Trustnet Magazine 95 May 2023 | Page 48


VinaCapital Vietnam Opportunity

Analysts at Numis say a 16.2 % discount represents an attractive entry point for this trust considering the powerful demographic tailwinds working in its favour

In addition to the headwinds that have buffeted global equities over the past couple of years , Vietnam has had to contend with ones specific to its own market – in the second half of 2022 , a crackdown by the Vietnamese government on corruption and poor business practices , particularly in the real estate sector , helped push the Vietnam Ho Chi Minh index to an all-time low . Unsurprisingly , the VinaCapital Vietnam Opportunity trust struggled last year , falling 11 %. However , this was much less than the 36.8 % drop in the MSCI Vietnam index . The analysts at Numis said the trust was aided by its multi-asset approach , including an emphasis on private equity in domestic growth sectors , although there were still some disappointing write-downs . According to the trust ’ s manager , Andy Ho , the good news is that current low valuations of Vietnamese equities represent an attractive entry point considering the country ’ s powerful demographics . For example , the World Bank has predicted that Vietnam will experience 6.3 % growth in 2023 , which will pick up to 6.5 % in 2024 as the country ’ s main export markets gain strength . Analysts at Numis also claimed that Vietnam could benefit from the diversification of manufacturing processes away from China . “ More institutions are allocating to
/ 48 / trustnet . com