What is the maximum investment amount that a fund management company is allowed to invest indirectly in foreign countries?

The level of indirect investment abroad by a fund management company is regulated in Clause 1 Article 14 Circular No. 105/2016/TT-BTC as follows:

Safe investment ratio of the fund management company

1. The fund management company is allowed to invest a maximum of twenty percent (20%) of equity in the most recent audited annual financial statements or the most recent reviewed semi-annual financial statements. and the most recent quarterly financial statements and do not exceed the registered self-trading limit confirmed by the State Bank of Vietnam in the investment instrument prescribed by the State Bank of Vietnam.

2. In case the investment portfolio of the fund management company exceeds the limit specified in Clause 1 of this Article due to fluctuations in the market price of the assets held, due to enjoyment of rights related to assets held, the fund management company must take necessary adjustment measures to comply with the investment limit as prescribed in Clause 1 of this Article within three (03) months from the date the investment exceeds the limit. .

3. The fund management company must comply with the regulations on financial investment according to the law on establishment, organization and operation of fund management companies when making indirect investments abroad.

Thus, according to regulations, fund management companies are allowed to self-trade in indirect investments abroad with a maximum investment of twenty percent (20%) of equity in the most recent annual financial report. audited or the most recent semi-annual financial statements have been reviewed and the most recent quarterly financial statements.