The fund certificates of Viet Nam’s first
exchange-traded fund (ETF) VFMVN30 will be listed from October 6, the
HCM City Stock Exchange has announced.
The number of listed certificates, coded
E1VFVN30, will be 20.2 million, which corresponds to the proceeds raised
from the fund’s initial public offering of VND202 billion (US$9.5
million), which is double the amount that had been initially expected.
The reference price, defined as the net asset
value per certificate dated October 3, will be announced that day. As of
September 23, the net asset value per certificate was more than
VND10,000 ($0.47), adding up to a total of VND205.3 billion ($9.6
million).
The fund certificate represents the performance of the 30 largest stocks in HCM City, tracked by the VN30 Index.
Each stock has a certain percentage in the
portfolio, the highest being property giant Vingroup’s (VIC) 11.07 per
cent, followed by Vinamilk’s (VNM) 10.32 per cent, private equity group
Masan’s (MSN) 9.12 per cent and Sacombank’s (STB) 8.03 per cent.
VFMVN30 forecasts that by the end of this year,
the VN30 will account for 61.2 per cent of HCM City’s market
capitalisation and 58.6 per cent of the exchange’s total trading value.
The 30 stocks will generate a 17.2 per cent profit growth, according to
the fund.
There are currently two foreign ETFs operating on
the Vietnamese stock market. These are FTSE Vietnam UCITS, managed by
Deutsche Bank, and Market Vectors Vietnam, which is managed by Van Eck
Global.
The two review their portfolios based on
capitalisation, liquidity, free float and foreign ownership of shares.
Viet Nam’s SSI Fund Management is also working to establish an ETF,
simulating the HNX30 Index on the Ha Noi Stock Exchange.
VNS/VNN