Frontier markets specialist unveils Vietnam equity fund

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Investment boutique Asia Frontier Capital has launched a Vietnam equity fund aimed primarily at small- and mid-cap companies.

The AFC Vietnam fund will be available for subscription on 10 December 2013. It invests in equities listed in Vietnam, and has a target size of US$50 million.

The firm said it aims to provide long-term capital appreciation by investing in growth companies especially in the small-medium companies.

The fund is managed by Asia Frontier Capital (Vietnam), led by CEO Andreas Vogelsanger, CIO Andreas Karall, and COO Thomas Hugger (pictured).

‘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.

Commenting on the current market, Karall added that about one-third of the 700 or so listed stocks in Vietnam have a P/E ratio of between 6x and 7x while 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,’ he added.