23rd Apr 2020 11:30
(Alliance News) - Vietnam Enterprise Investments Ltd said Thursday underperformed its comparative index for 2019 even through its net asset value rose over the year.
In dollar terms, net asset value rose by 3.0% over the course of 2019, to USD6.76, however this fell short of the Vietnam Index, which returned 6.8%.
Net assets however dropped to USD829.4 million as at December 31 from USD858.8 million the same date the year before.
Vietnam Enterprise reported a strong performance across all its sectors, with its bank holdings up by 11% driven by a robust financial performance from Military Bank, more than offsetting a disappointing share price performance from its largest bank holdings Asia Commercial Bank.
However, the stronger contribution to the fund's 2019 results was the retail sector, with top performers including Mobile World Group.
However, the real estate & construction sector of the fund's portfolio struggled, as did the Transportation sector, following Airport Corporation of Vietnam's full divestment from Vietjet Air.
"Despite the concentration of performance in 2019, the return of a strong Vietnamese equity market was a welcome sign after a difficult 2018. The macro themes driving Vietnam's future growth appear unblemished, with strong GDP growth, relatively benign inflation, well-controlled credit and stable FX; perfect conditions for a strong equity market which continues to offer great value for growth compared to its regional peers," said Investment Manager Vu Huu Dien.
Shares in Vietnam Enterprise Investments were up 0.4% at 384.50 pence on Thursday in London.
By Dayo Laniyan; [email protected]
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