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VietNam's NAV rises 7.2%

By BFN News | 01:54 PM | Friday 18 August, 2017


VietNam Holding (VNH) has reported a 7.2% increase in NAV per share for the year ended 30 June, comprising of a 17.4% "core" gain (after fees) from its portfolio management activities less a 10.2% negative impact arising from the dilutive effect of the recent warrants issue. The Company said that, although the two warrant issues over the past five years have played an important part in raising the total assets of the fund to a solid level of financial sustainability, their dilutive impact on NAV per share has led the board at this stage to decide not to undertake any additional warrant issues for the foreseeable future. VNH added: "Our NAV per share relative to index and peers in the past year has not performed as well as previous years - our NAV per share growth underperformed the index in a full financial year for the first time since 2009. We ascribe this to three factors: (a) a globally better performance from "growth" rather than "value" equity strategies in the past several quarters; (b) some excellent short term share price performances from a number of recent large-capitalisation Vietnamese IPO's during the period, which in most cases sported inflated valuations; and (c) a few cases of robust share price performance from existing major stocks, notably in banks and construction, that we were slow to see value in, and in some cases still do not. We are using our recent experience to inform our future outlook, making adjustments but without deviating from our strict value investing philosophy. As a closed ended fund, we take a long term approach, believing that a minimum three year investment horizon is the appropriate one (rather than one year) for maximising long term risk-adjusted returns." Min Kupfer, Chairperson of VNH, commented: "The year has been characterised by increasing foreign investor attention to the Vietnamese stock markets. We are using our recent experience to inform our future outlook, making adjustments but without deviating from our strict value investing philosophy." At 1:54pm: (LON:VNH) Vietnam Holding share price was 0p at 2.44p Story provided by StockMarketWire.com

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