LotusIMC’s announcement on Lotus-Mekong River Equity Fund (27-12-2013)

LotusIMC  wishes to inform clients and partners on Lotus-Mekong River Equity Fund (LMEF) as follows:

LMEF was set up in November, 2009 in Cayman Islands with strong support of Plaza Asset Management and IwaiCosmo Holdings, Inc. Plaza Asset Management is the asset management company of JTSB RB VietNam Cambodia Laos Growth Fund, with its informal name of Mekong no megumi, the fund that invests at least 90% of its net asset value in LMEF whereas IwaiCosmo Holdings, Inc is the distributor of shares for Mekong no megumi.

About a year ago, Plaza Asset encountered difficulties in doing business so it planned to exit its public fund business and step by step closed all public funds under its management, including Mekong no megumi. Some alternatives were discussed among parties, however due to various reasons, the final measure of fund closing was implemented. LotusIMC sold all securities and carried on other necessary work to return cash to investors.

With regards to overall investment performance, due to diversified investment targets and investing in high performing companies such as VNM, DHG, FPT, … the gap of LMEF performance with the markets have been widened over time as shown in the table below:

 

5/11/2009

31/12/2010

30/12/2011

28/12/2012

10/10/2013

NAV/share (JPY)

10,000

8,349

5,352

7,562

10,043

% change since inception

0.00%

- 16.51%

- 46.48%

- 24.38%

0.43%

NAV/share in VND

1,977,457

2,001,198

1,456,327

1,830,550

2,161,179

% change since inception

0.00%

1.20%

-26.35%

-7.43%

9.29%

VND/JPY exchange rate

0.00%

- 17.50%

- 27.33%

- 18.31%

- 8.11%

Vn-index(VND)

0.00%

- 12.76%

- 36.72%

- 25.53%

- 10.93%

Relative performance with Vn-index(VND)

13.96%

10.37%

18.10%

20.22%

Hnx-index(VND)

0.00%

- 39.96%

- 69.13%

- 70.00%

-68.08%

Relative performance with Hnx-index(VND)

41.16%

42.77%

62.57%

77.37%

Note: 5th Nov., 2009 is the fund set-up date and 10th Oct., 2013 is the final date of NAV calculation.

Besides, LMEF and Mekong no megumi achieved some results as follows:

Rankings of high performing funds in the last six months by Asahi Simbun, Japan:


04/2012

06/2012

07/2012

Ranking of Mekong no megumi

4

18

7

Total number of funds ranked

1763

1763

1771

In addition, on page 94-95 of the section “how to select ASEAN funds” of “ The art of investing ASEAN stocks” published by Kosaido in August, 2013, “Mekong no megumi” made best performance. As of end of June, 2013, only 4 out of 34 funds made positive NAV per share increase over the last 3 months. Increase of Mekong no megumi was 14.39%, which is quite higher than that of  the 2nd best performing fund, which is a Malaysian fund whose increase was 10.96%. For  increase/decrease percentages of the last 12 months, Mekong no megumi also ranked number 1 with percentage change of 67.42%. This achievement was partially due to the JPY currency fluctuation but comparing to other funds investing in Vietnam, it can be said that our fund performance was outstanding.

It was regretful that Mekong no megumi was closed, however, LotusIMC with its accumulated experience wishes to devote its effort to the development of Vietnamese securities market. Finally, we wish to express our deep gratitude to the Japanese clients and other related parties who have been interested in LMEF.

 

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