ASSET MANAGEMENT (SSIAM)
 
2018 HIGHLIGHTS
 
 The fund and portfolio management activities generated VND 65.5 billion in total revenue and VND 38 billion in profit before tax.
 
Further diversification of investment product distribution channels of SSIAM: SSIAM has successfully been linked with a number of major financial partners in Vietnam to distribute investment products, especially fund products, to potential customers of these partners. 
 
Successful deployment of SSIAM On The Go (SSIAM OTG) as an open online trading system with convenient functions for registration, safe and accurate placement of orders anytime and anywhere, which saves investor time and helps them in their account management and placement of trading orders for fund certificates.
 
Higher frequency of trading open-ended fund certificates of SSIBF and SSI-SCA: This change has facilitated investors to buy/sell fund certificates while improving the liquidity of open-ended fund certificates.
 
2018 PERFORMANCE
 
Vietnam Stock Market in general and asset management in particular experienced much volatility in 2018 with pressures from the market adjustments. Facing these challenges, SSIAM stayed put in its investment goals and strategies, focusing on investment in important economic sectors of Vietnam and targeting companies whose business lines and internal structure prove sustainable. However, market adjustments also lowered the actual investment efficiency of the funds and portfolios compared with initial expectations of the customers. Some customers have divested their capital for other short-term investment channels, which somehow affects the SSIAM’s asset-under-management size and private wealth management services.
 
In difficult business conditions, SSIAM still attracted a number of new domestic customers. The purchase rate of fund certificates was 50% higher than selling rate of such certificates at SSI Sustainable Competitive Advantage Fund (SSI-SCA) which continued to be one of two best domestic open funds with effective investment records since establishment. For private wealth management, the number of new customers continued to increase by 10% compared to 2017. In Vietnam, the number of investors in the stock market with long-term investment mindset is small, blocking the growth in the number of customers in case of market adjustments.
 
As of the end of 2018, the total assets under management of SSIAM reached VND 5,573 billion. The structure of total assets by business segments is as follows:

 

Investment fund management


SSIAM currently manages VND 3,823 billion of customer assets in domestic and foreign investment funds.


For the domestic market, in 2018, SSIAM did not introduce any new investment funds but rather focus on developing open funds and current ETF funds as well as distribution channels with its external partners to increase the accessibility of open funds to investors. The company has successfully partnered with a number of major financial partners and will strive to improve the effectiveness of these channels in the coming years.


In November 2018, SSIAM also successfully launched the first phase of its open online trading system, SSIAM On The Go (SSIAM OTG), with convenient functions for registration, safe and accurate placement of orders anytime and anywhere to save investor time and help them in their account management and placement of trading orders for fund certificates.


To increase the fund liquidity for investors, SSIAM also increased frequency of trading fund certificates of SSI Competitive Advantage Fund (SSI - SCA) and SSI Bond Fund (SSIBF) from once per week to daily.

 
For foreign markets, SSIAM successfully converted Andbanc Investments SIF - Vietnam Value and Income Portfolio (an open-ended fund incorporated in Luxembourg to invest in Vietnam stock market) into SSIAM SIF fund - Vietnam Active Value Portfolio under the model of an umbrella fund with independent sub-funds branded as SSIAM. This will help promote brand recognition of SSIAM with global investors in general and European investors in particular.

 

Investment efficiency 
 
Following the overall adjustment trend of Vietnam Stock Market, SSI - SCA fund recorded a decrease of 12.1% in 2018. From its establishment in September 2014, the profit margin of SSI - SCA Fund reached 74.3%. Besides, the SSIAM VNX50 ETF fund, with passive investment strategy according to the reference indexes, has a growth of -7.1%. Contrary to the declines of stock funds, SSIBF bond investment fund has maintained its growth in 2018 by generating a profit margin of 6.85%.
 
 

Portfolio management for Institutional Customers

 

In 2018, SSIAM maintained its treasury from institutional customers, which are large insurance companies and other organizations wishing to entrust their capital for a total asset management value of external Institutional Customers to stand at VND 1,376 billion, an increase of 11% compared to the same period last year. SSIAM is also working with a number of Customers to deploy new discretionary portfolios in 2019.

 

Private Wealth Management for Retail Customers

 

Asset management value of retail customers reached VND 374 billion at the end of 2018. The number of entrusted retail customers grew by 10% last year; however, the total investment capital has decreased significantly - 30% as many individual investors decided to cut/withdraw their capital from the market to respond to strong market adjustments. The profit margin of the portfolios is also affected by the overall trend of the stock market, standing below the investors’ profit expectations and encouraging investors to look for other investment channels for better profitability. SSI believes that capital inflows from individual investors are still in a pending state, waiting for positive developments such as macroeconomic stability, market upgrading, etc. to be driven in the near future.