VietNamNet Bridge – Many foreign investment funds have seen their assets fall considerably since September 2014, following the stock index plunge after the drop in global oil prices and a new government regulation that tightens lending for securities investments.

According to a report by UK-based Edmond de Rothschild Securities Company, the assets of all investment funds have dropped sharply.

The net asset value (NAV) of VOF LN, managed by VinaCapital, the largest of those surveyed, fell from $802 million to $732 million by the end of November.

Vietnam Enterprise Invts Ltd also saw its assets decrease from $561 million to $522 million by mid-December. Market Vectors Vietnam ETF, which had $425 million by September, saw total assets drop to $356 million by December 29. Meanwhile, the assets of Blackhorse Enhanced Vietnam Inc dropped from $17 million in September to $3 million in November.

Analysts, when comparing the investment funds’ assets in early 2014 and September of the same year, noted that the NAV growth rates of some funds were higher than the VN Index increase of 19.2 percent.

Lumen Vietnam Fund, for example, saw the NAV increase by 27.4 percent, the sharpest increase among foreign investment funds in Vietnam. A 27 percent growth rate was obtained by Vietnam Equity Holding, while Vietnam Holding’s assets grew by 24 percent.

Some large funds also witnessed impressive growth rates, including Market Vectors Vietnam ETF (19.2 percent) and Vietnam Growth Fund (18.9 percent).

However, all the funds later incurred losses in the fourth quarter of 2014, which reduced asset growth rates. Lumen Vietnam Fund’s growth rate fell to 18 percent by December 18, and Vietnam Holding to 15.6 percent by the end of 2014.

Though the foreign investment funds’ NAV growth rates were higher than the VN Index increase (6.53 percent) in 2014, they were much lower than that of the year before.

Blackhorse Enhanced Vietnam Inc saw assets increase sharply by 56 percent in 2013, while Vietnam Holding saw 41 percent.

As for Vietnamese investment funds, the NAV growth rates of VF1 and VF4 both dropped sharply from 20 percent by the end of September to 6.4 percent by the end of 2014.

Analysts noted that foreign investment funds had been doing “very well” until September, which prompted them to put high hopes in the fourth quarter.

However, the continued fall in global oil prices, plus government Circular No 36, which aims to have tighter control over bank lending to fund securities investments, both seriously affected the stock market.

“The oil price fall and Circular 36 have eliminated all the achievements of financial investors accumulated during the entire year,” said Vu Quang Thinh, deputy chair of VNH Fund Management Company.

Thanh Mai