Monthly Investor Report

RNS Number : 8877L

VietNam Holding Limited

14 January 2016

 

VietNam Holding Limited ("VNH" or the "Company")

Monthly Investor Report

A report detailing the activities of the Company for the month of December 2015 has been issued by VietNam Holding Asset Management Limited, the investment manager of the Company. Electronic copies of the report have been made available to shareholders on the Company's website at http://www.vietnamholding.com/publications/investor-reports and a summary of the report is included below.

Investor Report Summary

Vietnam News

For the full year 2015, the VNAS rose 4.2% in Vietnam Dong (VND) terms and declined by 0.9% in USD terms. Currency stress again featured in December, with the VND frequently trading beyond its upper trading band (VND22,547 per USD) by almost 1% in the interbank and unofficial markets. This is a direct result of the renminbi's further creeping lower. The market appears to have decided that the VND must follow the Chinese currency in near lock-step.

Standard Chartered, in their annual market outlook for the year ahead states that "USD-VND remains vulnerable to a stronger USD around the Fed rate hike, as well as a potential further uptick in USD-CNY."

Should this currency lock continue to hold, it does suggest heightened devaluation risk in the coming months for the VND - due to Chinese slowdown and political instability impacting the business.

As Vietnam's major Asian peers will be subject to the same currency pressures, the country's relative competitiveness as a producer for exports remains strong.

GDP growth has steadily improved quarter-by-quarter in the past two years from 5.1% in Q1-2014 to 7.0% for Q4-2015.

VNH Insights

VNH's investment performance continues to be well ahead of the wider market's. Its NAV per share increased by 8.4% for the full year.

Over the five-year period, VNH's 79.1% investment return took into account cumulative VND/USD value losses of 15.3% and outperformed the USD-adjusted VNAS Index by as high as 73.1%. During the same period, the two ETFs have underperformed the VNAS by a combined weighted 41.6%. In other words, VNH has out-performed the two ETFs by a full 114.7% over five years.               

VNH is now leading all its peers in every cumulative past performance period from one to six consecutive years. Our combination of value investing with sustainability works well.

Supported by gratifying economic strengths and ongoing strong retail sales, projected EPS consensus growth for the market this year is 14% and for the VNH portfolio it is a much higher 23%.      

For more information please contact:

VietNam Holding Asset Management Limited	Tel: [phone]
Investor Relations Gyentsen Zatul [e-mail] www.vietnamholding.com
Smith & Williamson Corporate Finance Limited Nominated Adviser	Tel: [phone]
Azhic Basirov / Ben Jeynes
Winterflood Investment Trusts Broker	Tel: [phone]
Joe Winkley / Neil Langford
Buchanan Communications Financial Public Relations	Tel: [phone]
Charles Ryland / Vicky Watkins

 

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