Performance summary* | 31 Oct 2016 | |
NAV per share** (USD): | 0.858 | |
Change (Quarter-on-quarter) | -1.23% | |
Total NAV** (USD 'm): | 326.4 | |
Share price (USD): | 0.69 | |
Market cap (USD 'm): | 259.5 | |
Premium/(discount): | -19.8% | |
* Figures in USD. Return percentages are for the period, not annualized. | ||
** NAV and NAV per share data are calculated on a quarterly basis. |
As at 31 October 2016, VinaLand Limited (the "Company" or "VNL")'s unaudited net asset value ("NAV") was USD326.38 million or USD0.86 per share. VNL's share price increased 4.48% to USD0.69 from a closing price of USD0.66 in September 2016, and the Company's share price to NAV discount now stands at 19.84% compared to 23.28% in September. VNL repurchased and cancelled 2.15 million ordinary shares in October, bringing the total since October 2011 to 122.79 million ordinary shares or 24.56% of the total shares in issue prior to the commencement of the share buyback program.
Fund update
On 10 October 2016, VNL published its audited financial results for the twelve months ended 30 June 2016 on the VNL website. The audited financial results can be electrically downloaded at the following address: http://vnl-fund.com/report/.
Cumulative change (% change) | ||||
3mth | 1yr | 3yr | 5yr | |
NAV per share | -1.2 | 4.8 | 2.8 | -29.9 |
Share price | 14.7 | 31.6 | 104.5 | 8.2 |
VinaCapital held its annual Investor Conference from 12 to 14 October 2016 in Ho Chi Minh City where VNL presented an update, including details on the proposed new strategy. Following further shareholder interaction, the VNL Board issued a Notice of Annual General Meeting (AGM) and Extraordinary General Meeting (EGM) on 25 October 2016. The AGM and EGM will be held on Friday, 18 November 2016 at the Storchen Hotel on Weinplatz 2, 8001 in Zurich, Switzerland at 11:00 a.m. and 11:30 a.m., respectively (local time). All details regarding these meetings are available on the meeting Circulars and Proxy
Forms, including information that will be put to shareholders for their approval at the AGM and EGM. Shareholders can find these documents available for download at the following address: http://vnl-fund. com/documentation-and-announcements/ .
Quarterly performance history (% change) | ||||
2016 | 2015 | 2014 | 2013 | |
Q1 | 0.6 | -3.3 | -0.4 | -1.0 |
Q2 | 1.4 | 1.1 | 1.2 | -5.8 |
Q3 | -1.2 | 0.6 | 0.0 | -5.2 |
Q4 | 0.0 | 3.9 | 0.0 | -1.0 |
YTD | 0.8 | 2.2 | 0.8 | -12.4 |
*** Change of NAV per share adjusted for the distribution of capital in June 2016 (USD35.06m or USD0.0876 per share) |
In regards to the EGM, the Circular contains Notice of the EGM of the Company with five (5) resolutions. The VNL Board is recommending to shareholders to vote AGAINST the Continuation Special Resolution 1, and FOR all other resolutions. If passed, this will enable VNL to continue with the orderly sell down of projects in conjunction with ongoing development to maximize the return of value to shareholders. All projects will be realized over a period of approximately three (3) years and proceeds collected will be returned to shareholders. For full details on all resolutions, please refer to the EGM and AGM Circulars
and Proxy Forms which can be downloaded at the address listed above. All shareholders are encouraged to vote and the deadline for proxy votes to be received by the Fund Administrator is 5:00 p.m., Singapore time, on 15 November 2016.
Subsequent to the release of the Notice of AGM and EGM, on 26 October 2016, VNL announced that the Company and the Investment Manager have conditionally upon the approval of the Re-organization Resolution at the EGM, agreed to the terms of a Third Amended and Restated Investment Management Agreement ("IMA") which will replace the Current IMA with effect from 22 November 2016. The Third Amended and Restated IMA is materially similar in form to the Current IMA, with exception to the treatment of the fees payable to the Investment Manager.
Key investments | |||
Project | Location | Type | % portfolio NAV |
Pavilion Square | South | Mixed Use | 13.4% |
VinaSquare | South | Mixed Use | 12.5% |
Dai Phuoc Lotus | South | Township | 11.7% |
Times Square Hanoi | North | Mixed Use | 9.7% |
Aqua City | South | Township | 8.5% |
Trinity Garden | South | Residential | 7.4% |
Capital Square | Central | Mixed Use | 7.4% |
Green Park Estate | South | Mixed Use | 6.3% |
Phu Hoi City | South | Residential | 4.9% |
Total | 81.8% |
On 20 October 2016, VNL announced that Mr. Nick Allen has resigned from the Board and was replaced
NAV and share price performance Per share data (USD)1.10
0.92
0.90
Distribution of Capital in Jun 20160.86
0.70
0.50
0.57
0.69
0.30
VNL portfolio by sector (NAV %) VNL NAV by sector (USDm)160
3.0%
Additional portfolio information | |
Current assets | 19 |
Divestments | 27 full and residential unit sales |
Debt | Fund level (ZDPs): 9.7% of NAV |
Project level (Bank): 16.5% of NAV | |
Shares outstanding | 377,173,461 |
All figures are after the distribution of capital in June 2016 (USD35.06m or USD0.0876 per share) |
16.7%
120
Residential Mixed Use Township
Hospitality
29.7%
50.6%
80
40
0
Hospitality Township Mixed Use Residential
Total Investment NAV Bank Debt
by Mr. Ian Lydall as the new Independent Non-Executive Director. As a result, the total number of VNL Board members remains at five. Mr. Lydall has over 15 years experience in accounting, audit and corporate governance in Vietnam, which will greatly assist VNL as it continues to develop and realise its property portfolio. The Chairman, Mr. Casselman, would like to thank Nicholas Allen for his valuable contributions to
Year-on-year and month-on-month inflation (%)the VNL Board since 2010.
During October, the Manager continued to purchase shares which has now reached 20,080,083 and equates to 5.3% of the company's total voting rights.
YoY CPI 8
6
4
MoM CPI 3
2
1
Real estate market updateAccording to CBRE Vietnam, prices remained stable across all segments including condominium and commercial markets during October. Developers are actively pushing to sell units to buyers before the
year-end, resulting in a number of new condominiums being launched in both Ho Chi Minh City and Hanoi, especially in mid-end segment. Concerns remain about the net absorption rate of these ongoing launches, yet undeterred developers continue to use flexible payment terms and incentives to attract buyers.
Due to limited supply, average selling price of landed property segment in both Ho Chi Minh City and Hanoi increased approximately 2%- 5% year-on-year in central business districts ("CBD") while increasing 5%- 10% year-on-year in non-CBD locations, according to Savills Vietnam.
Macroeconomic update
Domestic demand and manufacturing continued to drive Vietnam's economy in October. The Gov- ernment's General Statistics Office (GSO) reported that its Index of Industrial Production (IIP) rose 7% with manufacturing activities surging 11.9%. On the consumer side, retail sales showed growth as sales
2
-
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
2013 2014 2015 2016
YoY CPI MoM CPI
Quarterly GDP growth (%)0
(1)
increased 9.3% and 7.4% in nominal and real terms, respectively. Vietnamese consumers continued to express positive sentiment, as the country scored 107 on Nielsen's Consumer Confidence Index during the third quarter, promising support for future retail sales.
Foreign direct investment (FDI) flows continued to provide the economy a good source of foreign currency, with actual disbursement amounting to approximately USD12.7bn within the first ten months of this year, a 7.6% increase from the same period the previous year. Registered FDI during month, however, declined by 8.7% year-over-year due to a high-base of registered FDI recorded during the previous year.
On the trade front, October saw a monthly trade deficit of USD200m, decreasing the year-to-date trade surplus to USD3.5b. During the reported month, the economy demonstrated higher export growth of 8.3% year-over-year but slower growth of 0.5% compared to September. Notably, both mobile phone and steel exports decreased from the previous month. Inflation increased 0.83% from the previous the month main- ly because of increases in hospital fees and gasoline price. Inflation is expected to trend up as November and December will be the most active months in terms of consumption and production activities. Lastly, the Vietnam dong (VND) remained stable as Vietnam continues to maintain foreign currency reserves that the State Bank of Vietnam (SBV) reported to be USD40b.
With continuing growth in domestic demand and steady growth in manufacturing, alongside positive FDI flows, the economy is well positioned to finish the year strongly. We project GDP growth for this year to be 6.0%.
MarJunSepDecMarJunSepDecMarJunSepDecMarJunSepDecMarJunSepDecMarJunSepDecMarJunSep
2010 2011 2012 2013 2014 2015 2016
Purchasing Managers' Index60
55
50
45
Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16
Oct-16
40
Registered and disbursed FDI (2016, USDbn)20
18
16
14
12
10
8
6
4
2
0
Macroeconomic indicators | ||||
2015 | Oct-16 | 2016 YTD | Year-on-year | |
GDP growth1 | 6.7% | |||
Inflation (%) | 0.5% | 0.8% | 4.0% | 4.1% |
FDI commitments (USDbn) | 22.8 | 1.2 | 17.6 | (8.7)% |
FDI disbursements (USDbn) | 14.5 | 1.7 | 12.7 | 7.5% |
Imports (USDbn) | 165.6 | 15.7 | 140.6 | 13.6% |
Exports (USDbn) | 162.4 | 15.5 | 144.1 | 8.3% |
Trade surplus/(deficit) (USDbn) | (3.2) | (0.2) | 3.5 | |
Exchange rate (USD/VND)2 | 22,450 | 22,285 | 0.7% | |
Bank deposit rate (VND) | 5% | 6.6% | 160 bps | |
Sources: GSO, Vietnam Customs, SBV, VCB | 1. Annualized rate, updated quarterly 2. (-) Denotes a devaluation in the currency, Vietcombank ask rate |3. Compared to the first 10 months of 2015 |
000
500
- 500)
000)
500)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Monthly trade balance (USDm)Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16
Source: GSO, Bloomberg
Board of Directors | VinaCapital Investment Management Ltd | ||
VNL's Board of Directors is composed entirely of independent non-executive directors. | |||
Member | Role | Member | Role |
Michel Casselman | Non-executive Chairman | Don Lam | Chief Executive Officer |
Nicholas Brooke | Non-executive Director | Brook Taylor | Chief Operating Officer |
Nicholas Allen | Non-executive Director | David Blackhall | Managing Director, VNL |
Charles Isaac | Non-executive Director | Anthony House | Deputy Managing Director, Real Estate |
Tran Trong Kien | Non-executive Director | Oai Nguyen | Deputy Managing Director, Real Estate |
Fund background | |||
ISIN | KYG936361016 | ||
Bloomberg | VNL LN | ||
Reuters | VNL.L | ||
Fund summary | |||
Fund launch | 22-Mar-06, current term is up to a maximum of 1 year and commenced 21 November 2015 | ||
Term of fund | Originally seven years, but now subject to shareholder vote for continuation, with the next such vote to occur no later than 21 November 2016 | ||
Fund domicile | Cayman Islands | ||
Legal form | Exempted company limited by shares | ||
Investment manager | VinaCapital Investment Management Ltd | ||
Structure | Single class of ordinary shares trading on the AIM market of the London Stock Exchange plc | ||
Auditor | PricewaterhouseCoopers (Hong Kong) | ||
Nominated adviser | Grant Thornton UK LLP | ||
Custodian, Administrator and Transfer Agency | Standard Chartered Bank (Singapore & Vietnam) | ||
Registrar | Vistra Corporate Services (Cayman) Limited | ||
Brokers | Numis Securities (Bloomberg: NUMI) | ||
Lawyers | Gowling WLG (UK), Maples and Calder (Cayman Islands) | ||
Base and incentive fee | The base (management) fee is USD390 thousand per calendar month. There is an accrued but unpaid performance fee related to disposals contracted prior to 21 November 2015, and a disposal fee of 2.8% of distributable proceeds arising from new disposals contracted after 21 November 2015 which is linked to distributions to shareholders. | ||
Investment policy | The Fund is now in a cash return period and will not make any investments, except where funds are required for existing projects. The Fund will seek to realise assets in the existing portfolio and continue with the development of selected projects to maximize value. | ||
Investment objective by geography | All existing investments are located in Vietnam. There will be no new investments during the current cash return period. |
2016 VinaCapital Group. All rights reservied.
Important Information
This document, and the material contained therein, is not intended as an offer or solicitation for the subscription, purchase or sale of securities in VinaCapital Vietnam Opportunity Fund Limited (the "Company"). Any investment in any of the Companies must be based solely on the Admission Document of that Company or other offering document issued from time to time by that Company, in accordance with applicable laws.
The material in this document is not intended to provide, and should not be relied on for accounting, legal or tax advice or investment recommendations. Potential investors are advised to independently review and/or obtain independent professional advice and draw their own conclusions regarding the economic benefit and risks of investment in either of the Companies and legal, regulatory, credit, tax and accounting aspects in relation to their particular circumstances.
The securities of the Companies have not been and will not be registered under any securities laws of the United States of America nor any of its territories or possessions or areas subject to its jurisdiction and, absent an exemption, may not be offered for sale or sold to nationals or residents thereof.
No undertaking, representation, warranty or other assurance, express or implied, is given by or on behalf of either of the Companies or VinaCapital Investment Management Ltd or any of their respective directors, officers, partners, employees, agents or advisers or any other person as to the accuracy or completeness of the information or opinions contained in this document and no responsibility or liability is accepted by any of them for any such information or opinions or for any errors, omissions, misstatements, negligence or otherwise.
No warranty is given, in whole or in part, regarding the performance of either of the Companies. There is no guarantee that investment objectives of any of the three Companies will be achieved. Potential investors should be aware that past performance may not necessarily be repeated in the future. The price of shares and the income from them may fluctuate upwards or downwards and cannot be guaranteed.
This document is intended for the use of the addressee and recipient only and should not be relied upon by any persons and may not be reproduced, redistributed, passed on or published, in whole or in part, for any purposes, without the prior written consent of VinaCapital Investment Management Ltd.
ir@vinacapital.com
+84 8 3821 9930
www.vinacapital.com
Broker
Numis Securities
+44 (0)20 7260 1000
funds@numis.com
Vinaland Ltd. published this content on 11 November 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 14 November 2016 04:42:06 UTC.
Original documenthttp://vnl-fund.com/report/?file_id=8626
Public permalinkhttp://www.publicnow.com/view/3DD6DACFBE1061C82F267B073497192C89979CE2