VinaCapital Vietnam Opportunity Funds (VOFs), a large British investment trust dedicated to investments in capital markets, private equity, undervalued assets, privatised assets, property and private placements, sterling net asset value (NAV) per share decreased by 8.8% over the year ending June 2023 in total return (TR) terms, outperforming the Vietnam VN Index and its direct peers in a tough environment. The Vietnamese economy recently experienced headwinds from a liquidity crunch in the real estate industry, which represents roughly a fifth of Vietnam’s equity market capitalisation and a fourth of VOF’s NAV, as well as from slowing exports. That said, the downside protections embedded in many of VOF’s investments provide the fund with a certain cushion against these real estate sector challenges. VOF’s shares trade at a 14% discount to NAV (broadly in line with the long-term average) and offer a 2.6% dividend yield.
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