Last checked at 
14 Jun 2019 07:30
VietNam Holding Limited ("VNH" or the "Company")
Monthly Investor Report
A report detailing the activities of the Company for the month May 2019 has been issued by Dynam Capital Limited, the investment manager of the Company. Electronic copies of the report have been made available to shareholders on the Company's website at http://www.vietnamholding.com/publications/investor-reports and a summary of the report is included below.
Investor Report Summary
The Fund's NAV per share decreased by 1.2% during May, outperforming the 2.4% decline in the VN All Share (VNAS) Index. However, on a year-to-date basis, the Fund's return of -1.3% is still below the VNAS which is up 3.1%. Our top three performing stocks were Phu Nhuan Jewelry (10.1% NAV, +2.3%), Century Synthetic Fiber (1.8% NAV, +11.5%), and Mobile World (6.1% NAV, +2.3%); the three worst performers were Viet Capital Securities (3.0% NAV, -13.0%), Dat Xanh (2.9% NAV, -14.8%) and Thien Long (4.8% NAV, -7.5%).
Cash increased to 8.4% NAV as we completed an exit from VP Bank, focusing the Fund's Bank exposure around Military Bank (MBB). The portfolio is currently concentrated around 22 positions, and we are adding to a few existing positions where our conviction levels are increasing and we are in due diligence on a new potential addition to the portfolio in the logistics space.
President Trump's impositions of higher tariffs on Chinese goods plays well to Vietnam's manufacturing strengths. Vietnam is increasing its level of exports to the US (up 28% year-on-year) and levels of registered FDI in Vietnam are growing strongly. There was an overall trade deficit for the year to date of USD0.5 bn, and a slight decrease in value of the Vietnam Dong against the USD.
There is much talk about when, and if, Vietnam will lose the Frontier Market label and have its stocks included in the MSCI Emerging Market Index. The journey to MSCI EM status may be more relevant than the destination itself, as improved transparency, reduced foreign limits and other regulatory innovations level the playing field and benefit all investors. There are innovations on the way, and in June it is expected that covered warrants, initially on a few stocks only, will be introduced to the market. As the The Economist (Buttonwood, May 25th) reminds us, if you are seeking exposure to economic development you need to be creative and look at less liquid stocks outside the index, which is where the Fund is focused.
For more information please contact:
Dynam Capital Limited
Craig Martin Tel: +84 28 3827 7590
info@dynamcapital.com |www.dynamcapital.com
www.vietnamholding.com
finnCap
Nominated Adviser and Corporate Broker Tel: +44 20 7220 0500
William Marle / Giles Rolls