Edison review on Vietnam Enterprise Investments

RNS Number : 3792L

Vietnam Enterprise Investments Ltd

29 April 2020

 

London, UK, 29 April 2020

Edison issues review on Vietnam Enterprise Investments (VEIL)

Vietnam Enterprise Investments (VEIL) is the largest and longest-established closed-end fund focused on investing in Vietnamese equities. The fund has a solid long-term performance track record (see chart below), delivering annualised NAV total returns of 10% and 8% over five and 10 years respectively. Vietnam appears to be managing the spread of the COVID-19 virus well, and is advanced in the resumption of normal economic activity. Its GDP growth of 7.0% in 2019 was one of the fastest rates globally, and while growth will be disrupted this year, economic prospects remain bright. Vietnam's equity market fell sharply in response to the pandemic, and forward P/E valuations are now relatively modest, and at an unusually large c 30% discount to global equities, which may present an attractive entry opportunity for longer-term investors.

As at 27 April, VEIL traded at an 9.3% discount to NAV, which is narrower than its three-year average of 13.3%. There is scope for this discount to narrow over time if Vietnam's strong economic prospects can attract broader investor interest, and VEIL continues to deliver a solid performance. 

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