Wednesday, August 12 2020


Rapid increase in TVGF fund

Update: September, 18/2017 - 10:13

The DOBF Stock Academy has released a report that summarises the status of investment funds on Vietnam’s stock market for the first half of 2017.

TVGF in the lead

According to the DOBF Stock Academy, 29 of the 56 investment funds on Vietnam’s stock market have beaten the local indices.

This number includes 10 domestic funds, 59 per cent of total domestic funds, and 19 foreign ones, equal to 48 per cent of total foreign funds.

The funds have seen their net asset values (NAVs) win against the growth of the benchmark VN Index, which has risen 16.8 per cent since the beginning of the year.

The top three funds whose NAVs have shown the strongest growth are the Thien  Viet Asset Management Growth Fund (TVGF), the SSI Asset Management Company’s exchange-traded fund ETF SSIAM HNX30 (EISSHN30), and the Vietcombank Fund Management’s VCBF Blue Chip Fund (VCBF-BCF).

These three investment funds have seen their NAVs increase by 37.6 per cent, 27.3 per cent and 24.9 per cent, respectively, since the beginning of 2017.

The closed-end investment fund TVGF is run by the Thien  Viet Asset Management JSC, a fully-owned subsidiary of Thien  Viet Securities JSC (TVS).

The staff working at TVGF include those who worked for TVS over the past six years and who brought back an average of 20 per cent double profit to the brokerage company in that period.

The TVGF was launched in May 2016 by TVAM, targeting a three-year fund life, and has raised VNĐ150 billion in capital.

The growth of 37.6 per cent made in the first half of 2017 was quite an impressive result for TVGF, which is a medium-sized fund compared to others in the market.

The fund’s growth has vanquished the gain of the two stock indices VN Index and HNX Index as well as the growth of NAVs at other domestic and foreign investment funds, according to DoBF.

While most of the domestic investment funds are open-end funds, TVGF is a closed-end one. The fund had its fund certificates listed on the HCM Stock Exchange under code FUCTVGF1 in December 2016 for trading.

As a closed-end fund, the capital of TVGF is stable over the long term, allowing the fund to actively adjust its investment plans according to market conditions and to maintain its growth rate higher than open-end funds during its life.

At the moment, other closed-end funds on Vietnam’s  stock market include the Dragon Capital’s Vietnam Enterprises Investment Limited (VEIL) and Vina Capital’s Vietnam Opportunity Fund Limited (VOF).

Why is TVGF superior?

Since the beginning, TVGF has focused on shares of companies that are listed or about to be listed on the stock market.

The investment fund started purchasing stocks when the benchmark VN Index was at 612 points in May 2016.

At the end of the second quarter of 2017, TVGF reported in its first-half financial report that its NAV after 13 months had reached VNĐ207 billion, or VNĐ13,800, for each fund certificate.

Thus, for the entire last quarter, TVGF rose 38 per cent in comparison to the benchmark VN Index and HNX Index, which respectively increased by 27 per cent and 22 per cent during the same period.

By the end of June 2017, TVGF had purchased 15 stocks, with shares of information-communication-technology FPT Corporation occupying 15.57 per cent of the fund’s total NAV.

The followed stocks were logistics firm Vietnam Container Shipping JSC (HOSE: VSC), Asia Commercial Bank (HNX: ACB), industrial zone developer Kinh Bac City Development Holding Corporation (HOSE: KBC) and chemical producer South Basic Chemicals JSC (HOSE: CSV), as well as HCM City Securities Corporation (HOSE: HCM) and real estate firm Duc Long Gia Lai Group JSC (HOSE: DLG).

Some of the stocks have brought high profits to TVGF since May 2016, such as HCM, CSV, Thanh Cong Textile Garment Investment Trading JSC (HOSE: TCM) and steel producer Hoa Phat Group (HPG), as well as LDG and FPT.

More noticeably, the fund has been able to maintain a certain amount of cash in its financial structure, which is equal to 20 per cent of the asset.

In the near future, TVGF will search for more investment opportunities with shares of companies that have high-quality assets, operate in macroeconomics-supported industries and have a potential growth rate of more than 20 per cent but are valued lower than the average prices of the sectors in which they operate.

The market price of the fund certificate FUCTVGF1 reached VNĐ13,200 per certificate on September 7, 2017, increasing by 16.8 per cent from end of the second quarter. FUCTVGF1 is also narrowing the gap with TVGF’s certificate fund value.

Domestic investment funds whose NAVs beat the benchmark VN Index in the first six months of 2017

Abbreviation Fund Name Management Company Year of Founding Form  Net Asset Value (billion dong) Growth in 2016 Growth in H1-2017
TVGF  Thien Viet Asset Management Growth Fund Thien Viet Asset Management 2016  Closed-end  150.0   37.6%
E1SSHN30 ETF SSIAM HNX30  SSI Asset Management  2014 ETF  100.0   3.6% 27.3%
VCBF-BCF  VCBF Blue Chip Fund Vietcombank Fund Management  2014 Open-end 309.4  18.4% 24.9%
VFMVN30 Exchange Traded Fund Vietnam Investment Fund Management  2014 ETF  622.5 6.9% 23.1%
ENF  Eastspring Investment Vietnam Navigator Fund  Eastspring Investments Fund Management  2014  Open-end 117.0 16.6% 23.0%
SSI SCA  SSI Sustainable Competitive Advantage Fund  SSI Asset Management  2014  Open-end 261.5 24.1%   22.0%
BVFED Bao Viet Equity Dynamic Fund Bao Viet Fund 2014 Open-end  76.7 9.7% 21.3%
VCBF-TBF CVBF Tactical Balanced Fund Vietcombank Fund Management  2013  Open-end 196.1  15.5%  21.1%
VF4 Vietnam Blue Chips Fund Vietnam Investment Fund Management 2008  Open-end  333.9 16.4% 18.9%
MAFEQ1  Manulife Equity Fund  Manulife Asset Management  2014  Open-end  88.8  11.9%  18.3%

Source: DOBF

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