Methods for determination of net asset value of the investment companies in Vietnam

Methods for determination of net asset value of the investment companies in Vietnam (Internet image)

Article 10 of Circular 227/2012/TT-BTC stipulates that the asset management company shall determine the net asset value of the investment company and net asset value per share of the investment company at least once per week, in particular:

• The net asset value of the investment company is the total asset value minus the its debt. The total asset value of the investment company is market prices or reasonable values of assets (if market prices are not determined). The total debt of the investment company is the debts of payables of the investment company up to the day before the valuation day. The method for determining market prices and reasonable values of assets in the portfolio, values of debts, and payables is specified in Annex 07 enclosed with this Circular, and the internal regulation in the valuation book;

• The net asset value per share equals the net asset value of the investment company divided by the total number of shares outstanding.

In addition, the asset management company must compile a valuation book which specifies:

•  The rules and criteria for selecting and changing quotation providers. These rules must be specified in the charter of the investment company;

• The rules, process, and methods for valuation in conformity with law, the charter of the investment company, and passed by the General meeting of shareholders of the investment company. The rules, process, and methods for valuations must be clear, reasonable,  and conformable with international practice in order to be uniformly applied in different market conditions.

More details can be found in Circular 227/2012/TT-BTC, which comes into force from July 1, 2013.

Le Vy

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE