FundDaily
Depositary/AdministratorSEI Investments
AuditorKPMG Ireland
Use of ProfitsDividend reinvested
Subscription Deadline2.00 p.m. (Dublin time) on the relevant Subscription Date
Redemption Deadline2.00 p.m. (Dublin time) immediately prior to the relevant Redemption Date
Legal Entity Identifier (LEI)DCDMS: 213800POVUDXEUZ8SC97 VEF: 254900EVTJZ4VAUG4M43
A SharesB SharesC Shares
ISINIE00BD5HPH84IE00BV8WVB25IE000LEKRJK0
ReutersLP68206089LP68311935LP68794636
Bloomberg SymbolVIETNAM IDVIETEUR IDVIETGBP ID
Valor No2231975342634389132685452
WKNA2DHER​A2JRMR ​A401E6​
Fund CurrencyUS Dollar (US$)Euro (EUR)British Pounds (GBP)
Subscription FeeUp to 5%Up to 5%Up to 5%
Investment Management Fee2.00% p.a1.50% p.a 1.50% p.a
Minimum Initial SubscriptionUS$10EUR1,000,000GBP1,000,000
Minimum Subsequent SubscriptionN/AN/AN/A

(As at 15/01/2024)

  • a) Summary
  • b) No sustainable investment objective
  • c) Environmental or Social (“E/S”) characteristics of the financial product
  • d) Investment strategy
  • e) Proportion of investments
  • f) Monitoring of environmental or social characteristics
  • g) Methodologies
  • h) Data sources and processing
  • i) Limitations to methodologies and data
  • j) Due diligence
  • k) Engagement policies
  • l) Designated reference benchmark

No sustainable investment objective

The Fund promotes environmental and social characteristics but does not have as its objective sustainable investment.

Environmental or Social (“E/S”) characteristics of the financial product

The Fund actively promotes environmental and social (E&S) characteristics by implementing a holistic approach that encompasses exclusion criteria, as well as favourable environmental and social performance. 

Investment strategy

The Fund pursues a strategy aimed at achieving medium- to long-term capital appreciation of its assets while integrating ESG factors throughout its investment process to optimise risk-adjusted performance. The strategy used to meet the E&S characteristics promoted by fund encompasses exclusion criteria, ESG integration and positive tilt, as well as actively promoting sustainability and engagement with investee companies and policymakers.

Proportion of investments

90% of investments are allocated for securities with #1 Aligned E/S characteristics. 

10% of investments are for #2 Other.

Monitoring of environmental or social characteristics

The Fund actively monitors the ESG performance of its investees as part of its risk management process. This helps assess existing and emerging ESG risks associated with their operations and identifies opportunities to improve ESG performance and reduce risk during the investment duration. Additionally, the ESG core team meets with the investment team quarterly to review holdings against the sustainability indicators.

Methodologies

Four sustainability indicators are used to measure the attainment of the environmental and social characteristics promoted by the Fund.

Data sources and processing

Data collected from investee companies is the main source for ESG assessment.

The entire screening, scoring, and rating process is documented in DC’s internal digital system called IRIS – Integrated Resources and Intelligence System to regularly update and monitor the ESG data/performance of the companies to reflect the latest information available

Limitations to methodologies and data

Lack of quantitative sustainability data, e.g. greenhouse gas emission, water emission, waste generation, is the key limitation.

Due diligence

Using both bottom-up and top-down analysis when screening for securities.

Engagement policies

The Fund’s engagement policies encompass various strategies to promote sustainable practices and drive positive change. These include ongoing interaction with companies to ensure their strategies align with our expectations, engagement for ESG knowledge sharing and encouraging disclosure of material ESG issues, and targeted engagement with the management of companies where sustainability risks are identified.

Designated reference benchmark

No specific ESG index has been designated.

The Fund promotes environmental and social characteristics but does not have as its objective sustainable investment.

The environmental and social (“E&S”) characteristics promoted by the Fund consist of:

  • Society and human rights: avoiding business activities involving weapons and munitions, gambling and casinos, illegal products.
  • Public health: avoiding business activities involving alcoholic beverages, tobacco.
  • Protecting the environment: avoiding business activities involving unsustainable fishing methods, hazardous substances, radioactive materials, unbonded asbestos fibres.

In promoting the above E&S characteristics, the Fund also focuses on investing in securities with favourable or acceptable environmental and social performance, based on the E&S score calculated by the Investment Manager.

The Fund pursues a strategy aimed at achieving medium-to-long-term capital appreciation of its assets while integrating ESG factors throughout its investment process to optimise risk-adjusted performance.

i. The Fund applies the following investment strategies to meet the promoted environmental and social characteristics.

Exclusion:

The Fund does not invest, or finance companies involved in:

  • Production or trade in any product or activity deemed illegal under host country laws or regulations or international conventions and agreements, or subject to international bans, such as pharmaceutical, pesticides/herbicides, ozone-depleting substances, PCB, wildlife or products regulated by CITES.
  • Production or trade in weapons and munitions1
  • Gambling, casinos and equivalent enterprises1
  • Production or trade in alcoholic beverages (excluding beer and wine)1
  • Production or trade in tobacco1
  • Drift net fishing in the marine environment using nets in excess of 2.5km in length.
  • Production or trade in radioactive materials. This does not apply to the purchase of medical equipment, quality control (measurement) equipment and any equipment where IFC considers the radioactive source to be trivial and/or adequately shielded.
  • Production or trade in unbonded asbestos fibres. This does not apply to the purchase and use of bonded asbestos cement sheeting where the asbestos content is less than 20%.

1This does not apply to sponsors who are not substantially involved in these activities. “Not substantially involved” means that the activity concerned is ancillary to a project sponsor’s primary operations (less than 15% of total revenue)

ESG integration and positive tilt:

  • The Fund conducts a comprehensive ESG analysis of all eligible companies, covering 100% of issuers in the portfolio. 
  • Potential companies undergo pre-screening against the Fund’s exclusion list. If they pass the eligibility criteria, the proprietary ESG Management System (ESGM) developed by Dragon Capital Group (DCG) (of which the Investment Manager is a group company) evaluates the potential companies’ ESG performance. Based on the screening results, these companies receive managed risk ratings of E&S performance: A (Excellent), B (Satisfactory), C (Moderate), or D (Unsatisfactory). 
  • Companies rated as D “Unsatisfactory” are excluded from investment. 
  • The Fund focuses on investing in securities of companies with favourable or acceptable E&S performance, specifically targeting companies with a level A, B or C ESG management system rating.
  • The Fund seeks investment opportunities in companies that demonstrate strong financial results and good ESG ethics, aligning with its investment objectives and values.

Active ownership: The Fund actively exercises its voting rights and engages with investee companies to ensure compliance with ESG obligations. Its ongoing engagement focuses on managing ESG risks, enhancing sustainability practices, and collaborating with policymakers for positive impact. Through these efforts, the Fund aims to drive positive change, enhance long-term value, and align investments with its clients’ values.

ii. The Fund evaluates and assesses the corporate governance practices of investee companies based on the OECD Corporate Governance Principles, focusing on five key areas:

  1. Rights of shareholders
  2. Equitable treatment of shareholders
  3. Role of stakeholders
  4. Role of stakeholders
  5. Responsibilities of the board

A company is considered to have good corporate governance practices if it satisfactorily adopts the elements outlined in the OECD principles. The Fund utilises a governance rating system, categorising companies as having either medium or low corporate governance risk. Companies categorised as medium and low risk will be reviewed on an annual basis and their ratings will be updated if necessary. Companies categorised as high risk are placed on a watch list for semi-annual review. The Fund’s engagement with these high risk companies has a two-fold approach. Firstly, it presents an opportunity for these companies to improve their governance compliance. Secondly, if there is no noticeable improvement or a lack of willingness to align with national governance compliance standards, the Fund may consider divestment from such companies. This approach helps identify companies that prioritise transparency, accountability, and the protection of shareholder rights, aligning with the Fund’s commitment to sound governance practices.

#1 Aligned with E/S characteristics includes 90% of investments of the Fund used to attain direct exposure to the environmental or social characteristics promoted by the Fund.

#2 Other includes the remaining investments of the financial product which are neither aligned with the environmental or social characteristics, nor are qualified as sustainable investments.

Monitoring is an integral part of the Fund’s ESG risk management process. The purpose of monitoring the investees’ ESG performance is to assess both existing and emerging ESG risks associated with their operations. This allows the Fund to identify opportunities to mitigate risks and improve ESG performance throughout the duration of the investment transactions.

Following the approval of a transaction, the ESG core team meets with the investment team on a quarterly basis to review the holdings and ensure their alignment with the Fund’s commitments. Specifically:

  • Quarterly meeting between the ESG core team and the Portfolio Manager to review holdings against the sustainability indicators which are used to measure the attainment of each environmental or social characteristics.
  • Annually reviewing investee companies’ business activities and screening any expansion against the exclusion list.
  • Annually reviewing the E&S scores and rates based on DCG’s ESG management system.

All the ESG screening, scoring and rating results are documented in DCG’s internal digital system called IRIS – Integrated Resources and Intelligence System.

The Fund utilizes the following sustainability indicators to assess the attainment of environmental and social characteristics:

  • All investee companies are covered by the ESG score calculated by the Investment Manager with reference to the proprietary ESG management system developed by Dragon Capital Group (DCG), as described below. 
  • None of investee companies in the Fund are exposed to the exclusion list mentioned in investment strategy section above.
  • At least 90% of investee companies in the Fund are rated with favourable or acceptable E&S performance, i.e. with a level A, B or C of ESG management system rating.
  • Exercising voting rights in as many investee company meetings as possible.

The ESG management system of Dragon Capital Group, as depicted in the diagram below, is employed to guide the Fund’s investment strategy, encompassing exclusion and ESG integration.

Exclusion involves screening investee companies’ activities against an exclusion list.

ESG integration comprises seven steps designed to evaluate and incorporate ESG factors into the investment decision-making process. These steps involve scoring and rating the ESG performance of investee companies and managing, monitoring, and reporting at the portfolio level.

The E&S performance is assessed against eight key E&S indicators, which are derived from IFC performance standards, including environmental and social risks, labour conditions, resource efficiency, community health and safety, land acquisition, biodiversity conservation, indigenous rights, and cultural heritage. 

The ESG management system ultimately rates the companies’ performance at 4 levels:

  1. Level A: Companies with excellent E&S performance, indicating compliance with international best practices and standards such as the IFC performance standards.
  2. Level B: Companies with satisfactory E&S performance, demonstrating compliance with national standards and regulations concerning E&S.
  3. Level C: Companies that generally comply with national standards but have certain E&S issues requiring improvement.
  4. Level D: Companies with unsatisfactory E&S performance, making them non-investible.

Level A and B companies are defined as favorable E&S performance. Level C companies represent an acceptable E&S performance, where the sustainability risk is moderate, and indicates the need for improvement.  Level D companies are deemed non-investible due to their poor E&S performance. Corporate governance performance is assessed against the OECD Corporate Governance Principles and global best practices. The assessment rates companies based on low, medium, and high-risk levels.

The Investment Manager utilises its in-house capacity, including staff from the Research and ESG teams, to gather data from the following sources:

  • Company disclosure information from annual and sustainability reports.
  • Direct meetings/communication with the company.
  • Other public information available through media/press release, studies and research from non-governmental organizations, industry associations, and trade unions. 

The collected data and information are then sorted, verified by the ESG team against ESG standards and practices, such as IFC guidelines, good practice notes. In cases where a company is exposed to sectors with complex E&S material issues, consultation with experts is also employed. Additionally, the data and information collected from public media are verified by communicating with investee companies.

Research analysts, assisted by in-house ESG specialists, utilize the collected and verified data and information to assess the company’s ESG performance. The assessment involves evaluating 39 environmental and social questions and indicators, as well as 24 Governance questions. The entire screening, scoring, and rating process is documented in DCG’s internal digital system called IRIS. All E&S data, assessment and monitoring are recorded in IRIS, allowing for the tracking of a company’s E&S improvement over time. 

A company’s E&S score is influenced by the presence of an element called a knowledge gap. When there is limited information available about a company’s E&S performance in relation to its business activities, this lack of information can result in a worse E&S score and rating for the company. 

Data from third party providers (e.g., Bloomberg) is still limited for the Vietnam market, thus the ability of DCG to cross check the information that it sources itself in order to ensure the quality of this data is limited.

The main limitation lies in the absence of quantitative sustainability data, such as greenhouse gas emissions, water emissions, and waste generation, particularly in frontier and emerging markets.

To ensure such limitations do not affect the attainment of environmental and social characteristics promoted by the Fund, the knowledge gap element was designed to integrate into a total E&S score of a company. In cases where the Investment Manager is unable to access or collect ESG data for certain companies or certain indicators, this leads to a larger knowledge gap. As a result, worse ESG score and rate are associated with these companies, thus investment opportunities in these companies may be limited.

The investment due diligence process combines both bottom-up and top-down analyses when screening companies. In both cases, the Investment Manager screens companies against the exclusion list and evaluates their financial profile and corporate governance. Once these initial filters have produced results, the Investment Manager proceeds to conduct a comprehensive fundamental analysis of the company, taking into account sustainability factors related to the environment and social aspects.

As stated above, in emerging and frontier markets, such as Vietnam, there is an absence of quantitative sustainability data produced by companies and data from third party providers is still limited.  Therefore, the Investment Manager is reliant on the information that it receives from the investee companies and the information that it sources itself.

The Investment Manager engages with companies through various means like one-to-one discussions, meetings, roadshows, and calls. This helps the Investment Manager assess organisations, monitor strategy implementation, and track their progress towards goals.

Engaging with companies for ESG knowledge sharing is vital, especially in emerging markets. The Investment Manager encourages companies to disclose ESG issues, report actions, and share knowledge for improving ESG performance.

When needed, the Investment Manager engages with companies on material ESG issues, including controversies, to ensure their understanding and effective resolution over the short, medium, and long term. The Investment Manager’s engagement activities primarily involve in-house discussions, but the Investment Manager also utilises collaborative initiatives and third-party services as appropriate and if available. 

No specific ESG index has been designated.

Le Yen Quynh

VEF Portfolio Manager

A graduate in Finance & Banking from HCMC Economic University, Quynh joined Asia Commercial Bank, becoming Senior Treasury Officer responsible for gold trading. In 2007, she joined Dragon Capital as an Analyst, then took a sabbatical at Melbourne University where she earned an MCom in Finance. In 2011 she joined our Vietnam Growth Fund, then became portfolio manager of the new Vietnam Equity (UCITS) Fund in 2013.

Key fund information

VEF B Shares UCITS-KIID

12 Jan 2024

VEF C Shares UCITS-KIID

12 Jan 2024

VEF A Shares UCITS-KIID

12 Jan 2024

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