Lumen Vietnam Fund (LVF) has just reported November investment performance of 10.3%. Thanks to that, investment efficiency from the beginning of the year increased to 16.6%. Top 10 stocks in the fund’s portfolio include FPT, VNM, CTG, STB, VRE, BVH, KBC, HCM, PLX, MWG.
The explanation for the performance of the first half of November being worse than the general market, according to fund representatives, is mainly due to the lack of proportion in the financial and raw materials sectors. However, good stock selection has helped the fund close the gap.
Specifically, LVF’s real estate allocation recorded an increase of +13.3 while the real estate group only increased by 12.0%. Additionally, the industrial sector is overweighted by LVF, contributing more than +2.7% to the portfolio’s total return.
LVF continues to maintain a diversified portfolio strategy, including 30 to 40 stocks. As of November 14, stocks accounted for 92.9%, the remaining 7.1% was cash. The fund focuses on the fields of financial services, industry, real estate, and consumption.
The Fund sees positive catalysts for 2024 onwards including the 2023 income picture of the Vietnamese stock market remaining stable compared to the same period last year, growing at 7%. This result is considered encouraging in the context of slow economic growth and businesses having to deal with headwinds from the global environment.
The KRX system is expected to go into operation at the end of 2023. This will be an important milestone for upgrading Vietnam’s emerging market. In addition, public investment disbursement was strongly promoted in the third quarter, and the recovery in production orders is on track.
Easing lending interest rates helps businesses recover faster, while boosting retail spending to boost retail sales growth. Finally, new amendments/regulations on real estate will be announced as soon as there are current regulations.
In addition, the reasons for the market’s significant decline since 2022 have gradually diminished. A number of amendments and new regulations related to real estate law are being revised and discussed at the current National Assembly session.
Market interest rates are now even lower than during the Covid period to further emphasize the State’s strong efforts to not only promote economic recovery but also finance attractive credits for expansion. economy. The manufacturing sector appears to have bottomed out as demand recovers. Finally, the Government has shown its determination to upgrade Vietnam’s stock market to Emerging Market (EM) status.
“We believe that there is still a lot of room for Vietnam to realize its full potential. This is the best time to invest in Lumen Vietnam Fund and any upcoming capital withdrawals should be an opportunity to invest in Vietnam.” Nam”, Lumen Vietnam Fund emphasized.