Prudential Vietnam Fund

[jdsmith]

thanks guys

[Lingchen]

@Rascal

Lingchen, I am curious and hope you don’t mind me asking: did you invest in that fund?

Bid price is now at 12. I’m up 20% in 2 weeks.

I’m taking profits and keeping some. Any advice on when I should get out?

[jdsmith]

@Lingchen

[quote=“Rascal”]Lingchen, I am curious and hope you don’t mind me asking: did you invest in that fund?

Bid price is now at 12. I’m up 20% in 2 weeks.

I’m taking profits and keeping some. Any advice on when I should get out?[/quote]

I don’t think you should be ASKING for advice! :bravo:

[Edgar_Allen]

7 years time sounds good to me!

[Lingchen]

@Edgar Allen

7 years time sounds good to me!

Where do you think it would be in 7 years?

Or at least, what about after 1 year. If Vietnam is such a small market, and more major IPOs are expected soon (how soon?) then there is still a lot of upside, right?

I’m paring down the position by half and will check back in after 6 months. 20% was the original target, so my banker suggests getting out now. So I expect a little bumpiness as most unload now.

Hmmmn, I’ll put a stop-loss order in too at 11.75 - just in case

[Edgar_Allen]

The target is 20% per year and is very conservative.

The main investor ie Prudential’s Vietnam Life Fund and they usually invest in goverment bonds at 9% so will be looking to beat that.

Given that they also invest in property aswell as equity (right?) I would expect the upside to be much greater over the 7 year (initial) term.

I’m certainly not criticising your partial disposal though, I have yet to get in and will not do so until March/April at the earliest for personal reasons.

Given the fact that there is almost no liquidity in the current stock market it will be some time before we start to see a developed market. I really think this is worth a hold…but it might be an interesting ride.

[Rascal]

The market has been climbing to new record highs nearly every day and today jumped the 1000-point mark (+4.06%). There is a huge amount of money flowing in from Germany alone where individuals are buying the certificates I mentioned like crazy (I have two now, one bought in November, the other one beginning of this month and they gained 54% and 47% respectively *), as well some new funds inject lot’s of money, too. I expect a correction if not a crash soon.

The market still has much potential however - new IPOs, many based on privatization, have been announced and I read the ministry of finance intends to develop the technical infrastructure and license more brokerage firms. It is expected that this will cause the stock market value to triple by end of the year.

• I guess this are investments were you wished you had put in ten times as much, but then I haven’t that much cash lying around and I realize the high risk, so I wouldn’t invest too much there anyhow. Hence it’s not going to make me rich when my stop-loss get’s triggered, so don’t come and ask me for money. :snooty:

(I burned a lot last year in Japan and Indonesia, so the gains will probably just get me even.)

[jdsmith]

This blows. I tried the vtopf fund and can’t get in as there is no “bid”

fuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuck!

[Rascal]

[quote=“jdsmith”]This blows. I tried the vtopf fund and can’t get in as there is no “bid”

fuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuck![/quote]
Be glad, the market is correcting now (more than -5% in two days), with the VTOPF dropping around 20% in the same time. Seems there is quite a sell-off going on though letting out some air can only be good. It’s also expected that the market will drop further shortly before the TET festival when Vietnamese need cash to pay of their debts.

The stop-loss for both of my certificates got triggered as planned, so I am out totally. I will wait for the market to fall further and settle before I invest again.

[Edgar_Allen]

Interesting view, we used to see sales of Life Insurance drop just before Tet as the Vietnamese are not supposed to carry any debt into the new year. Sales post Tet were always healthy.

Regardless of this most of the Vietnam stock market is institutional not individual so I would not ordinarily expect a retail type adjustment in MVs pre or post Tet.

[Rascal]

Some info about the VTOPF’s net asset value I just came across:

NAV on the 31.12.2006: USD 2.54
Price on the LSE 29.12.2006: USD 3.835 +51% (!!)
Price on the LSE 02.01.2007: USD 4.190 +65% (!!!)

Percentage values indicate the premium over the NAV.

Regardless of this most of the Vietnam stock market is institutional not individual so I would not ordinarily expect a retail type adjustment in MVs pre or post Tet.

Good point.

[wisher]

Investing in Vietnam ,know-how is very important.
It is not easy to us to buy the funds of VOF and VNH.
And the extra fee is a lot .
Vietnam’s has joined in the WTO which helped its market growing higher to the new record.But there are only 23 stocks there.
As for a emerging stocks market,Is it stable?
How high the risk can you take?
I am looking for funds which invest in south-east Asian or emerging countries.
And some Taiwanese companies’s stocks which invested in Vietnam for many years.

[Rascal]

@wisher

Vietnam’s has joined in the WTO which helped its market growing higher to the new record.But there are only 23 stocks there.

You may want to check your source:

But many observers feel the economy’s fundamentals cannot account for the extraordinary rise. Vietnam’s stock market is still small, with just 106 companies listed. Some stocks are already trading at price-to-earnings ratios of 30 to one. That means the price of one share is more than 30 times the company’s earnings per share. In most markets, ratios over 20 are considered high and a sign that a market is nearing its top.

Source

[wisher]

Thanks Rascal.
I got the information about 32,36,47…
I will check again

[Rascal]

Anyone been following the market in Vietnam? It has been declining since mid of March and there is currently no sign that it will stop soon. Not surprising given all the money that was pumped into there, and personally I am looking forward to a further drop. When things settle it’s time to invest again me thinks.

BTW: The VOF has shed a lot of it’s premium, end of March the NAV was $3.13 (unaudited) while it traded only around 10% higher at $3.44 on the LSE.

[wisher]

[quote=“Rascal”]Anyone been following the market in Vietnam? It has been declining since mid of March and there is currently no sign that it will stop soon. Not surprising given all the money that was pumped into there, and personally I am looking forward to a further drop. When things settle it’s time to invest again me thinks.

[/quote]
What is the reasonable drop you think?
I am Taiwanese.How can I invest in Vietnam market?

[Rascal]

@wisher

What is the reasonable drop you think?

Down to 500 points, i.e. more than 50% from the ATH (all time high). Not sure it will go that far though.

I am Taiwanese.How can I invest in Vietnam market?

Sorry, don’t know. I suggest you ask your bank/broker. Also see Lingchen’s posts above regarding the Prudential fund.

[Rascal]

Deutsche Bank has just listed the db x-trackers FTSE Vietnam Index ETF (ISIN: LU0322252924, Reuters: XFVT.DE) on the LSE and XETRA (Germany).

[grandcanyonhiker]

I’d be interested to invest in this fund if i knew more about it. I’ve got some questions and i’d be very happy if someone would be kind enough to explain or tell me where to look for more information.

Questions about ETF Deutsche Bank Vietnam Fund

1. The management fee of 0.85%. Does it go like this? 0.0085 X NAV/Shr of USD 82 = 0.70 per share per year?

2. Does total expense ration TER mean a sum total of all the fees for the fund?

3. Regarding the definition of NAV and its significance. I looked up the definition and it said “total value of the funds portfolio less liabilities” but I do not understand what this means. Is the value of the funds portfolio on any given day the equal to the number of outstanding stocks times that days market value for each stock? And individual companies have liabilities but I don’t understand why the fund itself would have liabilities.

4. I went to check to see how to buy this fund through my scottrade account and was floored to find it is considered to be buying an option which I know nothing about. My choices were buy to open, buy to close, sell to open and sell to close and a blank after the word “contract:” :loco: So it’s not as simple as just buying a few shares at the current value?

Why would an ETF be considered an option?

Are there purchase minimums?

If I were to buy into the fund through another venue would it be more straight forward?

A big thank you to all replies.

[Rascal]

[quote=“grandcanyonlover”]I’d be interested to invest in this fund if i knew more about it. I’ve got some questions and I’d be very happy if someone would be kind enough to explain or tell me where to look for more information.

Questions about ETF Deutsche Bank Vietnam Fund

1. The management fee of 0.85%. Does it go like this? 0.0085 X NAV/Shr of USD 82 = 0.70 per share per year?[/quote]
   Yes, though note the fee is priced in, i.e. there is no separate payment required. So if one share costs USD82 it already has the management fee deducted. This applies to virtually all funds.

2. Does total expense ration TER mean a sum total of all the fees for the fund?

Yes (annualized).

3. Regarding the definition of NAV and its significance. I looked up the definition and it said “total value of the funds portfolio less liabilities” but I do not understand what this means. Is the value of the funds portfolio on any given day the equal to the number of outstanding stocks times that days market value for each stock? And individual companies have liabilities but I don’t understand why the fund itself would have liabilities.

Liablilities of the funds means expenses, like transaction costs for buying and selling shares etc.

4. I went to check to see how to buy this fund through my scottrade account and was floored to find it is considered to be buying an option which I know nothing about. My choices were buy to open, buy to close, sell to open and sell to close and a blank after the word “contract:” :loco: So it’s not as simple as just buying a few shares at the current value?

Dunno about your broker and its interface, but it should be as easy as buying shares.

Why would an ETF be considered an option?

Dunno, sorry.

Are there purchase minimums?

When you buy via the stock exchange it’s 1 share.

If I were to buy into the fund through another venue would it be more straight forward?

I think it’s an issue of your broker or user interface, not with the ETF itself.