VOF.L - Capital Network: Vietnamese Play that Outperforms the Market
VinaCapital Opportunity Fund (VOF.LON) is a closed end fund domiciled in Guernsey, and provides exposure to the attractive growth market of Vietnam. We believe it is a very efficient way to gain exposure, and the quality of the fund is underpinned by its strong management team which has international experience, but importantly are Vietnamese who have deep understanding of the markets the fund invests in. Meanwhile, we believe the fund has advantages over directly investing in the Index or listed equities as it looks to invest in companies before they come to market or opportunities not generally available to market participants (and therefore produce excess returns for investors). Finally, the performance has been strong, with the fund booking returns significantly above the VN Index.
The shares trade at a discount to NAV, but this is a feature of the market and is common even for funds limited to listed equity investments. This is likely due to an oversupply of funds/vehicles (though VOF discount to NAV of around 20% is generally consistent with other Vietnam-focused funds). Management have committed to minimising the discount and looking to narrow it over time, and has been buying back shares; we believe management’s commitment to narrowing the NAV discount provides further comfort for strong shareholder returns.
Quick facts: VinaCapital Vietnam Opportunity Fund Limited
Price: 326.5 GBX
Market Cap: £565.85 m
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