Hanhwa Investment Management, 'Next China' Fund Performance... "Korea Investment Vietnam Growth UH Tops 1-Year Returns"

Korea Investment Trust Management announced on the 2nd that Korea Investment Vietnam Growth UH (C-W) ranked first in 1-year returns among Vietnam funds with assets under management exceeding 50 billion KRW. Vietnam is one of the countries considered the 'Next China' and is rapidly emerging as a global production base replacing China.

According to FnGuide on the 2nd, as of the 1st of this month, Korea Investment Vietnam Growth UH (C-W) achieved a 1-year return of 27.88%, ranking first among Vietnam funds launched domestically with assets under management exceeding 50 billion KRW. This shows a significant excess return compared to the recently booming VN Index (Vietnam's representative stock market index) return of 22.15%.

The fund also demonstrates excellent long-term performance. Korea Investment Vietnam Growth UH (C-W) recorded returns of 42.11%, 72.89%, and 147.17% over the past 3 years, 5 years, and since inception, respectively, showing a consistent upward trend over the long term.

The Korea Investment Vietnam Growth UH fund prioritizes quality stocks among large-cap blue-chip stocks included in the VN30 Index and then selects high-growth Vietnamese companies independently to pursue market excess returns. Its investment strategy combines top-down and bottom-up approaches to analyze the market and proactively respond to industries and stocks with highlighted attractiveness. The top-down approach focuses on the overall market environment and trends, while the bottom-up approach verifies whether the industry group to which a specific stock belongs has growth potential in the macroeconomy.

Korea Investment Trust Management analyzed that the fund's outstanding performance is due to its effective stock selection capabilities based on in-house research combined with the expertise of its local Vietnam office. The fund manager incorporates blue-chip stocks through fundamental analysis of Vietnamese companies, aiming for stable returns rather than merely riding the market uptrend. To this end, Korea Investment Trust Management utilizes a research database accumulated over 18 years at its local Vietnam office.

The chief fund manager is Choi Won-jun, head of the Overseas Business Division at Korea Investment Trust Management, who manages the largest Vietnam fund in Korea. Choi stated, “Vietnam's gross domestic product (GDP) has more than doubled over the past 10 years, and it has risen to become the 35th largest economy globally. Companies like NVIDIA, an artificial intelligence semiconductor firm, have expressed interest in establishing bases in Vietnam, making it one of the countries benefiting from the global supply chain's de-Chinaization.”

He added, “The Vietnam stock market is undervalued, with a forward 12-month price-to-earnings ratio (PER) below 12 times based on Bloomberg consensus estimates. For investing mainly in selected blue-chip stocks in the rapidly growing Vietnam market, the Korea Investment Vietnam Growth Fund is suitable.”

This content was produced with the assistance of AI translation services.