Edison issues update on Vietnam Enterprise Invest

RNS Number : 2799W

Vietnam Enterprise Investments Ltd

14 April 2023

 

London, UK, 14 April 2023

Edison issues update on Vietnam Enterprise Investments (VEIL)

Vietnam Enterprise Investments is the UK's largest and oldest listed Vietnamese equities closed-end fund. Despite Vietnam's bright economic outlook, Vietnamese equities were hit hard in 2022 by a toxic mix of unwelcome domestic and global developments, creating a disconnect between Vietnam's favourable economic fundamentals and equity valuations. VEIL underperformed over this period due to its quality growth bias, as investors fled to defensive sectors, but the fund has consistently achieved its objectives of capital growth and outperformance on a rolling three-year basis and over the longer term. VEIL's managers are confident 2023 will be a better year, both for the market and for the trust. They expect government initiatives to be effective in addressing domestic market issues, while the State Bank of Vietnam's recent rate cuts and easing guidance should sooth investors' rate hike jitters. If the managers are correct, the gap between Vietnam's growth prospects and low equity valuations should begin to close, and VEIL's performance should recover accordingly.

Investors may be attracted by VEIL's ability to provide exposure to the stocks set to benefit most from Vietnam's very favourable economic prospects, especially as these stocks are otherwise difficult for foreign investors to access. VEIL's performance may also appeal. Annualised returns have averaged 13.6% in NAV terms over the 10 years to end March 2023, well ahead of the benchmark return of 8.0%, providing ample evidence of the managers' superior stock selection skills. With equities seemingly oversold, now may be a particularly good time for investors to venture into this market.

Click here to view the full report or here to sign up to receive research as it is published.

All reports published by Edison are available to download free of charge from its website

www.edisongroup.com

About Edison: E dison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.

Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney.

Edison is authorised and regulated by the Financial Conduct Authority .

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information, please contact Edison:

Joanne Collins [phone] [e-mail]

Learn more at www.edisongroup.com and connect with Edison on: 

LinkedIn  www.linkedin.com/company/edison-group-/

Twitter     www.twitter.com/Edison_Inv_Res

YouTube  www.youtube.com/edisonitv

 

END

 

 

NRAGPUMWCUPWUBC