ACE Life gets ready to spread financial wings

14:30 | 18/11/2013

Lam Hai Tuan, chairman and country president of ACE Life Vietnam explained to VIR how the full licence for ACE Life Fund Management Company (ACE Life FMC) in late October would help the fast-growing life insurer increase earning rates on its assets.

Why was ACE Life FMC established?

The company will provide long-term investors, both foreign and domestic individuals and institutions, with various attractive offerings including, but not limited to establishing and managing of closed and open-ended funds, including pension funds.

It will ensure that ACE Life Vietnam’s assets are managed efficiently in order to enhance its earning rate. This helps us achieve our objectives of providing more benefits to our customers, while deepening and enriching the capital markets in Vietnam. 

ACE Life FMC will aid ACE Life by helping to manage the future pension fund’s assets. With ACE Life FMC, we will have a full set of tools to enter the pension market which is an important element of the government’s programme.

Apart from managing the assets of our future pension funds, this company would help us develop more unit-linked products to diversify its product categories which provide more choices for customers, as well as attract and raise more capital for the Vietnam’s growing economy. It also helps to enhance our professional investment activities in order to maximise benefits for customers. Our investment activities and asset management will be carried out in an even more systematic way and be more transparent thanks to a team of experienced and dedicated professionals. This ensures benefits to us and the customers.

ACE Life FMC will contribute to enriching Vietnam’s capital market by bringing into the country not only capital from the ACE Group but also from other foreign individual and institutional investors.

What are its core business interests?

To accomplish our objectives in accordance with Vietnam’s capital markets, ACE Life FMC will focus on two main business lines: securities investment funds management services and portfolio management service through asset management contracts.

How can the newly-born company compete with the nearly 50 fund managers already operating in Vietnam?

As a fund management company wholly owned by ACE Life – one of the highly reputable life insurance companies in Vietnam, ACE Life FMC will have strong supports from ACE Life in terms of capital, management experience and human resources. The company will also receive continuous support from the ACE Group – a global leader in insurance and reinsurance. ACE Limited, the parent company of the ACE Group, has consistently gained high ratings for the strong capital base and financial stability from most of popular credit rating agencies.

In addition, with ACE Life Vietnam’s reputation, experience and support, ACE Life FMC will inherit a valuable brand name which would allow it to gain more competitive advantages in raising capital, investment portfolio management, and product design suitable for various groups of investors and hence attracting more customers.

As a new fund management company, the company will benefit from utilising model technology as well as enjoying the application of international standards in Vietnam market.

Can you point out some clear opportunities for the company now?

Vietnam’s economy has gained steady growth in recent years. This leads to increasing demand for financial services. This creates more opportunities for the services provided by fund management companies to grow.

Foreign investments have significantly increased inflows to Vietnam. Vietnam’s government has also offered many incentives to attract foreign investment. In recent years, the fields which have received direct foreign investment become the driving force in the growth of industrial production in Vietnam. Production and business activities of foreign enterprises in Vietnam have promoted the development of a strong financial services market and created greater and more diverse demands.

Vietnam’s financial markets in general and stock market in particular have big potential. There will be more businesses to undergo privatisation in the near future. This will be a quality source of supply and promises to attract the attention of securities investment funds.

In addition, the real estate market will be a good asset in any investor’s portfolio in the future as there remains an increasing demand for urban infrastructure development since the current supply still does not meet the demand.

Through this, although the number of fund management companies may be considered large in the current context, there will still be many opportunities for fund management companies who possess strong capital and capability to raise funds to enter the market and make profits while contributing to the enriching of the market.

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