VinaCapital Vietnam Loses Out To Benchmark But Optimistic Going Ahead

27th Mar 2018 17:26

LONDON (Alliance News) - Vietnam-focused investor VinaCapital Vietnam Opportunity Fund Ltd said Tuesday its net asset value return fell short of its benchmark in its first half, as it reduces its exposure to real estate investments.

VinaCapital's net asset value increased by 18% in US dollar terms, compared to its VN Index benchmark's 27% return, though VinaCapital said it had nonetheless still posted a "good" return.

The company has declared a 5.5 cents dividend for the period, having not paid one for its prior year's first half.

It explained the disparity in two ways: firstly, its portfolio has private equity holding which are not market to market, and returns from these are "lumpy". Secondly, it held a higher than usual cash position as it prepares to make investments, giving a "cash drag" on net asset value as the market rose strongly.

VinaCapital has been reducing its exposure to real estate stocks, and it has nearly done this, with only 1.1% of its portfolio valuation in this sector.

Looking ahead, the firm said long-term arguments for investment in Vietnam remain intact, with the country's economy growing well, remaining "vibrant".

Shares closed down 0.6% on Tuesday at 348.00 pence each.

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VinaCapital Vietnam Opportunity Fund