Investment funds kept buying in stocks in January even though the market was turbulent. (Photo: tapchitaichinh.vn)Vietnam Enterprise Investments Limited (VEIL), a closed-end investment trustmanaged by Dragon Capital and the biggest investment fund in Vietnam’s stockmarket, recorded positive growth during the period.
The fund’s performance was positive 0.5percent in January. VEIL managesassets worth 1.7 billion USD.
As of the end of January, VEIL’s biggest investments were in the banking sector,accounting for 27.13 percent of its investment value, followed by investmentsin real estate (26.43 percent) and food and beverage (10.17 percent).
After gaining points in the first half of January, the stock market witnessedsome strong corrections as profit booking dragged down the VN-Index. The profittaking was magnified by panic over margin calls.
The market benchmark VN-Index declined 4.28 percent in the first month of 2021.
Dragon Capital said that recently, the fund restructured its investment processwith the number of target stocks cutting down to 28 – 32 from 35 – 40.
Finnish equity fund PYN Elite also witnessed is its net asset value (NAV) drop5.39 percent in January, mostly due to losses in Vietnam Engine and AgriculturalMachinery Corporation (VEA), Vietnam JSC Bank for Industry and Trade (CTG) andPetroVietnam Power Corporation (POW). It marked the worst performance of PYNElite since 2017.
The fund manages total assets worth 572 million USD.
In a letter to investors in February, Petri Deryng, portfolio manager of PYNElite, said that Vietnam's stock market began 2021 on a negative note, but theprospects for the whole year are still very positive.
Vietnam’s economy, which has obtained some achievements, rising profits oflisted companies and appealing stocks’ valuation are factors contributing tothe bright prospects of the market.
The market saw strong fluctuations after the VN-Index surged quickly from 900points to 1,200 points in just ten weeks.
During the turbulent month, PYN Elite used all of its resources to buy VinhomesJSC (VHM) shares, making it the biggest investment of its portfolio. At themoment, VHM shares account for 9.82 percent of its portfolio, worth 1.5trillion VND.
Another investment fund posting negative performance in January was AFC VietnamFund, with growth of negative 1.9 percent.
The fund assessed the plunge of the market after rising over 20 percent in thefourth quarter of 2020 and gaining 8 percent in the first seven tradingsessions of 2021 was a healthy movement. And reaching the 1,200 point level bythe VN-Index was really attractive, luring new strong inflows to the market.
Top five investments of AFC Vietnam Fund were Agriculture Bank Insurance JSC(ABI), accounting for 8.1 percent of its investment value, LienVietPost JointStock Commercial Bank (LPB), Dinh Vu Port Investment and Development JSC (DVP),VNDirect Securities Corporation (VND) and Phu Tai JSC (PTB).
As of the end of January, the fund invested most in the financial sector (35 percentof its portfolio) and industrial sector (23.5 percent)./.
VNA
