24th Oct 2018 11:38
LONDON (Alliance News) - VinaCapital Vietnam Opportunity Fund Ltd on Wednesday said its net asset value grew in its most recent financial year as a result of a strong performance from construction materials and infrastructure investments.
The Vietnam-focused investor posted a net asset value, as at June 30, of USD5.38 per share, up from USD4.73 per share the year before. Its net asset value total return was 16.9%.
Construction materials proved the strongest sector, contributing 9.3% to portfolio return, with the fund's Hoa Phat Group steel manufacturing investment the biggest contributor in that sector. Infrastructure was the second best performer, contributing 5.3% to portfolio return.
Cash & cash equivalents stood at USD14.9 million, near-double the USD7.5 million recorded at the end of its previous year.
VinaCapital Vietnam pays a dividend equivalent to approximately 1% of its net asset value twice per year. It declared a final dividend of 5.5 US cents per share, bringing its total dividend payment in respect of the year to 11.0 cents per share. This compares to 9.6 cents per share for the previous year, an increase of 15%.
In its year ended June 30, VinaCapital Vietnam's pretax profit was USD152.7 million, dropping from USD190.5 million.
"Investment in emerging markets can be a volatile experience for shareholders. The past year has shown how geopolitical issues in the developed world can cause problems for countries like Vietnam," said VinaCapital Vietnam Chairman Steven Bates.
"We continue to see exciting opportunities for return in the Vietnamese market but believe that it will require research and analysis beyond the conventional to unearth the real gems," Bates added.
In a separate statement on Wednesday, VinaCapital Vietnam announced that Independent Non-Executive Director Martin Adams will not seek re-election at the company's December annual general meeting.
Adams has been a member of the fund's board since 2013. Non-Executive Director Julian Healy will succeed Adams as management engagement committee chair.
Shares in VinaCapital Vietnam were down 0.8% at 319.50 pence on Wednesday.
Related Shares:
VinaCapital Vietnam Opportunity Fund