Edison issues research review on VinaCapital Vietnam Opportunity Fund
OREANDA-NEWS. VinaCapital Vietnam Opportunity Fund (VOF), one of the larger and longer-established Vietnam-focused funds, provides exposure to the economy's evolution via investment across listed equities, companies in the process of privatisation, private equity and real estate. The manager aims to invest where there is opportunity to help management develop their businesses, focusing on sectors expected to benefit the most from Vietnam's secular growth. The board has been taking action to address the wide discount the shares trade on, including the recent move of listing from AIM to the Main Market of the London Stock Exchange, leading to FTSE index inclusion.
While VOF's 23.7% share price discount to NAV is in line with its three-year average of 23.7%, the board's actions to contain the discount, including the move to the Main Market and a continuing commitment to share buybacks, could support a significant narrowing. VOF's inclusion in the FTSE All-Share and SmallCap indices from 17 June 2016 appears likely to help share liquidity and may also contribute to a positive re-rating of the shares.
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