[PRESS RELEASE] SSIAM VN30 ETF officially listed on HOSE from 18/8/2020

(18/8/2020) The third ETF of SSI Asset Management Company Limited (SSIAM)- SSIAM VN30 ETF- is officially listed on Ho Chi minh City Stock Exchange (HOSE) today with stock exchange symbol FUESSV30.

SSIAM VN30 ETF was granted the Certificate of Registration for Public Offering of fund Certificates by the State Securities Commission on May 21, 2020 and the Certificate of Registration for the Establishment of a Public Fund on July 22, 2020, the IPO period was taken place from June 1 to June 26, 2020. On August 18, 2020, SSIAM VN30 ETF officially listed about 5.6 million fund certificates worth 56 billion VND on HOSE with stock symbol FUESSV30.

SSIAM VN30 ETF is a fund managed by SSI Asset Management Company Limited, the fund’s Authorized Participants are SSI Securities Corporation, Mirae Asset Securities, BIDV Securities. The Custodian bank is Vietcombank and the Transfer Agency is Vietnam Securities Depository (VSD). With other two ETFs which are SSIAM VNX50 and SSIAM VNFIN LEAD, SSIAM is currently the fund manager of the most ETFs in Vietnam. In which, SSIAM VNX50 ETF with volume of 13.5 million fund certificates and SSIAM VNFIN LEAD ETF with volume of 80.4 million fund certificates, 3.1 times higher than when listed.

The VN30 Index includes the top 30 large-cap and liquid stocks on the Ho Chi Minh City Stock Exchange, it is also the oldest investment index in Vietnam’s stock market that is very familiar to investors. Especially, VN30 is most attractive to passive investors since it represents the closest to the VN-Index in particular and the stock market in general. Thus, most of the passive investment funds in the world are mainly focused on general market index funds such as the VN30 index.

SSIAM assessed, with the current capitalization scale, a portfolio of 30 stocks is a moderate level for simulation funds, fairly convenient for portfolio management and relatively guaranteed liquidity for constituent stocks. Compared to other ETFs, the VN30 ETF has the advantage of portfolio diversity and high liquidity, in which includes most of the major companies and industries listed in Vietnam. With the mobilization of VND 56 billion during the IPO, SSIAM highly appreciate the mobilization potential in the future after the fund is listed, especially from overseas markets.

SSIAM is a fund manager with experience in building and managing ETFs since 2014 and currently manages 2 ETFs listed on the Ho Chi Minh City Stock Exchange. With the great financial resources from the fund’s Authorized Participants (AP) - especially SSI – SSIAM will create advantages in liquidity for fund certificates, ensuring primary buying / selling for investors with as least differences in price as possible. The total expense ratio (TER) for SSIAM VN30 ETF is at the lowest level in the market today, about 0.75-0.8%, which is expected to attract investors to participate.

Assessing the current ETF trend, Mr. Nguyen Minh Hanh, Portfolio Manager of the ETF Funds of SSI Asset Management Company Limited (SSIAM) commented: “ETFs always hold stocks in the indexes in the long term and invest 100% of the fund value. The expansion of passive investment funds will reduce the volatility of stock prices in the index basket due to unusual effects. The trend of ETF development in general is expanding in Asian countries, not just Vietnam. Index funds are playing a larger role in markets, similar to that of North America and Europe, where index funds have dominated for many years."

For the Vietnamese market, investing in the VN30 basket is a thoughtful option, as this index represents 73.4% of the Vietnamese stock market capitalization, with 30 stocks that have largest market capitalization and liquidity on HoSE. Average daily trading value reached nearly USD100 million (in May alone), equivalent to 60% of transaction value of HoSE. An additional point for VN30 index is that many of its component stocks are almost reaching their foreign ownership limit such as TBC, FPT, REE… Investing in domestic ETFs means that foreign investors may indirectly own shares of Vietnamese enterprises that are limited in foreign room. This is also one of the key advantages of this fund type.

Looking back at the index's movement in the first Covid-19 stage, after the market dropped to the bottom at the end of March 2020, VN-Index and other indexes recovered to the “2 months pre-Covid” level. At the same time, the liquidity of the whole market continuously increased as the result of cash flow was continuously injected to the market by investors. The average matched volume in the past 3 months was 400-500 million shares per session, 30-40% higher than the last 6 months. Trading value continued to increase, reaching a peak of over VND 112,300 billion in June.

Stock market was reacting negatively when the outbreak of Covid-19 returned. VN-Index decreased from 856.75 points to 798.4 points on July 31, equivalent to 7% loss after 6 sessions. Although the level of decline was less than that of the end of March 2020, the stocks in particular and the indexes still fell to low areas.  For example, at the July 31 session, the VN30 index was around 740 points, equivalent to July 2017 and March 3-4 2020 (when Covid-19 appeared for the first time).  This creates opportunities for long term investors. Thus, individual and institutional investors who missed the May-June recovery wave after the market fell deeply may now enter the market at low prices.

With the prospect of long-term market recovery, the officially listed SSIAM VN30 ETF will provide investors with additional investment options. At the same time, this group is also the factor driving the uptrend of local stocks and securities market.

For more information about the SSIAM VN30 ETF, please Click here.

Disclosure of listing of ETF certificates of SSIAM VN30, Click here.