VFMVF1 to shift to open fund model: general manager

The general manager of Securities Investment Fund of Vietnam (VFMVF1) said the fund is expected to shift from the closed to completely or partially open fund model.



VFMVF1 is now preparing the necessary documents to pending the State Securities Commission’s new resolution on the establishment of open funds, in order to narrow the gap between market price and net asset value in the portfolios.



The general manager said that the Board of VFMVF1 Representatives will submit to the Investors Congress the specific investment plans to convert VFMVF1.



Ending 2010, the net asset value (NAV) of VFMVF1 reached 2.276 trillion dong, down 8 percent from the first year (including 15 percent dividend paid to investors).



Affecting the reduction in the NAV of VFMVF1 in 2010 primarily came from shares listed on Hanoi Stock Exchange and unlisted shares, of which shares on HNX (accounting for 12.5 percent of its average NAV), falling 11 percent ( HNX-Index down 32 percent), contributing to the drop in NAV by 2 percent (down 8 percent in the total NAV).



During the year of 2010, VFMVF1 lost 203.6 billion dong, primarily due to revaluation of the stock price at maturity.

VFMVF1 disbursement in 2010 decreased slightly against 2009 with a total value reaching 1.238 trillion dong, equal to 87 percent of 2009′s figure, focusing primarily on listed shares and a small portion of unlisted shares.



The focus of VFMVF1 disbursement in 2010 was in three sectors: Real estate, industrial goods and mining materials, accounting for 84 percent of total disbursements of the year.



The payment in 2010 reached 1.365 trillion dong, with 110 percent of disbursements in 2010. The payment for listed stocks in 2010 accounted for 86 percent, bonds and unlisted stocks at 13.5 percent.



In 2011, its investment focus in 2011 is still the retail sector, telecommunications services, real estate, energy, industrial goods, and mining materials.



The general manager said that the fund would actively seek opportunities to invest in listed stocks or upcoming listings under the strategic role of shareholders through the separate share issuances. In addition, the state-owned enterprise equitisation programme is expected to re-launch this year, including large and leading SOEs, which is regarded as an opportunity for VF1 to disburse in the future.



The 2010 general Investors Congress of VFMVF1 is scheduled to take place at the Rex Hotel, District 1, HCM City. The Congress passes the audit reports and profit distribution in 2010, 2010 operating plan, additional adjustments through regulations and auditor choice.

Tags: Vietnam business, vietnam enterprices, Vietnam stock news

Posted by VBN on Mar 23 2011. Filed under Enterprises. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry