VinaCapital Vietnam Opportunity Fund Limited (LON:VOF) has announced its audited results for the year ended 30 June 2026.
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
VinaCapital Vietnam Opportunity Fund Limited1 is a Guernsey domiciled closed-ended investment company. The Company is classified as a registered closed-ended Collective Investment Scheme under the Protection of Investors (Bailiwick of Guernsey) Law, 2020 and is subject to The Companies (Guernsey) Law, 2008 as amended (the “Guernsey Law”). The Company is managed by VinaCapital Investment Management Ltd2 as its manager and, on 5 November 2025, the Company appointed NSM Funds Limited as its administrator and corporate secretary, replacing Aztec Financial Services (Guernsey) Limited who previously fulfilled this function.
Investment Objective
The Company’s objective is to achieve medium to long-term returns through investment in assets either in Vietnam or in companies with a substantial majority of their assets, operations, revenues, or income in, or derived from, Vietnam.
Investment Strategy
The Company’s strategy allows VinaCapital, which has been managing investments on the ground in Vietnam for over 20 years, to navigate the limitations of Vietnam’s fundamentally illiquid market. Thorough due diligence allows us to identify high quality companies, in which we seek to negotiate significant positions where we can influence the direction of the investee company.
A significant portion of the portfolio will have been entered into through a privately negotiated process over the years and this strategy has proven particularly effective in navigating the challenges and managing the inherent risks of investing in Vietnam, while seeking to deliver superior risk-adjusted returns over the long-term for VOF’s investors.
Investment Policy
All of the Company’s investments will be in Vietnam or in companies with at least 75% of their assets, operations, revenues or income in, or derived from, Vietnam at the time of investment.
● No single investment may exceed 20% of the NAV of the Company at the time of investment.
● The Company may from time to time invest in other funds focused on Vietnam. This includes investments in other funds managed by the Investment Manager. Any investment or divestment of funds managed by the Investment Manager will be subject to prior approval by the Board.
● The Company may from time to time make co-investments alongside other investors in private equity, real estate, or similar assets. This includes, but is not restricted to, co-investments alongside other funds managed by the Investment Manager.
● The Company will not invest in other listed closed-ended funds.
The Company may gear its assets through borrowings which may vary over time according to market conditions and any or all of the assets of the Company may be pledged as security for such borrowings. Borrowings will not exceed 10% of the Company’s total assets at the time that any debt is drawn down.
From time to time the Company may hold cash or low risk instruments such as government bonds or cash funds denominated in either VND or USD, either in Vietnam or outside Vietnam.
1 VinaCapital Vietnam Opportunity Fund Ltd is also referred to as the “Company”, “Fund” or “VOF” throughout this Annual Report and Financial Statements.
2 VinaCapital Investment Management Limited is also referred to as the “Investment Manager”, “manager” or “VinaCapital” throughout this Annual Report and Financial Statements.
HISTORICAL FINANCIAL INFORMATION
| As at 30 June | 2022 | 2023 | 2024 | 2025 | 2026 | |||
| Share information | ||||||||
| Share price (USD) | 5.79 | 5.46 | 6.26 | 5.77 | 6.09 | |||
| Share price (GBP) | 4.76 | 4.29 | 4.96 | 4.21 | 4.60 | |||
| Net asset value per ordinary share (USD)1 | 7.22 | 7.02 | 7.43 | 7.13 | 7.73 | |||
| Net asset value per ordinary share (GBP)1 | 5.93 | 5.52 | 5.88 | 5.20 | 5.84 | |||
1Alternative performance measure
FINANCIAL HIGHLIGHTS
In the year to 30 June 2026, the Company’s Net Asset Value (NAV) per share increased in US Dollar terms by 8.4% to USD7.73, and the share price increased by 5.5% to USD6.09. Taking account of dividends paid in the year to 30 June 2026, the NAV Total Return in USD terms was 10.5%.
| As at years ended 30 June | 2022 | 2023 | 2024 | 2025 | 2026 |
| NAV total return1 (%) | (8.8) | (0.4) | 7.8 | (2.2) | 10.5 |
| Share Price total return2 (%) | 1.1 | (3.1) | 17.6 | (5.3) | 8.1 |
| Dividend per share (US cents) | 16.00 | 14.25 | 14.25 | 14.50 | 14.50 |
1 Expressed in percentage terms, is a measure of the investment return earned by the Company, calculated by taking the change in the NAV over the period in question and dividing by the starting NAV. This assumes that any dividends paid in the period are reinvested at the prevailing NAV per share on the ex-dividend date and that the dividend would grow at the same rate of return as the NAV per share after re-investment. A numerical reconciliation of the NAV total return can be found in the alternative performance measures section of this report. This footnote applies to all disclosures of NAV Total Return throughout this Annual Report and Financial Statements.
2 Expressed in percentage terms, is a measure of the return to shareholders, calculated by taking the change in the share price over the period in question and dividing by the starting share price. This assumes that any dividends paid in the period are reinvested at the prevailing share price on the ex-dividend date and that the dividend would grow at the same rate of return as the share price after re-investment. The Share Price total return is provided by an independent third-party provider of investment statistics – see glossary. This footnote applies to all disclosures of Share Price total return throughout this Annual Report and Financial Statements.
CHAIR’S STATEMENT
Dear Shareholder,
As this is my first annual report to you as Chair of VinaCapital Vietnam Opportunity Fund Limited, I would like to thank my predecessor, Huw Evans, for his commitment and support to VOF, particularly during a period of significant volatility and uncertainty. Along with many other industries, the investment trust sector has faced considerable pressure as it adjusts to a more challenging and activist environment.
Performance
Over the 12 months to 30 June 2026, VOF’s NAV increased by 10.5% in US dollar terms on a total return basis. Although this is a respectable absolute return and is close to the Company’s long-term record of 11% annualised returns, it was significantly behind the VN Index benchmark return of 36.5%. As an opportunity fund, the construction of the VOF portfolio is not driven by the constituents of any benchmark index. Nevertheless, the Board recognises that VOF’s relative performance may disappoint some shareholders. As explained in more detail in the Investment Manager’s Report, part of this relative underperformance was driven by extreme share price movements among Vingroup companies.
In addition, the Private Equity team has continued to work on realising cash from the distressed investments which were discussed at length in recent reports. The Investment Manager provides further detail in its report.
In response to these performance issues, the Investment Manager has reorganised and strengthened its investment team while remaining true to VOF’s long-term philosophy as an opportunity fund. This has resulted in a higher-than-usual level of portfolio activity over the past year. Inertia analysis shows that this more active approach to managing the listed portfolio has added value and is likely to remain an important source of future value creation.
Dividends & Share buybacks
Recognising that many shareholders value regular income, our policy is to pay dividends of approximately 1% of NAV per share twice each year, normally declared in March and October. In March 2026, we declared a dividend of 7.25 US cents per share, and the Board has today declared a maintained dividend of 7.25 US cents per share. This will be payable to shareholders on or around 9 December 2026.
Together with an active share buyback programme, regular dividends can represent a significant return of capital to investors. Since VOF first paid a dividend in September 2017, it has distributed a total of 121.85 US cents per share. An investor who bought a share at the market price of USD3.82 at the 30 June 2017 year-end will have received dividends totalling 129.1 US cents per share by the end of December this year, representing a return of 34% of their investment. At the end of June this year, the market price of their shares was USD6.09, an increase of 59%.
The discount remained under pressure for much of the year under review, and the Company therefore continued its active share buyback programme. During the year, 14.3 million shares were bought back at a cost of USD89.58 million, representing 10.1% of shares in issue at the start of the period. The discounts at which these shares were bought resulted in an increase in NAV of approximately 19.7 US cents per share, to the benefit of continuing shareholders.
Investment Management Fees
In late June, we announced new fee arrangements designed to deliver value to shareholders by reducing costs. We also replaced the absolute return hurdle with a long-term, market-based performance benchmark, reflecting the increasing investment opportunities in the listed Vietnamese market. Full details of the revised fees, including transition arrangements, are set out in Note 20 of these annual accounts. In summary:
The base fee will be reduced, following a transition period, to:
– 1.2% of the first USD500 million of net assets under management.
– 0.8% of net assets in the range of USD500 million to USD1.5 billion.
– 0.5% of net assets in excess of USD1.5 billion.
Based on net assets under management as at 30 June 2026 of USD 934 million, the effective base fee rate will fall to approximately 1.0%, representing a total saving of approximately 0.3% compared with the previous management fee arrangement.
The revised performance fee will be calculated on rolling five-year performance compared with a market-based benchmark. When this change was initially announced the FTSE Vietnam All-Share Index was the preferred benchmark. However, FTSE Russell subsequently revised their suite of Vietnamese indices and our chosen benchmark for the purpose of calculating the performance fee is now the FTSE Vietnam 30 Index. We chose this index because it applies investability criteria to reduce over-concentration in certain companies and also addresses foreign ownership limits. The performance fee will be calculated each year at a rate of 0.03% for each 1% of overperformance relative to the market-based performance benchmark. In the event of underperformance, fees will be clawed back at the same 0.03% rate, subject to a maximum clawback of 0.2% of NAV. Under the new fee arrangements, there will no longer be any carry-forward of performance fees.
To lower the Company’s maximum ongoing charges, the total fee cap was reduced to 2.5% of net assets under management.
The new arrangements took effect from 1 July 2026, with transition arrangements in place for the first four years under the new structure.
Although the new fee arrangements incorporate an equity index benchmark, I would like to emphasise that this does not indicate any change in investment strategy. VOF will continue to focus on opportunities wherever they arise, in both listed and unlisted investments, and without reference to the constituents of the benchmark index.
Marketing
Over the last year, there has been increased interest in emerging markets after a period of uncertainty and volatility, although much of that interest has initially centred on companies exposed to artificial intelligence-related expenditure. We continue to believe strongly in Vietnam’s investment potential. VinaCapital, assisted by our joint brokers, Deutsche Numis and Barclays Bank, and our distribution partner, Cadarn Capital, provides regular communication to both existing and prospective investors on the progress of the Company and the opportunities available from investing in Vietnam. We also provide commentary to print and online media to widen our investor base and encourage new investors to consider Vietnam. A detailed fact sheet is issued each month, and regular written and video updates on the Vietnamese market and economy are posted to our website. Investors can sign up to be notified of new publications at https://vof.vinacapital.com.
The Board
During 2027, the Board will begin the process of identifying successors for both Julian Healy and me as we approach our respective retirement dates which will be at the end of 2027 and 2028 respectively. The total aggregate remuneration for the directors was last changed at the AGM in 2018, when it was set at USD650,000. While at present the total remuneration is lower than the cap, directors’ fees have increased over time due to inflation and it may be appropriate to have a period of overlap between newly appointed and retiring directors, which would temporarily increase aggregate fees. In order to make sure that the cap does not impede the ability of the Board to recruit new directors, under Resolution 12 at this year’s AGM shareholders will be asked to approve an increase in the cap on aggregate remuneration of the Board from USD650,000 to USD850,000.
Annual General Meeting
All resolutions proposed at the AGM held on 3 December 2025 were passed in line with the Board’s recommendations.
This year’s AGM will take place on 3 December 2026 at NSM Funds Limited, Les Echelons Court, Les Echelons, St Peter Port, Guernsey, GY1 1AR. Notice of the AGM is sent to registered shareholders with the Annual Report and Financial Statements. All shareholders are encouraged to attend the AGM, where there will be an opportunity to ask questions of the Board and the Investment Manager. If you are unable to attend, you are welcome to send any questions or comments to me at any time via the Company Secretary.
Outlook
Vietnam remains an attractive place to invest. Economic growth remains strong, and the government’s target of 10% annual growth should be achievable over the longer term, although geopolitics and global economic uncertainty may make this more challenging for liquidity in the short term. As in other markets, the strong performance of the Vietnamese stock market has been driven by a small number of stocks. Globally, emerging market sector returns have largely been concentrated among beneficiaries of AI-related expenditure. As there are fewer of these opportunities in Vietnam, international equity market investors have been net sellers of the Vietnamese market. This contrasts sharply with the high levels of foreign direct investment that have continued to flow into Vietnam. With strong earnings growth forecast for many listed companies, current share prices appear attractive and offer interesting investment opportunities for investors able to tolerate short-term volatility caused by external events.
We have been pleased to see the reorganisation of the investment management team. The more active approach to managing the listed portfolio, together with good progress in resolving distressed private equity investments, is a welcome improvement. While investing in unlisted investments has been a source of strong returns in the past, the environment for private equity investment has become extremely challenging and the hurdle for any new PE opportunities is high given the low valuation of listed equities at the moment. Therefore, it is not anticipated that any new private equity investments will be made until such time as performance from the portfolio recovers. Over the longer term the board continues to believe that being able to access a wider range of investment opportunities through the inclusion of private equity, will lead to better longer term returns for the shareholders and give VOF the opportunity to capitalise on Vietnam’s high rate of economic growth.
Strong economic growth and very attractive valuations should support a broader stock market recovery and provide the team with exciting investment opportunities in 2027. The Board will continue to monitor performance closely as the Investment Manager seeks to take advantage of these opportunities for the benefit of VOF shareholders and will remain focused on maximising value for all shareholders.
Kathryn Matthews
Chair
VinaCapital Vietnam Opportunity Fund Limited
23 October 2026
