Investing in Vietnam isn't for the faint hearted but large discounts are attracting interest


#1

VinaCapital Opportunity Fund (VOF) is a Cayman Island domiciled investment trust, launched in 2003 and listed on the Alternative Investment Market Wha
[See the full post at: Investing in Vietnam isn’t for the faint hearted but large discounts are attracting interest]


#2

Talk about a risky investment! They’re very light on rule of law in Vietnam especially where it concerns investors and property rights.

Also, they’re been promising to reform their state owned enterprises dominated economy for too long.

On top all this risk the fund managers pay themselves ridiculous fees - 1.5% plus a performance fee for the few years when they do make a return.

 

I wouldn’t touch this with a barge poll.


#3

I think it’s an interesting little fund @ronmac but I am also put off by the hedge fund style charging. There is an 8% hurdle rate before the performance fee kicks in but it’s still overly generous for the management.

If they scrapped the management fee altogether and only had a performance fee I’d be happy with that.

Alternately scrap the performance fee and be happy with the still incredibly fat 1.5% annual management fee.


#4

I take the point about the high charges lads and I agree with you totally but I can’t help but also notice that this thing is on massive discount, highest for 12 months.

I don’t know the history of the discount and if it has been wider like 13 months ago or 2 years ago but for boy racer traders, and I’m a little bit of one of them this appeals to me.

Buy now, sell when the discount widens. Job done.