Vietnam index launched for foreign institutional investors

Citi Group, the leading global financial services company, and global index provider FTSE Group on May 22 launched the FTSE Vietnam Accessible Index, the first Vietnam equity index for foreign institutional investors.

Citi Group, the leading global financial services company, and global index provider FTSE Group on May 22 launched the FTSE Vietnam Accessible Index, the first Vietnam equity index for foreign institutional investors.

Citi Group will create an index tracker and other equity linked products structured off the FTSE Vietnam Accessible Index to enable foreign investors access into Vietnam - one of the fastest growing economies in the Asia Pacific region.

Justin Kennedy, Managing Director of Citigroup Global Markets Asia, was quoted as saying that “We have had enormous investor demand for a Vietnam benchmark that is liquid and reflects the restrictions on foreign investment. The index that we have created with FTSE is the first to meet both of these objectives”.

The FTSE Vietnam Accessible Index Series takes the top 80 percent of the stocks listed on the Ho Chi Minh City Securities Trading Centre based on full market capitalization and takes into consideration the Foreign Ownership Restrictions (FOR) placed on Vietnam listed companies by only including those shares that are available to international investors.

The FTSE Vietnam Accessible Index is free float adjusted and liquidity screened using FTSE methodology standards. The resultant index is a highly representative index to meet international investor needs.

(Source: VOV)