Vietnam Holding (VNH) has released its annual results for the year ending 30 June 2023.

• Over the period VNH reported a negative NAV return of (5.7%), though this represented an outperformance relative to the market, measured by the VNAS index, which fell by (10.0%). This also marks the fifth year of management under Dynam Capital.
• VNH’s discount averaged 15.7% over the period, and currently trades on a 16.4% discount. The board has undertaken additional marketing activity throughout the year to help narrow the discount. This included roadshows, topical seminars, podcasts, and several webinars. The board also repurchased 1.5m shares over the period, equal to 5.1% of the then circulation.
• VNH’s five year continuation vote will take place at the 2023 AGM, held in November. The board believes that VNH’s manager has done ‘an excellent job’ and that the market opportunity for the fund remains, and that shareholders should thus vote in favour of continuation.
• VNH continues to promote good ESG practices, and were sponsors of the inaugural ESG Investing Conference held in Ho Chi Minh City on 31 May and 1 June 2023.

Hiroshi Funaki, chair of VNH, commented:

“The Board visited Vietnam in March of this year and sat down with the Investment Manager to go through their strategy, meet with the research team and also to review in depth with the team one of the top five holdings.

“We came away from the meeting feeling confident about several fronts. Firstly, Vietnam remains a dynamic investment opportunity. Despite periods of volatility and market depression, the underlying macro story and potential for the country and its companies are both tremendous and distinctive. Secondly, its public markets offer a rare mix of growth that is not based on financial gearing and is at modest valuation levels and indeed at historical lows. Thirdly the structural improvements in liquidity will continue this year with more enhancements made to the stock market infrastructure, which also makes us more convinced that it is only a matter of time before the market is considered for an upgrade to Emerging Market Status. Finally, Dynam Capital, our Investment Manager has proven themselves to be a nimble, focused team, punching above their weight, and delivering superior risk adjusted returns in both financial and environmental, social and governance terms.

“When we appointed Dynam Capital five years ago, we set out three main objectives. Firstly, to provide solid risk adjusted returns for shareholders. Secondly, to build on and develop an ESG centered investment strategy fit for purpose. Thirdly, to use all means possible to narrow the discount between the Company’s share price and NAV. In addition, we also set forth a dedicated marketing plan to broaden the shareholder base, in an attempt to increase the visibility of the Fund and its liquidity and ultimately attract retail and wealth management platforms, which we felt would be natural buyers of a focused, yet niche investment company structure.”