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New fund eyes nation’s growth potential
Thang Long Meritz Capital Fund Management Joint Stock Co. begins operations this week. The Fund’s Chief Investment Officer, Choi Chang Hoon, spoke to VNS.
Why is TLM Capital joining the market at a time when most overseas funds are limiting operations?
We have kept an eye on the growth potential of Viet Nam. Even though there are severe difficulties around the world and in Viet Nam, Viet Nam still has great long-term growth potential. Not only listed companies on the Viet Nam stock exchange, but also many companies on the OTC market and State-owned enterprises are expected to make enormous progress over the next 10 years.
We believe there are better opportunities out there waiting for us. We hold that this financial crisis will be better for us to start our business. We can look for more valuable investment opportunities and maximise our clients’ profits. There are better-priced assets available and it’s better timing to easily recruit talented people.
What are your target investments?
We have already started our blue-chip equity fund with the name TF-1, and we will start another member fund for a small group of investors to invest in high quality listed shares in Viet Nam. We will then start a larger public fund for our target clients. All of our funds will have a long-term perspective.
There was an initial phase of investment strategies in Viet Nam, seeking capital gains with short-term perspectives, but there will be a second phase that will be more sophisticated, focusing on real financial partners with long-term perspective. In this phase, quality will be the most important criterion.
What advantages do the three founding shareholders bring to the fund?
Our valuable shareholders are Thang Long Investment, Handico Finance, and Meritz Securities from South Korea. We are the first Viet Nam fund management company in which a South Korean financial institution has invested. Our Viet Nam shareholders, meanwhile, are strongly connected to such institutions as Thang Long Securities, Sacombank Securities, Military Bank and Sacombank. And we have one more respected business partner, Carpa Investment Holdings.
We will take advantage of the professional excellence of our partners in identifying profitable investment opportunities. We will try to have a win-win strategy for our clients and our partners.
What do you forecast for equity markets this year?
Global equity markets seem to be recovering from the worst. Recent stock market rallies have already seen some markets recovery as much as 50 per cent performance from their low points. We may not have seen the real bottom of the economic downturn, but I think we have seen that of the stock market.
Viet Nam equity markets seem to track global markets. By the end of this year, I optimistically expect that the VN-Index can reach 400-500 points.
What do you suggest domestic investors do until the recovery?
Viet Nam could still experience sharp ups-and-downs in the equity, bond, and real estate markets. Some investors will be successful, but there will also be more who make mistakes.
A full economic recovery will take 3-4 years. I would advise a mid - to long-term investment strategy based on bitter past experience. They should invest their precious assets with the help of fund management professionals rather than invest directly by themselves.
What makes you more qualified to make these investment decisions?
We have very strong research capabilities and are making our investment decisions based on our own fundamental technical research.
vietnamnet, vietnamplus
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