VinaCapital Vietnam Opportunities Fund added around 1% to its NAV over the second half of 2014. This was well ahead of the Vietnam Index which fell by 6%.
The best performing part of the portfolio was their private equity positions. They sold An Giang Plant Protection for $63.1m. This investment was originally purchased five years ago and the sale represents an IRR of 23.7% per annum over the holding period. They made a new $34.5m private equity investment for 56% of one of Vietnam’s largest dairy businesses, International Dairy Products (IDP) in conjunction with Japanese private equity investor Daiwa and reduced their position in its quoted competitor, Vinamilk – raising $21m at a premium to the market price, reflecting the scarcity of stock available to overseas portfolio investors because of the limits on foreign ownership. The position in Vinamilk is still the largest in their listed portfolio, representing 10% of VOF’s assets. They sold the holding in Kinh Do Corporation, a bakery and confectionery business, for $32m.
VOF : VinaCapital Vietnam Opps swaps dairy interests, outperforms