Dragon Capital, the Vietnam boutique with around $5bn assets under management, has filed plans for the launch of its first European ETF.
Best known for running Vietnam Enterprise Investments Limited (VEIL), a £1bn London-listed closed-end fund, Dragon is seeking regulatory approval for the launch of the Dragon Capital Vietnam UCITS ETF in Dublin.
According to a filing with the Central Bank of Ireland, the new exchange-traded fund will be launched on Waystone’s white-label platform.
Founded by Dominic Scriven over 30 years ago, Ho Chi Minh City based Dragon already runs exchange-traded funds with the VNDiamond and the VN30 & VNMidCap ETFs in Vietnam. Earlier this year it partnered with KraneShares to launch KraneShares Dragon Capital Vietnam Growth Index ETF in the US which has $13m.
It also manages the $225m Vietnam Equity UCITS fund in Europe.
Our view
David Batchelor, senior analyst at QuotedData, said: “This planned launch is a notable step for Dragon Capital, giving European investors another route into Vietnam through a UCITS ETF structure. It also underlines the growing crossover between specialist active managers and the ETF market, particularly in areas where local knowledge and on-the-ground research remain important.
“For VEIL, the development is worth watching rather than necessarily alarming. A lower-cost ETF could broaden investor interest in Vietnam, but it is unlikely to replicate the same proposition as a closed-ended fund with an established track record, active stock selection and the ability to take a longer-term approach. If anything, a wider ETF presence may help raise Vietnam’s profile with European allocators, particularly as investors continue to look for exposure beyond China and India”.
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