Vietnam Holdings Ltd (LON:VNH) has continued to outperform the country’s local stock indices in the month of July, while the fund also revealed a strong grade of AA*A from its latest Principles of Responsible Investment (PRI) assessment, a UN-backed network of investors promoting sustainable investing.
In its report for July, the fund reported a net asset value (NAV) of 173.3p per share, 2.1% lower month-on-month but better than the equivalent performance of the Vietnam All-Share Index which was down 3.6% in the same period. The company’s NAV is also at a 16% premium to its last closing price on Thursday of 149p.
The company’s investment manager, Dynam Capital Limited, said the firm’s outperformance during the month had been boosted by some profit-taking in software and IT services firm FPT, the largest holding in VNH’s portfolio, by reducing its stake to 12% from 15% and selling a 20% premium to the market price.
Looking ahead, Dynam said despite falls in the equity markets, it saw “signs of bottoming out and recovery in Vietnam's economy”, and that despite the recent emergence of new coronavirus cases in the city of Da Nang there were “some reasons to remain hopeful”.
“Retail figures for the month of July, particularly for online sales, show that consumer spending is increasingly optimistic. Let us not forget the country's relatively quick recovery following the national shutdown in March”, the investment manager said, adding that if the government handling of the virus can continue to ensure public confidence “then tourism and domestic spending are likely to bounce back again”.
Shares in VNH were steady at 149p in mid-morning trading on Friday.