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Large investment funds in 2019 are far behind deposits

Large investment funds in 2019 are far behind deposits

Friday 03, 01 2020
In 2019, the bond market was quite active and many new funds were launched such as VCBF or VNDBF. Newly established in 2019, these funds grew at 1.69% and 2.64%, respectively.

Meanwhile, only some funds "won" VN-Index by holding "VinGroup", VCB or MWG, FPT.

The year 2019 closed with a growth of 7.7% for the VN-Index and 2.8% for the VN30 Index. The recovery of the market has helped most investment funds record a year of NAV growth after most were losses in 2018.

However, the level of divergence in the past year was quite strong, making the momentum of funds not so explosive and even many funds still "losing" to the Index.

According to statistics, VinaCapital VOF recorded a performance of -1.4% in 2019 and was the worst growth fund. The fact that the "VinGroup" stocks do not appear in the top holdings, while the relatively low proportion of banking, technology, and consumer stocks have negatively affected VinaCapital's performance in the past year.

Recently, VinaCapital VOF has tended to reduce its investment in listed stocks, while increasing the proportion of investment in Private Equity (private enterprises), as well as increasing the proportion of investment in bonds.

KB Vietnam Focus Securities Feeder Investment, Vietnam Holding and Pyn Elite Fund also recorded relatively low performance, below the growth of the VN30 Index (2.8%).

Meanwhile, the largest foreign fund on Vietnam's stock market Dragon Capital VEIL recorded a NAV/share growth of 3.4% in 2019, better than the VN30 Index but still far behind the VN-Index (7.7%).

The domestic fund with the largest scale VFMVN30 ETF recorded a NAV/shares growth of 3.7%, outperforming the 2.8% increase of the VN30 Index benchmark. However, compared to other ETFs operating on Vietnam's stock market, the performance of VFMVN30 ETF is quite low. Specifically, FTSE Vietnam ETF recorded a growth of 6%, SSIAM VNX50 ETF increased by 6.1%, even VNM ETF increased by 8.2%, surpassing the increase of the VN-Index (7.7%).

Funds that performed better than VN-Index in the past year besides VNM ETF also had Tundra Vietnam Fund (+ 7.7%), KIM Vietnam Growth Securities Master Investment (+ 8%), or a pair managed by VFM, including VFMVF4 (+ 8.9%) and VFMVF1 (+ 11%).

In particular, the 7.7% increase in the Tundra Vietnam Fund is calculated in SEK

In particular, the 7.7% increase in the Tundra Vietnam Fund is calculated in SEK (Sweden). But in USD terms, the NAV/shares growth of the Tundra Vietnam Fund is only about 3.5%.

Notably, the funds "winning" the market last year such as VNM ETF, KIM Vietnam Growth Securities Master Investment, VFMVF4, VFMVF1 all held a large proportion of stocks such as "VinGroup" or VCB. In addition, VFMVF4, VFMVF1 also hold a large proportion of MWG and FPT, these are strong growth stocks in the past year thanks to positive business results as well as in the VN Diamond Index basket.

The bond fund was more profitable than depositing in the bank, surprised by the growth momentum of BVBF

In 2019, the bond market was quite active and many new funds were launched such as VCBF or VNDBF. Newly established in 2019, these funds grew at 1.69% and 2.64%, respectively.

Compared with the interest rate of 12-month savings deposits at banks (about 7.5%), the performance of the investment in bond funds last year was quite good. Except for SSIBF, which only grew by 6.18%, other funds like VFF VinaWealth, TCBF, VTBF, VFMVFB, BVBF all grew more than deposits.

In particular, BVBF of Bao Viet Fund surprisingly recorded outstanding growth over the past year, up 14.38%. VFVMVFB grew lower than the previous year (over 11% in 2018) but still quite positive with an increase of 9.09%.

Currently, TCBF is the largest bond fund in the market with more than VND 15,000 billion. Last year, TCBF performance stood at 8.17%, slightly higher than bank interest rates.

>>> Read more: People Are Not Yet Benefited From Reduced Interest Rates

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Investment Banking

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