Core Insights - The report provides an overview of the Tianhong Vietnam Market Equity Fund (QDII) for the second quarter of 2025, highlighting its investment strategies and performance metrics [1][2][3]. Fund Overview - The fund aims to capture opportunities arising from Vietnam's economic growth while seeking to outperform its benchmark [3]. - The total number of fund shares at the end of the reporting period was approximately 2.82 billion [3]. - The fund employs various investment strategies, including asset allocation, stock investment, and fixed income strategies [3]. Financial Performance - The fund's net asset value (NAV) for the A, C, and D share classes as of June 30, 2025, were 1.4321, 1.4111, and 1.4108 RMB respectively [13]. - The performance metrics for the reporting period showed negative returns: A class at -2.56%, C class at -2.66%, and D class at -2.69%, while the benchmark returned 5.34% [13]. - Over the past three months, the A class underperformed the benchmark by 7.90% [5]. Investment Strategy and Market Conditions - The fund reduced its exposure to financial stocks in response to macroeconomic uncertainties and regulatory changes in Vietnam [12]. - The Vietnamese economy showed resilience with a GDP growth of 7.6% in the second quarter, leading to a cumulative growth of approximately 7.3% for the first half of the year [10]. - The government is accelerating domestic reforms to reduce reliance on external markets, particularly in light of the high tariffs imposed by the U.S. [10]. Portfolio Composition - The fund's assets are predominantly invested in common stocks, accounting for 89.16% of the total assets [15]. - The financial sector represents the largest portion of the portfolio at 54.72%, followed by basic materials at 11.16% [15]. - The fund has no holdings in bonds or asset-backed securities as of the reporting date [18]. Compliance and Governance - The fund management has established fair trading practices and has not encountered any violations of these principles during the reporting period [8][9]. - The fund management is committed to transparency and has not engaged in any unfair trading activities [9].