SSI-SCA Fund Exits Entire VIC Stake, Cash Rises to 21% in September

Overview

SSI Sustainable Competitive Advantage Fund (SSI-SCA) sold its entire position in Vingroup (ticker VIC, HOSE) during September 2026, removing a holding that represented nearly 11% of the portfolio at the end of August. The exit lifted the fund’s cash and equivalents to 21% of net asset value, roughly double its monthly average of about 10%. The move is notable because VIC had been SSI-SCA’s single largest investment, and the Vingroup complex accounted for roughly 45% of the VN-Index decline during the month.

Key Facts

• SSI-SCA held VIC at close to 11% of the portfolio at end-August 2026; the position was zero by end-September.
• Fund net asset value stood at approximately VND 1,300 billion at end-September.
• Equities fell to 78.62% of total assets, while cash and equivalents rose to 21% versus a monthly average near 10%.
• SSI-SCA returned -3.1% in September 2026, versus -3.5% for the VN-Index.
• Four of the fund’s five largest holdings were banks: TCB, HDB, VCB and MBB; MWG was the only non-financial name in the top five at 4.85%.
• HoSE average daily turnover fell to USD 633 million per session, the lowest since February 2025.
• Foreign investors net sold roughly USD 179 million across the three exchanges during the month.

What Happened

According to SSI-SCA’s September 2026 monthly report, VIC no longer appeared in the fund’s portfolio at month-end, a reversal from end-August when it was the largest single holding at close to 11% of assets. The report does not disclose the transaction value or the timing of the sales within the month. The fund’s cash weighting doubled to 21%, a level well above its typical monthly allocation of about 10%.

The fund’s absolute losses were concentrated in Financials and Real Estate, followed by Materials. At the stock level, TCB, TCX, VHM and NLG were the largest detractors, while PVT, VPB and REE offset part of the decline. SSI-SCA attributed the market pullback to rising global bond yields, elevated oil prices, weakening domestic liquidity and heavier foreign net selling. The report notes that the fund’s active reduction of VIC during the month benefited relative performance as the market rotated away from the stocks that had previously led the VN-Index higher.

Market Context

VIC closed at VND 222,000 on 13 October 2026 on HOSE, while banking names in the fund’s top holdings traded at VND 32,950 (TCB), VND 23,100 (HDB) and VND 56,300 (VCB). September’s correction came even as FTSE Russell’s upgrade of Vietnam to secondary emerging market status took effect on 21 September, a catalyst that failed to offset macro headwinds. The Vingroup complex’s outsized contribution to the index decline illustrates how concentrated the prior rally had become, and SSI-SCA’s exit reflects a deliberate rotation away from that concentration rather than a broad de-risking.

Strategic Significance

The decision to fully exit VIC rather than trim it signals that SSI-SCA’s managers view the Vingroup complex’s index-level influence as a two-way risk after a period in which it drove a disproportionate share of market gains. By rotating into banks and holding 21% cash, the fund positions itself to redeploy capital if liquidity conditions stabilize or if valuations in financials continue to offer a more balanced risk-reward than the property-and-EV conglomerate. For long-term investors in VIC, the relevant question is whether the stock’s September underperformance reflects a durable shift in institutional positioning or a temporary unwind of a crowded trade.

What to Watch

• SSI-SCA’s October monthly report, for whether cash remains near 21% or is redeployed into equities.
• Foreign net buying or selling figures on HOSE, HNX and UPCOM for October, following September’s USD 179 million outflow.
• HoSE average daily turnover, to see whether the USD 633 million September low marks a trough.
• VIC’s Q3 2026 earnings release and any updates on Vingroup’s broader restructuring or capital plans.
• FTSE Russell’s post-upgrade flow data, to assess whether passive inflows materialize after the 21 September effective date.