VietNamNet Bridge – Most foreign investment funds had the NAV growth rate at over 20 percent in 2013.

While domestic investment funds have been struggling to survive, foreign funds have been flourishing. After reaping fruits in 2013, they expect a better year 2014.

Of the 16 foreign investment funds listed by Edmond De Rothschild, 11 had the net asset value NAV increasing by over 20 percent in 2013. Of the 11 funds, four witnessed the 30-40 percent growth rate and one over 40 percent.

The fund with the highest growth rate is Vietnam Holding (VNH), a close end fund, with NAV increasing by 40.8 percent. It is managed by Switzerland based Vietnam Holding Asset Management.

Not only seeing the high NAV increase in 2013, the fund also successfully raised $15 million worth of funds.

PXP Asset Management, headquartered in the US, has reported the 38.3 percent and 30.4 percent for PXP Vietnam Fund and Vietnam Emerging Equity Fund, respectively.

Meanwhile, Vietnam Asset Management (VAM) with the head office in Singapore, mobilizing capital from European, Dubai, Japanese, Malaysian and Singaporean investors have reported the 33 percent NAV increase for both HLG Vietnam Fund and Vietnam Emerging Market Fund.

The other funds with the growth rate of approximately 30 percent include Vietnam Equity Holding by Saigon Asset Management and Vietnam Enterprise Inv’ts Ltd by Dragon Capital.

In the January updated report, PXP Vietnam Fund wrote that Vietnam now is in the “sweet spot”, i.e. the moment when the investments can bring optimal profits.

It commented that the macroeconomic picture has laid down a wonderful platform for the upward trend in the market.

VAM, in a report released in late 2013, showed a positive outlook on the investment opportunities in Vietnam instead of the cautious manner it kept in the past.

It noted that the macroeconomic figures released recently have helped restore the confidence and made people believe that the national economy has begun its recovery period.

Analysts noted that the above said investment funds have been following different investment strategies, but they all have made fat profit from the investments in the enterprises making low-cost essential goods.

The latest report of VNH, in November 2013, showed that the assets have been allocated to Vinamilk, a dairy producer (8.4 percent), Hau Giang Pharmacy (8.03 percent), An Giang Plant Protection (7.45 percent), Traphaco (pharmacy) 7.21 percent.

It has also poured money into Binh Minh Plastics, Hung Vuong Seafood, PVD (oil and gas services).

The two business fields that VNH has most focused on include building materials & construction and healthcare (19 percent for both). The third one is food and drink (15 percent).

Meanwhile, PXP Vietnam Fund has put 32 percent of its assets into essential goods production sector, 17 percent into the finance sector and materials.

Analysts have found an interesting noteworthy thing that the funds with the best business results are all the small and medium funds. VNH, for example, has the total assets of $110 million, PXP $74 million, Vietnam Emerging Equity Fund $32 million. Only the Vietnam Enterprise Inv’ts Ltd of Dragon Capital has a big scale of $491 million.

NCDT