The Ho Chi Minh City-based firm has launched what it says is Vietnam's first Ucits fund. It is mulling partnering with firms to offer third-party funds on its Ucits platform.
The recent change in tack comes amid other plans to liberalise Vietnam's financial markets. Meanwhile, the first locally listed exchange-traded funds are in the pipeline.
Frontier Investment & Development Partners is less upbeat than its former partner about the outlook for Vietnam and is raising a separate fund of its own.
Foreign investors must have exit strategies at all times to guard against the sudden risk of market liquidity grinding to a halt, says a fund manager in Ho Chi Minh City.
It is taking longer than planned for Vietnam's Dragon Capital to hit $50 million for its new private equity fund. Meanwhile, it is eyeing microfinance and plans to use Ucits to sell into Europe.
The Vietnamese firm will establish open-ended funds this year through its local subsidiary, as foreign asset managers await approval to do so, amid a raft of other reforms.
Raising the country's foreign-ownership limits would attract more investment from offshore and provide local banks with greater access to foreign expertise, say fund managers.
Having started as chief investment officer in September, Hoang Nguyen has stepped down to be replaced by Michael Kokalari, previously an advisor to VietFund Management.