Dragon Capital to merge two Vietnam Debt Fund shareholder classes
Dragon Capital, the Vietnamese investment manager, is to merge the two shareholding classes in its Vietnam Debt Fund (VDeF).
Following a meeting of the shareholders in Hong Kong on 27 January, it was agreed that all of the assets of the A Class Segregated Portfolio will be transferred to the B Class Portfolio.
The objective of the merger is to create a larger aggregate portfolio, increasing trading and risk management efficiency. The combined portfolios will have a NAV of USD38.5m.
Launched in November 2007, VDeF is open-ended and its strategy centres on active management seeking high sustainable returns in Vietnam’s debt markets. While the A class portfolio’s mission has been to invest in government debt, the B class portfolio has a broader mandate including corporate debt.
The fund is registered in the Cayman Islands and listed on the Main Securities Market of the Irish Stock Exchange in Dublin.
The VDeF fund has performed strongly over the past three years with the B Class Portfolio providing USD annual returns of 10.36 per cent and the A Class Portfolio returning 9.25 per cent. Consequently, the fund’s two share classes were ranked first and second in Camradata’s recent Emerging Market Corporate Debt report.
Dan Svensson, portfolio manager of the Vietnam Debt Fund, says: “The larger size of the combined portfolios will allow for greater flexibility in our investment strategy, making risk management easier and reducing the expense ratio which is a heavy burden for small sized funds.”
Dominic Scriven, chief executive officer and co-founder of Dragon Capital, says: “This merger of the two portfolios makes good strategic sense for Dragon Capital and enables us to build on the success that the VDeF has already achieved since 2008. VDeF and its local affiliate VFB have consistently delivered market leading performance. We are optimistic that this merger will allow us to continue delivering strong returns from Vietnam’s debt markets.”
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