24th Mar 2023 14:25
(Alliance News) - VinaCapital Vietnam Opportunity Fund Ltd on Friday reported a lower net asset value in the half-year to December 31, citing high inflation and increased cost of debt due to higher interest rates.
The fund of investment manager VinaCapital, investing in listed, private equity state-owned enterprise assets in Vietnam, said net asset value per share at December 31 fell 14% to GBP5.10 from GBP5.93 a year prior.
The company said that it has since recovered 2.5% to GBP5.23 as at February, with NAV per share improving to negative 6.2%, when compared month-on-month to January.
"Vietnam's stock market experienced one of the most volatile years in its history during 2022 and ended the year down by 34.1% in USD, total return terms," VinaCapital explained.
The company added: "In the latter half of 2022, Vietnam's manufacturing sector experienced a significant decline in global orders leading to a few major factory lay-offs that made headlines. Some economists have argued that the world is at the beginning of a global recession and that orders will be on the decline well into 2023. Others have argued that inventories have been higher than normal in developed economies and therefore it will take time for these goods to be sold before inventories reach normal levels, at which time manufacturers should expect export orders to re-commence."
VinaCapital Vietnam Opportunity Fund shares rose 0.4% to 432.72 pence each on Friday afternoon in London.
By Tom Budszus, Alliance News reporter
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