Thursday, October 27 2016


Foreign funds grow thanks to blue-chips

Update: August, 18/2016 - 09:00

HÀ NỘI— Foreign investment funds saw an average growth of 11.28 per cent in the first half of 2016, according to Hà Nội- based DoBF Stock Academy’s latest report.

The report noted that the growth was due to investments in blue-chip and basic stocks.

Among the 31 funds with an investment of about US$4 billion on the local market, 25 funds had a better net asset value (NAV) growth above the VN-Index, which was 7.5 per cent in the first half of the year.

In terms of the largest increase, SFC fund of Vietnam Holding reached a growth of nearly 20 per cent. Further, Vietnam Holding had total assets of $146.8 million, as of June 30, 2016. With optimism over the prospects of the Việt Nam stock market, the fund portfolio included blue chips from Traphaco Joint Stock Company (TRA), Phú Nhuận Jewelry Joint Stock Company (PNJ), Việt Nam Dairy Products Joint Stock Company (VNM), Thiên Long Group Corporation (TLG), Hòa Phát Group (HPG), Hoa Sen Group (HSG), and Binh Minh Plastic Joint-Stock Company (BMP). Listed on the London Stock Exchange, NAV ended at $2.8 per share on August 16. In August, shares were up 10.9 per cent over July.

Ranking No 2 in growth, VOF, a fund of VinaCapital Vietnam Opportunity Fund Ltd, with total assets of $610 million, posted a 17.9 per cent increase thanks to its investment in PNJ and HPG, which recently rose sharply. The increase was also due to stocks from the food and beverage sector, which accounted for the largest proportion, at 24 per cent of the fund’s portfolio. Currently, VOF is included in the FTSE All Share basket of shares Small Cap Index on the London Stock Exchange. On August 16, VOH rose 0.89 per cent to reach $227 on the exchange.

Those funds with net assets of US$100 million were SFC and VOF, long associated with the $351 million Elite Mutual Fund, which increased 14 per cent, $932 million VEIL of Dragon Capital was up 13.37 per cent, $353 million DWS Vietnam Limited rose 12.95 per cent, $180 million JP Morgan Vietnam Opportunities fund surged 11.8 per cent, and the $119 million VEEF increased 9.86 per cent.

Established in Việt Nam over 20 years ago, VEIL is not only the oldest foreign fund, it is now the largest in net assets. The fund is focused on the local food and beverage industry, real estate and finance industries. In 2015, thanks to the tremendous growth of 60.8 per cent of Vinamilk, which accounted for 18.8 per cent in its investment portfolio, the fund grew 5.6 per cent.

In the first half of 2016, VEIL growth was mainly due to the increase of VNM and VCB. In addition to listed shares, VEIL also invested in bonds, unlisted shares and private equity at a ratio of below 10 per cent. On August 16, VEIL was up 0.35 per cent to close at $284.75 on the London Stock Exchange.

Thus, the report found that the growth was due to foreign funds holding the most solid stocks in food and beverage, banking and real estate industries in Việt Nam.

For example, the stock of giant dairy producer Vinamilk, with more room for foreigners this year, was part of the baskets of most funds.

Other blue chips, such as TRA, PNJ, TLG, HPG, HSG, and BMP, were in baskets which reported gains of some 100 per cent over the year.

The report also said that in 2015, many foreign funds were affected by the unexpected exchange rate, however, they did not see the same problem this year because of stable exchange rates. — VNS



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