monthly report august 2011

Monthly ReportMonthly ReportAugust 2011August 2011

2011.08.26

Investment, Accounting and Finance

Cathay Life (VN)

ContentsContents

This month activities1

Business result July 20112

Market News3

4 Next month plan

ContentsContents

This month activities1

1. Supported auditing tasks that conducted by both Parent

auditor & Earns & Young

2. Expenses monitoring to ensure the budget has been

implemented strongly.

3. Issuing reminder notice “Customer Services Safety box

management ”

4. Getting approval from Tax Dept and Notice to related

Dept about “Premium invoice without company seal”

Accounting Finance Accounting Finance Activities – Engaged projectsActivities – Engaged projects

5

InvestmentInvestment

Matured Bonds Reinvestment 10yrs TD in VDB, 90BN, 12.2% fixed rateMatured Bonds Reinvestment 10yrs TD in VDB, 90BN, 12.2% fixed rate

Macro Economic Forecast 2012 GDP: 6.48%, CPI: 9.5%, 10yr bond: 11.6%Macro Economic Forecast 2012 GDP: 6.48%, CPI: 9.5%, 10yr bond: 11.6%

Planning How to develop Vietnam’s investment Planning How to develop Vietnam’s investment

ActivitiesActivities

Fund Management Company Survey Seeking external legal opinions and respond to parent company

Fund Management Company Survey Seeking external legal opinions and respond to parent company

ContentsContents

Business result July 20112

YTD Jul 2011 Results (VND mil)YTD Jul 2011 Results (VND mil)Apr May Jun Jul YTD

Revenues 24,042 24,801 27,241 27,991 173,072

Expenses 26,546 29,824 32,026 33,054 191,952

Profits (2,503) (5,022) (4,784) (5,062) (18,880)

Budget 2011

(2,634) (1,645) (2,194) (2,290) (16,601)

YTD Actual / YTD Budget 2011

AprApr MayMay JunJun YTDYTDJulJul

114%

Gross Premium (VND mil)Gross Premium (VND mil)Apr May Jun Jul YTD

Actual 2011 12,940 13,648 16,452 16,524 87,891

Budget 2011 10,054 10,880 12,974 14,550 71,337

Actual 2010 6,200 5,490 7,322 8,145 40,205

YTD Actual / YTD Budget 2011

YTD Actual 11 / YTD Actual 10

123%

219%

10.1 10.913.0

14.612.9

13.616.5 16.5

6.2 5.57.3

8.1

0

3

6

9

12

15

18

Apr May Jun Jul

Budget 2011Actual 2011Actual 2010

YTD 87.9b

123% YTD budget

Sale expenses (VND mil)Sale expenses (VND mil)Apr May Jun Jul YTD

Actual 2011 8,154 9,398 9,326 10,052 57,248

Budget 2011 6,187 5,268 6,074 6,593 42,246

Actual 2010 5,125 5,709 4,989 1,884 29,408

YTD Actual / YTD Budget 2011

YTD Actual 11 / YTD Actual 10

136%

195%

YTD 57.2b

136% YTD budget

Premiums / Sale exp. (VND bn)Premiums / Sale exp. (VND bn)

12.9 13.616.5

16.5

8.29.4 9.3

10.1

0

4

8

12

16

Apr May Jun Jul

Premiums Sale Exp.

Premium123% budget

Sale Exp.136% budget

Loss114% budget

Premium trendPremium trend

New

Renewal

Actual Budget Act/Bud

FYP 67.92 45.89 148%

RP 19.97 25.45 78%

Investment

85.16 75.26 113%

Total 173.07 146.6 118%

Administrative expense (VND mil)Administrative expense (VND mil)Apr May Jun Jul YTD

Actual 20101 8,891 10,044 10,153 9,886 66,185

Budget 2011 10,044 10,086 10,157 10,343 69,884

Actual 2010 8,944 9,698 8,547 8,964 61,534

YTD Actual / YTD Budget 2011

YTD Actual 11 / YTD Actual 10

95%

108%

YTD 66.2b

95% budget

ContentsContents

Market News3

Updated law

New circular, 15/2011/TT-NHNN dated 12 Aug 2011: over USD 5,000 or VND 15 million must be declared to Customs while going abroad.

MOM: 1.17%YOY: 22.16%YTD: 14.61%

CPI YOY reach to highest level since 2008 Food and foodstuffs was major contribution to CPI Inflation was forecast at 1% MOM in Aug and gradually decreasing to year end

Vietnam CPI (%)

Market watch

Trade balanceTrade balance

July trade balance:-Exp ~ $8.4bio, 0.7%m/m-Imp ~ $8.6 bio, 0.2%m/m=> Trade deficit ~ $0.2 bio

Trade deficit improvement in the last two months resulted from the surge in gold re-export High trade deficit will perhaps comes back once local gold price equal with world price

FX marketFX market

FX rate was stable thanks to:- Low trade deficit- Foreign currency forced-selling policyHowever, FX rate will perhaps pressure in the coming time due to the rising of gold price

As of 19 Aug:-Official rate: 20.618-Bank: 20.780-Black market: 20.800

Global marketGlobal marketGold price vs US Stock Market

Debt crisis still threaten global market:-US Government agreed to increase debt limit to $14.3 billion from $12.1 billion-SP downgraded US rating out of highest level to AA+World worry about new crisis: Gold price increased dramatically to 1870 from 1500 in July US stock market drop 9.5% in Aug

ContentsContents

4 Next month plan

1. The on-line business trip reimbursement: Working

with IT & HR to select the best solutions.

2. Budget 2012 start-up

3. Universal life product: Set-up the accounting process.

4. Working with VNpost on Premium Collection

Agreement (Cont.) .

Accounting Finance Accounting Finance Activities – PlansActivities – Plans

21

InvestmentInvestment

Enhance Investment Yield Moving money to the highest return assets Maintaining the cash balance at the lowest level

Enhance Investment Yield Moving money to the highest return assets Maintaining the cash balance at the lowest level

Extend Asset Duration Seeking 10yrs bond investment

Extend Asset Duration Seeking 10yrs bond investment

Research and Training Making SOPs of department’s routine tasks

Research and Training Making SOPs of department’s routine tasks

PlansPlans

Macro Economic Forecast Preparing stage II forecast: Stock, FX, RE

Macro Economic Forecast Preparing stage II forecast: Stock, FX, RE

THE ENDTHE END