Funds post losses amid market downturn

Monday, Nov 05, 2018 18:24

Exchange-traded funds across the board saw their net asset values fall this year.

Net asset value of many exchange-traded funds (ETFs) in Viet Nam declined substantially as of early November, due in part to a stock market downturn in this year.

Viet Nam’ benchmark VN-Index on the Ho Chi Minh Stock Exchange lost 10 per cent in October and 7 per cent since the beginning of the year. Early this month, it is fluctuating around 925 points.

On the smaller exchange in Ha Noi, the HNX-Index fell 9.4 per cent in October and nearly 10 per cent this year.

Poor stock market performance has negatively impacted EFTs operating in Viet Nam. Net asset values (NAVs) of most of the funds, both local and foreign, have seen negative growth.

Even long-established funds like VanEck Vectors Vietnam (VNM) ETF, Dragon Capital’s Vietnam Enterprise Investment Limited (VEIL) and Pyn Elite Fund have lost 8 to 10 per cent in its NAVs against the beginning of this year.

NAV of funds in Viet Nam as of early November. — Photo

VEIL, the biggest foreign investment fund on the Vietnamese stock market, manages total assets of more than $1.4 billion. It posted a NAV loss of nearly 9.8 per cent in the past 10 months. This was a poor result on the back of a growth of over 60 per cent in 2017.

After a robust performance in the first quarter, VNM ETF’s NAV lost 9.2 per cent in October. Its NAV went down by 12.3 per cent in the last 10 months. Its total net assets reached US$331.4 million on November 2.

Meanwhile, FTSE Vietnam EFT, Pyn Elite Fund and VFMVN30 EFT all saw their NAVs decline by around 8 per cent as of early November.

VinaCapital’s Vietnam Opportunity Fund Limited (VOF) posted NAV loss of 7 per cent.

SSIAM VNX50 EFT managed by Saigon Securities Inc performed better with a smaller NAV loss of 3 per cent.

Tundra Vietnam Fund, Scandinavia’s first actively managed equity fund with a focus on the Vietnamese stock market, is among the small group that posted positive NAV growth. As of early November, its NAV increased 1 per cent. Its nine-month NAV growth was up to 12 per cent. — VNS

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