Portfolio Management

Investment ReportGroup 3

L/O/G/O

Contents

Contents 1

Group Profile

Contents 2Contents 3

Contents 4

Contents 5

Investment Policy

Investment Environment

Selectivity and Diversification

Portfolio performance

INVESTMENT POLICY

• Investments should out-perform the risk-free rate• Pay attention to high quality growth companies

out-perform over the long time or those which are being speculated by large-sized funds

Investment policy

Investment criteria• Prefer growth and maturity stage companies with a strong track record

of a successful history starting or managing• Companies have solid market position in industry • Large capital market• Positive revenue and EAT

Exit Strategy• Sell stock when:

• Its price is higher beyond than the real value • The price of stock excesses the supporting line• Company’s bad news is public

INVESTMENT ENVIRONMENT

Stock market at the end of 2013 reached good status because of many contributed factors:• Satisfactory results of financial reports in the third quarter • Having higher income and optimistic mind, investors often spend more

money in funds than the rest of year• Participation of foreign individual investors or charismatic funds• Positive renovation policies of government

MANAGERS’RISKThe risk assumed by an investor that her investment might

underperform simply because of mistakes committed by the fund

manager whose decisions and actions may divert from the investors'

wishes or reduce the value of an investment portfolio.=> Before investing to any fresh investment, spend some time looking

into the background of the people who manage it.

INVESTORS’ RISKHowever, international investors have voiced concerns that the investment climate has deteriorated. Problems include:1. Corruption2. Weak legal infrastructure3. Financial instability

Vietnam market

Strong

Semi-stron

g form

Weak form

GROUP PROFILESymbol Full name Follower

HAG HAGL JOINT STOCK COMPANY Nguyễn Thị Ngọc Trâm

ITA TAN TAO INVESTMENT INDUSTRIAL JSC Lê Ngọc Thùy Dung

GAS PETROVIETNAM GAS CORPORATION 

Đặng Thụy Hồng NgọcVIC VINGROUP JOINT STOCK COMPANY

DIG DEVELOPMENT INVESTMENT CONSTRUCTION JSC

Mai Thanh LâmHQC HOANG QUAN CONSULTING - TRADING - SERVICE REAL

ESTATE CORPORATION

VLF VINH LONG CEREAL AND FOOD CORPORATION

Lương Bảo HoàngOGC OCEAN GROUP JOINT STOCK COMPANY

KMR MIRAE JOINT STOCK COMPANY 

Nguyễn Quỳnh Mỹ NgônVNH VIET NHAT SEAFOOD CORPORATION

MSN MASAN GROUP CORPORATIONNguyễn Lê Phạm Duy

PGC PETROLIMEX GAS CORPORATION - JSC

PORTFOLIO OVERVIEWPORTFOLIO GROUP 3

Capital 100,000 (million VND)

First transaction date 13/11/2013

Exit date 03/12/2103

Duration 14 days

Securities Company FPT

Transaction Fee 0.15%

9%

16%

5%

4%5%

9%6%4%

11%

12%

10%

10%

HAGITAGASVICDIGHQCVLFOGCKMRVNHMSNPGC

41.7%

8.3%

25.0%

8.3%

8.3%

8.3%

Real Estate Natural Gas DistributionFood-Beverage-Tobacco Finance Services and Related ActivitiesApparel-Leather and Allied Products Retail Trade

Distribution of each industry in number of companies invested

43.21%

5.01%

27.35%

4.38%

10.50%

9.55%

Distribution of each industry in capital invested

SECTOR FOCUS

The recovery of real estate

• The real estate market has improved significantly since early 2013 thanks to the government’s determination and actions.

• In November, Vietnam had four new FDI projects in the fields of real estate with a total value of approximately $300 million

• The package of 30,000 billion VND for social housing projects of the State

No. ContentFirst 9 months of 2012 (billion VND)

First 9 months of 2013 (billion VND)

% Change

1 Revenue 5.068 11.600 129%

2 EBT 2.097 8.339 298%

3 EAT 1.474 6.051 311%

VINGROUP JSC

PORTFOLIO PERFORMANCE

VNInde

xHAG

ITA

GASVIC DIG

HQCVLF

OGCKM

RVNH

MSN PG

C

(1.50)

(1.00)

(0.50)

-

0.50

1.00

1.50

2.00

2.50

1.00 1.10

2.02

1.03

0.59

2.05

1.66

(1.37)

2.29

0.81

(0.60)

0.65

0.93

BetaBeta Weight

HAG 1.10 8.91%

ITA 2.02 16.42%

GAS 1.03 5.01%

VIC 0.59 3.97%

DIG 2.05 4.81%

HQC 1.66 9.09%

VLF -1.37 5.57%

OGC 2.29 4.38%

KMR 0.81 10.50%

VNH -0.60 11.82%

MSN 0.65 9.97%

PGC 0.93 9.55%

Portfolio 0.95 100.00%

PORTFOLIO PERFORMANCE

DIG GAS HAG HQC ITA KMR MSN OGC PGC VIC VLF VNH

12

.1

63

22

.4

7.2

6.3 8

.8

83

.5

11 12

66

.5

7 6.2

11

.7

64

.5

21

.5

7 6.7 1

0.5

82

.5

10

.9

12

.7

67

6.7 7.9

DIVESTMENT HISTORY

Investment Exit

PORTFOLIO PERFORMANCEPerformance

Period (days) 57

Total cycle

6.32 Investment (million VND)

100,000

Period performance 8.96%

Annual performance 56.6%

Performance summary

Top gainersVNH, KMR, ITA, PGC, GAS,

VIC

Total gains

11,425

Top losersHQC, HAG, VLF, DIG, OGC,

MSN

Total losses

(2,468)

Stock Gain/LossGain/Loss

(%)

HAG

(516.07) -2%

ITA

674.96 2%

GAS

261.75 2%

VIC

44.96 0%

DIG

(435.70) -4%

HQC

(368.07) -2%

VLF

(641.10) -5%

OGC

(132.85) -1%

KMR

3,365.63 13%

VNH

5,752.13 19%

MSN

(374.70) -1%

PGC

1,325.90 6%

PORTFOLIO PERFORMANCE

13/11 14/11 15/11 18/11 19/11 20/11 21/11 22/11 25/11 26/11 27/11 28/11 29/11 2/12 3/12

% Return of Portfolio

-0.0006

7

-0.0062

2

-0.0031

2

0.00807

0.00036

0.01902

-0.0041

4

-0.0055

8

0.02065

0.04245

0.06096

0.07793

0.07505

0.09205

0.08957

%VNIndex

0.00609636184857

428

0.00137849547065

772

0.000196966712625611

-0.00137686860739

573

-0.00157109190887

669

0.00533070088845

013

0.00178006329113

92

0.00417080436941

415

-0.00395647873392

681

0.00158510005944

127

-0.00355380059230

012

0.01037303012168

36

0.00682868045792

335

0.00362830074581

728

-0.00301446945337

621

-1.00%

1.00%

3.00%

5.00%

7.00%

9.00%

% Return of Portfolio %VNIndex

SELECTIVITY AND DIVERSIFICATION

based on SML

based on CML

SELECTIVITY AND DIVERSIFICATIONSelectivity = Actual Result – Theoretical result based on SML

Selectivity is 1.29%. It means that that the portfolio’s actual result is higher than its theoretical result based on SML.

Using the formula

(>0)

It shows that that portfolio generates higher profit than according to CAPM theory

Diversification = theoretical result based on SML - theoretical result based on CML

The difference between theoretical result based on SML and CML is due to the portfolio is not as diversified as the market. 18.595% is the contribution of diversification portfolio.

Thank You!Group 3

L/O/G/O