The Tundra Vietnam Fund hit its three-year track record on 6 May, having returned some 60% to investors since launch.
Tundra, which bills itself as a frontier markets specialist, has also opened an office in Ho Chi Minh City since the fund launched, and says in its latest monthly note on the performance of the portfolio that “Our conviction is that this is just the start of an exciting journey in the country’s economic development.”
More recently, the local stock market fell in April because of increased concerns about developments involving North Korea. Local investors took profits after a strong start to the year, Tundra notes, but average daily trading volumes have remained high. A technical change to the way local brokerages could calculate their portfolios also resulted in significant profits being reported for Q1 by many.
(Data source: Pensionsmyndigheten; return in SEK)
At the macro level, there are also positive indicators being seen; the PMI index for April was reported as 54.1, as manufacturers continue to enjoy growth based on export demand, Tundra says. Exports rose 15.4% to $61.3bn in the January-April period.