HCM CITY (VNS) — VinaWealth Fund Management JSC plans to launch two more open-ended funds this year after the successful launch of its first such fund last month, the VinaWealth Enhanced Fixed Income Fund.
Sebastian Subba, CEO of VinaWealth, a local fund management company backed by the VinaCapital group, said the funds are likely to be "an equity and possibly a balanced or money market fund."
Speaking at the VFF's first general investor meeting in HCM City yesterday, he said the size of each fund would be at least VND50 billion (US$2.4 million).
"We will also look at the potential of launching a REIT (real estate investment`trust) or ETF (exchange-traded fund) in the second half of this year.
"This will broaden our investor base and provide our investors the option to switch between the various funds and asset classes mentioned, depending on the market outlook, investor appetite, diversification requirements and market timing considerations."
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| VinaWealth Fund Management JSC plans to launch two more open-ended funds this year after the successful launch of its first such fund last month, the VinaWealth Enhanced Fixed Income Fund.—Photo thitruongtaichinh.vn
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VinaWealth had raised VND53.81 billion ($2.56 million) for last month's VFF from over 150 investors, with slightly less than half the money coming from overseas investors.
Tuesdays will be the valuation day with subscription and redemption placed currently with VinaWealth and three securities companies, SSI, Ban Viet, and Rong Viet.
Distribution channels are expected to expand to banks and insurance companies.
Asked about product outlook and timing in the market for such a product launch, Roy Fong, fixed income director at VinaWealth said: "From January to March, bonds … have returned 11-14 per cent annually. This is better than gold, US dollar, and deposit.
"Bond market trading volume remains healthy [and is] supported by ample liquidity and benign inflation.
"We believe the bond yields will continue to compress but are cautious that it may rebound in the near future.
"Active management of the investment portfolio will therefore be needed to stay ahead of any changes in the market." — VNS