VinaCapital Vietnam Opportunity Fund

Positive earnings outlook in Vietnam

12 November 2024

VinaCapital Vietnam Opportunity Fund’s (VOF’s) sterling net asset value (NAV) per share increased by 9.1% over the year ending October 2024 in total return (TR) terms, compared to the Vietnamese equity market’s 14.1%, as measured by the VN Index. Vietnam’s equities are benefiting from increased interest from local retail investors, driven by low deposit rates, alongside favourable economic prospects, including a revival of exports. In 2024, Vietnam’s GDP growth is expected to accelerate and corporate earnings on average to grow at double-digits (LSEG Data & Analytics consensus). VOF’s shares trade at a 25% discount to NAV (vs a five-year average of 18%) and offer a 2.5% dividend yield. MORE »

Riding the new Asian tiger

18 December 2020

VinaCapital Vietnam Opportunity Fund (VOF) has benefited from its differentiated mix of listed and private investments during a volatile year for global stock markets. The authorities’ strong response to the COVID-19 pandemic has meant the human impact on Vietnam has been limited, and the main stock market index is up 11.3% year-to-date (to 16 December) as foreign investors have begun to return. However, VOF’s NAV total return is up 21.3% over the same period (all in GBP), thanks to the greater stability of its private equity portfolio as well as positive performance from listed holdings, including its largest position in steelmaker Hoa Phat Group, which is benefiting from government stimulus focused on infrastructure spending. The VOF team says that Vietnam – a rare oasis of GDP growth in the economic desert of 2020 – is set fair to be the next ‘Asian tiger’. MORE »

Strong deal flow underlines private markets focus

19 December 2019

VinaCapital Vietnam Opportunity Fund (VOF) is a well-established, FTSE 250 Vietnam specialist fund that invests primarily via privately negotiated deals, with four major deals recently signed or close to completion. The manager takes a fundamental, bottom-up approach and invests on a medium-term view, which leads to many holdings becoming listed while in the portfolio. Longer-term NAV total returns have been good; VOF’s 10.9% pa return over 10 years compares favourably with the VN Index’s 10.5% pa return. The manager expects global stock markets will remain volatile – influenced by prospects for US interest rates and the US administration’s focus on trade protection – which he believes increases the importance of private deal sourcing in generating attractive returns. MORE »

Fundamentals suggest promising outlook

5 December 2018

VinaCapital Vietnam Opportunity Fund (VOF) is a large, well-established Vietnam specialist investment fund, differentiated by its focus on private deal sourcing. NAV total returns have been particularly strong over the last three years, and are ahead of VN Index and peer returns over the last 12 months, when markets have been volatile. VOF’s share price discount to NAV has narrowed, but it remains wider than the peer group average. The board has taken steps to address the discount, moving VOF’s listing to the LSE’s Main Market in 2016, starting a dividend programme in 2017, and agreeing a reduced management and incentive fee structure in 2018. The board recommends that shareholders vote against discontinuation at the forthcoming AGM, highlighting the promising outlook suggested by market fundamentals, as well as the manager’s strong track record. MORE »

Strong market fundamentals expected to prevail

17 September 2018

VinaCapital Vietnam Opportunity Fund (VOF) is one of the oldest and largest Vietnam specialist investment companies and is now a FTSE 250 index constituent. Investing across asset classes – listed and unlisted equity, private equity and real estate – VOF’s approach is differentiated by its focus on private deal sourcing, where its investment team has extensive experience. In sterling terms, VOF’s NAV total returns have been strong over the last three years. While lagging the Vietnamese stock market over one year, VOF’s NAV held up well during the 2018 market correction. The US-China trade dispute has weighed on market sentiment, but the manager believes that fundamentals remain strong and the current market level presents an opportunity for investors taking a medium-term view. MORE »

Targeting Vietnam’s growth potential

15 December 2017

VinaCapital Vietnam Opportunity Fund (VOF) is one of the largest specialist Vietnam funds. VOF invests primarily in public and private equity, with a smaller percentage in real estate. Management believes the fund’s key differentiator to be the access it offers to off-market deals. VOF provides broad exposure to Vietnam’s economic growth prospects. It focuses on domestic sectors that are well positioned to benefit from continued urbanisation and investment-led economic development, most notably consumption, construction, infrastructure and real estate. In November VOF appointed Frostrow Capital to act as its marketing and distribution partner in the UK, with the aim of enhancing the fund’s engagement with current and potential shareholders, financial advisers and fund analysts, increasing liquidity in the shares and narrowing the discount to NAV. MORE »

Broad exposure to interesting frontier market

8 August 2016

VinaCapital Vietnam Opportunity Fund (VOF), one of the larger and longer-established Vietnam-focused funds, provides exposure to the economy’s evolution via investment across listed equities, companies in the process of privatisation, private equity and real estate. The manager aims to invest where there is opportunity to help management develop their businesses, focusing on sectors expected to benefit the most from Vietnam’s secular growth. The board has been taking action to address the wide discount the shares trade on, including the recent move of listing from AIM to the Main Market of the London Stock Exchange, leading to FTSE index inclusion. MORE »

Listed equities lead recovery

1 October 2014

VinaCapital Vietnam Opportunity Fund (VOF) is designed to give investors broad exposure to the Vietnamese economy through a diversified multi-asset portfolio. VOF is a large, liquid investment company traded on AIM. The Vietnam Index has been a strong performer this year (total return 22% to 29 September compared with 3% for emerging markets). The VOF listed equity portfolio nearly matched the index to end August, but overall NAV performance has been held back by the property and unlisted exposure. In due course a broadening of recovery should benefit VOF, while positive signs on structural reform of state-owned enterprises point to greater investment opportunities. MORE »