Emerging Markets

Vietnam-Focused Fund Enters The Stock Market Big League

Tom Burroughes Group Editor 5 April 2016

Vietnam-Focused Fund Enters The Stock Market Big League

While Vietnam might still be classed as a frontier market, a fund tapping into this Asian economy has been moved to the LSE's Main Market, promising more liquidity interest and attraction to investors.

A Vietnam-focused fund has started trading on the Main Market of the London Stock Exchange, which its managers say will boost liquidity and attract a wider audience of investors.

VinaCapital announced the switch to the LSE’s main market of the Vietnam Opportunity Fund earlier this week. The fund is a Guernsey-incorporated company, structured as a closed-end investment company. 

The fund has, VinaCapital said in a statement, “significantly outperformed the MSCI Emerging Markets Index benchmark for the past five years, with the cumulative five-year performance of 37.9 per cent, three-year performance of 16.3 per cent and one-year performance of -4.6 per cent”.

VinaCapital holds more than $1.3 billion in assets under management and says it is one of the largest names to invest in Vietnam. Another firm with a range of funds focused on Vietnam is Dragon Capital, while JP Morgan Asset Management has the JP Morgan Vietnam Opportunities Fund. (Dragon Capital has spoken at conferences organised by this news organisation; for an example, see here.)

“The company has come a long way since its inception in 2003, and we believe a listing on the Main Market marks the start of a new chapter of growth,” said Andy Ho, managing director of the company and chief investment officer of VinaCapital Group.

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