Viet Capital Asset Management and NH Securities Vietnam to partner on new fixed-income fund
Ho Chi Minh City, 9 November, 2022
Viet Capital Asset Management (“VCAM”) has teamed up with NH Securities Vietnam (“NHSV”), the local security brokerage arm of South Korea’s financial giant NH Financial Group, to launch a new fixed income fund for Vietnam. Having received its operating license from the State Securities Commission on the 22nd of September, 2022 with a starting AUM of VND150 billion, VCAMFI focuses on generating long-term return for investors via carefully-selected corporate bonds and other fixed-income products.
The VCAM-NH partnership will include founding investments from both companies into VCAMFI, joint marketing efforts in Vietnam and South Korea, digital integration, and pending regulatory approval, renaming of the fund to VCAM-NH Advance Vietnam Fund.
“VCAM and NHSV share an unwavering vision for Vietnam’s long-term economic growth and a mutual appreciation for the role we each can play to help fuel that growth: to help advance Vietnam’s economy through professional investments. For the years to come, Advance Vietnam Fund will help develop the country’s fixed-income market, along with supervisory institutions and credit-rating agencies”, said Mr. Pho, CEO of Viet Capital Asset Management.
Compared to stock investments, investing in a bond fund is relatively safe and yields more stable returns. Although there has been a series of regulatory reforms to control corporate bond risk for credit institutions and investors, both VCAM and NHSV feel that such corrective measures are healthy for the market, and optimistic about the future of corporate bonds investment in Vietnam. Mr. Jong Seok Kim, CEO of NHSV said “such adjustments are important, and in fact, much needed for Vietnam’s early-stage bond market. For NH and VCAM, we will continue to invest in bonds of the corporations that have good financial metrics, corporate governance, and growth fundamentals that meet our strict requirements”.
Mr. Young Wan Kim, Chief Risk Officer of NHSV added, “even in this corrective period, some prime bond assets are trading at a discounted price. Our fixed-income fund can be a timely choice for investors who are looking for enhancing return with sound risk management.”
From Left: Mr Son Pham, Mr Hong Wook Kim, NHIS Chief Strategy Officer, Mr Pho Pham, and Mr Jong Seok Kim, NHSV CEO
VCAM and NH have jointly selected the Board of Fund Representatives, which includes experts in financial and legal sectors. VCAM also brought in Mr. Son Pham, an experienced fixed-income fund manager from the UK, to join the new fund’s leadership team. Mr. Son commented, “With respect to macroeconomics conditions over the next year, the global trend of higher interest rates and inflation will likely push up borrowing costs and the coupon for corporate bonds. Vietnam’s corporate capital needs will grow beyond the capabilities of traditional banking credit system. We just need to be highly selective in portfolio building and making sure to examine at each company’s fundamentals carefully.”
Investors can start investing in VCAMFI with the initial investment starting from VND 1 million on www.vietcapital.com.vn/vcamfi
Viet Capital Asset Management: Established in 2006, Viet Capital Asset Management (VCAM) has provided professional fund management and investment advisory services in Vietnam. Licensed by the State Securities Commission, VCAM works with both institutional and individual investors in Vietnam and overseas, managing several private equity investments in healthcare, education, technology, and open-end funds.
NHSV: Established in 2018, NH Securities Vietnam Co., Ltd (NHSV) is a 100% owned subsidiary of NH Investment & Securities, one of the largest securities firms in South Korea, providing financial services including asset management, investment banking, brokerage services through 79 branches, representative offices, and many subsidiaries globally, with total asset size above USD 60 billion.