What do SSI experts say about VEIL's huge cash ratio?

What do SSI experts say about VEIL's huge cash ratio?

In the program "Secrets of money", Mr. Pham Luu Hung - Chief Economist of SSI commented on the billion USD fund of Dragon Capital increasing the proportion of cash.

Recently, the billion-dollar fund Vietnam Enterprise Investments Limited (VEIL) managed by Dragon Capital has just announced its operation report with many notable points. Accordingly, Dragon Capital's VEIL fund increased the proportion of money in the fund at 5.77% on May 5.

With a scale of nearly 2.4 billion USD, the corresponding cash value reached 137.8 million USD (about 3,176 billion VND). This is the second highest proportion of cash held by VEIL from 2020 to now, after 6.38% in May 2020 when the COVID-19 epidemic began to break out.

Commenting on this issue, Mr. Pham Luu Hung said that although it is called high during the pandemic up to now, basically VEIL's cash proportion is over 5% quite a few times in the past period and if we look at In the world perspective, a recent survey by Bank of America (BofA) also showed that the cash ratio of major funds in the world is over 6%. Experts believe that the rate of this VEIL is also relatively similar to the world trend.

“For fun, you may have noticed that whenever the market drops even if we do nothing, our cash ratio increases as our total assets decrease. With SSIAM, the cash ratio is also at an average level and has not been particularly volatile in the recent period,” added Mr. Hung.

The question of whether the market has made a bottom or not was also discussed in the program. With this question, Ms. Nguyen Thi Thu Dung, Sales Director - Head Office - SSI Securities Joint Stock Company, said that according to technical analysis, it is true that VN-Index is creating two bottoms, but where the bottom is created, it is true that the VN-Index is creating two bottoms. Only then will it be known when it forms a bottom.

Mr. Pham Luu Hung (far right) and Ms. Nguyen Thi Thu Dung (middle) in the program "Secrets of Money" broadcast on May 25, 2022
According to Ms. Dung, liquidity in the market is still quite low, which shows that investors' confidence is still not attractive enough. Besides, a large amount of money is still out of the market, not participating right now, so I think there is not enough basis to determine this is the bottom.

Mr. Hung - from a fundamental perspective, if at this stage investors definitely want to find the bottom, they should throw stones to find the way, but not to throw gold, diamonds, and red books away to find the bottom. use margin.

In particular, Mr. Hung emphasized that some industry groups such as commodities, consumer goods, pharmaceuticals, and electricity will be the groups with good business results at this time. Investors need to pay attention to the electricity industry in the coming time. He thinks that we are currently fortunate to have a relatively cool summer, the lack of electricity has not happened. Next time the weather is hot again, the pressure on the palace increases with the reopening of the economy and tourism, the electricity industry is expected to "boom".
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