With strong GDP growth, a stable macroeconomic environment, increasing exports, and record levels of foreign direct investment, it is easy to see why Vietnam is considered among the world’s most exciting markets. Half of the population of 95 million is under age 35, and an expanding middle class has created a compelling domestic consumption story that has attracted the attention of companies from around the globe.
VOF gives investors access to a range of carefully selected investments in the listed and private companies that are participating in, benefitting from, and driving the sustainable growth Vietnam is experiencing today.
Latest commentary from our fund manager
February 2019: Green on the Outside, but Red Inside
Some Vietnamese retail investors have a saying that the stock market in Vietnam is “green outside, red inside”. What this means is that the VN Index can be up for the week/day but there are a lot of stocks that are losing value, painting a picture that looks very rosy on the outside but quite gloomy from the inside for most participating investors. This occurs when a few large caps with significant Index weights have registered outsized gains while the rest of the market struggled. The VN Index rose 55 points, or 6.0% (in USD terms) in February, with just over half of that coming from four stocks, namely Vingroup (VIC, +10%, contributing 10 points), Vinhomes (VHM, +9%, 8 points), PetroVietnam (GAS, +12%, 6 points) and Vietcombank (VCB, +7%, 4 points). These four stocks account for 34% of the Index, and if one was “lucky” enough to own these stocks at similar weights to the Index, one would have performed better than most, if not all, the active Vietnam funds. VOF’s net asset value per share was USD5.23, an increase of 3.56% in USD terms. The discount rate narrowed to 14.3% as at end of February 2019.