With the strong downturn in February, including the heavy impacts from the dong/US dollar forex rate adjustment of the State Bank of Vietnam (SBV), the total net asset value (NAV) of Dragon Capital’s funds was only $909 million.
Dragon Capital Fund Management Co (DC) has recently announced the operations of its funds in February 2011.
Amongst 6 funds managed by DC, only VRI posted a slight rise of 0.2 percent in the NAV from the end of January.
Three biggest funds those specialise in investing in stocks saw a fall of over 10 percent in NAV, of which, VEIL saw the strongest decline with -15 percent, and then VGF -13.6 percent and VDF -10 percent month on month.
The total NAV of 6 above funds till the end of January reached approximately $909 million, focusing mainly on three funds VEIL ($357.2 million), VGF ($199.5 million) and VDF ($142.2 million).
In comparison to the end of January, the NAV of DC’s funds dropped nearly $120 million, mainly from the Vietnamese cbanker’s adjustment on the dong/US dollar forex rate.
Some share codes accounted for high percentage in the investment portfolio of DC’s funds including ACB, STB, VNM, MSN, HPG, HAG and FPT meanwhile OTC stocks and private equity accounted for low percentage.
The strong fall in NAV made the discount ratio of price against NAV declined significantly. Currently, the discount of three funds namely VEIL, VGF and VDF are fairly low from only 7.6 percent to 8.3 percent.
VPF now has the discount of 15 percent while VRI remains very high of over 45 percent.
The process of converting from fund certificate Vietnam Dragon Fund – VDF into find certificate Dragon Capital Vietnam Fund – DCVF will be completed by March 23 and then VDF’s shareholders will be also the shareholders of DCVF.
VDF is operating under the closed-end fund model and DCVF is a trust fund.