Open-ended funds in Vietnam boost cash holdings ahead of US tariff announcement: research

By Ta Phu, Minh Hue
Tue, April 22, 2025 | 8:17 am GMT+7

Ahead of the U.S. government's April 2 tariff announcement, 19 out of 31 open-ended funds in Vietnam raised their cash positions by the end of Q1/2025, reflecting growing caution among asset managers, according to financial data provider FiinGroup.

An investor looks at price boards at a securities company in Vietnam. Photo by The Investor/Trong Hieu.

An investor looks at price boards at a securities company in Vietnam. Photo by The Investor/Trong Hieu.

Its recent report shows that March saw 19 of 31 open-ended funds increasing their cash holdings, as compared to 18 out of 30 in February.

Notably, large-scale funds led the trend. DC Dynamic Securities Fund (DCDS), with a net asset value (NAV) of VND2.7 trillion ($104.37 million), raised its cash ratio sharply from 5.3% to 21.2%. Managed by Dragon Capital, DCDS aims to deliver good returns through a diverse portfolio of growth stocks and other financial assets.

As of March 2025, DCDS had allocated 30.1% of its portfolio to banking stocks, including CTG of Vietinbank (7.4% of NAV), TCB of Techcombank (7%), and STB of Sacombank (4.4%). The fund posted a negative return of 2.7% for the month.

Another Dragon Capital-managed fund, DC Dividend Focus Equity Fund (DCDE), also significantly raised its cash ratio from 4.2% to 18.2%.

Other notable funds making similar moves included Mirae Asset Vietnam Growth Equity Fund, managed by Mirae Asset (Vietnam), which raised its cash from 4.2% to 11.2%; United Vietnam ESG Equity Fund, managed by UOB Asset Management (Vietnam), up from 5.5% to 11.3%; VND Active Fund (VNDAF), up from 16.1% to 21.6%; TCGF Growth Fund (TCGF), up from 21.2% to 32.2%; and Viet Capital Discovery Fund (VCAMDF), which saw the sharpest increase - from 8.5% to 38.7%.

In contrast, smaller funds (mostly with NAVs under VND1 trillion or $38.65 million) were more aggressive in disbursing capital and reducing cash holdings. Of them, Ballad Fund (TBLF) cut cash from 45.6% to 36.8%; Techcom Small and Medium Enterprise Equity Fund (TCSME) from 12.1% to 6.4%, and Fides VN Value Equity Fund (FVEF) from 13.2% to 10.7%.

Despite these moves, FiinGroup data shows that most equity funds saw their early-year gains wiped out by the market downturn leading up to April 9. The VN-Index, which represents the Ho Chi Minh Stock Exchange (HoSE), endured four sharp declines between April 3-9, triggered by the U.S. announcement of a reciprocal tariff of massive 46% on imports from Vietnam.

As a result, nearly all equity funds posted negative returns due to this deep correction. However, FiinGroup emphasized that the losses were temporary, with the VN-Index rebounding 12.2% over the four sessions from April 10-15.

Several Vietnam-focused ETFs also suffered sharp pullbacks, including VanEck Vietnam from a +8.8% return in Q1 to -7% as of April 9; Fubon FTSE Vietnam from +6.6% to -10%; and Xtrackers FTSE Vietnam from +7.9% to -11%.

President Trump on April 2 said that he will levy 46% tariffs on imports from Vietnam as part of a new wave of global impositions, effective from April 9.

On April 9, he dropped his reciprocal tariffs for countries reaching out to the U.S. to negotiate to 10% for 90 days. The 90-day reprieve is applied to nearly 90 nations except for China.

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