Dai-ichi Life Vietnam Fund Management Company launches open-ended fund
Dai-ichi Life Vietnam Fund Management Company launches open-ended fund
Dai-ichi Holdings is deepening its roots in Vietnam in order to cash in on the market’s immense potential.
Dai-ichi Life Vietnam Fund Management Company Limited – the wholly-owned subsidiary of Dai-ichi Life Insurance Company of Vietnam which is a member of Dai-ichi Holdings Inc. from Japan – has just launched its DFVN Capital Appreciation Fund with the charter capital of more than VND75 billion ($3.2 million).
The move is in conformity with the Incorporation License for public securities investment fund No.34/GCN-UBCK by the State Securities Commission of Vietnam dated January 3, 2019.
The new fund (DFVN-CAF) is the first open-ended fund established and managed by DFVN. With dedicated and experienced on-the-ground team of professionals, DFVN has been entrusted to manage the life insurance funds of the Dai-ichi Life Insurance Company of Vietnam (or Dai-ichi Life Vietnam) with the total assets under management of over VND17 trillion ($739 million) as of November 2018.
Taking a long-term view, DFVN emphasises being disciplined during the investment process, while remaining flexible in the execution of investment tactics in response to market conditions.
DFVN-CAF will invest mainly in a diversified portfolio of listed equities in Vietnam with good fundamentals, high growth potential, and solid corporate governance. The fund aims to outperform its benchmark VN-Index over the long term.
According to Tran Chau Danh-DFVN’s CEO cum chief investment officer (CIO), “There are 24 open-ended funds (OEF) incorporated in Vietnam as of November 30, 2018, with the total assets under management of VND13.378 trillion ($582 million) and around 30,000 transaction accounts open.”
These figures seem quite modest in comparison to the country’s population and economic growth scale as well as to regional peers. The market potential, therefore, is huge.
In recent years, there were several local fund management companies (FMCs) who have been trying hard and made adequate investments to enhance operation systems, which brought benefits and values to investors.
“When launching DFVN-CAF, we aim to be among the best FMCs with contributions to the sustainable development of the local investment fund market. Accordingly, we focus on delivering optimal and consistent investment performance over the long term as well as enhancing quality services to our investors,” said Danh.
Takashi Fujji, chairman of Dai-ichi Life International Asia-Pacific cum chairman of DLVN and DFVN Member Councils, said, “With twelve years in operation, Dai-ichi Life Vietnam, the owner company of DFVN, has been growing more than twenty times its total premium revenue, building a solid foundation and standing as one of the four leading life insurers in Vietnam.
“Loyal to our philosophy “Customer first,” we have provided our clients with a diversified portfolio of quality life insurance products and the launching of DFVN-CAF will give our clients another option of financial solution with Japanese quality, helping clients to accumulate and grow their wealth efficiently over time so that they can enjoy their desired lifestyle.”
DFVN selects HSBC Bank (Vietnam) Limited as the custodian and supervisory bank, as well as the provider of fund administration and transfer agency services to DFVN-CAF.
As for distribution partners, at the company’s initial public offering (IPO), DFVN appointed BIDV Securities JSC (BSC) and Viet Dragon Securities JSC (VDSC) as distributors servicing investors to DFVN-CAF.
“We believe that OEF will gain more popularity as one of the essential financial investment vehicles for Vietnamese people. We expect that there will be more and more people and families in Vietnam know about and invest into our DFVN OEFs in the years to come,” Danh added.
Ongoing transactions – new subscriptions and redemptions – can be started over again from January 29, 2019. The minimum subscription amount is VND1 million ($43.4) per order.
