VinaCapital Vietnam Opportunity Fund (VOF) grew its net assets by 13.7% in the financial year ended 30 June 2018, with dividends bringing the NAV total return to 16.7% in US dollar terms. While this was below the return of the headline Vietnam VN index, VOF’s capital markets portfolio (which also holds private equity and real estate investments) outperformed the index by c 7pp. Dividends for the year totalled c 2% of NAV.
The fund, which is domiciled in Guernsey but listed in London, has recently joined the FTSE 250 Index. Further developments include a reduction in management fees, with a new tiered structure introduced, and a cut in incentive fees, which will reduce the cost of ownership for shareholders.
Chairman Steven Bates drew investors’ attention to the five-yearly discontinuation vote due at the December 2018 AGM. The board urges investors to vote against the resolution so that VOF can continue to deliver on its differentiated investment strategy, with Vietnam expected to benefit in the long term from a rise in domestic consumption and a shift in manufacturing from China and other higher-cost economies.