Till the end of 2009, three securities investment funds under Dragon Capital kept the securities volume worth $680 million in total.
Dragon Capital is one of the biggest foreign investment institutions operating in Vietnamese stock market. Now the institution has three share investment funds with total Net Asset Value (NAV) of approximately $920 million.
* Vietnam Enterprise Investments Ltd (VEIL): $481 million
* Vietnam Growth Fund Ltd (VGF): $264 million
* Vietnam Dragon Fund Ltd (VDF): $174 million
In addition, Dragon Capital is managing four other funds namely VRI (Vietnam Resource Investments), VRI Warrants, VdeF (Vietnam Debt Fund) and VPF (Vietnam Property Fund Limited).
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Starting operation from July 1995, VEIL is the first foreign investment fund on the stock market and one of the largest funds on the listed stock market segment. The listed securities investment ratio of all three funds reaches over 70 percent at this time.
Compared with the end of 2008, 2009 NAV of VEIL surged 31.9 percent, VGF and VDF up 27.18 percent and 25.85 percent correspondingly.
The surges were much lower than VN Index's 56.76 percent because the funds held a huge volume of bank shares that did not see any strong rise in prices last year. Also, the investment of Dragon Capital in VRICL-Tiberon had not brought in high efficiency.
Vietnam Opportunity Fund (VOF), the fund under VinaCapital specialises in shares, has the bigger size than VEIL. Up to late November 2009, NAV of VOF was estimated at $779 million. But its listed share investment ratio accounted for only 40 percent or $311 million.
The volume of listed shares held by VEIL, VGF and VDF was valued at total $680 million, in which the biggest investment items are VNM (making up $124 million), ACB ($96.5 million), HAG ($68.6 million), STB ($62.6 million), and other blue chips of PVD, FPT and REE.
Also, Dragon Capital poured much capital in three bank share codes like ACB, STB and VP Bank.
In 2009, the funds of Dragon Capital sold off 12 million VCG coded shares, CII, BT6 and REE. The OTC share investment portfolio of Dragon Capital was $44.6 million, including $16.5 million in VP Bank's shares, $6.6 million in Coteccons and Becamex IJC.
CTD coded shares of Cotec Constriction Joint Stock Co (Coteccons) will be listed on Hochiminh Stock Exchange from January 20 with the comparative price of 95,000 dong/share. Meanwhile, VPF owns $6.7 million worth of CTD shares. Generally, VPF and VDF funds keep 11.5 percent stake of Coteccons.
The notable point is that on December 31, 2009 all three funds nearly had disbursed the whole capital so their remaining cash volume made up 1-3 percent of NAV. On the market, very few funds own such a low cash ratio.
Private equity investment of Dragon Capital's funds by late 2009 was valued at $165 million. In which, the investment in VRICL-Tiberon accounted for more than $141 million.
Tiberon is one of three partners contributing capital in the Nui Phao Vica mining project that is the largest foreign invested project in Vietnam's mineral mining field. Till August 2009, after five years from Nui Phao Vica joint venture received investment certificate, prime minister ordered Thai Nguyen provincial People's Committee to revoke the certificate due to the tardiness in project implementation.
In recent times, the rumours were raised that Dragon Capital Fund Management Co (DC) would withdraw capital from Vietnam. On January 12, a representative of DC rejected the rumours. Even DC is planning to pour more money into Vietnamese stock market. In particular, DC will make the debut of Clean Investment Development Fund by the end of Q1 2010. This is the new investment fund in renewable energy, waste treatment, capitalised at $50 million.
DC is also accessing the market to promote capital mobilisation for the fund investing in private equity in the forthcoming time. DC continues seeking investment opportunities in good companies of Vietnam, such as Hoang Anh Gia Lai Group, Hoa Phat, Saigon Securities Inc and Eximbank.
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(Intellasia)