Dragon Capital Vietnam Fund Management Joint Stock Company (DCVFM), the nation's largest fund manager, recorded an after-tax profit of over 235 billion VND in 2024. However, the company's profitability is currently on a downward trend, with its after-tax profit decreasing by nearly 20% last year and a sharp 60% drop in the first half of this year. These figures were disclosed in its public company filing, which revealed business results for the past two years, consistently showing hundreds of billions of VND in annual after-tax profits.

In 2024, DCVFM's revenue increased by 4% to nearly 1,061 billion VND. This was primarily driven by a 3% rise in securities investment consulting revenue, reaching almost 756 billion VND, and a 7% growth in asset management revenue, totaling nearly 305 billion VND. The company also saw a significant boost in financial income, which surged 3,2 times to over 100 billion VND compared to the previous year. Despite the revenue growth, higher expenses impacted profitability. Financial expenses more than doubled to 1,24 billion VND, and general and administrative expenses increased by 26% to approximately 863 billion VND. Consequently, after-tax profit for 2024 fell to over 235 billion VND, nearly 20% lower than the previous year.

The downward trend continued into the first half of this year, with DCVFM's six-month revenue decreasing by 12% to over 480 billion VND. This decline was mainly due to a 17% drop in securities investment consulting revenue. While asset management revenue saw a slight 2% increase year-on-year, financial income plummeted 90% to nearly 9 billion VND. Concurrently, expenses remained high. Financial expenses for the period surged 755% to over 2 billion VND, a stark contrast to a reversal of approximately 340 million VND in the first half of 2024. Although general and administrative expenses decreased by 9%, they remained substantial at over 417 billion VND. As a result, after-tax profit for the first half of this year was over 55 billion VND, a 60% reduction from the same period last year. The company has only achieved nearly 23% of its full-year profit target, despite reaching over 41% of its revenue target. For this year, DCVFM aims for a nearly 10% increase in revenue and a nearly 4% improvement in profit compared to 2024.

DCVFM, established in 7/2023, is the first domestic fund management company in Vietnam. It was co-founded by Dragon Capital—a financial investment institution with extensive experience in Indochina—and Sacombank (STB). The company's core business focuses on managing securities investment funds and investment portfolios. DCVFM has been a leader in developing various fund certificate products, including closed-end funds, open-end funds, and exchange-traded funds (ETFs). It also pioneered investments in the private sector and participated in the equitization of state-owned enterprises.

Investors monitoring information on a DCVFM equity open-end fund. *Photo: Dragon Capital*

As of May, DCVFM's total assets under advisory and management stood at approximately 128,000 billion VND, equivalent to 4,9 billion USD. The company is a leading public fund management entity in the market, both in terms of the number of funds and the total net asset value (NAV) mobilized. According to State Securities Commission (SSC) data from 2023, DCVFM commanded 59% of this market's NAV.

Currently, foreign institutional shareholders hold nearly 92,76% of DCVFM's capital, while 153 domestic individuals own nearly 5,95%. The remaining small portion belongs to foreign individual shareholders. The two largest shareholders are members of Dragon Capital, accounting for over 87,95%. DCVFM's registration as a public company was confirmed by the SSC on 27/11, marking an initial step toward listing the company's shares on the stock exchange.

Tat Dat