HCM CITY (VNS) — Viet Nam's first domestic exchange-traded fund, the VFMVN30 ETF, attracted major interest right yesterday, the day it received the licence for its initial public offering.
The fund will have a passive investing strategy to carry out its investment objectives, simply tracking the performance of the VN30 Index.
HCM City Securities and Bao Viet Securities entered into agreements to buy units worth VND30 billion (US$1.4 million) and VND20 billion respectively. They will also be fund authorised participants.
Tran Thanh Tan, CEO of VietFund Management, which set up and manages the fund, said he has received commitments of more than VND50 billion from other institutional and high net-worth individual investors.
The IPO has to be for a minimum of VND50 billion, but Tan hopes to scale up to VND500 billion over the next six months.
The units are priced at VND10,000 each and purchases are in lots of 100,000 units.
Registering for the IPO can be done between July 21 and August 8 with HSC and BVSC.
After the IPO the VFWVN30 ETF will be listed on the HCM City Stock Exchange and its units will be traded in both the primary and the secondary markets.
During trading hours the fund's indicative net asset value (iNAV) and iVN30 will be calculated and made available every 15 seconds and every minute respectively. The fund's NAV will be announced daily.
Standard Chartered Bank Vietnam will provide custodial, supervisory, and administrative services for the fund. —VNS