RCS - VinaCapital Vietnam - Edison issues update on VinaCapital VOF

VinaCapital Vietnam Opportunity FundAnnouncement

02/08/2023 07:00

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RNS Number : 9169H  VinaCapital Vietnam Opportunity Fd.  02 August 2023

London, UK, 2 August 2023

 

Edison issues update on VinaCapital Vietnam Opportunity Fund (VOF)

VinaCapital Vietnam Opportunity Fund's (VOF's) sterling net asset value (NAV)
per share decreased by 8.8% over the year ending June 2023 in total return
(TR) terms, outperforming the Vietnam VN Index and its direct peers in a tough
environment. The Vietnamese economy recently experienced headwinds from a
liquidity crunch in the real estate industry, which represents roughly a fifth
of Vietnam's equity market capitalisation and a fourth of VOF's NAV, as well
as from slowing exports. That said, the downside protections embedded in many
of VOF's investments provide the fund with a certain cushion against these
real estate sector challenges. VOF's shares trade at a 14% discount to NAV
(broadly in line with the long-term average) and offer a 2.6% dividend yield.

 

VOF is an attractive play in Vietnam's long-term growth story, while at the
same time offering downside protection during periods of short-term market
headwinds through structuring investments on private terms (c 80% of VOF's
investments have been initially made into private companies). In addition to a
layer of safety, these arrangements often include terms that generate
recurring income and therefore assisting VOF's dividend payments.

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