Vietnam Holding reappoints old manager- Vietnam Holding (VNH) was in the news a lot in May. It first announced on 16th May, that it was changing its investment agreement with its existing investment manager and wanted to increase its size by acquiring the assets of another Vietnamese listed equity fund (click here to read more on that story). Two days later, Vu Quang Thinh, who headed the investment management team at VietNam Holding Asset Management, resigned (click here to read more). On the 29th of May, the company disclosed that it was also the target of PXP Vietnam Emerging Equity Fund. (click here to read more on PXP’s approach)
Vietnam Holding has now announced that it entered into a new investment management agreement with Dynam Capital, and has also reached a settlement with the previous manager VietNam Holding Asset Management Limited.
Dynam Capital
Dynam Capital is a Cayman Islands company led by Vu Quang Thinh and Craig Martin. They will sit on VietNam Holding Asset Management’s investment committee to ensure an orderly handover of portfolio management duties to Dynam.
Fees
Fees will change from:
- 2.0% on the first $100m of the NAV
- 1.75% on the next $100m to $150m
- 1.50% on the NAV greater than $150m
- a performance fee of 15% above hurdle rate of 5% (capped at 3% NAV)
to a management fee of:
- 1.5% on the first $300m of the NAV
- 1.25% on the next $300m to $600m
- 1.00% on the NAV greater than $600m
- a performance fee of 12% above hurdle rate of 8% (capped at 3% NAV)
Settlement with VietNam Holding Asset Management
The previous investment manager will be paid the regular management fee until 15 July 2018, and a payment of $1.059m in respect of all other claims. It has been agreed to cancel the deferred incentive fee in respect of the year 2016/17 of $1.04m and this will be put back into the NAV. As a result, the company states that the settlement will have no net impact on the NAV.
VHN : Vietnam Holding reappoints old manager