Vietnam’s economy and the earnings of its listed companies are strengthening yet share prices have gone the other way, say Vietnam Enterprise (VEIL) fund manager Tuan Le and Craig Martin, chair of Dynam Capital, the manager of Vietnam Holding (VNH). Tuan Le points to “foreign selling and a domestic flight to bank deposits” for offsetting a 47% increase in first half corporate profits and an 8.2% rise in GDP with the Vietnam All Share index down 7.5% in July. Tuan Le is hopeful easing inflation and Vietnam’s promotion to secondary emerging market status by index provider FTSE Russell next month will start to reverse this. “A market does not usually ignore earnings of that order. When it does, the cause is rarely the companies, it is who is buying them, and this year the bid narrowed to a handful of index mega-caps while the rest of the market was left behind,” he said. Martin said it was a case of “summertime blues” that had left VNH’s portfolio trading on just 8.8 times estimated 2026 earnings compared to 11.2 times for the market, though he said August had started on a stronger footing with VNH up around 5%.
James Carthew, head of investment companies research at QuotedData, said: “Both VEIL and VNH paint a picture of thriving portfolio companies being steadily de-rated. Both portfolios are trading on less than 10x prospective earnings, despite high double digit or even triple digit earnings growth. Indices are being distorted by a narrow group of stocks and the funds’ underperformance needs to be viewed in that context. Logic suggests that patient investors will be rewarded.”
Valhalla, the investment vehicle of Mark O’Hare, the founder of alternative asset data provider Prequin, has lifted its stake in HgCapital Trust (HGT) to nearly 13.4% from 12%. The Jersey company first emerged with a 3.3% stake in February after the £1.9bn software focused private equity fund was sold off on fears that artificial intelligence (AI) would disrupt the businesses it backs. It continued to buy as HGT shares fell to a 323p low in May before recovering to 425p but still below the 507p level at the end of January. This has left the formerly premium-rated investment trust standing on a 20% discount to net asset value.
EJF Investments (EJFI), the £80m investor in US regulatory debt, made a 5.4% total investment return in the second quarter as bank shares rallied on preliminary peace agreements in the Middle East and credit market spreads tightened in response to strong corporate earnings. Following a 3.3% gain in the first quarter, EJFI made nearly 9% in the first half. The company was surprised at the slow pace of bank merger and acquisitions given what it called the supportive regulatory environment and modest interest rates, but expected activity would pick up in the second half. The shares yield 8% and stand on a 20% discount.
JPMorgan Global Core Real Assets (JARA) entered voluntary liquidation yesterday after over 99% of shareholder votes at an extraordinary general meeting approved the Guernsey investment company being wound up and liquidators from KPMG appointed. Launched in 2019, JARA has been realising its assets and returning capital to shareholders since the end of 2024. The shares have been suspended.
