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Our faith in the managers is undiminished despite a slow first half
Vietnam Opportunities Fund (VOF) 503p
Gain to date: 9.3%
Original entry point: Buy at 460p, 23 September 2021
Results from the Vietnam Opportunities Fund (VOF) for the six months to December showed a slowdown from the exceptionally high rates of return in June but we were expecting as much.
Between July and October, Vietnam experienced its most serious wave of Covid infections but the successful roll-out of vaccines and other measures has helped the economy get back on track.
The fund’s net asset value total return per share was 6.9%, although this might be understated as the private and unlisted equity book – which made up 28% of the portfolio at 31 December – is only revalued once a year in June.
The firm maintains it can generate an internal rate of return well above 30% on its private investments, and today 80% of its public equity portfolio is made up of companies which started out as private holdings before coming to market.
The public equity portfolio has grown its earnings by more than 40% per year since 2018 and the managers expect it to significantly outperform the local index in terms of profit growth again this year.
SHARES SAYS: Stick with this experienced team to deliver superior returns.