Franklin Templeton’s Vietnam JV to issue first equity fund

13 June 2014   Category: News, Asia, Global, Vietnam   By Hui Ching-hoo

Vietcombank Fund Management (VCBF), the joint venture (JV) between the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and Franklin Templeton Investments, is poised to launch its first open-ended equity fund.

The launch of the VCBF Blue Chip Fund comes on the back of approval by the State Securities Commission of Vietnam, VCBF said in a statement.  

The fund is benchmarked against the VN100 index, which is comprised of the 100 largest market cap and high liquidity stocks on the Ho Chi Minh City Stock Exchange (HSX).

The VCBF Blue Chip Fund aims to generate long-term returns from investments in large cap companies, and is marketed as a core equity portfolio for those investors with a horizon of three to five years or longer.    

“VCBF Blue Chip Fund gives investors the opportunity to increase long-term returns through investment in a diversified portfolio of companies that are considered best in class in their industry, i.e. blue chip companies. We select companies that are trading below our estimate of intrinsic value, and which have good growth prospects and strong management teams,” said Avinash Satwalekar, chief executive officer and chief investment officer of VCBF. “We believe the underlying economic fundamentals of Vietnam continue to improve and are positive on its long-term prospects and ability to deliver value.”

Deutsche Bank AG’s Ho Chi Minh City branch is providing supervisory, custody, transfer agent and fund administration services for the VCBF Blue Chip Fund.