VinaCapital managed funds' listed equity exposure

RNS Reach

23 August 2012

VinaCapital

VinaCapital managed funds' listed equity exposure in light of the recent banking sector sell off

Ho Chi Minh City - The recent detention of Nguyen Duc Kien has created a highly volatile environment throughout Vietnam's capital markets. Mr. Kien's high profile as the former Vice-Chairman and member of ACB's Board of Directors has directly impacted the banking sector, with share prices of ACB, Eximbank (EIB) and Sacombank (STB), all of which are tied to Kien from previous lending activity and shareholdings, having fallen by the maximum allowable amount (daily floor price) over the past three trading sessions. Pressure from banking related stocks has spilled over into the overall market, with the VN Index down nearly 10 percent this week.

As a result, VinaCapital Vietnam Opportunity Fund Ltd (VOF) has seen a negative impact on its listed equity component which makes up 38.6 percent of the Fund's total NAV as at 31 July 2012. Prior to Tuesday's event, VOF's listed portfolio had increased 8.9 percent for the month of August. However, following the three day sell off, that increase has now turned into a 1.7 percent decline, equivalent to an approximate 0.7 percent reduction in overall NAV. Leading this decline, has been VOF's banking sector holdings (9.5 percent of NAV), namely, EIB, Military Commercial Bank (MBB), and Vietcombank (VCB), which have declined by 4.8 percent month to date.

Vietnam Infrastructure Limited (VNI) has also seen a significant impact from its listed equity holdings, which accounts for 24.9 percent of the Fund's total NAV as at 31 July 2012. Following this week's events, VNI's listed portfolio has decreased by 4.6 percent month to date; equal to a nearly 1.3 percent reduction in its overall NAV. VNI does not hold shares in any bank sector holdings.

VinaLand Limited (VNL) does not directly hold any listed equity and therefore has seen no immediate impact from these events.

This marks another incident negatively impacting the banking sector and will likely place added pressure on an already weakened economy. The State Bank of Vietnam (SBV) has declared it will continue to protect depositor's money and provide liquidity when needed. Speaking on the issue, Chief Investment Officer of VinaCapital, Andy Ho stated, "We are continuing to monitor this developing situation closely in order to protect our shareholders' interests. These events have caused a significant disruption in our capital markets, which could persist in the short term. However, as long term investors, we believe the overall fundamentals for Vietnam's other blue-chip equities remain unaffected and there appears to be an opportunity for investment during this current downtrend."

Notes to Editors:

VinaCapital

VinaCapital is a leading asset management and real estate development firm in Vietnam, with a diversified portfolio of USD1.6 billion in assets under management. VinaCapital was founded in 2003 and boasts a team of investment professionals who bring extensive international finance and investment experience to the firm. Our mission is to produce superior returns for investors by using our experience and knowledge to identify the key trends and opportunities that emerge as Vietnam continues to develop its economy. To achieve this, VinaCapital has teams with broad experience covering equity markets, fixed income, private equity, venture capital, real estate and infrastructure.

VinaCapital manages three closed-end funds trading on the AIM Market of the London Stock Exchange. These funds are: VinaCapital Vietnam Opportunity Fund Limited (VOF), VinaLand Limited (VNL), and Vietnam Infrastructure Limited (VNI). VinaCapital also co-manages the DFJ VinaCapital L.P. technology venture capital fund with Draper Fisher Jurvetson.

VinaCapital has offices in Ho Chi Minh City, Hanoi, Danang, Nha Trang, Phnom Penh (Cambodia) and Singapore. More information about VinaCapital is available at www.vinacapital.com.

Enquiries:

David DropseyVinaCapital Investment Management LimitedInvestor Relations/Communications+84 8 821 9930[email protected]

Philip Secrett

Grant Thornton Corporate Finance, Nominated Adviser

+44 (0)20 7583 5100

[email protected]

 Hiroshi FunakiLCF Edmond de Rothschild Securities, Broker+44 20 7845 5960[email protected]

David Benda / Hugh JonathanNumis Securities Limited, Broker+44 (0)20 7260 1000Mark WaltersFTI Consulting, Public Relations (Hong Kong)+852 3716 9802[email protected]

Andrew WaltonFTI Consulting, Public Relations (London)+44 (0)20 7269 7204[email protected]