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VinaCapital Vietnam Opportunity beats benchmark by over 10%

Over the year to the end of June 2016, VinaCapital Vietnam Opportunity Fund beat its benchmark, the VN Index, by over 10%. The fund’s NAV returned 15.3% in US dollar terms against 4.3% for the index.

Listed equities were 47.9% of the portfolio at 30 June 2016, down from 52.4% the previous year. this part of the portfolio returned 22.3%. One big trade was the sale of Hau Giang Pharmaceuticals (DHG) to Taisho, a leading Japanese pharmaceutical company. DHG had represented one of their top 10 holdings and it was sold to a strategic investor at a significant premium to the prevailing market price.

OTC (over-the-counter) securities were 8.4% of the fund at end June (up from 6.5%). During the year, the Company purchased a stake in Airport Corporation of Vietnam. they would have liked to do more in this area but say the government is being slow to privatise businesses.

Private equity was 12.5% (from 9.5%) – they lost money here (-2.2%). They made new investments in An Cuong Woodworking in the construction materials sector, a co-investment with DEG of Germany, and in Thai Hoa International Hospital, a healthcare sector investment located in the Mekong Delta.

The allocation to property fell from 14% to 8.2% – in line with their plan to reduce the focus on this area. sales included Century 21 project, Danang Golf Club and Pham Hung, freeing up $50m. Collectively, these were sold at premiums to asset value.

VOF also still owns the Sofitel Metropole Hotel in Hanoi, representing 9.2% of assets. They say they are “evaluating their options”.

VOF : VinaCapital Vietnam Opportunity beats benchmark by over 10%

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