Fund Co-Management

Examples

Case Study 1: Custom Account

Investment Subscription and Account Setup Process

Investor A, introduced by B, subscribes to a Custom Fund Account at the end of August 2026 with a committed investment amount of VND 3.5 billion. Investor A elects to receive investment returns on an annual distribution basis.

Account Opening and Funding

  1. Creation of Trading Account: With the assistance of Fund Manager C and the support of an approved brokerage company, Investor A opens a trading account in his own name. The account opening process is expected to be completed within approximately four hours and may be conducted with any of the brokerage firms in Vietnam that satisfy the following requirements:
    • Access to Vietnamese equity markets;
    • Access to futures trading;
    • Availability of an Application Programming Interface (API) allowing direct order execution without the need to log into trading software.
  2. Transfer of Investment Capital: Upon completion of the account opening process, Investor A transfers VND 3.5 billion to the newly established trading account.
  3. Payment of Management Fee: Investor A pays the Fund Manager an annual management fee equal to 4% of committed capital, amounting to VND 140 million, covering the first year of portfolio management services.
  4. Payment of Introducer Commission: Fund Manager C pays the introducer, B, a referral commission equal to 2% of the committed capital, amounting to VND 70 million, in accordance with the introduction agreement between the parties.
  5. Execution of Agreement: Investor A, Introducer B, and Fund Manager C execute and sign the Investment Management Agreement, thereby formalizing their respective rights and obligations.
  6. Investor Portal Access: Following execution of the agreement, Fund Manager C creates a dedicated account for Investor A on the Fund Manager’s online platform. This account enables Investor A to monitor portfolio positions, portfolio performance, net asset value, and relevant market information on an ongoing basis.

Annual Performance Reporting

During the first week of September 2027, Fund Manager C shall provide Investor A with an annual performance report detailing:

  • Portfolio performance over the preceding investment year;
  • Net asset value of the portfolio;
  • Calculation of eligible investment returns;
  • Applicable management and performance fees, if any;
  • The amount of returns due to Investor A.

Following issuance of the report, Fund Manager C shall transfer the distributable returns, if any, to the bank account designated by Investor A in accordance with the terms of the Investment Management Agreement.

Example Performance Allocation

Assume the Fund achieves a 12-month net return of 65%. For this Custom Investor Account, the applicable hurdle rate is 25%.

Therefore, the excess return subject to performance sharing is: 65% − 25% = 40%

Under the agreement, excess returns are shared 50% to the Investor and 50% to the Fund Manager.

Investor A

  • Receives the full hurdle return of 25%, plus 50% of the excess return (20%).
  • Total return: 25% + 20% = 45%
  • On an initial investment of VND 3.5 billion, Investor A receives:

VND 1.575 billion in profit (45% × VND 3.5 billion).

Fund Manager B and Introducer C

  • Together receive the remaining 20% of the excess return: 50% × 40% = 20%
  • On a VND 3.5 billion investment, this represents: VND 700 million in total performance participation.

Assuming the Introducer is entitled to 20% of the Fund Manager’s performance participation, the allocation would be:

  • Fund Manager C: 80% × VND 700 million = VND 560 million (equivalent to 16% of invested capital).
  • Introducer B: 20% × VND 700 million = VND 140 million (equivalent to 4% of invested capital).

Summary

Party Return (% of invested capital) Amount (VND)
Investor A 45% 1.575 billion
Fund Manager C 16% 560 million
Introducer B 4% 140 million
Total Fund Return 65% 2.275 billion