Vietnam Holding (VNH) says net asset value fell 3.1% in October, underperforming the Vietnam Index which dipped 0.7%. The country suffered severe weather with typhoons battering the north and central regions leading to flooding that claimed 90 lives and persisted into early November. As a result, retail sales growth eased to 7.2% as consumers stayed home. However, factories continued to operate and the country’s manufacturing sector delivered a strong performance. Vietnam’s PMI purchasing managers’ index surged to 54.4, ahead of China (50.6), the EU (50), Japan (49.4), and Korea (48.2). “The resilience of Vietnam’s industrial base, even in the face of natural disasters, underscores the structural transformation taking hold across the economy,” the £77m Dynam Capital managed fund says.
BlackRock World Mining (BRWM) saw net asset value rise 3.9% but its share price fall 3.1% in October in a “relatively flat month for the mining sector” after September’s rally with the MSCI ACWI Metals & Mining 30% Buffer 10/40 index rising 2.8%. BlackRock fund managers Evy Hambro and Olivia Markham said weakening of industrial output in China with its manufacturing PMI falling to 49 from 49.8 in September in a seventh consecutive month of contraction, US-China trade uncertainty and China’s Golden Week National Day holiday contributed to the “pause”, while gold equities – which make up 35% of the £1.3bn investment trust’s portfolio – weighed as the gold price proved volatile after hitting record highs. The managers remain excited about the outlook for gold producer earnings and believe they see early signs of China’s economic recovery despite US tensions.
Mobius (MMIT), the emerging markets smaller companies trust hit by 43% redemptions earlier this month, says net asset value rose 4.1% in October, slightly behind the MSCI EM Mid Cap index which returned 4.4% while its shares were flat. The main contributors to the portfolio rise were Taiwanese testing equipment maker Chroma (+1.4%), Indian online auto classifieds platform CarTrade (+1.1%), and semiconductor testing company LEENO Industrial (+0.5%). The main detractors were Taiwanese electronic ink producer E Ink (-0.9%), Taiwanese electronic components designer and manufacturer Lotes (-0.5%), and Chinese online travel agency Trip.com (-0.3%). Emerging markets outperformed developed markets after the Fed’s second consecutive month of interest rate cuts. Despite a temporary trade deal with the US, Chinese and Hong Kong indices retreated. South Korea also reached a new trade agreement with the US. Its market delivered strong returns, driven by momentum in tech and corporate governance reforms.
