VinaCapital VN100 ETF · HOSE:FUEVN100
VinaCapital VN100 ETF — VinaCapital Vietnam Opportunity Fund — VinaCapital 2016 Investor Conference
33 slides from VinaCapital VN100 ETF's conference presentation, Oct 14, 2016
Slide 1: 2016 Investor Conference
2016 INVESTOR CONFERENCE 12-14 October 2016 Park Hyatt Saigon, Ho Chi Minh VinaCapital Vietnam Opportunity Fund Andy Ho Chief Investment Officer Managing Director
Slide 2: VOF overview
Click Clicktotoedit editMaster Mastertitle titlestyle style VOF overview • Launched 2003. Migrated from AIM to the LSE Main Board on 30th March 2016. A closed-end fund, domiciled in Guernsey. • High-conviction, multi-asset strategy. Focus on sectors that benefit from domestic consumption and infrast
Slide 3: Why VOF
Click Clicktotoedit editMaster Mastertitle titlestyle style Why VOF
Slide 4: VOF strategy
Click Clicktotoedit editMaster Mastertitle titlestyle style VOF strategy VOF’s strategy takes advantage of market inefficiencies by investing in public and private equity. 50% of VOF is invested in a high conviction portfolio of c.20 quoted investments, unconstrained by 1 index weightings. Strong re
Slide 5: VOF portfolio and performance
Click Clicktotoedit editMaster Mastertitle VOFstyle title style portfolio and performance Performance is driven by our conviction to large public equity holdings, private equity investments, and OTC investments (pre-IPO and privatisations). Annualised returns 4.1% 3.1% Asset class1 FY2016 Last 3 yea
Slide 6: VOF top ten holdings
Click Clicktotoedit editMaster Mastertitle titlestyle style VOF top ten holdings 2016 Foreign Investee company % of NAV Asset class Sector Description earnings ownership growth premium Leading dairy company with dominant Vinamilk (VNM) 16.1 Listed Food & Beverage 28% 0% market share Hoa Phat Group (
Slide 7: VOF listed equity holdings
Click Clicktotoedit editMaster Mastertitle titlestyle style VOF listed equity holdings 1 Represent 54% of the Fund with a concentrated portfolio of conviction holdings in <20 stocks. Focus on domestic consumption growth with little exposure to import/export related companies, 2 hence less risk from
Slide 8: Vietnam Stock Market
Click Clicktotoedit editMaster Mastertitle titlestyle style Vietnam Stock Market
Slide 9: Vietnam outperforms ASEAN peers
Click Clicktotoedit editMaster Mastertitle titlestyle Vietnam style outperforms ASEAN peers The market continues to trade at a discount but the valuation gap is expected to close as the market’s breadth and depth increase. Trailing PE Trailing PE, ROE (%), September 2016 30 28 INDONESIA (Div yield:
Slide 10: Capital markets continue to improve
Click Clicktotoedit editMaster Mastertitle titlestyle Capital style continue to improve markets Total market cap of USD69.5 billion1 across 2 exchanges and 690 listed companies. Foreign interest continues to accelerate on expectation of further privatisations and lifting of FOL. Last price Volume 1,
Slide 11: Lifting of foreign ownership limits has quickened pace
Click Clickto Lifting toedit of editMaster Master foreign title titlestyle ownership style limits has quickened pace Foreign ownership events in 2015 – 2016 A number of companies have removed their Q3 FOL, including Vinamilk and Domesco 2016 Almost a dozen companies have taken steps May towards incr
Slide 12: Attractive investment opportunity in SOE privatisations
Click Clicktotoedit Attractive editMaster Mastertitle investment titlestyle style in SOE privatisations opportunity Vietnam is forecast to experience some of the fastest IPO growth in the world, with a 208% increase expected between 2015 and 20202 largely driven by SOE privatisations Market cap / St
Slide 13: Private equity overview
Click Clicktotoedit editMaster Mastertitle titlestyle stylePrivate equity overview The fund continues to review both government and private opportunities 1 VOF’s PE team has generated superior returns of over 20% over 40 fully realised investments. PE is focusing on private companies particularly in
Slide 14: Private equity investment summary
Click Clicktotoedit editMaster Mastertitle titlestyle Private style equity investment summary In total, VinaCapital’s Vietnam Opportunity Fund (VOF) has invested nearly USD780 million across 92 private equity-related transactions since inception1 Private equity investments by transaction type2 Priva
Slide 15: Actively participate in private equity investments
Click Clicktotoedit editMaster Actively Mastertitle titlestyle participate instyle private equity investments VinaCapital plays an active role in investee companies, providing ongoing support in a number of areas development membership Recruitment Operational governance Leadership advisory & Corpora
Slide 16: Case study of private company: An Cuong Woodworking
Click Clicktotoedit editMaster CaseMaster title study of style title style private company (current investment): An Cuong Woodworking A leading wood-working and decorative materials company based in Ho Chi Minh City, which serves the domestic market and exports to Japan, Southeast Asia, North Americ
Slide 17: Case study of SOE privatisation: Vinatex
Click Clicktotoedit editMaster CaseMaster title study of SOEstyle title style privatisation (current investment): Vinatex – Vietnam National Textile & Garment Group Vinatex is one of Vietnam’s leading textile and garment corporations, involved in the import, export, production and distribution of te
Slide 18: Case study of SOE privatisation: DHG Pharmaceutical
Click Clicktotoedit editMaster studytitle Master Case style oftitle SOE style privatisation (exited investment): DHG Pharmaceutical JSC DHG Pharmaceutical is the No.1 domestic generic drugs producer in Vietnam with 5% market share, extensive distribution network and strong management team Vietnam Dr
Slide 19: Case study of private company: Novaland Group
Click Clicktotoedit editMaster CaseMaster title study of style title style private company (current investment): Novaland Group (NVLG) Novaland is a leading private residential real estate developer in Vietnam with an established reputation as a developer focusing on well-located, mid-scale projects
Slide 20: Case study of private company: Thai Hoa International Hospital
Click Clicktotoedit editMaster CaseMaster title study of style title style private company (current investment): Thai Hoa International Hospital Thai Hoa International Hospital is a premium healthcare facility in the Mekong Delta, with strong leadership and high quality equipment and services Doctor
Slide 21: Property sector overview
Click Clicktotoedit editMaster Mastertitle titlestyle style Property sector overview The Fund continues to Divest of direct Real estate investments. Together with VNL, which is in the process of a realisation strategy, we sold a number of projects this 1 year, including Century 21, Pham Hung Road, a
Slide 22: Performance & Summary
Click Clicktotoedit editMaster Mastertitle titlestyle style Performance & Summary
Slide 23: Capital markets performance compared to peers
Click Clickto Capital toedit editMaster markets Master (listed title and style title OTC)style performance compared to peers CY 2016 YTD FY 2017 For CY2016 YTD and FY20171, VOF’s 41.4% capital markets portfolio outperformed its peers2, VN Index (USD terms), ETFs and MSCIs with highest returns of 41.
Slide 24: VOF discount management and share buyback programme
Click totoedit ClickVOF editMaster Master discount title titlestyle management style and share buyback programme Since implementing the buyback programme VOF has reduced its discount, and the main board listing has increased both trading and liquidity. 5.00 VOF share price, NAV and shares bought bac
Slide 25: Summary
Click Clicktotoedit editMaster Mastertitle titlestyle style Summary Positive outlook for Vietnam and VOF. Economy VOF • An economy that is outperforming its peers • A unique multi-asset strategy that take advantage of the inefficiencies in Vietnam’s investment environment • Free trade agreements tha
Slide 26: Why Vietnam
Click Clicktotoedit editMaster Mastertitle titlestyle style Why Vietnam
Slide 27: Why Vietnam
Click Clicktotoedit editMaster Mastertitle titlestyle style Why Vietnam Vietnam’s growth is driven by rising domestic consumption and rapid infrastructure development. • Demographics 94 million people with an average age under 30 • High GDP growth One of the best performing emerging markets with 6.7
Slide 28: Successful revitalisation of the economy
Click Clicktotoedit editMaster Mastertitle titlestyle Successful style revitalisation of the economy Vietnam’s 2016 GDP growth is projected to continue at 6.3%, making it among the highest performers in the world; meanwhile inflation remains manageable GDP is growing at impressive pace Vietnam’s GDP
Slide 29: Young, educated and inexpensive workforce
Click Clicktoto Aedit editMaster Master young, title titlestyle educated style and inexpensive workforce The affluent middle-class will double to 21m Vietnam’s young, productive population has been people by 2030. Labour costs are among the a catalyst in attracting foreign direct investments lowest
Slide 30: High-value export economy
Click Clicktotoedit editMaster Mastertitle titlestyle style High-value export economy Steady export growth Well balanced export markets Exports value (USD billion) Exports by market, 2015 200 180 Europe 160 21% USA 140 33% China 120 100 Japan 80 Korea 21% 60 5% Others 40 9% 11% 20 0 2005 2006 2007 2
Slide 31: Overall improving macroeconomics
Click Clicktotoedit editMaster Mastertitle titlestyle Overall, style improving macroeconomics FX reserves strengthening off positive trade flows Inflation remains stable thanks to low commodity prices USD billion YoY CPI MoM CPI 40 5 8 3 4 6 30 2 3 4 20 1 2 2 10 0 1 - 2013 2014 2015 2016 - 0 (2) (1)
Slide 32: VOF portfolio management team
Click Clicktotoedit editMaster Mastertitle titlestyle VOF style portfolio management team Andy Ho, MBA Duong Vuong, CFA Chief Investment Officer and Managing Director Deputy Managing Director, Capital Markets • 8 years at VinaCapital, currently MD of VOF and Chief • 2 years at VinaCapital, currently
Slide 33: Contact details
Click Clicktotoedit editMaster Mastertitle titlestyle style Contact details VinaCapital 17th Floor, Sun Wah Tower 115 Nguyen Hue Street District 1 Ho Chi Minh City Vietnam +84 8 3821 9930 www.vinacapital.com Andy Ho – Managing Director andy.ho@vinacapital.com +84 8 3821 9930 Khanh Vu – Investment Di
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