Investment funds report good performance

VNStockNews.com - In 2009, Vietnamese stock market has recovered strongly, leading to the good performance of investment funds. However, the initial business statistics showed that NAV of funds surged highly while some posted losses.

According to the Rothschild's statistics on foreign public securities investment funds, the most impressive Net Asset Value (NAV) growth in 2009 belonged to Vietnam Emerging Equity Fund (VEEF) managed by PXP Asset Management Co. The initial capital raising (on November 2, 2005) of VEEF was $13.8 million, which plunged by 73.6 percent in 2008 and jumped by 64 percent (till December 22, 2009) to $11 million. In five years of operation, 2009 is the fourth year VEEF reported such an impressive NAV growth particularly 87.5 percent in 2006 and 24.5 percent in 2007. This showed that VEEF operated effectively in the strong development of the stock market. Since the start of 2009, NAV increase of VEEF has been higher 94.5 percent compared with the growth of VN Index but the fund's risk prevention capacity remained fairly low. In 2008, VN Index dropped by 66 percent by NAV of VEEF declined 73.6 percent.

Other two funds, posting the NAV growth higher than the market's average level up to December 22, are PXP Asset Management's PXP Vietnam Fund with a growth rate of 56.2 percent to $57 million and Vietnam Lotus Fund with 39.3 percent to $25 million.

Appearing among the list of NAV growers in 2009 also includes HLG Vietnam Fund and Vietnam Equity Market Fund, both under Vietnam Fund Management
Co. Accordingly, NAV of HLG Vietnam Fund soared 62.7 percent from the start of 2009 till the end of November and 61.2 percent from February 2008 when the fund was opened.

Until December 16, due to the market correction period, NAV growth of HLG Vietnam Fund fell to 57.3 percent, representing the highest growth rate among investment funds in Vietnam and higher 75.35 percent than VN Index's increase. The scope of HLG Vietnam Fund up to December 16 reached approximately $14 million or nearly 259 billion dong (based on the forex rate of 18,474 dong per US dollar).

In addition, Vietnam Equity Market Fund reported the NAV rise of 48 percent till late November to $14 million.

Apart from aforementioned four funds, other three funds well-performed in investment and business this year, namely Blackhourse Enhance Vietnam with the NAV growth of 39.3 percent, JF Vietnam Opportunities Fund 4.3 percent and Vietnam Holding 45.6 percent. All three funds had NAV slump of around 60 percent last year. In which, only JF Vietnam Opportunities Fund's current NAV totals at $146 million.

Posting the slowdown in NAV growth in 2009 are the investment funds in real estate, infrastructure and private equity. For example, Vinaland Limited of VinaCapital announced the NAV fall of 14.4 percent down to $655 million on September 30. This is the first reduction year from the fund being launched.

Among the real estate investment funds, only Vietnam Property Holding under Saigon Asset Management publicised a surge of 10.1 percent in NAV until December 18. But, investment in real estate or unlisted shares cannot inflect full year's NAV growth of a fund exactly.