Dragon Capital funds buy back 745,100 Vietnamese jeweler PNJ shares 1 month after selling out

Dragon Capital’s end-August portfolio report showed that its DC Dynamic Securities Investment Fund (DCDS) held 690,000 PNJ shares, while the DC Dividend Focused Equity Fund (DCDE) held 55,100 shares.

Both funds had sold all their PNJ shares by the end of July.

At PNJ’s end-of-August price of VND42,100 ($1.6) per share, DCDS’s PNJ holding was worth more than VND29 billion ($1.1 million).

The fund had a total net asset value of nearly VND6.02 trillion ($231.6 million), meaning its PNJ investment accounted for about 0.48 percent of NAV.

At DCDE, the 55,100 PNJ shares were worth nearly VND2.32 billion ($89,250), equivalent to around 0.26 percent of its total net asset value of VND890.9 billion ($34.3 million).

This allocation was significantly lower than the fund’s 10 largest holdings, each of which accounted for between 3.4 percent and 7.6 percent of net asset value.

Combined, the PNJ holdings of the two funds were worth around VND31.3 billion ($1.2 million) at the end of August, with the stock accounting for less than 0.5 percent of net asset value at each fund.

August also marked a return to increased investment by DCDE. Its net asset value per fund certificate rose 3 percent, while its cash allocation fell from 27.1 percent at the end of July to 4 percent at the end of August.

Dragon Capital said the fund had gradually resumed investing as investment opportunities became clearer.

DCDS has restructured its portfolio, reducing exposure to some stocks with limited short-term prospects and reallocating capital to stocks expected to benefit from capital flows following the FTSE upgrade and stocks with higher beta values.

DCDS’ return to PNJ came after a month of sharp volatility in the stock.

At the end of June, PNJ was trading at around VND63,000 ($2.4) per share. By the end of July, its price had fallen to around VND31,000 ($1.2), losing more than half its value in a month.

The stock rebounded in August, ending the month at VND42,100 ($1.6) per share, up nearly 36 percent from the end of July.

The rebound coincided with PNJ’s return to the portfolios of both DCDS and DCDE.