Classified: Public

PUBLIC EQUITIES & FIXED INCOME

Thu Nguyen, CFA, Head of Investment

29 October 2020

Classified: Public

VinaCapital Traditional Assets Product Platform

2|

Offshore products Domestic products

VVF

VAF

VESAF VEOF

VIBF VFF

Segregated Mandates

Equity Fixed Income

ETF VN100

Equity fund

Fixed income fund

Balanced fund

Classified: Public

Portfolio Management Team

3|

ThuNguyen, CFA

Head of Investment

• Lead Portfolio Manager of VVF and VAF

• 17 years of investment experience

• 5 years with VinaCapital

Thao Ong, CFA

Investment Director

• Manages VVF and VIBF

• 13 years of investment experience

• 9 years with VinaCapital

Phuong Nguyen

Senior Investment Manager

• Manages VAF and VESAF

• 9 years investment experience

• 6 years with VinaCapital

Minh Dinh

Investment Director• Manages VEOF and ETF VN100

• 11 years of investment experience

• 4 years with VinaCapital

Thang Pham, CFA

Senior Associate

• Manages VFF and VIBF

• 10 years of investment experience

• 1 year with VinaCapital

Nguyen Tran, CFA

Assistant Portfolio Manager

• 7 years of research & investment experience

• 7 years with VinaCapital

Phuong Nguyen, MSc.

Assistant Portfolio Manager

• 8 years of research & investment experience

• 2 years with VinaCapital

Huong Nguyen

Assistant Portfolio Manager

• 5 years of research & investment experience

• 3 years with VinaCapital

Classified: Public

We are growth-oriented investors that seek to capture and participate in Vietnam’s structural economic growth

4|

Investment Philosophy

We focus on bottom-up stock selection but also apply a top-downoverlay of macro and policy views

We have an absolute return mentality, which is reflected across stock selection, portfolio management and risk management

We are high-conviction investors that often take large, long-term, off-benchmark bets in concentrated portfolios

We pursue the highest standards of integrity and corporate governance with risk mitigation, and we are aware of social responsibility in investing

Classified: Public

Investment Process

5|

Screening

Investment Universe

Company Analysis

Portfolio Construction

Portfolio Monitoring

• 1,600 listed stocks: size & liquidity• Financial strength• ESG

• 100 listed stocks• Company visits

• Due-diligence • Financial modeling & valuation• Biased towards growth and strong cashflow

• Conviction• Risk awareness: correlation, volatility• Comply with mandate restrictions Di

scip

line

• Company performance• Macro, sector-related• Company meetings • Internal reporting• Target price• Exogenous event/change in fundamentals• Corporate governance• Strategic exit at premium• Observing mandate restrictions (e.g. UCITS)

Classified: Public

Forum One – VCG Partners Vietnam Fund (VVF)

6| Fund data as of 30 September 2020Source: VinaCapital, Bloomberg

• P/E 2020 of VVF: 12.3x versus 16.9x of VN-Index• EPS growth 2020 of VVF: 5.9% versus -12.0% of VN-Index

Growth at reasonable price (GARP)

• Small- & mid-cap stocks: 55% NAV versus 29% of VN-Index• FOL stocks: 35% NAV• Active shares: 60%

Index-agnostic

• 160 meetings with investee companies per year on average

Active management

Classified: Public

Vietnam Access Fund (VAF)

7|

Foreign Investors

VAF(Cayman Islands)

VESAF (Vietnam open-ended

fund)

FOL stocks High-growth Small- &

mid-caps

Direct investments

IPOs and Pre-IPOs Listed equities Special situation stocks Other financial instruments

Up to 100%

• Small- & mid-cap stocks: 63% NAV versus 29% of VN-Index

Small- & mid-caps focus

• FOL stocks: 50% NAV

FOL stocks focus

• P/E 2020 of VAF: 10.9x versus 16.9x of VN-Index• EPS growth 2020 of VVF: 6.5% versus -12.0% of VN-Index• Active shares: 70.5%

Reasonable valuation

• 200 meetings with investee companies per year on average

Active management

Fund data as of 30 September 2020Source: VinaCapital, Bloomberg

Classified: Public

Foreign Ownership Restrictions In Vietnam Stock Market

8| Source: Bloomberg

100

300

500

700

900

1,100

1,300VN-Index

Jan 2016: apply T+2

Apr 2009: FOL cap increased to 49% for most; Banks

stay at 30%

Jun 2015: companies allowed to

determine own FOL

2000: FOL cap at 20%

Jul 2003: FOL cap increased to 30%

Jan 2021: New Securities Laws

effective

From 2022 (expected): NVDR introduced

Classified: Public

State Divestments And Privatisations

9| Source: Ho Chi Minh City Securities Company (HSC)

827

5,566

1,344

327

-

1,000

2,000

3,000

4,000

5,000

6,000

2016 2017 2018 2019

State IPOs & placements (USDm)

Classified: Public

VN100 ETF and Fixed Income

Classified: Public

VN100 – The Closest Tracker Of VNIndex, Accounting For 84%1 Of VN-Index

11|1: as of 30 September 2020Source: Bloomberg

50

100

150

200

250

300

350

2012 2013 2014 2015 2016 2017 2018 2019 2020

Performance of VN Index, VN100 and other ETF indexes (USD terms)

VN100 VN-INDEX VN30 FTSE Vietnam MVIS Vietnam MSCI Vietnam

VN-Index

VN100

Classified: Public

Fixed Income Market: Steady Growth

12| Source: Hanoi Stock Exchange, Fiinpro

24% 25%28% 27% 28%

5%7%

9% 11%13%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2016 2017 2018 2019 1H2020

Bond market size as a percentage of GDP

Corporate Bond

Government Bond

Classified: Public

Government Bond Yields And Corporate Bond Yields

13| Source: Hanoi Stock Exchange, Fiinpro

Government bond yields have declined to all-time low level due to surplus liquidity

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Government bond yields (%)

3Y 5Y 10Y 15Y

10.3

9.5

8.2

7.0

10.4

10.6

10.3

9.2

6.7

10.2

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Real Estate Energy Financials Banks Others

Corporate bond yields by sector (%)2019 1H20

Corporate bonds offer attractive yield, while FX risk is low

Classified: Public

Corporate Bonds: Increasingly Diversified Base of Issuers And Investors

14| Chart note: New issuance in 2019Source: Ministry of Finance, Hanoi Stock Exchange, Fiinpro

Credit rating

• Sovereign rating: Below investment grade (S&P: BB; Moody’s: Ba3)• Corporate bonds: No rating

36%

39%

3%

2%6%

3% 12%

Investor Profile

Banks Securities Insurers Funds Retail Foreigners Others

32%

17%30%

6%

4%

2% 2%7%

Issuer Profile

Banks Financials Real Estate IndustrialsConsumer Staples Energy Mining Others

Classified: Public

Disclaimer

15|

The information contained herein has been prepared by VinaCapital (the “Company") and is subject to updating, completion, revision, further verification and amendment without notice.

The information contained herein has not been approved by any listing authority or any investment regulator. The information does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities nor shall they or any part of them form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever.

No undertaking, representation, warranty or other assurance, expressed or implied, is made or given by or on behalf of the Company or any of its directors, officers, partners, employees, agents or advisers or any other person as to the accuracy or completeness of the information or opinions contained herein and no responsibility or liability is accepted by any of them for any such information or opinions or for any errors, omissions, misstatements, negligence or otherwise for any other communication written or otherwise.

The information herein may not be reproduced, re-distributed or passed to any other person or published in whole or in part for any purpose. By accepting receipt of this document, you agree to be bound by the limitations and restrictions set out above.

Neither these pages nor any copy of them may be taken or transmitted into or distributed in any jurisdiction where the distribution of such material would be prohibited under the jurisdiction’s applicable securities laws. Any failure to comply with this restriction may constitute a violation of national securities laws.

Past performance is not a guarantee of future returns.

Classified: Public

17th Floor, Sun Wah Tower115 Nguyen Hue, District 1, Ho Chi Minh City, Vietnam

P: +84 (0) 28 3821 9930 F: +84 (0) 28 3821 9931Email: ir@vinacapital.com

Website: www.vinacapital.com

Ho Chi Minh City | Hanoi | Singapore |