Dragon Capital launches first actively managed Vietnam Equity UCITS Fund
Dragon Capital, one of the largest investment firms in Indochina, has launched the Vietnam Equity UCITS Fund – the first Vietnamese equity-focused UCITS fund.
The fund’s objective is to generate medium to long term capital growth by investing primarily in equities issued by Vietnamese companies whose shares are traded on the Ho Chi Minh Stock Exchange, or in other listed companies with significant exposure to the country. The fund may also invest a small portion of its portfolio in Vietnamese sovereign or corporate bonds.
The Vietnam Index has risen by just over 23 per cent in the past 12 months, buoyed by resilient export figures and positive economic policies from the government. On top of this, there is a firm belief that the economy is stabilising, which will give the government the platform to strive for higher levels of growth in the future.
The open-ended fund will focus on private bank clients and wealth managers.
The fund will have a minimum commitment size of USD25,000 and a management charge of 2.0 per cent per annum.
Dominic Scriven, chief executive officer and co-founder of Dragon Capital, says: “International investors are continuing to look further afield in their search for growth and we firmly believe that the Vietnam Equity UCITS Fund will provide investors with a compelling mix of strong returns and an opportunity to diversify their risk, overseen by an all female board with close to 50 years combined experience in the fund industry.
“We are confident that this new fund will be particularly attractive to investors in Europe and Asia due to the regulated structures and comprehensive risk framework that UCITS offers.
“Dragon Capital has a long history of delivering value in the region through our investment and risk-management expertise. Vietnam is undergoing a phase of reforms to stabilise the economy and this points to a significant turnaround in its economic fortunes and should prompt a reassessment of the country’s still-powerful growth drivers: ideal demographics, an increasingly skilled labour force, a strong work ethic, political stability and ongoing FDI.”
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