Asia Frontier Capital Launches Vietnam Fund

Asia Frontier Capital Launches Vietnam Fund
Dec 3 2013 | 10:52am ET
Asia Frontier Capital Limited has launched a Vietnam-focused fund.
The open-ended, Cayman-domiciled AFC Vietnam Fund, available for
subscription to qualified new investors as of December 10, will
invest in Vietnamese listed equities. The fund has a target size
of US$50 million.

Overseeing the new fund will be AFC’s two Andreas—CEO Andreas
Vogelsanger and CIO Andreas Karall—and COO and founder Thomas
Hugger. The Vietnam fund will focus on growth companies,
particularly small to medium-sized firms.

“After a 70-90 % price decline in the years 2007-2012, we now
see enormous upside potential in this new business cycle which
has just started and is expected to last for the next 5-7 years”
said Karall, in a statement. “About one third out of more than
700 listed Vietnamese stocks have a P/E ratio between 6x and 7x,
are trading below book value, many of them have a dividend yield
of more than 9% and there are even some companies whose net cash
position is almost as high as their market cap.”

“Vietnam’s growth prospects are very compelling, especially with
the restructuring of the banking sector and various government
stimulus packages to support the economy” said Vogelsanger, in a
statement. “A stable local currency combined with very competitive
labour costs will help to further accelerate foreign direct
investments into Vietnam.”

Hugger characterized the new fund as “an excellent addition to the
well-established flagship AFC Asia Frontier Fund which provides
investors with exposure to Vietnam as well as listed equities across
high-growth Asian frontier markets including; Bangladesh, Cambodia,
Iraq, Laos, Mongolia, Myanmar, Pakistan, Papua New Guinea, Sri Lanka
and Vietnam

Leave a Reply

Your email address will not be published. Required fields are marked *