With 384.066 billion dong loss of three investment funds VF1, VF4, VFA in 2010, many investors have questioned the management of Vietnam Fund Management Company (VFM).
With total net asset value (NAV) in late 2010 was estimated at 3.087 trillion dong, the loss in 2010 was 384.066 billion dong, equivalent to the reduction rate of the average NAV of three funds in 2010 was 11.06 percent, of which the most reduction was the fund VF4 with a loss of up to nearly 25 percent of NAV.
Not only are the funds of VFM, in 2010, many foreign investment funds in Vietnam all suffered losses as most NAV posted the most significant decreases. However, among the loss-making funds (in terms of percentage), then VF4 of Vietnam Fund Management Company ranked top.
Vietnam Emerging Market Fund ranked second with the loss/NAV at 22.7 percent, followed by Vietnam Equity Holding with a loss at 18.7 percent of NAV.
In the 10 largest loss-making funds on Vietnam’s stock market in 2010 as reported by Rothschild, the two funds managed by VFM ranked No. 1 and No. 6.
Looking at the preliminary investment results of funds in Vietnam in 2010, if except the funds invested in debt securities, the bright point, unexpectedly, fell into Aseana Properties Real Estate Fund. Despite the losses caused by the VND/USD exchange in 2010 increased, this fund, with total asset size at 214 million, still gained the investment effectiveness up to 36.6 percent. Vietnam Growth Fund also posted the NAV growth of 9.1 percent. In addition, three other funds also saw NAV changes in 2010 positively, but were at a very modest (less than 2 percent).
This is the overall picture contrast to what took place in 2009, when the NAV of investment funds was mostly higher, with the highest level at Vietnam Emerging Equity Fund, up to 80.7 percent.
According to experts, when investment funds only made NAV reduction in 2010 (in USD) under 5.3 percent (the dollar appreciated against dong), it could be seen as the winner fund of the market. However, with losses of more than 20 percent as in the case of VF4 or Vietnam Emerging Market Fund, obviously, the investors inevitably questioned the management effectiveness and capacity of fund management companies.