VNStockNews.com - In 2011, Vietnam Active Investment Fund - VFA will combine two indexes on both bourses Hochiminh Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX) to make decision in stock buying and selling instead of investing according to the VN Index like in 2010. The fund's cash holding now accounts for 70 percent.
The annual shareholders' meeting 2011 of Vietnam Active Fund (VFMVFA) successfully held recently reported the operation results in 2010 whereby ending 2010, the net asset value (NAV) of VFA reached 221.4 billion dong, equaling to 9,209.3 dong per fund certificate. Accumulated figure since starting operations so far, the NAV of VFA saw a fall of -7.9 percent. The VFA stock price difference has cut the loss of 10.7 billion dong and the unexecuted was -14 billion dong.
VFA said that regarding the risk, the VFA's NAV saw a standard deviation and maximum reduction lower than two indexes VN Index and HNX Index. In terms of the return on risk, the VFA's NAV has the Sharpe ratio and the return to maximum drawdown lower than the VN Index and higher than HNX Index.
During the first period, VFA's investment orientation was mainly based on the VN Index according to the market wave. However, in 2010, the VN Index was influenced by four key stocks. Therefore, the VFA's management board proposed in 2011, the fund should shift to new investment model. This is considered a strategic change of the VFA in 2011.
Firstly, VFA will combine two indexes on both bourses to make decision on buying and selling. According to VFA, in fact, the HNX Index is reflecting more correctly the Vietnam's stock market than the VN Index. In 2010, the HNX Index posted a fall of 30 percent and it is up to 40 percent till now. Thus, VFA will combine the two indicators to make better decisions.
Secondly, VFA will diversify its investment portfolio. The fund's management board said that previously, VFA invested in the stock basket on both floors. In 2011, VFA will diversify and divide into the groups of stocks.
Currently, the fund's cash accounts for 70 percent. VFA is optimising its cash basing on monetary instrument namely bank lending.
