(Alliance News) - Vietnam Enterprise Investments Ltd on Thursday reported that its net asset value increased in February on a monthly basis.
Vietnam Enterprise is an investment trust offering exposure to listed equities in Vietnam.
As at February 29, the firm reported net asset value per share of USD9.32, up from USD8.78 at January 31. For the month, NAV total return was 6.2%, lower than a return of 6.6% for the company's benchmark, the Vietnam Index.
VEIL's total NAV now stands at USD1.90 billion, with its top ten holdings comprising 60% of the trust's assets. These assets operate across various sectors in Vietnam, and all ended the month with share price gains following a "favourable macroeconomic backdrop."
Notably, Hoa Pjat Group - which is VEIL's top holding - stands to benefit from a 22% year-on-year increase in government domestic investment and development spending in the first two months of the year to USD2.40 billion. The company is Vietnam's largest steel producer, with a 35% market share in construction steel and 28% in steel pipes.
Lead Portfolio Manager Tuan Le said: "This push looks set to reinvigorate the materials sector, especially steel, and aligns with our expectation of increased demand spurred by infrastructure initiatives."
Other changes including growing retail sales and record low rates mean more of VEIL's holdings are poised to fare well in the country's current economic climate.
Vietnam Enterprise Investments shares were untraded at 578.00 pence each in London on Thursday morning.
By Elijah Dale, Alliance News reporter
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Vietnam Enterprise Investments (VEIL)