Director of the billion-dollar fund VEIL: The economy will soon recover, an opportunity will come to patient investors

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The VEIL Fund believes that Vietnam’s economy will provide an opportunity for patient investors, with strong growth potential as soon as the pandemic is under control. After the first half of 2021, VEIL owns a net asset size of $2.5 billion, up 42% compared to the standard level of the fund.

According to Proactiveinvestors, Chairman Stanley Chou of Vietnam Enterprise Investments Ltd (VEIL) – a fund managed by Dragon Capital said that Vietnam’s growth rate of 5.6% in the first half of the year is a testament to the persistence and development potential. economic future, despite the spread of two waves of COVID-19.

Underpinned by the rapid recovery of the economy after the first outbreak in 2020, the Vietnamese stock market entered the group of top performing indexes in the world in the first half of 2021 with the highest liquidity level was set in June (about 1.4 billion USD).

Benefiting from the “hot” momentum of the market, veil’s net asset value (NAV) increased by 42% in the first half of 2021, 13% higher than the fund’s reference index and exceeding 19% of the accumulated value of the last three years.

Currently, the foreign fund owns total assets of 2.5 billion USD, including 16.5 million USD in cash. Disclosed pre-tax profit was $753 million.

Mr. Stanley Chou said that the performance of the fund mainly comes from the proportion of concentrated allocation in three industry groups including finance and banking, real estate and steel. He assessed that these are the main beneficiaries in the new development phase of the economy, thanks to supporting factors such as low interest rates or increased investment in infrastructure.

In addition, the positive results of the VEIL fund are partly due to the restructuring of the portfolio that was carried out last year in 2020, aimed at locating the areas that are expected to benefit after COVID-19.

However, like many other economies, the complicated development of the fourth wave of COVID-19 will cause certain uncertainties to the economy in the second half of 2021 and the following years.

Currently, the Government has secured the supply of 120 million doses of vaccine. The target of vaccination coverage for the whole population is 40-50% by the end of the year and can reach 70% in the first half of 2022. GDP growth forecast is also adjusted from 6% to 5% to fit the current situation.

“Macro-economic indicators may be adjusted down to reflect the fourth wave of the epidemic. However, VEIL is still confident in the resilience of the Vietnamese economy.” – The director of the fund managed by Dragon Capital commented on the market outlook.

Following the Government’s efforts to overcome and speed up vaccination progress, VEIL believes that as soon as this wave is under control, the central themes of the macro picture will be promoted. Ready for a positive scenario, VEIL’s portfolio remains positioned to benefit from the reopening of the economy.

“The current conditions are certainly challenging for businesses, but we believe Vietnam’s economy will provide an opportunity for patient investors, which comes with the potential to thrive as soon as the pandemic is brought under control.

Currently, VEIL’s investment management team is still very active in continuing to seek long-term growth and leadership stocks, in addition to seeking new opportunities from the IPO market.”, Fund Director VEIL said.

Source: – Translated by