Ha Noi (VNA) – VinaFund Management will manage the investment portfolio of the Pha Lai Thermal Power Co under an agreement signed last week.
The agreement is the latest manifestation of a change in the Securities Law effected earlier this year that requires stock and investment portfolios to be managed by professional fund management companies rather than stock brokerages.
According to an expert from the Central Institute for Economic Management (CIEM), “Portfolio management is like small fund management. As a consequence, moving these services to fund managers seems like choosing the right person for the right jobs.”
Fund managers were used to maintaining defensive portfolios and direct investments in the most advantagerous way, he added.
Vu Duc Nghia, deputy director of Bien Viet Securities Co, said, “Fund management companies already have a lot of experience in these services because each fund management company manages its own small fund. For instance, VinaFund effectively manages VF1 with charter capital of 1 trillion VND, and VF2 with capital of 400 billion VND, all essentially invested in the stock market.”
Ngo Thi My Hanh, VinaFund business development manager, said that the fund had experimented on its service provision before signing the contract with Pha Lai Thermo.
“After the experiments and surveys, we realised the advantages from the new services, verifying portfolios and reducing the risk in securities investment for investors,” Hanh said.
Vietcombank Fund Management Co director Tran Viet Anh argued, however, that the regulation moving portfolio management services from stock brokerages was a measure to control the high demand of investors, not to satisfy them. As a result, however, the market would be able to maintain gradual but stable growth of 20-30 percent per year.-Enditem
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