Investment funds beat the market in 2020

Wednesday, Jan 06, 2021 09:55

VinaCapital’s VOF was the second best performer last year. — Photo

2020 marked an unexpectedly successful year for big investment funds in Viet Nam, with Pyn Elite Fund having the best performance.

Despite global disruptions affecting all economic sectors due to COVID-19, most big investment funds in Viet Nam’s stock markets recorded growth of over 15 per cent in 2020, outperforming the growth of the general market.

Positive performance of the stock market has contributed to the strong growth of investments funds’ portfolios. The VN-Index ended the last trading day of 2020 at 1,103.87 points, rising 14.87 per cent compared to the beginning of the year.

Pyn Elite Fund witnessed the best performance in Viet Nam’s stock market in 2020. The fund’s net asset value per share (NAV/share) rose up to 31 per cent, according to its official website. The growth is the result of holding banking shares, including Vietinbank (CTG), HDBank (HDB), TPBank (TPB) and MBBank (MBB), as well as investing in VFMVN Diamond ETF. At the moment, VFMVN Diamond ETF is one of the ten biggest investments of Pyn Elite Fund, with an approximate value of US$35 million.

VinaCapital’s VOF was the second best performer last year, with the NAV/share up nearly 25 per cent. Over the last year, big investments of the fund’s portfolios, such as Hoa Phat Group (HPG) and Asia Commercial Bank (ACB), have borne fruit. The disinvestment in International Dairy Products Joint Stock Company (IDP) also contributed to the growth.

VFMVF1, which is managed by VFM, also recorded good performance, rising 23.8 per cent. The fund mostly invested in high performance stocks such as HPG, Nam Tan Uyen Joint Stock Company (NTC) and ACB.

The growth of the VN30 index in 2020 supported the VFMVN30 ETF, with the NAV/share rising 21.8 percent, followed by SSIAM VNX50 (up 21.4 per cent).

Two foreign investment funds, including Dragon Capital (VEIL) and Singapore LionGlobal Vietnam Fund, both rose approximately 21 per cent last year.

Foreign ETFs also had positive performance in 2020, such as FTSE Vietnam ETF rising 16 per cent, Premia MSCI Vietnam ETF by 14 per cent, and VNM ETF rising 9.2 per cent.

Vietnam Holdings had the poorest performance in 2020 with the NAV/share growing just 9.1 per cent.

According to reports from HoSE, a series of local ETFs were founded in 2020. These ETFs attracted a huge amount of capital and have become a source of support for the market during difficult periods.

Even though funds struggled during the bear market which occurred last March and April, the capital inflow to Viet Nam ETFs increased dramatically at the end of 2020.

In December alone, the capital inflow to ETFs reached US$140 million, mostly going to VFMVN Diamond ETF and FTSE Vietnam ETF. Of which, VFMVN Diamond ETF attracted US$77.3 million in December 2020. International investment funds like Dragon Capital and Pyn Elite Fund played important roles for the recent inflow of capital.

In short, Viet Nam ETFs attracted US$176 million in 2020, with up to US$235 million in capital poured into the market. — VNS

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