1st Feb 2022 10:22
(Alliance News) - Vietnam Enterprise Investments Ltd said on Tuesday its net asset value growth outperformed the Vietnam reference index in 2021.
The Vietnamese equities-focused closed-end fund said NAV grew by 47% last year. This compares to the VN Index - a capitalisation-weighted index of all companies listed on the Ho Chi Minh Stock Exchange - which rose 39%.
The outperformance of the index all came in the first nine months of 2021, Vietnam Enterprise Investments said, since NAV underperformed the index in the fourth quarter. The company said this was due to a rally in small and mid-cap stocks, while large-cap stocks were sold.
At the end of December, NAV per share was USD12.21, up 47% from USD8.30 a year before, and up 3.6% from USD11.79 at the end of June.
The FTSE-250 listed fund's total NAV at the end of 2021 was USD2.6 billion.
The stock was up 0.7% to 747.95 pence in London on Tuesday morning.
"The company's focus on interlocking strategic sectors (banking, property, steel) was successful in H1 2021 when investors were increasing their allocations to value and growth stocks reflective of the buoyant economy, but they fell away in H2 2021 amidst heavy foreign net-selling and the spread of the Delta variant rumbling macro fundamentals," said Portfolio Manager Dien Huu Vu.
"With over 90% of Vietnam's adult population now double vaccinated and economic indicators showing the country is successfully adapting to 'living with Covid', the investment manager expects things to normalise."
By Elizabeth Winter; [email protected]
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