VinaCapital Vietnam Opportunity Fund announces full-year results to 30 June
Outperforms benchmark VN index by 11pp in USD terms
In its annual results to 30 June 2016, VinaCapital Vietnam Opportunity Fund (VOF) has reported positive returns both in absolute terms and relative to the VN index benchmark. Its US dollar net asset value rose by 15.3% over the period, outperforming the benchmark, which rose by 4.3%.
In March 2016 VOF moved its domicile from the Cayman Islands to Guernsey, and its listing from AIM to the Main Market of the London Stock Exchange. At the same time it also changed the currency of its shares from US dollars to sterling. Share price performance over the 12 months was +12.8% in USD terms.
VOF’s portfolio at the year-end was 47.9% invested in listed equities, 12.5% in private equity, 8.4% in over-the-counter securities (companies in the process of privatisation) and 8.2% in property, with a further 9.2% invested in a hotel in Hanoi, and the balance mainly in cash. The equity portfolio rose in value by 22.3% in USD terms over the year, boosted by strong returns from large holdings including Vinamilk (+24.8%), Phu Nhuan Jewelry (+94.9%) and Hoa Phat Group (+37.0%).
Fund manager Andy Ho notes that Vietnam was the standout economy in Asia over the 12 months, posting GDP growth of 6.7% pa, the highest in the region. However, with growth slower in the second half of the period than the first, VOF chairman Steven Bates comments that more progress needs to be made on addressing the country’s growing fiscal deficit. This could be assisted by accelerating the programme of privatisation, which would also increase VOF’s opportunity set.
Between the year-end and 30 September 2016, VOF’s US dollar NAV rose a further 8.2%.
See the last Edison report on VOF here.
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