Bangkok-based Bualuang Securities Plc. (BLS) has teamed up with VietFund Management Company to launch the first depository receipts in Thailand, focusing on large-cap Vietnam stocks.
The receipts, issued by BLS, are scheduled to begin trading on the Stock Exchange of Thailand in December.
Depository receipts are negotiable certificates that represent shares of a foreign company traded on a local bourse, giving domestic investors access to foreign markets.
The receipts will invest in VietFund Management’s VFMVN 30 ETF. This is the first ETF listed on the Ho Chi Minh City Stock Exchange and it tracks the 30 most liquid stocks on the bourse.
According to a spokesperson for VietFund Management, the depository receipts are Thailand’s first foreign fund-linked investment product since the Thai bourse announced in June it will permit listings of the receipts in order to attract more fundraising from neighbouring countries.
“Although there have been plenty of Vietnam-focused mutual fund products available in Thailand… the product (depository receipts) will still look attractive to institutional and retail investors as the VFMVN 30 ETF can invest across all companies without any foreign ownership limit,” he tells AAM.
VietFund Management, which was formed in 2003 by asset manager Dragon Capital had US$314 million of total assets at the end of June 2018.
