9:55:10 PM | 2/16/2008
SSI Asset Management Company has launched its affiliated SSI Vision Fund. On this occasion, Vietnam Business Forum talked with Ms Dang Thi Hong Phuong, Chief Executive Officer of SSI Asset Management Company.
Why did SSI Asset Management Company launch SSI Vision Fund when the market is in the downtrend?
In general, fund management is a new industry in and the market will develop. Typically, funds operated by fund management companies focus on medium to long term investment targets, at least five years and up to 10 years. Thus, the opening of a fund is not reliant on market trends but on the preparations of the fund management company to meet investors’ expectations.
In my opinion, fund management companies in have huge potential for development. The market remains wide open.
Is this fund more attractive to investors than other funds?
Our company is affiliated with Saigon Securities Incorporation (SSI), one of the top securities companies in , which is very strong in brokerage and corporate finance advisory, and has reaped great success in these fields. We are staffed by well-trained employees with extensive working experience in asset management, corporate finance, securities, banking, auditing & investment advisory in and overseas. This is a really big advantage. Personally, I have worked more than 20 years in the financial sector, and 10 years in asset management. The most important criterion in this industry is reputation, not being a new or old entity.
How many investors is your company serving and what are your goals for the coming time?
Our business plans are ambitious. Although we obtained the operation licence from August 2007, we launched the affiliated SSI Vision Fund in November 2007 which has VND1,700 billion with 12 investors including international and domestic organisations operating in finance, banking, insurance, telecom material, securities, real estate, aqua product and food industries. We also manage portfolios for individual and institutional investors. Total assets under our management are about VND3,000 billion.
Apart from launching new funds, we are committed to diversifying portfolios and management services.
What do you think about the stock market in 2007 and its influence on the market development in 2008?
In 2007 and especially in the second half of the year, investors got better practical knowledge in securities investment in the zigzag market. In general, the stock market was basically good in 2007 and the market needs to experience rough years like in 2007 to make individual investors and institutions to professionalise their investments. Consequently, the market will stably develop.
Many people forecast a gloomy stock market in 2008 but I have a different look. The large supply of stocks will certainly revise down prices of stocks but this does not mean that good stocks are marked down. This is a good chance to classify good stocks on the market. Importantly, investors should have a good look for their investments.
The Vietnamese economy is forecast to grow 8 - 9 per cent in 2008 thanks to stock market development policies of the government. We absolutely believe in the future of the Vietnamese stock market in 2008.
The market corrections last year were necessary for the sustained development of the stock market. They narrowed the gap between stock prices and their real values. The eventful year gave dear lessons to investors, especially individual investors, and highlighted the role of professional institutional investors.
However, to keep the healthy breath for the stock market in 2008 and the following years, macro policies play crucial roles. The Government needs to introduce consistent and long-term policies to develop the stock market. The healthy legal environment and tax policies are also necessary for the market growth.
How about the fund management companies?
If fund management companies grasp the market demand, they will introduce well-chosen products. If the government applies more open policies, allowing individuals to join funds, fund management companies will draw a huge sum of cash for investment. Many feared that the cash pumped into the stock market has been shrunken but I don’t think so because the people still have savings and overseas remittances. If we look at the trading value on the stock market, the capital is still profuse. The importance is how the money is invested.
The sustainable market needs the presence of intermediary investment organisations and funds. However, the proposed increase in tax levied on fund companies from 20 per cent to 28 per cent is too high. This is a hurdle for the development of funds.
Investment funds play important roles in the development of the stock market. With their profound professional investment knowledge and a wide range of portfolios, investment funds not only tackle challenges facing individual stock investors but also make the stock market more stable. With ready capital for long-term investment, investment funds can stay out of the sentimental influences in the event of market tumble.
Lan Anh
Vietnamese
