Vietnam Holding Ltd (LON:VNH) is trading at more than a 13% discount to the value of its net assets, broker finnCap pointed out in a new research note.
The recent 186.0p share price compared to the latest 214.1p net asset value (NAV) per share for the London main market investment trust.
Analysts at the company’s house broker noted that the £100mln trust has been seeking Vietnam’s best listed quality & growth companies since it was launched in 2006, delivering a long-term track record of outperformance of the Vietnam All Share index.
Dynam Capital, the investment manager, where Vu Quang Thinh leads a nine-strong Vietnam-based team, keeps a concentrated portfolio of around 25 locally listed equities, with the focus on EPS growth at attractive valuations.
Investing in Vietnam is a play on the ongoing economic growth of the south-east Asian country, where the economy has been growing at 5-7% for each of the last five years and where there is a possibility that the country’s stocks will get a boost from being included in the MSCI Emerging Markets index.
Current themes of the portfolio include urbanisation and domestic consumption, especially from a growing middle class.