Vietnam Active Fund (VFA), which is managed by VietFund Management (VFM), yesterday announced that its investment strategy would be based on a trend-following model.
VFM's Investment Director Luong Thi My Hanh told participants at the fund's first official meeting that capital would be disbursed when the stock market showed clear signs of a growth trend, and exits would be done as the trend ended or fell.
VFA's portfolio would include listed securities and listed bonds, monetary instruments and other assets.
This year's investment plan will cover between 25 to 30 shares, which are capable of closely following the fluctuations of the VN Index and HNX Index, according to Hanh.
It is planned that the mining industry will represent 17.8 per cent, infrastructure and real estate sector 16.3 per cent, and the banking sector 17.7 per cent in the fund portfolio in 2010.
Energy and food and beverage will represent minor stakes of 11.7 and 11.3 per cent, respectively.
VFA is a public, closed-end fund with a five-year term. Its raising of funds was completed in mid-March and collected more than VND240 billion (US$13.6 million). A fund certificate has a face value of VND10,000.
A foreign institution represents 16.3 per cent of the total units, and a foreign individual, 0.02 per cent.
Seventeen domestic institutions account for more than 56 per cent and 119 Vietnamese own a combined stake of 27.4 per cent.
VFA is the third closed-end fund under VFM; the other two, VF1 and VF4, are now listed on the HCM City Stock Exchange.
Tran Thanh Tan, chairman of VFM, a joint-stock firm of Sacombank and Dragon Capital, said he would target listing VFA in May.