Vinacapital Vietnam Opportunity Fd (LON:VOF), one of the larger and longer-established Vietnam-focused funds, provides exposure to the economy’s evolution via investment across listed equities, companies in the process of privatisation, private equity and real estate. The manager aims to invest where there is opportunity to help management develop their businesses, focusing on sectors expected to benefit the most from Vietnam’s secular growth. The board has been taking action to address the wide discount the shares trade on, including the recent move of listing from AIM to the Main Market of the London Stock Exchange, leading to FTSE index inclusion.
Investment strategy: Proactive approach
The manager follows a bottom-up equity selection process and has strengthened its in-house research capability in the last year. Investments are made on a three- to five-year view. Identification of opportunities, particularly in the private equity and pre-privatisation areas, is facilitated by VinaCapital’s established network of relationships in business and government, and VOF works closely with investee companies to create value. The manager is cutting VOF’s direct property exposure (to reduce development risk) while adding to indirect property as well as increasing unlisted investments, which have historically produced strong returns (see page 10).
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