Fund ownership in Vietnam has resumed its upward trajectory after a brief consolidation between mid 2020-2021. The 32.6% of funds invested (ch3) is the highest on record, whilst average weights remain at the higher end of the decade long range (ch1). Being a non benchmark country, relative weights and the percentage of funds overweight mirror the top 2 charts.
Vietnamese ownership growth has been driven by the Financials sector, which has caught up to the Consumer Staples sector on a percentage of funds invested basis (main chart) and overtaken it on an average weight basis (inset chart). The Technology and Consumer Discretionary sectors are also at peak levels of ownership.
Fund Holdings and Stock Ownership
Fund weights in Vietnam are spread over a fairly wide range, led by Matthews Asia Ex-Japan Dividend (12.2%) and Baillie Gifford Pacific (7.2%). GARP investors are the most prevalent among the top holders, accounting for 7 of the largest 15 fund positions.
The most widely held stock is Vietnam Dairy Products group, owned by 13.5% of funds at an average weight of 0.17%. FPT Corp leads the 2nd tier, held by fewer funds but capturing good sized individual fund holdings from Robeco Asian Stars (3.49%) and Matthews Asia Asia Ex-Japan (2.48%). In general though, stocks in Vietnam are not widely held.
Stock Activity & Country Positioning
Over the last 6-months, Vietnam stock ownership has started to broaden out. The 3 key beneficiaries of rotation were Mobile World Investment Corp, Military Commercial Joint Stock Bank and Asia Commercial Joint Stock Bank. Only 2 stocks saw ownership levels fall, with 2.25% of managers closing exposure to Vinhomes and -1.12% to Mason Group Corporation.
Vietnam remains a relative minnow on an absolute basis, but stands out relative to benchmark as the 3rd largest net overweight behind Australia and Indonesia (ch3). With high conviction among a number of highly regarded funds in the region, it’s perhaps surprising that over two-thirds of Asia Ex-Japan funds remain un-invested. There is a lot of room for ownership to grow from here.
For more analysis, data or information on active investor positioning in your market, please get in touch with me on steven.holden@copleyfundresearch.com
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