Saturday, October 15, 2016

Vietnam Opportunity Fund September report

VOF Fund:

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From a macro perspective, the recent deposit interest rate cuts of 20-30 bps by the banks, in addition to the stable exchange rate can be seen as supportive to price-to-earnings multiples that have increased from 14x to 16x this year. As such, we think both oil prices and macro factors in Vietnam will provide a positive backdrop for the market to at least hold on to the solid gains it has made thus far. Further advances will depend on upcoming third quarter earnings season announcements, as well as appetite for risk assets in terms of emerging and frontier market flows.

I like Vietnam very much and VOF as a vehicle to play the Vietnamese market. The shares of VOF are trading at a 23% discount to net asset value. You are getting $1.00 in assets for $.77 cents. 

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