Despite stock market volatility, many open-ended funds achieved outstanding performance

	Investors are seeking stocks to prepare for new growth cycle
	Effects of the arrest of FLC’s chairman to stock market are not much
	Cash flow still supports the stock market

Illustrative Photo.

According to VinaCapital Fund Management JSC (VCFM), all four open-ended funds that VinaCapital is managing, including the Vietnam Equity Special Access Fund (VESAF), VinaWealth Equity Opportunity Fund (VEOF), VinaCapital Insights Balanced Fund (VIBF), VinaWealth Enhanced Fixed Income Fund (VFF) had outstanding growth compared to the reference index in the first quarter of 2022.

Of which, VEOF and VESAF topped in terms of returns in the whole market in 2021 and maintained the leading position of investment funds in the first quarter of 2022.

Specifically, the VEOF reported a return of 8.6%, seeing the best performance in the entire market, followed by the VESAF with a return of 8.1%. These two stock funds delivered outstanding returns in the context of market volatility and the VN-Index was down 0.4%. The VIBF and VFF achieved a return of 5% and 2.1% respectively, ranking first in the group of funds of the same type in the first quarter of 2022.

VinaCapital said in the context of market volatility, VinaCapital's open-ended funds are still capable of bringing good returns to investors thanks to developing a portfolio of stocks with high profitability expectations through thorough research and analysis. Each investment portfolio is put into a strict risk management model, in order to optimize the return after paying for risk.

For bonds, the portfolio focuses on bonds of enterprises with high credit quality and sustainable cash flow.

At VinaCapital, the bond investment appraisal is followed by a standardized process, and VinaCapital is the first fund management company in the market that has its own credit rating system for bonds as well as for businesses. From there, VinaCapital can screen businesses with high growth potential, good future cash flow, and select safe and high-yield bonds, ensuring the interests of investors. In addition, VinaCapital adheres to the portfolio building process to diversify investments and applies a strict risk control process to ensure that all funds always comply with the legal framework set by the State Securities Commission for open-ended funds.

The four funds have more than VND3,392 billion, up 18.9% compared to the beginning of the year, of which VESAF: VND1,157 billion, VEOF: VND822 billion, VIBF: VND779 billion and VFF: VND634 billion; attracted nearly 29,650 investors as of March 31, 2022.

Ms. Nguyen Hoai Thu, Executive Director of Securities and Bonds Investment Division of VinaCapital said the leading results of VinaCapital’s open-ended funds in 2021 have created momentum for the first months of 2022.

Outstanding performance despite large market fluctuations affirms that open-ended funds have been actively managed by experienced investors and are always able to outpace market growth, providing good returns and long-term peace of mind for investors. Faced with the unpredictable movements of the market in the short term, Ms. Thu believes that VinaCapital’s open-ended funds are still in a solid position entering the second quarter of 2022.

In a recent report of SSI Research, in the first quarter of 2022, ETF recorded a net entry of VND172 billion, mainly purchasing from Fubon fund and VFM VNDiamond. Meanwhile, funds actively withdrew nearly VND1.1 trillion, an improvement compared to the net selling level of more than VND3 trillion in the same period in 2021.

Stock market expected to grow strongly after Tết: experts

Similarly, foreign investors also made a net sale of VND7.7 trillion in the first quarter of 2022, down 55% year-on-year. SSI Research said foreign investors tended to focus on investing in banking stocks, benefiting from commodity prices and potential stocks when the economy opens.