1, Investment objective

The investment objective of MAFPF1 is to provide medium to long-term growth potential to be achieved by investing in equity securities in Vietnam. As the primary objective of the fund is capital growth, it is not anticipated that dividend payment, if any, will be substantial.

2, Investment sectors :

MAFPF1 will generally invest in the following sectors :

    Banking; financial sector.
   Consuming products focused on branding and distribution
   Manufacturers of furniture, wood-products and handicrafts.
    Light manufacturing including garments, footwear and plastics.
   Manufacturers of industrial raw materials.
   Telecommunication.
   Software outsourcing and business process outsourcing.
   Logistic. 
   Other services and industries.

3, Asset allocation

The asset of the Fund (approximately VND250 billion) shall be invested in accordance with the following parameters:

     65% - 95% of the Fund will be invested into in listed equities.
    0% - 25% of the Fund will be invested into OTC equity.
    0% - 10% of the Fund will be invested into cash and fixed income.

The above is target long-term asset mix according to the investment strategy. Under certain exceptional cases (determined by fund managers), the asset mix may vary from the above target.

Subject to the investment restriction set by under the prevailing laws, the Fund will maintain a minimum 60% of the Net Asset Value invested in securities throughout the operation duration of the Fund.

The above asset allocation and the maintenance of minimum 60% of Net Asset Value in securities may not be met during the initial period when the Fund is just established due to the lack of liquidity.

4, Investment assets

The Fund’s investment will generally be:

    Listed equities
   OTC equities
   Government bonds.
   Municipal bonds.
   Corporate bonds.
   Term deposits.
   Other available assets.

5, Investment restrictions

In investment of the Fund’s assets, MAFPF1 will apply a set of investment restrictions that is more strictly than those under the prevailing laws. The purpose is to maintain the diversified portfolio and effective risk management.
The investment of the Fund’s assets shall be subject to the following restrictions: -

MAFPF1’s self restriction :

     To invest not more than 10% of the Net Asset Value of the Fund in a single listed security or listed securities of a single issuer; To invest not more than 5% of the Net Asset Value of the Fund in a single unlisted security or unlisted securities of a single issuer; the value of any group of 5 single securities (listed or unlisted) will not exceed 40% of the Net Asset Value of the Fund;

     No direct investment in real estate

Regulatory restrictions subject to regulatory changes from time to time:

No investment in fund certificates of other funds being under the management of MVFM or any other funds.

No provision of loans or guarantee for any loans.

  The Fund shall not borrow for financing its activities, except for short-term borrowing to cover its necessary expenses. The total value of short-term borrowing shall not exceed 5% of the Net Asset Value of the Fund (or any other applicable rate permitted under the Prevailing Laws from time to time) at any one point of time, and the maximum term of a borrowing shall be 30 days.

To invest not more than 30% of the Net Asset Value of the Fund in companies within a group of companies having mutual ownership relationship.

  To invest not more than 15% of the total value of securities of a single issuer.

The investment portfolio of the Fund may deviate from the aforesaid restrictions by a maximum of 15%, provided that such deviation is due to an increase or decrease in the market value of the Fund’s assets and legitimate payments of the Fund.