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VietNam Holding Ltd (VNH)

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Friday 14 June, 2019

VietNam Holding Ltd

Monthly Investor Report

RNS Number : 1860C
VietNam Holding Limited
14 June 2019
 

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

Monthly Investor Report

A report detailing the activities of the Company for the month May 2019 has been issued by Dynam Capital 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

The Fund's NAV per share decreased by 1.2% during May, outperforming the 2.4% decline in the VN All Share (VNAS) Index. However, on a year-to-date basis, the Fund's return of -1.3% is still below the VNAS which is up 3.1%. Our top three performing stocks were Phu Nhuan Jewelry (10.1% NAV, +2.3%), Century Synthetic Fiber (1.8% NAV, +11.5%), and Mobile World (6.1% NAV, +2.3%); the three worst performers were Viet Capital Securities (3.0% NAV, -13.0%), Dat Xanh (2.9% NAV, -14.8%) and Thien Long (4.8% NAV, -7.5%).

 

Cash increased to 8.4% NAV as we completed an exit from VP Bank, focusing the Fund's Bank exposure around Military Bank (MBB). The portfolio is currently concentrated around 22 positions, and we are adding to a few existing positions where our conviction levels are increasing and we are in due diligence on a new potential addition to the portfolio in the logistics space.

 

President Trump's impositions of higher tariffs on Chinese goods plays well to Vietnam's manufacturing strengths. Vietnam is increasing its level of exports to the US (up 28% year-on-year) and levels of registered FDI in Vietnam are growing strongly. There was an overall trade deficit for the year to date of USD0.5 bn, and a slight decrease in value of the Vietnam Dong against the USD.

 

There is much talk about when, and if, Vietnam will lose the Frontier Market label and have its stocks included in the MSCI Emerging Market Index. The journey to MSCI EM status may be more relevant than the destination itself, as improved transparency, reduced foreign limits and other regulatory innovations level the playing field and benefit all investors. There are innovations on the way, and in June it is expected that covered warrants, initially on a few stocks only, will be introduced to the market. As the The Economist (Buttonwood, May 25th) reminds us, if you are seeking exposure to economic development you need to be creative and look at less liquid stocks outside the index, which is where the Fund is focused.

 

For more information please contact:

Dynam Capital Limited                  

Craig Martin                                                                                       Tel: +84 28 3827 7590

 

[email protected] |www.dynamcapital.com

 

www.vietnamholding.com

finnCap

Nominated Adviser and Corporate Broker                                         Tel: +44 20 7220 0500      

William Marle / Giles Rolls


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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