VinaWealth wraps up IPO of open-ended fund

HCM CITY (VNS)— VinaCapital’s VinaWealth Fund Management JSC has concluded the IPO of its VinaWealth Enhanced Fixed Income Fund (VFF), the first open-ended domestic fund licensed for public offering by the State Securities Commission.

It has a face value of VND1 million.

As of March 12 more than 150 investors had subscribed a total of over VND50 billion (US$2.4 million), most of them domestic investors.

The VFF will have a target net asset allocation of at least 80 per cent in bonds, including in Government-guaranteed bonds, treasury bills, corporate bonds, money market investments, and others.

Roy Fong, the fund’s director of fixed income, said: “We target to outperform the average HSBC 12-month deposit rate.”

Sebastian Subba, CEO of VinaWealth, said: “We are happy with this first success.

“It is not about the amount we raised but through this exercise, we had a chance to meet and talk directly with the investors to better understand their needs and expectation from us.

“We have been able to discuss, deliberate, and provide our professional advice on the merits which the product provides investors including diversification for corporates in cash management and individuals who see the VFF fund as a proxy for their retirement savings.

“All of the activities and meeting presentations we have done indicates that we are going in the right direction. We are optimistic that once the IPO is launched more investors will invest in the VFF, especially foreign investors.”

VFF is not listed on the stock exchange. The fund will deal directly with it through distributors. —VNS