AFC Vietnam Fund Investment Strategy
The AFC Vietnam Fund is designed to offer investors high returns from growth in equity markets in Vietnam whilst offering a portfolio that has low correlation with global equity markets. The fund aims to achieve long-term capital appreciation for investors by capturing value in in undervalued listed Vietnamese equities over the next 5-7 years, predominantly targeting the small to medium size company segment.
Vietnam has very compelling growth prospects with an attractively valued market that has significant room to grow. Competitive labour costs combined with improvements in human capital as well as economic and trade environments present a strong case for market development. Vietnam has had a stable currency and increasing foreign reserves over the past two years and high GDP growth rates are being supported by fiscal and monetary policy.
Vietnam's markets have seen several years of consolidation since dropping from their highs in 2007 and improving fundamentals will support domestic markets in the next economic cycle. Reaching previous highs in coming stock market cycles would mean a potential increase of several hundred percent in local terms.