VINALAND LIMITED Performance summary* | 30 Nov 2016 | |
NAV per share** (USD): | 0.858 | |
Change (Quarter-on-quarter) | -1.2% | |
Total NAV** (USD 'm): | 326.4 | |
Share price (USD): | 0.69 | |
Market cap (USD 'm): | 252.7 | |
Premium/(discount): | -19.6% | |
* 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 30 November 2016, VinaLand Limited (the "Company" or "VNL") unaudited net asset value ("NAV") was USD326.38 million or USD0.86 per share. VNL's share price increased 0.29% to USD0.690 from a closing price of USD0.688 in October 2016, and the Company's share price to NAV discount now stands at 19.61% compared to 19.84% in October. VNL repurchased and cancelled 10.89 million ordinary shares
in November, bringing the total since October 2011 to 133.68 million ordinary shares or 26.74% of the
total shares in issue prior to the commencement of the share buyback program.
During November, the Manager continued to purchase shares and now holds 21,257,833 equal to 5.8% of the company's total voting rights.
Fund updateCumulative change (% change) | ||||
3mth | 1yr | 3yr | 5yr | |
NAV per share | -1.2 | 4.8 | 2.8 | -29.9 |
Share price | 10.6 | 27.7 | 78.5 | 7.0 |
On 16 November 2016, VNL announced that it divested its stake in Project Ceana. The project, acquired by VNL in 2007, is a 7.3-hectare parcel of land located in central Vietnam and has approval for a future residential villa resort development. VNL disposed of its entire stake at a total valuation 12.9% above the 30 September 2016 unaudited net asset value and 42.5% below the net asset value at the time of VNL's previous extraordinary general meeting in November 2012. This transaction resulted in net proceeds
of USD7.6 million to VNL which was received in full. The proceeds received from this exit in conjunction with those collected from past and future disposals will be used to cover VNL's commitments including operating costs and distributions to shareholders.
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 |
The Annual General Meeting (AGM) and Extraordinary General Meeting (EGM) were held on 18 November 2016 in Zurich, Switzerland, where shareholders met to review the Fund's performance since the 2015 EGM as well as the new strategy recommended by the Board and to vote on the resolutions put forward in the AGM and EGM. The shareholders supported the recommendations of the Board regarding all four resolutions which were put to a vote at the Company's AGM which received no less than 99% of votes in support. Furthermore, during the EGM, shareholders supported recommendations of the Board regarding Resolutions 1, 2 and 3, however the Board recommendation for Special Resolution 4 (requiring 66.7% of the vote) was not supported, subsequently Resolution 5 was not put to a vote at the Company's EGM. In summary, the Board recommendations supported by the shareholders resulted in the commencement of the new continuation strategy on 22 November 2016. The Investment Manager, VinaCapital will continue to manage VNL with the primary objective being to continue with the project disposals in a controlled and orderly manner enabling distributions to shareholders. Results of the AGM have been posted on the VNL website.
On 21 November 2016, VNL announced that the redemption of the VinaLand Zero Dividend Preference (ZDP) Share issuance will occur on 19 December 2016. Vinaland ZDP Limited is a wholly owned subsidiary of VNL and following the redemption, VNL level debt will reduce by approximately USD32.1 million.
Key investments | |||
Project | Location | Type | % portfolio NAV |
Pavilion Square | South | Mixed Use | 13.8% |
VinaSquare | South | Mixed Use | 12.8% |
Dai Phuoc Lotus | South | Township | 12.0% |
Times Square Hanoi | North | Mixed Use | 10.0% |
Aqua City | South | Township | 8.7% |
Trinity Garden | South | Residential | 7.6% |
Capital Square | Central | Mixed Use | 7.6% |
Green Park Estate | South | Mixed Use | 6.4% |
Phu Hoi City | South | Residential | 5.0% |
Total | 83.8% | ||
1.30
1.10
0.90
0.70
0.50
0.30
Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14
Jul-14
Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 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 Nov-16
0.10
NAV and share price performance 0.86 0.69Adjusted Share Price on Capital Return Adjusted NAV per share on Capital Return
VNL portfolio by sector (NAV %) VNL NAV by sector (USDm)Additional portfolio information | |
Current assets | 17 |
Divestments | 29 full and residential unit sales |
Debt | Fund level (ZDPs): 9.8% of NAV |
Project level (Bank): 23.3% of NAV | |
Shares outstanding | 366,284,461 |
All figures are after the distribution of capital in June 2016 (USD35.06m or USD0.0876 per share) | |
Residential Mixed Use
Township Hospitality
30.4%
3.1%
14.7%
51.8%
200.0
150.0
100.0
50.0
-
Hospitality Township Mixed Use Residential Total Investment NAV Bank Debt
Real estate market updateDuring November, a number of new condominium projects were launched in Ho Chi Minh City and Hanoi,
Year-on-year and month-on-month inflation (%)particularly in fast-developing residential areas which have benefitted from improving infrastructure. According to CBRE Vietnam, condominium prices remained stable month-on-month while limited supply in landed property segments continued to create upward trend on prices.
Post-Brexit in June 2016, the surprise victory of Donald Trump in the race for United State Presidential Election on 8 November 2016 has sent shockwaves through global markets. However, investment in Vietnam's real estate has remained steady post-US election. According to the Ministry of Planning and Investment, real estate continued to rank second in attracting FDI of Vietnam as at November 2016, with newly registered capital reaching nearly USD741 million across a total of 49 projects.
YoY CPI 8
6
4
2
-
2013 2014 2015 2016
MoM CPI 3
2
1
0
(1)
Macroeconomic update
YoY CPI MoM CPI
November showed that the Vietnamese economy is on track to exceed projections stated earlier this quarter. With the Government's General Statistics Office (GSO)'s Index of Industrial Production (IIP)
rising 7.2% year-on-year and the Nikkei Purchasing Manufacturing Index (PMI) surging to 54.0 from 51.7, manufacturing is on track to drive the economy's growth to end 2016 on a good note. November marks the highest PMI in 16 months due to an influx of new work orders, from both export and domestic sources. What's more, retail sales, which accounts for 60% of the country's GDP, continued to grow at a healthy rate of 9.3% in nominal terms and 7.5% in real terms. The coupling of strong manufacturing and retail growth
is good news for the economy as it indicates that vigorous growth should continue strongly into the next
year.
On the trade front, the GSO reported that November recorded an estimated deficit of USD400 million to reduce the year-to-date trade surplus to USD2.8 billion. Imports grew at a faster pace than exports, posting growth of 1% month-over-month to settle at USD16 billion while exports increased by 1.3% month-
over-month to settle at USD15.6 billion. Telephones continued to lead strong export growth while other
products remained stable.
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
55
Quarterly GDP growth (%)MarJunSepDecMarJunSepDecMarJunSepDecMarJunSepDecMarJunSepDecMarJunSepDecMarJunSep 2010 2011 2012 2013 2014 2015 2016
Purchasing Managers' IndexNovember saw the registration of foreign direct investments (FDI) reduced to its lowest level in 2016, a
50
10.5% year-to-date decrease compared to the same period the previous year. The decrease in registered
FDI is due in part to large investments made last year, such as the Duyen Hai Electricity and De Vuong City projects. On the other hand, actual FDI disbursed nicely in November, surging 8.3% year-over-year to reach USD14.3 billion within the first eleven months, providing a nice source of foreign currency to boost the official reserves and support the Vietnam Dong (VND). This news is welcomed given that the VND came under strong pressures in November as interbank rates reached 22,700 and the USD rose against all major currencies. It is our view that the State Bank of Vietnam will be able to modulate the VND/USD rates given its ability to leverage its estimated USD40 billion FX reserve. Lastly, inflation has reached 4.5% year-over- year, close to the 5% target set by the government. Because the key drivers in increasing inflation are government administered prices, such as gasoline, we are confident that the government will be able to manage and stabilise any further increases in inflation.
The Vietnamese economy is well-positioned to finish the year strongly given the continual growth in domestic demand and the expansion of the manufacturing sector. We expect a GDP growth rate of 6.2% for 2016.
45
Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16
40
Registered and disbursed FDI (2016, USDbn)18
16
14
10 Macroeconomic indicators 8 | |||||
2015 | Nov-16 | 2016 YTD | 6 Year-on-year 4 | ||
GDP growth1 | 6.7% | 2 0 | |||
Inflation (%) | 0.50% | 0.5% | 4.5% | 4.5% | |
FDI commitments (USDbn) | 22.8 | 0.5 | 18.1 | (10.5)%3 | 1 |
FDI disbursements (USDbn) | 14.5 | 1.6 | 14.3 | 8.3%3 | |
Imports (USDbn) | 165.6 | 16.0 | 156.6 | 17.4% | |
Exports (USDbn) | 162.4 | 15.6 | 159.5 | 12.3% | |
Trade surplus/(deficit) (US- Dbn) | (3.2) | (0.4) | 2.9 | ||
Exchange rate (USD/VND)2 | 22,450 | 22,665 | -1.0% | (1 | |
Bank deposit rate (VND) | 5.0% | 4.8% | -20 bps | (1 | |
Sources: GSO, Vietnam Customs, SBV, VCB | 1. Annualized rate, updated quarterly 2. (-) Denotes a devaluation in the cur- rency, Vietcombank ask rate |3. Compared to the first 11 months of 2015 | Sour | ||||
12
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Monthly trade balance (USDm),000
500
-
(500)
,000)
,500)
Feb-15 May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16 Nov-16
ce: 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 for a period of approximately 3 years and commenced 22 November 2016 | ||
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 2019 | ||
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) | ||
Fee structure | A combination of a disposal fee which is 3% of distributable funds in Year 1, 2.75% in Year 2 and 2.25% in Year 3, and an alignment fee which is calculated on distribution to shareholders over a 3-year term. A prepayment advance will be paid to the Manager as follows; Year 1: USD200,000, Year 2: USD150,000, and Year 3: USD100,000 and these prepayments will be deducted from the disposal and alignment fees calculated above. | ||
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 16 December 2016 and is solely responsible for the information contained herein.
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