Manulife Progressive Fund (MAFPF1)

Overview

Fund type

  • The Fund is a closed-end fund established by the Investors and managed by MVFM for the operation term as set out in paragraph II.4 below, unless it is transferred to other fund management company or terminated early by the General Meeting of Investors.

Public offering license & fund size

  • MAFPF1 is licensed by the SSC for its initial public offering under license number 03/UBCK-ĐKCCQ and the total proposed capital to be raised from the public is VND 250,000,000,000 with the total Fund Units of 25,000,000 of VND 10,000 each.

Operation Term

  • The Fund shall have the operation term of 7 years commencing from the Fund Closing Date.

  • The operation term of the Fund may be extended subject to the recommendation of the MVFM and the approvals of the General Meeting of Investors and the SSC.

Fund Management Company

  • Manulife Vietnam Fund Management Company

  • Licenses:

    • Establishment and Operation License No. 4104000117 dated 10 June 2005 issued by HCMC Planning and Investment Department; and

    • Fund Management License No.04/UBCK-GPHDQLQ dated 14 June 2005 issued by the State Securities Commission

  • Address: Manulife Plaza, 75 Hoang Van Thai, Tan Phu Ward, Dist. 7, HCMC.

Supervisory Bank

  • Hong Kong and Shanghai Banking Corporation Limited (HSBC) – Ho Chi Minh City Branch

  • Licence No. 05/GPHDLK issued by the State Securities Committee on 13/07/2000

  • Address: 6/F, The Metropolitan, 235 Dong Khoi Street, District I HCMC

Fund Distributors

The Fund shall be distributed through the organizations listed in Appendix 1 in accordance with this Prospectus, the Fund Charter and the agreements signed between the MVFM and such distributors

Fund name Manulife Progressive Fund (MAFPI)
Investment Objective The investment objective of MAFPI is to provide medium to long-tem growth potential to be achieved by investing inequity securities in Vietnam. As the primary objective pf the fund is capital growth, it is not anticipated that dividend payment, if any, will be sub stantial.
Prospectus Objective/Description MAFPI will invest in a diversified portfolio with progressive style; mainly focus in equities of companies operating in Vietnam, with high quality eamings growth and long term potential
Legal Fund Manager Manulife Vietnam Fund Management Company

Fund type
Vietnam Equity Fund
Legal Structure Closed end public fund
Inception Date Q1, 2007
Benchmark VN Index
Deno mination VND
Minimum Investment 1,500 Unit
Valuation Weekly
Initial NAV VND 10,000 perunit
Initial charge VND 300 or 3%
Management Fee
Redemption Charge
Performance fee
2% p.a.on NAV
Nil
20% of (ending year NAV – comparable NAVp)

Fees and Charges

1. Issuing charge
Issuing charge is equal of 3% of the Fund’s Unit price (Unit price at the Fund Offering Period is VND10, 000). The Offering price of MAFPF1 is VND10, 300 per Fund Unit.

2. Management Fee
Management fee is at the rate of 2% per annum of MAFPF1’s NAV, payable monthly by MAFPF1 to MVFM for providing fund management services. Management fee is fixed throughout the term of the fund management services provided by MVFM to the Fund.
Management fee = 2% x NAV at the last Valuation Date of the month / 12 months.

3. Performance-related Bonus
MVFM is entitled to an annual performance-related fee payable by MAFPF1 if the performance of the Fund at the end of any particular financial year is in excess of the specified investment criteria. This bonus is therefore not always applicable

4. Supervisory fee, registrar fee and settlement fee.

4.1 Supervisory fee:
Supervisory fee is payable monthly by MAFPF1 to the Supervisory Bank for providing supervisory bank services.
Indicated supervisory fee = 0.065 % per annum x NAV at the last Valuation Date of the month / 12 months.

4.2 Registrar fee and settlement fees:
Registrar fee and settlement fees shall be payable by MAFPF1 to the Supervisory Bank for providing registrar services, settlement, conversions and transfers of Fund Units and entering these transactions into the Register of Investors Book. The fee rate and payment method shall be specified in the Supervisory Agreement.

5. Other fees and charges payable by MAFPF1 include:

  • Brokerage and transaction fees related to the transactions of the Fund’s assets;

  • Expense related to fund administration and valuation of the fund assets;

  • Auditing fee and Legal consultancy fee;

  • Expenses related to amendment of the Fund Charter as approved by the General Meeting of Investors or under the provisions of the Prevailing Laws;

  • Expenses related to offering including, without limitation, expense for composition of the Fund’s prospectus, amendment of the Fund Charter, submission of application to the state regulators and other relevant costs;

  • Expenses related to listing of the Fund on the Stock Exchange including, without limitation, submission of application to the Stock Exchange;

  • Expenses related to the organization, meeting and operation of the General Meeting of Investors and the Fund Representative Board;

  • Interest payable for the Fund’s loans in accordance with the Fund Charter and the Prevailing Laws;

  • Tax, fees related to the Fund’s operation in accordance with the Prevailing Laws;

  • Any other reasonable fees approved by the Fund Representative Board.

  • Total fees listed in paragraph 5 above should not exceed 1% of the Fund’s NAV per annum.

Investment Strategy

MAFPF1 will invest in a diversified portfolio with progressive style; mainly focus in equities of companies operating in Vietnam, with high quality earnings growth and long term potential which have (i) good opportunity of growth after the WTO accession: integrity, transparency, and position in their relevant markets; and (ii) good corporate governance: strong senior management, solid business strategies and sound balance sheets.
MAFPF1 may invest overseas subject to the approval of the SSC in accordance with the prevailing laws.

Criteria for investment selection

Investment selection for equity
In selecting investments, MVFM will focus in companies listed or plan to be listed in the Vietnam stock market. Company analysis then follows in order to determine the portfolio holding.

The management style is broadly termed “value oriented growth” where growth investments are made after careful consideration regarding the price level and the timing of entry.
MVFM also emphasizes a bottom-up approach to selected individual stock and seeks to identify companies that are regularly traded and appear most attractive in terms of sustainable earnings growth and attractive valuation.
Fundamental financial analysis of individual companies could also be used to identify those with substantial cash flows, reliable revenue streams and strong competitive positions.

Investment selection for fixed income

Investment of fixed income shall be managed actively in the forms of term deposits, government bonds or corporate bonds. The fund manager will pay particular attention to quality when selecting investments and prospective investments will be subject to careful scrutiny by the fund manager. However investors should note that returns on the investment in fixed income would depend on the credit standing of the issuer.

In the beginning...

In June 2005, Manulife Vietnam was proudly granted a license to begin operations for Manulife Vietnam Fund Management Company Limited.

Poll

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