Many large funds in Vietnam suffered from heavy losses in first half of 2018

06-Jul-2018 Intellasia | Tri Thuc Tre | 6:02 AM Print This Post

Vietnam stock market has just passed half way in 2018 with severe fluctuations. After the sublimation in the first quarter with the growth rate of over 20 percent, the strong correction pressure in the second quarter made the market not only lost all of its achievements but also decreased 2.4 percent from the beginning of the year.

Recent market developments have not only caused retail investors, especially investors who have just disbursed at the end of Q1 but also famous investment funds, to suffer from heavy losses.

Statistics show that the funds operating in Vietnam stock market did not achieve good results and almost all had negative growth in the first six months.

The “loser” was Hestia when NAV fund suffered from the loss of 19.4 percent in the first half of the year. The “brother” with Hestia i.e. Passion Investment (PIF) also recorded negative NAV of 8.6 percent and was also one of the funds with the worst developments in the market.

The investment in VPB shares caused Hestia and Passion funds to perform poorly in the first half of the year. Previously, in the period of 20162017, with focused investment style on MWG, two funds including Hestia, Passion Investment achieved superior performance compared to the common market.

Apart from Hestia, Passion Investment, many domestic funds also performed poorly in the first half such as Techcom Capital TCEF (-5.3 percent), VCBF-BCF (-4.6 percent), VnDirect Active Fund (-1.8 percent) or Thien Viet TVAM TVGF2 (-11.6 percent), TVAM TVGF1 (-8.3 percent), SSI SCA (-4.6 percent).

Funds managed by VFM were not better when NAV and funds including VFMVF4, VFMVF1 or ETF VFMVN30 also had negative growth.

Such big foreign funds as Pyn Elite Fund, JPMorgan VOF, Vietnam Holding are no exception. Funds with “billion dollars” scale such as Dragon Capital VEIL or Kim Vietnam Growth Securities also achieved negative growth but the level were not too large, which were -3.5 percent and -2.3 percent respectively.

Long-term foreign ETFs in Vietnam including VNM ETF and FTSE Vietnam ETF also had negative results. NAV VNM ETF in the first half of 2018 achieved -8.9 percent, while FTSE Vietnam ETF was slightly positive with -1.5 percent.

On the contrary, some funds beat the market in the first half of 2018, but the growth was insignificant such as VinaCapital’s funds including VEOF (+ 0.1 percent) and VOF (+ 0.4 percent). SSIAM VNX50 ETF was a rare domestic fund to go reversely with the NAV to increase slightly by 0.7 percent.

Tundra Vietnam Fund also recorded a good growth rate of 2.6 percent in the first half of 2018. However, the fund is showing signs of withdrawing capital from Vietnam. It is estimated that in May the fund withdrew about $65 million from Vietnam stock market.

The most prominent fund in the first half was LionGlobal Vietnam Fund with the NAV growth of 3.5 percent. LionGlobal Vietnam Fund’s total assets are currently about $68 million and the fund uses FTSE Vietnam Index as reference index.


Category: Stocks, Vietnam

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