Thien Viet Asset Management Growth Fund - TVGF
Structure
TVGF is a closed-end listed fund, expected to be listed on HOSE, with a well-diversified portfolio investing in listed and prelisted securities.
The Fund has a 5 years lifediv. During its life, the Fund will not repurchase shares per request from shareholders. The shares will be traded on the stock exchange just like common stocks.
Fees
Management fees: 1.0% p.a of Ending NAV.
Incentive fees: 20% of the fund’sannual gain over hurdle rate of 8%.
Reports
Quarterly official NAVs & annual audited NAVs.
Sector focus
All industries, except fund certificates
Portfolio
The Fund will generally hold between 15 - 25 securities
Dividend policy
Dividend will be decided by shareholders at the AGM
TERMS
Fund size
VND 150billion
Listing exchange
Ho Chi Minh City Stock Exchange
Total issued shares
15 million shares
Issued price
VND10,100
Fund life
5 years
Auditor
Ernst & Young
Custodian
BIDV
Functional Currency
VND
Investment Director
Nguyen Duy Quang
Fund Management Company
Thien Viet Asset Management
Investment Committee
Nguyen Trung Ha, Dinh Thi Hoa, Bui Thi Kim Oanh, Nguyen Thanh Thao
Investment process
01
Origination and Deal Flow Sourcing
02
Due diligence and Investment proposal
03
Investment approval
04
Investment Monitoring
05
Investment realization
06
Risk Control
Origination and Deal Flow Sourcing
We apply both Top-down and Bottom-up approaches for deal sourcing
The top-down approach starts by identifying the attractive sectors, followed by the attractive companies operating within those sectors. The top-down approach attempts to understand the sector structure and overall business performance as well as possible impacts from macro economy changes that could significantly affect the sector’s development.
The bottom-up approach starts by identifying the attractive companies via a screening exercise of database of companies based on some key financial performance indicators such as earnings growth, profitability ratios, valuation multiples and financial health
Due Diligence and Investment Proposal
We typically analyze the following factors to identify a target investment
  • An analysis of macro economy that may impact earnings and profitability of the company;
  • A thorough assessment of the company’s focused market;
  • An analysis of the company’s historical performance and business plans, including an assessment of products, differentiations, competitors, and operations;
  • Comparison with other domestic and foreign peers in term of P/E, P/B and DCF valuation;
  • SWOT analysis;
  • The identification of particular risk factors and means of overcoming or mitigating such risks;
  • An investigation of the background of the management team;
  • The formulation of an exit strategy and timetable for achieving liquidity.
Investment Approval
The Investment Committee will meet periodically to approve new investment proposals and advise proper investment strategies, percentage of allocation between cash & stocks for Portfolio Manager in order to maximize profit and minimize the risks related to macro economic and political issues. The Portfolio Manager will be responsible for all aspects of the implementation and execution of investment decisions.
Investment Monitoring
The Portfolio Manager will monitor the progress and performance of each portfolio company through periodic meetings with its management, site visits, quarterly, and when available, monthly reviews of financial data and management reports. The Portfolio Manager will regularly consider and report to the Investment Committee on the plan to exit current investments and make new investments.
Investment Realization
The Portfolio Manager will aim to realize individual investments if the realization would be in the best interest of the Fund, ideally within one to three years time frame when exit targets are reached. The exit targets will be defined by a combination of multiple valuation methods including P/E, P/B and DCF valuation.
Risk Control
There are no limits on the sectors in which the Company can invest. However, the Company will endeavor to adhere to the general principle of sector diversification in respect of its assets. For risk control and portfolio diversification, the Company will apply some below restrictions on investment:
  • Will not invest more than 20% of total NAV in the shares of a single company.
  • Will not invest more than 30% of total NAV in the shares of a single sector.
  • Will not invest more than 15% of total NAV in unlisted companies.
  • Will not invest more than 15% stake of any company.
When the NAV of portfolio decreases by more than 15%, Portfolio Manager has to report and explain to Investment Committee the reason and propose proper action - Hold or Cut Loss. The Investment Committee will make final decision.
When stock price decreases by more than 20%, Portfolio Manager has to report and explain to Investment Committee the reason and propose proper action - Hold or Cut Loss. The Investment Committee will make final decision.