Investment Approach

Investment Approach

VIETNAM HOLDING is a sustainable value investor. The fund was established to initially invest primarily in the privatization of State Owned Enterprises (SOEs) in Vietnam.  The majority of the first portfolio was acquired at the IPO stage or in the OTC markets. In the meantime, many or all of its investment are listed on the stock markets of either Ho Chi Minh City or Hanoi.

The Investment Objective:
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IETNAM HOLDING’s objective is to generate high risk-adjusted returns by combining rigorous financial analysis with interactive sustainability research.  VNH has an investment theme approach following Vietnam’s major economic growth drivers.  VNH ensures diversification by investing in at least 10 economic sectors, without following any benchmark replication objectives. ESG (Environmental Awareness, Corporate Social Responsibility and Corporate Governance) are the cornerstones for the building and maintenance of the investment portfolio.

Engagement for Value:
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IETNAM HOLDING actively engages with the management teams of its investee companies. It continuously monitors their commitment to shareholder and other stakeholder interests. This engagement is an integral part of the investment process. VNH's active and cooperative involvement aims to improve company financial and ESG performance. Each VNH and VNHAM board member is actively engaged with specific portfolio companies. This high-level involvement allows the team of the Investment Manager to obtain buy-in from top management to address issues material to the investee company and its industry and to foster the adoption of international best practices.

Investment Restrictions:
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IETNAM 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 energy, weaponry, and distilled beverages.

Risk Management:
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IETNAM HOLDING may utilize equity derivatives contracts for hedging purposes, and hedge Vietnam Dong exposure against the US Dollar in the forward market, to the extent that such instruments are available and economically feasible.