Tuesday, August 21 2018

VietNamNews

Funds' financial status paints a bleak picture

Update: November, 01/2014 - 09:10
Dai-ichi Life Viet Nam and the Asia Pacific Fund Management posted modest profits of just VND566 million ($26,600) and VND300 million ($14,100) respectively. — Photo dai-ichi-life.com.vn

HA NOI (VNS)— While a large number of companies listed on the stock exchanges have posted profits, the fund management firms remained stagnant in the third quarter.

VinaCapital restructures

VinaCapital has announced that it will split its Viet Nam Infrastructure Limited Fund into two new funds.

The new funds will be the open-ended VCG Partners Viet Nam Fund (VVF), which will invest in shares and bonds, and a fund comprising investment in private equity.

As of September 30, the portfolios which will form the VVF were valued at $117 million, with primary investment in blue chips such as PetroVietnam Drilling Services (PVD), PetroVietnam Technical Services Corporation (PVS) and PetroVietnam Gas (GAS), as well as steelmaker Hoa Phat (HPG) and HCM City Infrastructure Investment (CII).

Meanwhile, its private equity portfolio reached $108 million by September 30. Viet Nam Infrastructure Limited's net asset value as of August reached $238.2 million. VinaCapital expects to improve its value to $250 million within the next two years. — VNS

Among the funds which released their operational results in the third quarter, Vietcombank Fund's revenue reached VND18 billion (US$849,000), but securities investment accounted for only 2.4 per cent of the total. The revenue accumulated during the first nine months of this year reached VND24 billion ($1.1 million). However, due to high general administration costs, the fund suffered a loss of VND2.8 billion ($132,000).

Dai-ichi Life Viet Nam and the Asia Pacific Fund Management posted modest profits of just VND566 million ($26,600) and VND300 million ($14,100) respectively.

Meanwhile, many other funds suffered losses, including Manulife AM, VAM Viet Nam and Viet Tin Fund.

Several funds have not published their financial status for the period, but the prospects look bleak because their operations in the first six months were negative, and the three-month period of the third quarter was not long enough for them to revive their business.

This is because the stock market was sluggish, and the funds could not develop their main operations.

In the revenue structure, a large percentage came from bank deposits and share dividends rather than investment portfolios. However, the profits from these activities often comprise a small proportion.

This happened to An Phat Fund Management, SynCapital and Viet Tin. — VNS

 

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