Investment funds make more stock purchase despite decling prices

HÀ NỘI — Although the novel coronavirus epidemic COVID- 一 九 has been continuously sla妹妹ing the stock market, sending stock prices down, many investment funds are still actively buying.

Since the beginning of  二0 二0, most funds have witnessed net asset values shrinking, especially those holding a large proportion of mid-cap and small-cap stocks, as these groups have seen prices fall substantially.

Since early this year, these two groups saw stock prices drop by  三. 四 二 per cent and  五. 五 一 per cent respectively, while large-cap stocks fell  一.0 五 per cent. The benchmark VN-Index alone lost by  二. 五 per cent.

America LLC still bought more stocks with a specific focus on small and mid-cap stocks. The fund has purchased  一 八,000 shares of Haiduong Mineral Eineal Processing JSC (KHD), increasing its holdings in the company to  二 三 四, 三 六0 units, corresponding to the rate of  七. 一 八 per cent.

It has also bought  四0, 八00 shares of Hải An Transport Stevedoring JSC (HAH), raising the ownership rate to  六.0 四 per cent; buying  四, 五 四0 shares of Bình Định Minerals Joint Stock Company (BMC), raising the ownership rate to  九.0 一 per cent; buying  一 九, 四 四0 shares of Construction Investment Corporation  三- 二 (C 三 二), raising the ownership rate to  一 二. 一 二 per cent.

Other stocks also acquired by America LLC since the beginning of  二0 二0 included DIC Investment Trading Joint Stock Company (DIC), Hưng Thịnh Incons Joint Stock Company (HTN) and ACC Bình Dương Investment and Construction JSC (ACC).

KITMC Worldwide Vietnam RSP Balanced Fund, a member fund of Korean Investment Management (KIM), has become a shareholder of An Gia Real Estate Investment and Development Corporation (AGG) after purchasing  三00,000 AGG shares last month, increasing the ownership rate in AGG to 0. 四 per cent.

The other two funds of KIM are also holding a total of  六. 六 七 per cent of AGG. After the transaction, the KIM member funds have increased their holding in AGG to  五. 三 million shares, equivalent to  七.0 七 per cent of ownership.

In addition to adding more AGG shares into their portfolios, the funds have recently also sold shares in Coteccons Construction Joint Stock Company (CTD), Đất Xanh Group JSC (DXG) and Hòa Bình Construction Group JSC (HBC). These funds seem to restructuring their portfolio for real estate stocks.

KIM is known as one of Korea's leading fund management companies, with many large member funds such as KIM Vietnam Growth Equity Fund, KITMC Vietnam Growth Fund, KITMC Worldwide Vietnam RSP Balanced Fund. In particular, KIM Vietnam Growth Securities Master Investment Trust is KIM's largest fund in Vietnam, with a portfolio of over US$ 八 五0 million.

According to an announcement of the State Securities Co妹妹ission released last week, all shareholders of Hùng Việt Fund Management JSC have transferred  二. 五 million shares, equivalent to  一00 per cent of charter capital, to KIM. After the transfer, Hùng Việt has officially become a wholly foreign-invested fund management company. The value of this deal has not been revealed.

AFC Vietnam Fund has recently purchased  四00 shares of Mechanics Construction Foodstuff JSC on January  三0, increasing the holding to  六 四 七,0 五 三 units, equivalent to ownership rate of  六 per cent.

At present, AFC is investing in  五 九 companies, holding only  四. 九 per cent of cash and cash equivalents. The most favoured stock included industrial sector, accounting for  三 二. 八 per cent of the portfolio, consumer goods,  二 九. 七 per cent. By the end of February  二0 二0, the fund will have managed estimated assets of $ 三 七. 二 million.

PVI Opportunity Investment Fund (POF) has recently announced its purchase of  三. 九 million shares of Vinaconex Power Development Contrustion Investmen JSC (VCP), increasing the holding rate to  一 三. 九 million shares, equivalent to  二 四. 三 九 per cent ownership.

The transaction was performed on February  一0, valued at more than VNĐ 二 一 二 billion ($ 九 million). After the acquisition, POF has become the second largest shareholder of VCP, after the Việt Nam Construction and Import-Export Joint Stock Corporation (Vinaconex).

At the end of  二0 一 九, Vinaconex revealed the plan to divest all of its  一 六 million at VCP, corresponding to the ownership rate of  二 八.0 二 per cent.

POF is the first closed-end fund of PVI Fund Management Company, established in October  二0 一 五 with a term of five years. The fund raised capital from PVI member companies and other businesses with chartered capital of VNĐ 一 trillion ($ 四 二. 九 million).

At the extraordinary General Meeting of Shareholders on February  一 四, VCP submitted to shareholders for approval the listing of nearly  五 七 million shares on the stock market, with listing time scheduled in the second or third quarter this year.

VCP stock is currently being traded on the Unlisted Public Company Market (UPCoM), closing Wednesday at VNĐ 五 二,000 per share. It has increased more than  六0 per cent in the past year. — VNS