Vietnam Enterprise Investments

LN: VEIL

£925.4m market cap

425p last close

Vietnam Enterprise Investments objective is to achieve medium- to long-term capital growth by investing in the equity securities of companies primarily operating in, or with significant exposure to, Vietnam. VEIL adopts a bottom-up approach to investment selection and does not set portfolio allocations with reference to index weightings. The VN Index is used as a performance benchmark, which VEIL seeks to outperform on a rolling three-year basis.

Investment summary

Vietnam Enterprise Investments (VEIL) is the largest and longest-established closed-end fund focused on investing in Vietnamese equities. The fund has a solid long-term performance track record (see chart below), delivering annualised NAV total returns of 10% and 8% over five and 10 years respectively. Vietnam appears to be managing the spread of the COVID-19 virus well, and is advanced in the resumption of normal economic activity. Its GDP growth of 7.0% in 2019 was one of the fastest rates globally, and while growth will be disrupted this year, economic prospects remain bright. Vietnam’s equity market fell sharply in response to the pandemic, and forward P/E valuations are now relatively modest, and at an unusually large c 30% discount to global equities, which may present an attractive entry opportunity for longer-term investors.

Share price graph
Price performance
%
1m
3m
12m
Actual (1.6) 28.8 (3.5)
Relative* (1.9) 11.9 15.3
52-week high/low 509.0p/315.0p
*% relative to local index
Key management
Nick Ainsworth Chief Marketing Officer
Rachel Hill Investor Relations

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