Investment Guide

Investment Guide

ETF INVESTMENT INSTRUCTION

Investor can invest in ETF by placing creation/redemption order at the fund’s Authorized Participants or buy/sell ETF in secondary market through the stock exchange. Investor need to open securities trading account at a domestic brokerage company before investing in ETF.

Contact Authorized Participants for assistance.

PRIMARY TRADING

CREATION ORDER

  • Step 1: Prepare Basket of Component Securities.
  • Step 2: Submit requested documents for creation order to Authorized Participants.
  • Step 3: Transfer cash component from your Indirect Investment Capital Account to Fund’s account.
  • Step 4: Receive transaction confirmation.

REDEMPTION ORDER

  • Step 1: Submit requested documents for redemption order to Authorized Participants.
  • Step 2: Receive transaction confirmation.
  • Step 3: Receive basket of component securities. Basket of component securities will be transferred to Investor’s securities trading account at Authorized participant within 01 working day from the Dealing Date (Day T).
  • Step 4: Receive payment of any cash component (if any). Cash component will be transferred to Investor’s foreign indirect investment capital account as registered within 03 working days after Dealing Date (Day T).

 

A CREATION UNIT

01 creation unit (equivalent to 100,000 Fund units)

DEALING DATE

Daily (Day T)

CUT-OFF TIME

14:59pm on Day T

SECONDARY TRADING

  • SSIAM VNX50 ETF Certificate is listed on HSX with ticker FUESSV50. Investors can trade listed ETF Certificates on the Stock Exchange.
  • Investors/ Authorized Participants place trading orders using their securities trading account at securities company. Trading and settlement shall be done in accordance with the regulations of securities trading issued by Stock Exchange and VSD.
  • The trading unit shall be as regulated by Stock Exchange where the SSIAM VNX50 ETF certificates are listed.

TAXES APPLIED FOR FOREIGN INVESTORS

Investors

Tax on Investor arising from

 

Dividend payment

Redemption Fund Unit

Gift/Inheritance

Residential individuals

5%

0.1% of transaction value (1)

10% of securities value higher than VND 10 million

Non-residential individuals

5% (1)(2)

0.1% of transaction value (1)

10% of securities value higher than VND 10 million

Foreign Institutions

- Exempt if distributed dividend are after tax-profit

- 22% from 1/1/2014 and 20% from 1/1/2016 if tax-profit has not been deducted (1)

0.1% of transaction value (1)

0.1% of transaction value (1)(3)

(1) Tax withheld at source.

(2) An individual is not required to pay personal income tax when receiving dividend of stocks/fund units but shall pay the income tax for capital investment and securities transfer when transferring these stocks (Point d, Clause 2, Article 11 Circular 111).

(3) There is no specific regulation on taxation of foreign institutional investors receiving gift/inheritance in the form of securities. However, giving gift/inheritance shall result in the transaction of securities transfer. Under the Decision 218, tax rate of 0.1% of the securities transfer value shall be applied. Accordingly, Investors may have to pay for the tax rate of 0.1% transaction values when receiving gift/inheritance.

PREPARATION FOR FOREIGN INVESTORS

  • STEP 1: Apply for Securities Trading Code: Application submitted to Vietnam Securities Depository (VSD) – contact SSI Securities Corporation (SSI) for assistance.
  • STEP 2: Open Foreign Indirect Investment Capital Account: Application submitted to any commercial banks in Vietnam.

OPEN AN OPEN-ENDED FUND TRADING ACCOUNT

Investor can open an open-ended fund trading account any designated distributors of SSIAM.

SUBSCRIPTION ORDER

  • STEP 1: Transfer subscription money from investor’s Indirect Investment Capital Account to the Fund Account at Supervisory Bank
  • STEP 2: Complete Subscription Form and submit to Distributor before cut-off time.
  • STEP 3: Transaction confirmation will be sent to investor’s email within 2 working days from the Dealing Date.

REDEMPTION ORDER

  • STEP 1: Complete Redemption Form and submit to Distributor before cut-off time.
  • STEP 2: Transaction confirmation will be sent to investor’s email within 2 working days from the Dealing Date.
  • STEP 3: Redemption payment will be made to investor’s Indirect Investment Capital Account within 5 working days from the Dealing Date.

 

ONLINE TRADING SYSTEM - SSIAM On The Go

Alternatively, Investor can place subscription/redemption order via SSIAM’s online trading system. Please go to https://online.ssiam.com.vn and activate your online account.

TAXES APPLIED TO FOREIGN INVESTORS

Investors

Tax on Investor arising from

 

Dividend payment

Redemption Fund Unit

Gift/Inheritance

Residential individuals

5%

0.1% of transaction value (1)

10% of securities value higher than VND 10 million

Non-residential individuals

5% (1)(2)

0.1% of transaction value (1)

10% of securities value higher than VND 10 million

Foreign Institutions

- Exempt if distributed dividend are after tax-profit

- 22% from 1/1/2014 and 20% from 1/1/2016 if tax-profit has not been deducted (1)

0.1% of transaction value (1)

0.1% of transaction value (1)(3)

(1) Tax withheld at source.

(2) An individual is not required to pay personal income tax when receiving dividend of stocks/fund units but shall pay the income tax for capital investment and securities transfer when transferring these stocks (Point d, Clause 2, Article 11 Circular 111).

(3) There is no specific regulation on taxation of foreign institutional investors receiving gift/inheritance in the form of securities. However, giving gift/inheritance shall result in the transaction of securities transfer. Under the Decision 218, tax rate of 0.1% of the securities transfer value shall be applied. Accordingly, Investors may have to pay for the tax rate of 0.1% transaction values when receiving gift/inheritance.

 
SSI