Stock market upturn results in positive growth for Vietnam’s investment funds

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Investment funds involved in Vietnam’s equity market reported positive growth in net asset value (NAV) in August due to a stock market upturn.

The VN-Index enjoyed an increase of 10.43 percent in August, reaching 881.65 points. This was also reported as the strongest increase among markets around the world, according to statistics from Stock.

The local exchange-traded fund VFMVN Diamond ETF, operated by the Vietnam Fund Management Co (VFM), had a NAV of 1.9 trillion VND (81.6 million USD) as of the end of August. In August alone, the NAV per certificate increased 16.7 percent, reaching more than 12,724 VND.

This fund focuses on stocks that have reached their limit of foreign ownership. Many of those stocks recorded high price increases in August such as Mobile World Group (MWG), Refrigeration Electrical Engineering Corporation (REE), Phu Nhuan Jewelry (PNJ), logistics firm Gemadept Corporation (GMD), FPT Corporation (FPT), Vietinbank (CTG) and Techcombank (TPB).

The SSIAM VNFIN LEAD, managed by SSI Asset Management Co Ltd (SSIAM), had initial capital of VNĐ262 billion which had risen to 779 billion VND by the end of last month. In August alone, the fund's NAV per certificate increased by 14.4 percent.

This fund's portfolio mostly comprises of leading financial stocks. In August, stocks in banking, securities and insurance climbed including Vietinbank (CTG), insurer Bao Viet Holdings (BVH) and Saigon Securities Company (SSI).

Other ETFs also enjoyed NAV growth including VFMVN30 ETF, up 11.6 percent, SSIAM VNX50 ETF, gaining 11.2 percent, SSIAM VN30 ETF, climbing 11.2 percent and VinaCapital VN100 ETF, rising 10.5 percent.

Active funds

Pyn Elite Fund, the Finnish fund which focuses on Vietnamese shares, led the uptrend with positive NAV growth of 12.76 percent in August.

The fund attributed the growth to rising banking and retail shares, such as Vietinbank (CTG), increasing by 21.2 percent, HDBank (HDB), rising by 18.4 percent and Mobile World Group (MWG), up by 25.4 percent.

Dragon Capital's billion-dollar VEIL fund also witnessed NAV growth of 12.1 percent in August, with a portfolio size of 1.39 billion USD. VEIL's biggest investments also include banking stocks which account for about 26 percent.

Vietnam Holdings, a fund managed by Dynam Capital, reported a NAV increase of 11.1 percent in August. The fund manages more than 126 million USD in assets with the largest proportion in the portfolio invested in FPT Corporation (FPT), Hoà Phát Group (HPG) and Mobile World Group (MWG).

However, some investment funds still reported poor NAV growth such as LionGlobal Vietnam Fund, JPMorgan Vietnam Opportunities Fund, Tundra Vietnam Fund and VOF./.