Bao Viet Fund Management Co Ltd’s BVFB fund also had a successful year, with NAVPS climbing by 10.1 per cent in 2018 and was the second best performing fund.(Photo: congluan.vn)
Hanoi (VNS/VNA) - Overthe past year, most investment funds in Vietnam’s equity market have seennegative growth in net asset value per share (NAVPS) due to the poorperformance of the market indices.
NAVPS is an expression for net asset value thatrepresents the value per share of a mutual fund, exchange-traded fund (ETF) ora closed-end fund. It is calculated by dividing the total net asset value ofthe fund or company by the number of shares outstanding. NAVPS is also referredto as the book value per share.
This year, the stock market witnessed thechoppiest year since the 2008 global financial crisis. The VN-Index declinedfor the first time after five consecutive years of rallying in parallel withthe growth momentum of the economy. It achieved a record high gain of 47 percentin 2017.
The VN-Index, Viet Nam’s benchmark stock index,set an all-time peak of 1,211 points on April 10, but then suffered a sharpdecline of 27 percent, to end 2018 at 892.54 points, down 9.3 percent from theprevious year, despite the fact that Vietnam’s GDP has posted its strongestgrowth rate in a decade.
The unexpected fall strongly affected investorsentiment, which is very vulnerable and mostly dependent on market movementsand can be broken easily if any negative news is heard.
Pyn Elite Fund, the Finland fund which focuseson Vietnamese shares, saw NAVPS declining 10.15 percent. The figures for DragonCapital’s Vietnam Enterprise Investment Limited (VEIL) were down 11.3 percent,JPMorgan VOF dropped 12 percent, ETF funds such as FTSE Vietnam ETF, slumped 11percent, while VFMVN30 ETF lost 11.4 percent and VNM ETF plummeted 13 percent.
Passion Investment (PIF) and Hestia also had adisappointing year with NAVPS growth down 16 percent and 24 percent,respectively.
Funds with better performance included TundraVietnam Fund, VOF VinaCapital, SSIAM VNX50 ETF, LionGlobal Vietnam Fund andThiên Việt Securities Joint Stock Company’s two funds of Thien Viet Growth Fund(TVGF) and TVGF2.
TVGF and TVGF2 were two of the funds with thebest performance in the market last year, with NAVPS dropping just 3.7 percentand 6.5 percent, respectively, lower than the decline of the VN-Index at 9.3 percentin 2018.
By the end of 2018, the total investmentportfolio value of TVGF reached 196.5 billion VND (8.4 million USD) while thefigure for TVGF2 was 157.4 billion VND.
SSIAM VNX50 ETF performed quite well compared tothe overall market, with NAVPS down 6 percent. Total fund assets as of the endof 2018 reached nearly 120 billion VND.
Contrary to the tragic situation of stockinvestment funds, bond investment funds had a successful year in 2018.
The best performance belonged to VFMVFB, managedby VietFund Management (VFM), with NAVPS growth of more than 11 percent.
Bao Viet Fund Management Co Ltd’s BVFB fund alsohad a successful year, with NAVPS climbing by 10.1 percent in 2018, and was thefund with the second best growth in the market.
NAVPS of two bond funds, VTBF managed byVietinBank Capital and TCBF managed by TCBS, also grew well with an increase of9 percent and 8.2 percent, respectively.
VinaWealth bond investment fund (VFF) of fundmanagement company VinaWealth, a VinaCapital-backed unit, saw NAVPS growth of7.1 percent in 2018. Meanwhile, the figure for SSIBF managed by SaigonSecurities Incorporation was 6.6 percent.
In 2018, the stock market witnessed strongfluctuations and cash flow tended to shift to bond funds. Viet DragonSecurities Co (VDSC)’s statistics show that the largest bond investment fund,Techcom Bond Fund (TCBF), had expanded its assets scale by 185 percent comparedto the beginning of the year. From September to November 2018, TCBF attractedabout 700 billion VND of new investments each month.-VNS/VNA
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