Action plan for 2017

 

SECURITIES SERVICES

With strong growth of the stock market and increasing access to the global market, the entire system of products and services catered to both institutional and individual customers must reach regional standards using professional human resources and modern trading system. SSI Securities Services therefore shall focus on upgrading our trading system to meet the needs of both manual trading and algorithmic trading; developing a system of products and services customized for each customer; continuing to invest and expand network, branch network, transaction offices and retail brokerage services. In addition, in the context of integration, it is necessary to build a network closely linked with international financial intermediaries in order to expand the global customer network. The transition into emerging market of Vietnam is only a matter of time, involving the strong involvement of financial institutions and foreign investment funds in the country. Therefore, the two factors being systems and people at SSI need be ready to meet international standards, and establish and promote mutually beneficial cooperation with international brokers in search for new customers, especially investment funds mandated for emerging market index.

 

With a view toward sustainable development, competitiveness and profit maximization for clients, SSI Securities Services sets out the following action plan:

 

Continue to grow brokerage market share

SSI Securities Services will continue to hold the No. 1 position in brokerage market share in the market while simultaneously focusing on standardize investment advisory products, margin lending, and online trading products. In addition, new products will be developed continuously to diversify product portfolio, meeting the needs of each customer segment. The Division will also continue to expand its network of highly qualified personal brokers, recruit more brokers and expand its network to attract new customers.

 

Focus on servicing existing customers and acquiring new customers

In 2017, SSI will continue to develop transactional tools to develop online trading customers; take initiative in approaching joint stock companies that are getting ready for IPO or listing; strengthen relationships with reputable organizations at home and abroad to reach potential customers; and work closely with reputable partners to organize seminars to introduce investment opportunities to customers.

 

Develop specific products and services catered for each target customer group

In addition to seeking investment opportunities, the Securities Services Division undertake research and provide new products such as Open-ended Funds, Bonds, VN30 Index, ETFs, etc. to maximize the ability to meet investment needs of customers. Derivative products with superior technology and functionality will continue to be rolled out in 2017. Investment advisory products will be expanded and deepened according to market trends and specific to each customer group.

 

Promote corporate access activities

In addition to organizing meetings with listed companies at the request of institutional clients, in 2017, Corporate Access will take the initiative to hold monthly meetings with listed companies featured sectors including Consumer, Real Estate, Mining, Pharmaceutical, Aviation, Agriculture, Banking, etc., and at the same time, cooperate with reputable organizations to bring Vietnamese companies to Institutional Investment Funds abroad. In addition, seminars to introduce investment opportunities to individual customers at branches and transaction offices throughout the country will also be launched in 2017.

 

Recruit Retail Brokers and and Institutional Brokers

SSI continues to expand and recruit qualified retail brokers from its market sources and develop internship programs to train talented, ethical, well-qualified students to become brokers. Institutional Brokerage department will be reorganized for lean operation, focusing on improving the quality of its human resources and parting insufficient personnel. This is an important move towards increasing the automation of order placement through the system as well as towards the introduction of more sophisticated new products such as derivative products. The Institutional Sales department plans to recruit more experienced personnel for customer development in key markets such as the US and Europe.

 

Collaborate with other Business Units

SSI Securities Services to actively coordinate with the Investment Banking to develop IPO and listed corporate clients, divestment transactions, large batch transactions; collaborate with SSIAM to sell open-end funds, ETF certificates, and portfolio management products; collaborate with Treasury to carry out bond brokerage transactions and raise funds to support financial products.

 

Continue to build a professional working environment

Policies that elicit passion, cooperation, coordination, competition and mutual development will be built into the entire network of Branches, Transaction Offices, and Departments within the Securities Services. SSI continues to further strengthen our professional training programs in professional areas, communication skills and new customer development skills for the retail and institutional brokerage teams, and always maintain a friendly, competitive and cohesive working environment for a strong SSI.

 

 

TREASURY

2017 is considered by SSI Treasury to be a relatively challenging year with wide range variables from macroeconomic to industry expectations. The possibility of interest rate fluctuations in 2017 is expected to be higher than that in 2016. For the stock market, a large number of large state-owned corporations is scheduled to be listed, which will help them grow in size and provide more competitive products, drawing more domestic and foreign capital to the stock market. In addition, the introduction of derivative market also presents a challenge and a great opportunity for the market in general and SSI in particular.

In 2017, SSI Treasury sets out the work plan as follows:

 

Accelerate the growth of total assets in a sustainable and stable approach. Improve asset quality and asset utilization of the Company.

Based on expected macro conditions as well as market assessments, SSI Treasury aims to continue growing their total assets by at least 10% per annum through expansion of treasury trading as well as capital raising products to bring about benefits and effective use of funds for both SSI and its customers. To achieve this goal, it will continue to strengthen cooperation and expand business co-operation with existing financial institutions and new partners, developing a system of quotas and services to ensure liquidity safety of the Company as well as to maximize profit in the market.

 

Improve and strengthen bond trading activities

2017 is expected to be a difficult year for government bond trading as the bond interest rate level has been near record low and cyclical interest rate fluctuations have been predicted. In order to continue the success of bond trading in 2016, the pressure on the 2017 plan is relatively high and requires careful monitoring of the market's volatility in order to make sound movements accordingly.

In addition, the corporate bond segment is expected to be active in 2017 due to credibility of the issuing companies and improving transparency, as well as increasingly internationalized bond terms. Continuing to maintain and accelerate the search for trading opportunities of corporate bonds issued by both listed and unlisted companies through proprietary trading as well as equity financing transactions is a priority in 2017.

 

Continue to conduct research and development of structured products and derivative products

In 2017, SSI will focus on structured products related to interest rates, exchange rates, and commodities, etc., to provide a diversified and comprehensive product range to customers. In addition, along with the advent of the derivative market in 2017, the Company will also continue to participate in policy development and derivative proprietary trading models, especially in government bond futures to seek profit as well as to hedge the holding position.

 

 

ASSET MANAGEMENT

SSIAM's long-term development strategy is to develop a strong local retail customer base. In the past few years, individual investors have tended to invest on their own instead of entrusting funds to professional fund managers. However, individual investors have limited time as well as access to companies and access to information leading to ineffective asset management outcome. Meanwhile, along with the development of the stock market, the Asset Management Company has made continuous efforts to improve its investment management, risk management, and professional skills in service provision. We believe that the number of individual investors choosing services from asset management company will increase over time. This trend will create tremendous growth potential for SSIAM in fund raising from local individual investors.

 

Maintain outstanding investment performance            

In 2016, both investment funds and portfolio of institutional and individual clients managed by SSIAM yielded positive investment results. Entering 2017, we will continue to maintain and improve the investment efficiency of investment funds as well as the existing trust portfolio to better meet the needs of institutional and individual investors.

 

Continue boosting sales to increase total assets of products serviced to new investors

In 2017, SSIAM will continue to work closely with many partners to distribute fund products and portfolio management products. In addition, the quality of services provided to investors will be emphasized, ensuring that customers can trade more conveniently and receive information in a transparent and timely manner.

Benchmarking to oversea markets, the Vietnam's stock market is still considered fast-growing with many valuable investment opportunities at low valuations compared to other regional stock markets. Given this view, SSIAM will continue to raise more funds for the two European open-ended funds that are managed by SSIAM.

 

Develop new products

In 2017, we plan to introduce and offer SSI bonds open – ended fund for the first time to meet market demand. The fund will target both individual and institutional clients that have low risk appetite.

At the same time, we will focus on the legal framework for the Voluntary Supplementary Pension Fund and improvement of business model for this product. With this preparation, SSIAM expects to be ready to provide the product to customers when relevant regulations go into effect and market conditions are favorable.

 

 

INVESTMENT BANKING

Continuing to pursue the mission of "Connecting capital to opportunities", affirming the leading position and promoting the development of investment banking, SSI will continue to carry out various solutions in 2017 to create many new and high quality products for customers.

 

Strive to maintain the leading position by diversifying products and services, while emphasizing professional services and high added value.

SSI Investment Banking strategically aims to provide high quality transaction arrangement advisory products of high quality, professionalism and customization to our clients. SSI has been researching and designing capital products, including both equity and debt to diversify products to meet the increasing demand of clients as well as the requirements of the market, connecting foreign investors with local firms and leveraging capital from international financial markets.

 

Continue to prioritize the development of M&A Advisory Service.

In 2017, SSI Investment Banking will continue to focus on Mergers & Acquisition (M&A) Advisory Service. In the context of the economy with many positive changes, coupled with the elimination of foreign ownership limits in listed companies, Vietnam has become an extremely attractive market for M&A deals. This presents a great opportunity for SSI Investment Banking, given a team of senior finance professionals with years of experience in M&A advisory and wide spreading networks of partners, financial institutions and large customers from large potential markets such as Thailand, Japan, and Hong Kong etc.

 

Focus on expanding client networks, emphasizing Corporations with the need to divest from public and listed companies.

In 2017, beside the core client base of private, large-scale, credible, potential and sustainable businesses, SSI will also focus on large Corporations and SOEs that are planning to divest from large cap public and listed companies. With experience in advising on SCIC's divestment of Vietnam Dairy Products Joint Stock Company (VNM – HOSE), at the end of 2016, SSI has obtained hand-on experiences in the advisory process and is confident of having the capacity and experience to advise similar transactions in the future.

 

Expand cooperation with leading global financial institutions to exchange experiences and seek for investment opportunities, thereby providing our clients with professional financial products of international standards. In 2016, SSI has successfully cooperated with Daiwa Capital Markets Hong Kong Limited ("Daiwa") in No Va Land Investment Group Corporation (NVL - HOSE)'s private placement deal through book-building and Morgan Stanley Asia (Singapore) Pte. in SCIC's divestment from Vietnam Dairy Products Joint Stock Company (VNM – HOSE), based on which open more opportunities for SSI to cooperate with other international financial institutions in future transactions.

 

Restructure the Investment Banking through the standardization of high quality human resource recruiting and training procedures, serving as a basis for enhancing the quality of SSI's advisory services. People are one of the key determinants of organizational success. Recognizing this, SSI has consistently focused on developing, revising and refining the recruiting mechanisms as well as on personnel training aimed the development of advisors that are of international quality, highly proficient, knowledgeable about the market, and can always grasp and meet all the clients' needs. With adequate recruiting and training policy, SSI expects to become one of the best investment banks in Vietnam, continuing to compete healthily and aiming to develop the image of an investment bank that is proficient and professional in servicing while adhering to professional ethics.

 

 

PRINCIPAL INVESTMENT

In 2017, SSI continues to implement value investment strategies and co-operate with investee companies. The stock market is predicted to remain difficult and challenging, although having increased significantly, P/E of the market still remains lower than that of stock markets in the region. SSI believes that the stock market in Vietnam is still attractive for value investors and that market corrections are a good opportunity to capture higher profits for the Company.