Vietnam equity funds top global asset classes

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Stock Exchange in Ho Chi Minh City, Vietnam

With a performance of +24.79 per cent between January and May 2012, Vietnam equity funds are leading the ranking of 430 global asset classes compiled by fund information provider Lipper, a subsidiary of news company Thomson Reuters, which regularly ranks global fund classes by performance.

Vietnam equity funds are topping the ranking ahead of funds from Pakistan (+23.73 per cent) and Egypt (+22.12 per cent).

Funds investing into specific emerging countries were able to achieve far higher returns than funds that invest into regions, Lipper said, because the latter have a higher diversification leading to a lower yield.

In Vietnam, speculation of interest rate reduction boosted funds lately, Lipper said.

The Vietnamese equity market has recently come back to life after a four-year bear market where stocks fell and company valuations de-rated despite continued growth in the economy. The stock exchange only opened in 2000. For many investors it is either too risky or too difficult to access the market directly, thus they invest into country funds.

Another hot spot for equity funds is emerging Myanmar. Hong Kong’s Cube Capital and Marc Faber-backed Leonard Capital are among Asian private equity firms lining up nearly $500 million aimed at Myanmar, hoping to tap into its rich natural resources and fill its infrastructure void, as sanctions on the former pariah state are lifted. Promising annual returns of around 30 per cent, Leonard Capital said it will partner with Asian multinational companies to focus on investment opportunities in Myanmar’s real estate, financial services, infrastructure and utilities sectors.

Myanmar plans to set up a securities exchange by 2015 with the help of the Tokyo Stock Exchange and Japanese Daiwa Securities Group.

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Reading Time: 1 minute

Stock Exchange in Ho Chi Minh City, Vietnam

With a performance of +24.79 per cent between January and May 2012, Vietnam equity funds are leading the ranking of 430 global asset classes compiled by fund information provider Lipper, a subsidiary of news company Thomson Reuters, which regularly ranks global fund classes by performance.

Reading Time: 1 minute

Stock Exchange in Ho Chi Minh City, Vietnam

With a performance of +24.79 per cent between January and May 2012, Vietnam equity funds are leading the ranking of 430 global asset classes compiled by fund information provider Lipper, a subsidiary of news company Thomson Reuters, which regularly ranks global fund classes by performance.

Vietnam equity funds are topping the ranking ahead of funds from Pakistan (+23.73 per cent) and Egypt (+22.12 per cent).

Funds investing into specific emerging countries were able to achieve far higher returns than funds that invest into regions, Lipper said, because the latter have a higher diversification leading to a lower yield.

In Vietnam, speculation of interest rate reduction boosted funds lately, Lipper said.

The Vietnamese equity market has recently come back to life after a four-year bear market where stocks fell and company valuations de-rated despite continued growth in the economy. The stock exchange only opened in 2000. For many investors it is either too risky or too difficult to access the market directly, thus they invest into country funds.

Another hot spot for equity funds is emerging Myanmar. Hong Kong’s Cube Capital and Marc Faber-backed Leonard Capital are among Asian private equity firms lining up nearly $500 million aimed at Myanmar, hoping to tap into its rich natural resources and fill its infrastructure void, as sanctions on the former pariah state are lifted. Promising annual returns of around 30 per cent, Leonard Capital said it will partner with Asian multinational companies to focus on investment opportunities in Myanmar’s real estate, financial services, infrastructure and utilities sectors.

Myanmar plans to set up a securities exchange by 2015 with the help of the Tokyo Stock Exchange and Japanese Daiwa Securities Group.

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