VinaCapital Vietnam Opportunity Fund keen to tackle its discount

VOF : VinaCapital Vietnam Opportunity Fund keen to tackle its discount

VinaCapital Vietnam Opportunity Fund results for the year that ended on 30 June 2014 have been published today. The asset value increased from $2.88 to $3.27. They bought back $52.3m worth of shares – taking the total to 26.6% of the fund since they initiated the buy-back in October 2011.

They say the 67% of the portfolio invested in quoted stocks rose by 24.3% – well ahead of the 19.2% return on the VN Index. The Chairman’s statement highlights strong contributions from “Hoa Phat Group (HPG, a steel company), Kinh Do Corporation (KDC, a bakery and confectionery business), Duoc Hau Giang Pharma Corp (DHG, a pharmaceutical company) and An Giang Plant Protection (AGPP, a distributor and manufacturer of crop protection chemicals).” and says that An Giang was sold after the year end for $63.1m which equates to an IRR of 23.7% over five years.

The property portfolio though fell in value, the hotels portfolio was unchanged in value despite a $3m uplift on the disposal of the Movenpick Hanoi. The private equity portfolio value was little changed as well. They say they are keen to grow this as a percentage of the portfolio from the current 2.5% level.

The Board says the current discount is too wide and will continue to buy back shares, seek a premium listing on the London exchange and step up its marketing efforts


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