VinaCapital Vietnam Opportunity has published results for the 12 months ended 30 June 2024. The NAV total return for the period was 7.8%, ahead of the 4.9% return posted by the VN Index. Dividends for the period total 14.25 cents.
8m shares were bought back at a weighted average discount of 20.5% and at a cost of $45.8m, which was 4.8% of shares in issue at the start of the period. This added 7.8 cents per share to the NAV. Since the year end, the discount has come under further pressure and the company has spent a further $20.1m on buybacks in the first quarter of this financial year.
The period was marked by the death of Andy Ho in June following a stroke. Andy had been lead portfolio manager of the company since 2007 and was the chief investment officer of VinaCapital. Brook Taylor, CEO of Asset Management at VinaCapital, stepped in as interim lead manager on the portfolio. Brook has lived and worked in Vietnam since 1997 and joined VinaCapital initially as chief financial officer in 2007. Andy’s two long-serving deputies, Khanh Vu and Dieu Phuong Nguyen, continue in their roles as co-lead managers, positions they have held for the past six years under Andy’s leadership, and they are supported by a well-resourced team of 15 investment professionals. The new CIO is Alex Hambly, who had been sitting as an independent member of VinaCapital’s Investment Committee for four years having served previously as CEO and CIO of Prudential’s fund management business in Vietnam.
In the unquoted portfolio, the chairman says that although the real estate sector has continued its recovery, liquidity remains very tight and the counterparties to the investment related to Novaland have defaulted again. The manager continues to seek a full recovery of the original investment and contractual returns, the eventual outcome and its timing remain uncertain. On that basis, the board has substantially reduced the fair value of this investment. In addition, two private equity investments also experienced problems during the year and were written down in value. IN Holdings has suffered from a slowdown in its traditional event and conference centre business as well as finding the integration of the restaurant portfolio acquired in June 2023 more difficult than anticipated. In addition, Thu Cuc Hospital Group, the hospital and medical centre business in Hanoi, has experienced increased competition and other operating difficulties which have adversely affected its business. These movements took $44.8m, 30 cents per share, or 3.8% off the NAV.
VOF : VinaCapital Vietnam Opportunity new team in place following sad passing of Andy Ho
