Vietnam Enterprise Investments Limited (VEIL), Dragon Capital’s largest fund, reported a 7.04% cash-to-asset ratio, or $152 million, down 1.67% from the all-time high recorded in the previous report.
The fund attributed the decline in cash holdings to the $32.5 million purchase of stocks between May 19 and 26.
As of May 26, VEIL’s net asset value (NAV) reached $2.16 billion, up 1.88% from the previous week, according to its recent report.
VEIL, the largest fund in Vietnam's stock market, regularly returns to the bourses after its cash holdings exceed 5%. Its portfolio has also undergone a significant restructuring in recent weeks following market correction.
However, VEIL’s largest holdings remained unchanged with VPB (VPBank), which accounts for 11.47%, followed by Mobile World’s MWG and Asia Commercial Bank’s ACB with 10.95% and 10.21%, respectively. Other stocks in the top 10 of the fund’s porfolio include HPG, VHM, FPT, DXG, VCB, MBB, and VIC.
The profit margin for VEIL's investment in the first five months of 2022 was minus 15.32%, lower than the VN-Index's 16.52% fall.
The Vietnamese stock market in May also received a huge amount of foreign capital through the Fubon FTSE Vietnam Electronic funds transfer (ETF) and DCVFM VNDiamond ETF.
VEIL is a closed-end fund trading on the London Stock Exchange’s Main Market. Launched in 1995, it is the longest-running fund focused on Vietnam and one of the largest investing primarily in listed and pre-IPO companies in Vietnam.