VietNam Holding is a value investor. The fund was established to invest primarily in the privatization of State Owned Enterprises (SOEs) in Vietnam. The majority of the portfolio was acquired at the IPO stage or in the OTC markets.
The Investment Objective:
VietNam Holding intends to generate high risk-adjusted returns by combining rigorous financial analysis with interactive sustainability research. VNH ensures diversification in 10 to 15 economic sectors without a specific benchmark for individual stock weighting.
Engagement for Value:
VietNam Holding actively engages with the management teams of its investee companies. It continuously monitors their commitment to shareholder interests and long-term stakeholder relationships. This engagement is an integral part of the investment rationale. VNH's active and cooperative involvement aims to improve company financial and ESG performance. Board members of VNH and the Investment Manager work with the portfolio companies to develop awareness of issues material to the company and its industry and to foster the adoption of international best practices.
Investment Restrictions:
VietNam Holding will not invest more than 10% of its assets (at the time of investment) in any single company, and no more than 30% of its assets in any single defined industry sector. VNH will not directly invest in real estate projects. It will not invest in industries identified as inconsistent with successful sustainability including nuclear, weaponry, and distilled beverages.
Risk Management:
VietNam Holding may utilize equity derivatives contracts for hedging purposes, and hedge Vietnam Dong exposure against the US Dollar in the forward market.